Arkady Dvorkovich: Good morning, colleagues. The tenth Krasnoyarsk Economic Forum, which we've done a lot of work on, will be held this week. I chaired the organising committee. We worked very hard, and I can assure you that everything is in place. The forum venue is still being set up, but this is normal. Mr Kuznetsov (Krasnoyarsk Territory Governor Lev Kuznetsov) will tell you about the forum.

I will talk about several issues briefly. First, the main task of the forum is to discuss the implementation of the Government's guidelines, which Prime Minister Dmitry Medvedev announced at a meeting at the Kremlin on January 31 this year. The mechanisms of the Government's operation are clear, and all the necessary proposals have been formulated, but we want to coordinate our actions with the expert community, with professionals and regional authorities, in order to decide how to proceed on these main directions in the next few years.

The focus will be on how the main aspects will be implemented in Siberian and Far Eastern regions. There will be a detailed discussion of how the energy and transport infrastructure and natural resources are developed, including as part of the green growth programme. Also on the agenda will be issues of standards of living and, of course, of state administration, on which the effectiveness of the implementation of the main areas of the Government’s activities and objectives set by the Russian President are dependent. The Krasnoyarsk format is very convenient for this. It has proved to be an interactive format, involving animated discussion with top level heads and frank discourse with no pretenses. I hope the plenary meeting that will be held on February 15 will be broadcast live so everyone will be able to watch it. It should be a very interesting event.

Now a few more details about the Prime Minister’s programme at the Krasnoyarsk Economic Forum. Mr Medvedev will arrive in Krasnoyarsk the day before the forum, on February 14. He will hold the regional part of his programme before the forum actually starts. This will include an inspection of the facilities that Krosnoyarsk plans for the 2019 Winter Universiade if it is decided, and I hope it is, that the event will be staged there.

These will include sports and healthcare facilities.

We hope that talks with Claude-Louis Gallien, President of the International University Sports Federation (FISU), will help to promote our bid. After hosting the 2013 Summer Universiade in Kazan we would also like to demonstrate our ability to hold the winter student games. Krasnoyarsk has been chosen as the best candidate to host the Universiade. Its chances are quite good, but it will be a difficult battle and so support from the Prime Minister would come in handy.

Mr Medvedev will then visit Siberian Federal University, where he’ll meet with students and hold a joint meeting with the boards of trustees of the Siberian and Southern federal Universities. He has not chaired this kind of meeting for a long time, and hence we need to coordinate the organising of it and analyse the two universities’ performance and determine whether additional measures need to be taken. We also plan to hold a party event.

On February 15, the Prime Minister will attend the forum. Its programme begins with a plenary meeting at 12 noon. I’ve already mentioned the goals of this meeting and the roundtable discussions. After that, Mr Medvedev will attend two roundtable discussions, one of which will be devoted to the priority issue of developing Siberia. Siberia and the Russian Far East will be given priority compared to other Russian regions. He will also talk with the young participants of the forum during one of the planned events. We have not yet chosen the event, and so I’m not going to reveal our hand now. You should have at least some surprises.

In short, the Prime Minister will have a busy agenda during these two days, with several major events.

There will also be several members of the Government in the delegation in Krasnoyarsk, including deputy prime ministers and also the ministers of transport, communications, natural resources and regional development. This serves to show that the Government will take a comprehensive part in the work of the Krasnoyarsk forum, holding discussions with investors, business leaders and those in charge of promoting the social sectors. It will be an important event for us. Thank you.

Lev Kuznetsov: Good afternoon, colleagues. I would like to invite all of you to the 10^th Krasnoyarsk Economic Forum, which will be held this week. As Mr Dvorkovich, who I’d like to thank for agreeing to chair the forum’s organising committee, has said, the agenda will be interesting and intensive. It has been correctly noted that a new notion has developed over the past ten years, the notion of the Krasnoyarsk format, which embraces everything we are preparing for its agenda. This includes a high-quality package of investment projects, and the standards of the expert community have improved greatly over these years. What’s very important is that we also strive to compile a topical agenda for every period of the forum. As a result, specific decisions are made and concrete instructions are issued. Mr Dvorkovich, I hope that the Government and regional authorities will also issue a package of instructions this time. This will make it possible to conduct a discussion and to create understandable mechanisms for implementing these decisions and proposals due to be formulated at this platform. Considering the fact that the forum is taking place in early 2013, this also provides an opportunity for making consistent assessments throughout 2013 and makes it possible to see what was correct and what needs to be adjusted in the context of subsequent discussions and specific mechanisms.

It was noted correctly that one segment, the Siberian and Far Eastern forums, is very important for us this year. We know that these two regions are being prioritised in the context of the economic and social policy. We consider it very important to try and jointly find new instruments and mechanisms which would make it possible to provide the required quality of life in Siberia and the Far East through cost-effective and competitive economic growth. This quality of life would allow us to attract talented, modern and competent specialists. Instead of staying and working there for a short time, these specialists will be expected to link their future and the future of their families with this wonderful, abundant and plentiful land.

Question: What new aspects of regional policy would you like to discuss at the forum? 

Lev Kuznetsov: As I have already said, investment fund mechanisms and mechanisms for establishing major educational institutions, including the Siberian Federal University, and many other projects complying with the new Siberian industrialisation  programme have been tested in previous years, including at the Krasnoyarsk Economic Forum, and they have been confirmed in practice. We consider it very important not to lose momentum, and we can see real achievements resulting from decisions taken at the forum. This includes a meeting of the board of trustees, whose members will discuss the subsequent strategy to develop federal universities and to enhance their role as integrators of educational, research and development activities in one region and in their respective federal areas where they function. We can see the result: new major oil projects, including the Vankor Field project, have been launched in the Krasnoyarsk Territory. The relevant transport infrastructure is currently being built for the southern sector of the Evenk Autonomous Area and the Irkutsk Region. This enables us to fulfil our petroleum delivery obligations. It is very important that the Boguchany hydroelectric power station was launched last year. By the way, we celebrated the 30^th anniversary of the start of its construction. It may be symbolic, but this project has really succeeded, and it serves as an integrator enabling us to say that facilities which were created around the station have been completed. These include the Boguchany plant and a timber-processing factory ... But we will be ready to present the second development stage, including the lower reaches of the Angara River and the Angara-Yenisei cluster, which focuses on new major projects that make it possible to utilize new technologies, to create jobs and to accomplish various objectives set out in the Policy Priorities of the Government. At the same time, we will focus on the new rapidly growing regions, primarily the Asia Pacific region, as much as we can.  

What are the required tools? I believe that the discussion should provide the answer to this question. Has work on the old instruments and the investment fund been exhausted, or should these technologies be upgraded still further? A corporation for the development of Siberia has been discussed today. Do we need this corporation? If the answer is “Yes,” then how should it function? We also need to discuss tariff and non-tariff regulation. On the one hand, Russia is now a member of the World Trade Organisation. Consequently, it has assumed restrictive obligations with regard to these measures of support. At the same time, one should mention the Vankor example, where predictable long-term benefits were provided. These benefits made it possible to implement this project, which now channels over 200 billion roubles’ worth of tax and non-tax revenues into the Russian budget system.

We therefore believe that we, and not only we, have a lot to show because all regions of the Siberian Federal District and our colleagues from other regions will be actively involved. And I believe that the most correct decisions will be worked out during this discussion. These decisions will make it possible to respond to specific challenges and to accomplish various objectives which have been set by the Prime Minister.

Question: Mr Dvorkovich has mentioned the work of a youth platform which has gained a reputation for itself at previous forums. Could you say a bit more about the specific priorities due to be discussed at the youth platform this year, and what results you expect?

Lev Kuznetsov: Indeed, one of the highlights of the last five years of the Krasnoyarsk forum was the first day the youth platform started working. We now realise (and it's not just us)... We see five objectives that have been set by the UN, that the current younger generation, its role and involvement in all public, social and political processes are extremely important for responding to contemporary challenges. That’s why we would like to create a format in line with this year’s youth platform which would make the Open Government and civil society principle, as well as the involvement of civil society in the implementation of various programmes, the main item on the agenda. Our traditional colleagues who have already gained a reputation for themselves but who are changing for reasons of age will take part in the work of this platform.

What’s important is that representatives of Russia’s Youth Governments Association participate, as well as foreign participants from the G20 countries. They take part in the youth forum of the 20 leading economies, the G20, which Russia is chairing this year. We think this is very important because we are part of the global world. Therefore, understanding and identifying life values and priorities, and ways of achieving these priorities that young people in various countries have, is essential for us to determine our priorities in terms of quality of life and of government policies and, most importantly, to involve young people in achieving these goals.

Therefore I think that the role of this important platform should grow with every year, given that more and more young people are joining us. We invite them to participate in this format of event.

Arkady Dvorkovich: We primarily expect Mikhail Abyzov, the Minister for the Open Government to actively participate in our work – he will be there to coordinate this work. Personally, I am planning to attend one or more roundtable discussions at the youth forum, depending on the schedule. We hope to have a good discussion, with young people sharing their views on what is happening. We hope to hear from people engaged in business as well as people who prefer public not-for-profit activities – different kinds of young people.

Question: Speaking of young people, according to the European Chamber of Commerce and Industry, the number of young Europeans who want to start a business has fallen from 47% to 35%. Will discussions at the Krasnoyarsk forum focus on the willingness of young people in Siberia to start a business, especially in the social sphere? What steps could the government take to support young entrepreneurs who are starting medium-sized businesses in these areas?

Arkady Dvorkovich: Indeed there is a chance of a renewed drive now to business. To support it, the federal and regional governments primarily need to take steps to improve the investment climate in particular regions as well as in Russia as a whole.

Young people are in fact more willing to take risks and start major projects without additional support. But we do not want to see many of them frustrated. Therefore we need to ensure more favourable conditions for both commercial and non-commercial projects. So I must say that the investment climate and what makes an attractive investment destination should be among the primary issues for discussion in this format. Moreover, youth economic activity, including non-commercial as well as business, and creating more jobs for young people worldwide, will also be a focus of G20 meetings throughout this year.

This year we have also invited the young G20 leaders to our youth platform, those working on these issues at the international level within the framework of the G20 or BRICS. They are also discussing this very actively. We are exchanging best practices and sharing experiences in this field. We believe we can borrow the best ideas from each other with regard to both the commercial and non-commercial activities.

There are different young people: some are willing to invest, while others are ready to put their heart into their projects but have no money to invest. In that case, funding needs to be sourced elsewhere. We’ll discuss these issues in detail.

Lev Kuznetsov: I have something to add in answer to your question. We have organised several conferences in different formats here. The Agency for Strategic Initiatives is sponsoring the Leaders’ Club with the aim of identifying specific needs as well as targeting young people who are willing to take risks on various projects outlined by Mr Dvorkovich, on the one hand, and what the government could do to support these projects, on the other. The Russian Presidential Academy of National Economy and Public Administration is holding the Global Management Challenge, where participants will also discuss issues concerning young people. Many young people will participate in the Yenisei Venture Fair. We’ll hold an art weekend for those young people who are more focused on social aspects. It will give them a chance to express themselves and help us identify what we should do together.

Question: Will you discuss the issue of Siberian banking sector development?

Arkady Dvorkovich: I think that practically any roundtable that discusses the need for funding investment projects will mention banks. Currently everybody is very much concerned over the fact that the cost of financing and conditions for project financing in various areas are not exactly favourable; they say that banks are to blame. We will probably not discuss banks in any special way, in a technical or professional manner; but in any case we will discuss what is hindering banks, what is hindering other financial institutions to finance commercial short-term, medium-term and long-term projects. We will discuss the issue of long-term money, including within the context of the development of the pension system, the formation of new financial instruments by using these long-term financial resources, and how non-state pension funds and other financial institutions, including banks, can participate in this.  

Question: After the crisis, international experts, market players and governments began to speak about the need to modify the world’s financial architecture. Do you support this standpoint, and what will change in this area in Russia during the period until 2018? And when will a megaregulator truly start operating in Russia? What changes are to be expected?

Arkady Dvorkovich: I will not be able to answer all these questions – some of them are under the authority of my colleague, First Deputy Prime Minister Igor Shuvalov. But as I said, the forum will include a discussion on the ways to develop BRICS. One of the issues on which we agree with our colleagues from BRICS, is the need to reform the international financial architecture, international financial institutions including the IMF. This is one of our priorities as part of our G20 presidency; we seek not only an IMF reform where we should be moderators in the discussion on the redistribution of quotas within the IMF leadership, but also with respect to regulation of the debt market, the practice of state debt management in various countries (this is the most difficult question to be discussed), as well as the issues dealing with the risks of excessive regional limitations, the localisation of financial institutions in some countries. 

What do I mean? Currently the oversight bodies, the bodies of financial sector regulation, are seeking to minimise risks and prevent national financial institutions from undertaking excessive risks in foreign countries which may be liable to higher risks. And all this can produce a situation in which there will be not only trade protectionism but also financial protectionism. The whole financial system will be divided into separate pieces – thus we will reduce globalisation risks but will create much greater risks concerning the delay of global development and further crisis. We will have to discuss this seriously. Russia is included in this process. We are seeking to make our financial system competitive and  to prevent its excessive regulation. Our financial regulation is sufficiently tight. This is linked to the idea of a megaregulator – we need to harmonise financial regulation. It is necessary to make financial institutions operate within a common legal framework and to have normal competition, including with foreign financial institutions.

I will not comment on specific mechanisms of the operation of the megaregulator; it is up to my colleagues to make these comments. Thank you.

Question: Mr Dvorkovich, in recent months we have seen several platforms where the Government discussed its programme and spoke on the main areas of its activity; and the regional aspect has been included to a fairly large degree everywhere. What are the specific features of the upcoming forum, what will be discussed there? Will we hear something new, which we did not hear in Davos or at the Gaidar Forum?

Arkady Dvorkovich: Can you be a little more specific?

Question: What are the specific features of the Krasnoyarsk Economic Forum, what are its main aspects, will we hear anything new, which we have not heard earlier? What answers, and to what questions, will you choose to address there?

Arkady Dvorkovich: The forums held across the world and in Russia have their own features and their target audiences. There are real international forums where mainly international problems are discussed or where the participants set the objectives to attract foreign investors to the Russian economy, as in the case of the St. Petersburg forum. These are global forums. The same is true of Davos: we wanted to discuss, and we have discussed global problems, we discussed how Russia would be positioned within the global economy, within the global division of labour, we spoke to foreign partners and investors and discussed what should be done to attract more investment to the Russian economy.

The Krasnoyarsk Forum is a Russian forum. Although it is attended by foreign experts and investors, it still is a Russian forum aimed at discussing and developing common approaches, solutions on priority areas of Russian development. In Davos, in this sense, we cannot discuss these issues – the participants of Davos forums do not know about these problems in such detail. On the other hand, here we will go into such details that require very specific decisions at the legislative level, at the Government level , at the level of other institutions of power. This format allows us to do that. Why in Krasnoyarsk? Traditionally, Krasnoyarsk has been most active in organising this platform. There is a Sochi Forum – as a rule, specific investment projects on a Russian scale are unveiled there,, and investors look at these specific projects. On the contrary, here they discuss solutions. This is a special feature of the Krasnoyarsk Forum – this year we will be able to embody this element at the forum and it will be obvious for everyone.

Lev Kuznetsov: I want to add something. Just one more feature… Perhaps it was accidental – at the 5^th Krasnoyarsk Economic Forum Mr Medvedev, as a candidate for President, unveiled his programme of four I’s [Institutions, Infrastructure, Innovation and Investment]. At the 10^th forum, once again the strategic document that was unveiled to the community under the framework of the expanded Government meeting on January 31 will be discussed. So this is also a special feature that every five years such system-wide discussions are being held (we hope that this practice will continue). We hope that these discussions will help us to create not quite a roadmap, but at least some basic guidelines for this roadmap, for the next long-term period.

Arkady Dvorkovich: It is necessary to mention the four I’s. Naturally, the reference to this theme is inevitable – to this idea that was mentioned by then First Deputy Prime Minister and presidential candidate Dmitry Medvedev, at the 5th Krasnoyarsk Economic Forum. And of course we could finalise some preliminary results (successes and failures) in this respect. I believe that we have actively advanced in all the four areas. We have had more success in certain areas, we have had less success in others, but the progress specifically in terms of this concept and the modernisation initiative was borne precisely on the basis of these four pillars – the four I’s plus the fifth component – the intellect which emerged at the St. Petersburg Economic Forum. 

Question: We see that the Krasnoyarsk Forum is acquiring the format of a Russian Davos. Will the regional infrastructure withstand the growing power of the forum?

Lev Kuznetsov: The investors and the infrastructure are developing within the logic of the current events. Both the dynamics and the attitude to the current forum, on the one hand, and on the other hand, our ambitious project concerning the Winter 2019  Student Games will surely help us to create attractive conditions for investment in the development of the infrastructure. We realise that the topic of cities and agglomerations is currently one of the most important segments of the state policies – this is also a serious challenge for Krasnoyarsk, and we are working on this challenge. And I think that these events and support will help us to create better conditions and to update the infrastructure.

Arkady Dvorkovich: I have no doubt that the infrastructure will endure. I have recently visited Krasnoyarsk, and have seen with my own eyes what is happening there. I think everything will be good. Do not doubt that.