Vladimir Putin chaired a meeting on the economy
10 november 2008
Vladimir Putin's opening address:
Good afternoon, colleagues,
I have invited you here today to discuss a critical matter. As you are aware, the Government is undertaking a series of measures to strengthen the financial system and key industries. They are aimed at minimising the consequences of the global financial crisis for the national economy and for the people. The situation demands unconventional solutions. As you know, the state has rendered massive support both to banking sector and private companies.
In this connection, I consider it necessary to underscore that, first, these measures are temporary. Second, it is vital to eliminate possible risks, including those related to unwarranted use of state resources. Today's meeting will give us a chance to discuss joint efforts with heads of law enforcement agencies and representatives of the banking community, which is absolutely crucial.
What problems need to be highlighted?
First, it is targeted use of the funds we have allocated to support the banking system and industries. Those are big funds, and they must work in Russia and for its benefit. I would like to emphasise that we must eliminate corporate egotism, corruption and abuse. Consequently, the situation has to be under tight control if law enforcement agencies as well as financial authorities.
Second, it is clear that movement of legal capital, including outflows, are a civilised and lawful financial operation. Any state bans are out of the question. It contradicts our national legislation and economic policy. However, these state resources are not intended for speculation. They are allotted for supporting industries and our banking system, as I said earlier. I would like to draw our banking community's attention to this crucial point. State funds are provided to the domestic credit system, and they must be invested in the development of the Russian economy. The majority of market players are perfectly aware of it.
Recent analysis has revealed a trend towards reduction in the total amount of operations connected with money transfers to foreign banks. It is a general trend, but at the same time those banks that have received state funding have increased the volume of transfers abroad. It is necessary to nip in the bud illegal capital flows and meticulously trace capital movements in general. Let's discuss this matter in more detail now.