Putin: Russia has managed to avoid a deep crisis in the economy – BBC News

the deep crisis in the Russian economy did not happen – our country has managed to avoid it. The exchange rate stabilized, inflation – under control, President Vladimir Putin said at the International Economic Forum in St. Petersburg. And on the sidelines of the summit signed several major contracts.

The Russian economy has accumulated a sufficient safety margin, said President Vladimir Putin. A positive trade balance is maintained, increasing non-oil exports. But at the end of last year, Russia had predicted a deep crisis. However, this did not happen.

According to the President, today the situation has stabilized, and overcome all the negative vibrations. Thus, the physical volume of non-oil exports in the first quarter of this year grew by 17 percent, while exports of highly processed only for the first three months amounted to almost seven billion dollars.

“The introduction of the so-called sanctions has pushed us to the to significantly step up work on import substitution, and in some areas we have made significant steps and achieved significant results. The enormous potential – our machine building, petrochemicals, light industry and processing industry, pharmaceutical and some other industries. A visible example of the achievements of our agricultural sector. The essence of the program of import substitution is not to close its market to dissociate itself from the world economy – we must learn to produce high quality, competitive products, demand not only in Russia but also in the world of global markets. But ultimately the problem is, to the full and effective use of our internal capabilities to meet the challenges of development. Once again I repeat: we are on the outer limits of a closed economy does not respond, we respond the expansion of freedom, increasing openness of Russia. And it’s not just a slogan – it is the content of our actual policy, the work that we are currently creating conditions for businesses to find new partners and opening new markets, to participate in the implementation of major integration projects “, – Putin said.

In addition, the budget stable financial and banking system to adapt to the new conditions, the exchange rate stabilized, and the reserves are stored. The President recalled that the federal budget deficit in the first five months of this year amounted to 1 trillion 48 billion rubles, or 3, 6 percent of GDP. It is expected that for the year this figure will be one-tenth of a percent more – according to the current law on the budget.

The common thread of all the president’s speech began to invest in the Russian economy. Vladimir Putin said that today it is necessary create the most free and favorable conditions for investors.

“We have taken a fundamental decision – the next four years to fix tax rates do not increase the fiscal burden on business, to enable companies to plan their work for the medium term. We will adhere to this principle regardless of external conditions, or burden on the budget. This creates additional incentives for new and growing companies. In this regard, we recall once more: the decision to introduce tax breaks for individual entrepreneurs, a significant decrease in the fiscal burden on small and medium businesses through special tax regimes, as well as the provision of tax incentives for new industries. Also add that from tax exempt capital and assets back to Russia from abroad, and their owners are given full guarantees of protection from any kind of harassment. At the same time we will take steps to increase the transparency of Russian companies and their branches abroad, “- said the president of Russia.

The forum traditionally are hundreds of agreements. One of the most anticipated signings – between Russia and Greece on the construction of the Greek section “Turkish stream.” The parties signed a memorandum on the continuation of the pipeline. For this will set up a joint company – operator of the southern European gas pipeline. Control – on a parity basis. Moreover, the co-founder act is not “Gazprom” and “VEB Capital” and investment company in Greece. The cost of construction – two billion euros. The Russian side will make money in stages.

Other expected signing – between the Russian company “Rosneft” and the French Total. It is about the sale of almost 17 per cent stake in a refinery in the German town of Schwedt. And BP “Rosfnet” signed agreements in mining, exploration and refining.

“Today we have signed one of the important agreements with our shareholders, the company BP, which becomes a member of a new mining project in Russia. This development Srednebotuobinskoye field project called TAAs-Yuryakh. It is a new fishery in the Eastern Siberia, at the end of last year, he was put into commercial operation with a resource base of 130 million tons of oil and about 150 billion cubic meters of gas. BP gets a 20-percent stake in the project, it is estimated at 750 million dollars “, – said the president, chairman of” Rosneft “Igor Sechin.

By the way, at last year’s forum is” Rosneft “was the record for the number of signed agreements – there were about 50 in 2015. Only in the first day of the forum signed 106 contracts. Transactions of the second day still to count.