The President of Russia delivered
the Address to the Federal Assembly. The ceremony took
place at the Manezh Central Exhibition Hall.
March 1, 2018
14:00
Moscow
Presidential Address to the Federal
Assembly.
The presentation of the Address was
attended by Federation Council members, State Duma deputies, members
of the Government, leaders of the Constitutional Court
and Supreme Court, governors, speakers of the legislatures
of the constituent entities of the Russian Federation,
the leaders of traditional religions, public figures, including
the heads of regional civic chambers, as well as the leaders
of major media outlets.
* * *
President of Russia Vladimir Putin: Citizens
of Russia, members of the Federation Council and State
Duma,
Today’s Address is a very special landmark
event, just as the times we are living in, when the choices we
make and every step we take are set to shape the future
of our country for decades to come.
It is at such turning points that Russia has
proven, time and again, its ability to develop and renew itself,
discover new territories, build cities, conquer space and make major
discoveries. This unwavering forward-looking drive, coupled with traditions
and values, ensured the continuity
in the thousand-year-long history of our nation.
We have gone through major challenging
transformations, and were able to overcome new and extremely
complex economic and social challenges, preserved the unity
of our country, built a democratic society and set it
on the path to freedom and independence.
We ensured sustainability and stability
in almost all areas of life, which is critical for a huge
and multi-ethnic country like ours with its complex federative structure
and diversity of cultures, with historical divides that are still
alive in people’s memory and major challenges Russia had to face
over the course of its history.
However, sustainability is the foundation
of development but not its guarantee. We have no right to allow
a situation when the stability that has been achieved would lead
to complacency, all the more so as many problems remain
unresolved.
Today, Russia ranks among the world’s leading
nations with a powerful foreign economic and defence potential. But
we have not yet reached the required level in the context
of accomplishing our highly important task and guaranteeing people’s
quality of life and prosperity. But we must do this, and we will
do this.
As I said in the past,
the state’s role and positions in the modern world are not
determined only or predominantly by natural resources
or production capacities; the decisive role is played
by the people, as well as conditions for every
individual’s development, self-assertion and creativity. Therefore,
everything hinges on efforts to preserve the people
of Russia and to guarantee the prosperity of our citizens
We must achieve a decisive breakthrough in this area.
I repeat, a solid foundation has been
created for this. Therefore, we can now set and accomplish new tasks.
We already have substantial experience in implementing ambitious
programmes and social projects. The Russian economy has proved its
resilience, and the current stable macro-economic situation opens up
new opportunities for surging ahead and maintaining long-term growth.
Finally, the world is now accumulating
a tremendous technological potential making it possible to achieve
a real breakthrough in improving the people’s quality
of life and modernising the economy, the infrastructure
and state governance and administration. How effectively we will able
to use the colossal potentialities of the technological
revolution, and how we will respond to its challenges depends
on us alone. In this sense, the next few years will prove
decisive for the country’s future. I reiterate, these years will
be decisive.
I will tell you why. What I will say now
has no connection to the domestic political cycle or even
the presidential election. No matter who is elected President, each
Russian citizen and all of us together must be able to see what
is going on in the world, what is happening around us,
and what challenges we are facing.
The speed of technological progress is accelerating
sharply. It is rising dramatically. Those who manage to ride this
technological wave will surge far ahead. Those who fail to do this will be
submerged and drown in this wave.
Technological lag and dependence translate into
reduced security and economic opportunities of the country and,
ultimately, the loss of its sovereignty. This is the way things
stand now. The lag inevitably weakens and erodes the human
potential. Because new jobs, modern companies and an attractive life
will develop in other, more successful countries where educated
and talented young people will go, thereby draining the society’s
vital powers and development energy.
As I have said, changes concern
the entire civilization, and the sheer scale of these
changes calls for an equally powerful response. We are ready
to provide it. We are ready for a genuine breakthrough.
My confidence is based on the results
we have achieved together, even though they may seem modest at first
glance, as well as on the unity of Russian society
and, most importantly, on the huge potential of Russia
and our talented and ingenious people.
In order to move forward
and to develop dynamically, we must expand freedom in all
spheres, strengthen democratic institutions, local governments, civil society
institutions and courts, and also open the country
to the world and to new ideas and initiatives.
It is high time we take a number of tough
decisions that are long overdue. We need to get rid of anything that
stands in the way of our development and prevents people
from fully unleashing their potential. It is our obligation to focus all
resources and summon all our strength and willpower in this
daring effort that must yield results.
Otherwise, there will be no future for us, our
children or our country. It is not a question of someone
conquering or devastating our land. No, that is not the danger.
The main threat and our main enemy is the fact that we are
falling behind. If we are unable to reverse this trend, we will fall even
further behind. This is like a serious chronic disease that steadily saps
the energy from the body and destroys it from within step
by step. Quite often, this destructive process goes unnoticed
by the body.
We need to master creative power and boost
development so that no obstacles prevent us from moving forward with confidence
and independently. We must take ownership of our destiny.
Colleagues,
What should be our priority? Let me reiterate that
I believe that the main, key development factor is
the well-being of the people and the prosperity
of Russian families.
Let me remind you that in 2000, 42 million
people lived below the poverty line, which amounted to nearly 30
percent – 29 percent of the population. In 2012, this
indicator fell to 10 percent.
Poverty has increased slightly against the backdrop
of the economic crisis. Today, 20 million Russian nationals live
in poverty. Of course, this is much fewer than the 42 million
people in 2000, but it is still way too many. There are even working
people who have to live very modest lives.
For the first time in our recent
history, the minimum wage was equated with the subsistence level.
This provision will come into force on May 1, 2018, and will
benefit about 4 million people. This is an important step but it still
falls short of offering a fundamental solution.
We need to upgrade the employment
structure that has become inefficient and archaic, provide good jobs that
motivate people, improve their well-being and help them uncover their
talents. We need to create decent well-paid jobs. This would help deliver
on one of the key objectives for the next decade,
which is to guarantee sustained long-term real income growth,
and to reduce the poverty rate by at least one half
over the next six years.
It is our moral duty to provide all-round
support to members of the older generation, who have made
a tremendous contribution to national development. Senior citizens
must have worthy conditions for a long, active and healthy life.
Most importantly, we must raise pensions and index them regularly, so that
they outpace inflation. We will also strive to reduce the gap between
the size of pensions and pre-retirement wages. And,
of course, we must raise the quality of healthcare
and social support for senior citizens and help people who are
alone and those facing problems in life.
We need to address all these issues using
a comprehensive approach. As I see it, the future new
Government will have to draft a special programme
for the systematic support of senior citizens and for improving
their quality of life.
We consider every person important
and valuable. People need to know that they are needed, and they
must live a long and healthy life and enjoy their grandchildren
and great-grandchildren. They need to see their children grow up
and become successful in a powerful, rapidly developing
and successful country that is attaining new development levels.
Russia must firmly assert itself among the five
largest global economies, and its per-capita GDP must increase by 50
percent by the middle of the next decade. This is
a very difficult task. I am confident that we are ready
to accomplish it.
Of course, life expectancy is a highly
important fundamental parameter for gauging the well-being
of citizens and the country. In 2000, Russia posted
a life expectancy of just over 65 years, with men’s life expectancy
falling below 60 years. This is not just low, it is a tragedy,
and this parameter is tragically inadequate.
In the past few years, Russia has been
posting a major increase in average life expectancy levels, which is
among the highest in the world. We have managed
to accomplish this task. Life expectancy levels have increased
by over seven years and now total 73 years. But, of course, this
is not enough either. Today, we must set an entirely new goal.
By the end of the next decade, Russia must confidently join
the club of countries posting a life expectancy of 80-plus
years, which includes Japan, France and Germany.
At the same time, life expectancy levels
for people living a healthy, active and full life, when they are
not hampered and pinned down by illness, must grow faster than
planned. I am confident that we can achieve this goal, considering
the positive trends of the previous years. For this
purpose, the whole of Russia will have to make a quantum
leap in its development, so that the life of every person is
transformed.
Colleagues,
We need to create a modern living
environment and transform cities and villages across
the country. In doing so, we must make sure that they preserve their
identity and historical heritage. We already have positive experience
in renovating the urban environment and infrastructure. Let me
elaborate on this point. Cities like Kazan, Vladivostok and Sochi
have already benefited from upgrades of this kind. Change is underway
in many regional capitals and smaller cities. Overall, we now know
how to do it.
I propose launching a large-scale spatial
development programme in Russia, which would include developing cities
and other communities by at least doubling spending in this
area over the next six years.
It is obvious that the effort to develop
cities and other communities goes hand in hand with the need
to overcome challenges in other areas, including healthcare,
education, environment and transport. Initiatives in all these
segments will require additional funding. I will talk about this matter
further in my Address.
Urban renovation should be supported
by the introduction of state-of-the-art construction technology
and materials, modern architectural solutions, digital technology
for social services, transport and utilities sectors. Among other
things, this would make the housing and utilities sector more
transparent and efficient, so that people receive quality services
at a reasonable cost.
This large-scale project brings the promise
of better economic and social development prospects, a modern
living environment, and a favourable climate for cultural
and civil initiatives, for small businesses and start-ups. All
this would facilitate the emergence of a large and creative
middle class in Russia.
Of course, a lot will depend
on municipal and local authorities and whether they will be
receptive to new ideas. The ability to respond
to the diverse needs of various generations, including families
with children, retirees and people with disabilities, will also be
instrumental. People must have a decisive say in the future
of their cities and villages. We have discussed this many times,
including at meetings with heads of municipalities. Today, I am
not saying it just to check the box. I ask you to bring it
to the attention of decision-makers at all levels.
It is important that the development
of cities becomes the driving force for the whole country.
Russia is a country with a vast territory, and its active,
dynamic life cannot be concentrated in several metropolitan cities. Big
cities must distribute their energy, and serve as a support
for the balanced, harmonious spatial development
of the whole of Russia.
Therefore, there is an urgent need
for an appropriate modern infrastructure. I will return
to this later. However, it is obvious that developed utilities is what
will enable residents of small towns and villages to take
advantage of all the opportunities and modern services that are
available in big cities, and smaller towns will be closely integrated
into Russia’s single social and economic space. At the same
time, we will support initiatives that will help our small towns
and villages to preserve their cultural identity, to re-discover
their unique potential in a new way.
Particular attention will be paid to the social
and infrastructural development of rural areas. Russian agriculture
has already become a globally competitive industry. Therefore, people who
work for this success should live a comfortable and modern life.
Colleagues,
I understand how important it is
for everyone, for every family, to have their own house, their
own home. I know this is the problem of problems in Russia.
It lingers from decade to decade. How many times governments promised
and tried, sincerely tried to resolve it. But we can and must do
it now.
In 2017, three million families in Russia
improved their living conditions. Now we need to reach a stable level
(I emphasise this: it is the first time in the history
of modern Russia) – to a level where at least five
million families improve their housing conditions annually. This is
a difficult task – to jump from three million to five. We
reached 3.1 million last year, but we need to make it five. Yet, it is
an attainable goal.
I see three key factors for increasing
the affordability of housing. The first is the growth
of people’s incomes. I have spoken about this in the past,
and we must ensure this. Next, a decrease in mortgage interest
rates and, of course, an increased supply in the housing
market.
I would like to remind you of something
that few people remember, which is that only 4,000 mortgage loans were issued
in 2001. Only 4,000. The interest rate was as high as 30
percent, including on foreign currency loans. By the way, half
of the mortgage loans were issued in foreign currency. Few
people could afford to take out mortgage loans then. Last year,
the number of mortgage loans almost reached one million.
In December, the average interest rate on ruble loans
for the first time decreased to below 10 percent.
We know, of course, that loan terms are
individual and may differ from one borrower to another. But we must
continue to lower the average interest rate to 7–8 percent. We
held long discussions on the figure I should say here. I am
sure that the target figure should be 7 percent. In the next six
years, mortgage loans must become accessible to the majority
of Russian families, working people and young professionals.
Here are some more figures. In the 1950s
through 1970s, we annually built approximately 60 million square metres
of housing a year. The figure rose to 70 million
by the late 1990s. Now we annually build around 80 million square
metres of housing every year. We built even more housing in some
years, but the average figure is 80 million. We must move forward
and reach new heights in this sphere, that is, increase
the volume of housing built every year from 80 million to 120
million square metres. This is an ambitious but realistic goal, given new
technologies, the experience our construction companies have accumulated,
as well as new materials. The rise from 80 to 120 million
square metres is what we need and can achieve. I will tell you why:
if we want 5 million families to receive new housing every year, we must
reach the figure of 120 million square metres.
Those who invest their money in housing
projects must be securely protected. We should gradually proceed from unit
construction to project financing, when developers and banks, but not
people, shoulder the risks.
I also propose revising the personal
property tax. It must be fair and affordable.
Some people, including those in this hall,
tried to convince me that this tax should be based on the market
value of property. They told me that using obsolete valuation
by the Technical Inventory Bureau is an anachronism. But it turned
out in reality that cadastral value, which should be comparable
to market value, often exceeded it by far. This was not
the agreement. And the people did not expect this from us.
We must revise the mechanism
for calculating the tax and also the calculation
of the cadastral value of property. One way or another, it
must not exceed the real market value. All decisions regarding this must
be taken without delay in the first six months of this year.
Colleagues,
We must penetrate the whole country with advanced
communications to develop cities, towns, to enhance business activity
and to meld together Russia’s entire territory.
The Crimean Bridge will open to cars
in just a few months and to trains next year. This will
stimulate the development of Crimea and the entire Russian
Black Sea region.
We have overhauled federal roads. Now we must
modernise regional and local routes. I am not going to talk
about the figures now, but I know them. It is a fact that
federal roads have mostly been renovated. The situation is somewhat worse
with regional roads, and it is completely unacceptable with local roads.
I address this to regional and city heads: you must constantly
focus your attention on the roads. You must improve the quality
of road construction using advanced technology and solutions,
infrastructure mortgage loans and life cycle contracts.
Of course, another critical task is
to improve safety on the roads and to decrease
the mortality rate in road accidents to the minimum.
Overall, in the next six years, we must almost
double the spending on road construction and repairs
in Russia and to allocate more than 11 trillion roubles
for this from all sources. This is a lot; keep in mind that we
have allocated 6.4 trillion rubles in 2012–2017, but we need 11 trillion.
Large Eurasian transport corridors will also be
developing. An automobile road that will become part
of the Europe – Asia-Pacific corridor is already under
construction. Our Chinese and Kazakhstani partners involved in this
project together with us have already completed their part. Their sections have
already been opened, so we need to speed up our work.
The throughput capability
of the Baikal-Amur Mainline and the Trans-Siberian Railway
will grow 1.5 times, up to 180 million tonnes, in six years. It will
take seven days for containers from Vladivostok to reach
the western borders of Russia. This is just one
of the infrastructure projects that will bring quick economic
returns. It includes freight, so all investment will be paid off very quickly
and will contribute to these regions’ development.
The volume of transit shipments
on our railways must grow almost fourfold. This means that Russia will
become a global leader in transit shipping between Europe
and Asia.
In 1990, the ports of the Soviet
Union had an aggregate capacity of 600 million tonnes, but after
the country broke apart, we lost almost half. In the early
2000s, Russian ports could handle only 300 million tonnes. Over the last
17 years, this figure has tripled. In early 2017, the aggregate port
capacity in Russia exceeded 1 billion tonnes for the first time
in history. As you can see from the charts, this exceeds
the level reached by the Soviet Union by more than two
thirds. By the way, these are the figures for early 2017,
and the capacity currently stands at 1,025 billion tonnes.
We need to further expand this capacity,
including by increasing the capacity of railway links
to ports in the Azov and Black Sea basin 1.5-fold
to 131 million tonnes.
The Northern Sea Route will be the key
to developing the Russian Arctic and Far East. By 2025,
cargo traffic along this route will surge tenfold to 80 million tonnes.
Our goal is to make it a truly global and competitive transport
route. Let me remind you that the Northern Sea Route was used more
actively in Soviet times compared to how we have been using it so
far. We will definitely develop this route and reach new horizons.
I have no doubt about it.
We will continue our proactive policy
to attract investment and create social and economic growth
centres in Russia’s Far East. We will create all the conditions
to ensure a people-friendly living environment, so that people move
to this region and its population grows.
A number of large-scale industrial
projects have been launched in the Arctic. They comply with
the highest environmental standards. We are strengthening
the research, transport, navigation and military infrastructure,
which is expected to guarantee Russia’s interests in this strategic
region. Russia builds cutting-edge nuclear icebreakers. We have had
the most powerful icebreaker fleet in the world, and this
will remain so.
We will renovate and expand the network
of regional airports across Russia. In six years, half
of the regions will be connected between each other by direct
flights. The situation where you had to make a connection
in Moscow when flying to a neighbouring region will become
a thing of the past. We are already working on this. This
includes efforts to develop aviation and airports.
The Spatial Development Strategy will serve
as a foundation for preparing a comprehensive plan
to modernise and expand the backbone traffic infrastructure.
I believe this to be a priority for the future
Government.
Russia must not just become the world’s key logistics
and transport hub, but also, which is very important, a global centre
for the storage, processing, transfer and reliable protection
of large volumes of information, so-called big data.
Overall, infrastructure development must take into
account global technological changes. In other words, the projects we
are now considering must include practical solutions for combining
infrastructure with drones and digital marine and air navigation,
as well as use AI to streamline logistics.
Likewise, we must introduce new technologies
for the generation, storage and relay of energy.
In the next six years, we plan to attract some 1.5 trillion
rubles in private investment for modernising our power generation
sector. All power systems throughout the country must convert
to digital technology. We must use the so-called distributed
generation method to supply electricity to remote areas.
By 2024, high-speed internet will be available
throughout the country. We will complete the construction
of fibre optic lines in the majority of populated areas
with a population of more than 250 people. Small remote towns
in the Extreme North, Siberia and the Russian Far East will
access internet via a network of Russian satellites.
We will use advanced telecommunications to give
our people access to the digital world. As we know, this is more
than just modern services, online education and telemedicine, although all
this is very important. More than that, people will be able to use digital
space to conduct research, organise volunteer and project groups
or run companies. In our vast country, this combination
of talent, competencies and ideas amounts to a huge
ground-breaking resource.
Colleagues,
A crucial task facing every one of us is
to make advanced high-quality healthcare widely accessible. We must be
guided by the highest international standards in this area.
In 2019–2024, we need to spend over 4
percent of the GDP each year to develop the healthcare
system. At the same time, the goal we must bear in mind is
5 percent. In absolute terms, this means that healthcare spending must
double. In addition, we must find new funding opportunities that would not
limit economic growth.
I would like to thank doctors, paramedics
and nurses for their difficult and highly necessary work.
A great deal depends on these people, as well
as on teachers, counsellors and cultural workers, and they
must receive decent salaries.
We have done a lot to implement
the 2012 May executive orders. I must say that there were several
failures, but overall, despite the demanding targets of these orders,
without them we would not have had the results we can see today. We must
always set ambitious tasks.
We must not lose the positions we have already
attained. I am referring to the level of wages. Wages
in the public sector must continue growing, as well
as the quality of work and skills of the people
working in healthcare, education and other areas that define people’s
wellbeing.
In recent years, we have optimised
the hospital network in the country. This was done in order
to build an effective healthcare system. However, in some case,
I have to say this today, too many administrative changes were
introduced: hospitals in small towns and villages have been closed.
No one proposed an alternative, and people were left with practically
no medical aid. The only advice they were given was, “Go
to the city to get treatment there.” I must say that this
is unacceptable. They forgot about the main thing: the people, their
interests and needs, equal opportunities and justice.
This must not happen in healthcare or any
other area. We must provide, or restore where necessary, easy access
to primary healthcare. We can do this, but we should have done this from
the very beginning, when we started the reforms.
This must be done as quickly as possible.
In the period from 2018 to 2020, we must ensure that each small
town with a population of 100 to 2,000 people has
a paramedic station and an outpatient clinic. For villages
with less than 100 people – we also have villages as small
as that – we will organise mobile medical units, all-terrain vehicles
with all the necessary diagnostic equipment.
These projects should be closely monitored.
I consider them extremely important. And I also ask
the Russian Popular Front to stay in contact with people,
to keep an eye on the situation on the ground.
At the same time, outpatient clinics and paramedic stations,
regional healthcare facilities and leading medical centres should be
linked into a single digital network so that the entire national
healthcare system is involved in helping each person.
Disease prevention is a vitally important task.
In the 1990s, this work was largely neglected. We began
to restore it. We need to provide all people with a real
opportunity to have a complete physical at least once a year.
This is also important for encouraging a responsible attitude
to one's own health.
Modern diagnostics will reduce mortality among
the working age population, and consolidate the positive trends
in treating cardiovascular disorders. We can see these positive trends,
which is very good. But we also need to fight other threats such
as cancer.
Colleagues, I think that practically every one
of us has relatives or friends or friends of friends
afflicted with this disease – cancer. I propose to implement a special
national cancer programme, to involve scientists
and the national pharmaceutical industry, to modernise
oncological centres, to build a modern system from early diagnosis
to timely effective treatment that will protect people. We have positive
experience in this area. We must reach the cutting-edge,
the highest level of all the key indicators that show
the effectiveness of cancer care – experts should know what they
are.
Colleagues,
Medical assistance alone is not enough
to protect public health. We must also ensure high standards
of environmental safety across Russia.
A long a healthy life is hard
to achieve when millions of people drink substandard water, when we
see black snow, as it happened in Krasnoyarsk, and when people
in large industrial centres such as Cherepovets, Nizhny Tagil,
Chelyabinsk or Novokuznetsk do not see the sun for weeks
on end.
We have tightened environmental requirements
for companies, which should reduce industrial pollution. Starting
in 2019, 300 industrial enterprises with a negative impact
on the environment must convert to the best available
environmentally friendly technology, and all enterprises in the high
environmental risk group must do this starting in 2021.
We had a go at this problem many times,
and every time our companies complained about the difficulties
involved. There is no going back now. I want everyone to know that we
will not delay this programme any longer.
We also need to modernise our thermal power
plants, boiler houses and utility services, build bypass routes
to ease transit traffic congestion in large cities, as well
as use low-impact public service vehicles. The authorities and public
volunteers have reported some 22,000 landfill sites. We must address this
problem as a priority, starting with the removal
and reclamation of landfill sites within city limits.
We must seriously improve the quality
of drinking water. In some small towns, water is only available
for several hours a day. We must use defence industry technologies
to settle these problems.
We will launch conservation projects
for the unique natural systems of Lake Baikal and Lake
Teletskoye, as well as the entire Volga Basin, which will help
improve living conditions for nearly half of Russia’s population.
We will establish 24 new nature reserves
and natural parks. They should be open for ecotourism, which is
important for encouraging a caring and responsible attitude
to nature.
Colleagues,
The year 2018 in Russia has been declared
the Year of Volunteers. It is highly symbolic that the year
started with the adoption of a law whereby authorities
at all levels were tasked with assisting volunteers. Today, proactive and concerned
citizens and socially-minded NPOs contribute to addressing crucial
issues. It is the involvement of the people in national
affairs and their civic engagement, as well as cultural, moral
and spiritual values that make us a single people capable
of achieving ambitious goals.
It is essential that we preserve our identity
in the era of major technological shifts. In this regard,
culture has a key role to play as a national civilisational
code that can unlock the human creative potential.
I propose launching a programme
to establish cultural, educational and museum complexes
in the regions. They will offer concert venues, drama, music
and dance schools and other creative institutions, as well
as exhibition spaces where the country’s leading museums can display
their treasures. Why store so many works of art in museum warehouses?
I am talking about centres of culture that would be open
to young people and people of all ages. The first project
of this kind will be carried out in Vladivostok, and other
regions and cities across Russia will be selected at a later
time.
Colleagues, our children want to see
a forward-looking Russia. You can find many sincere reflections along
these lines in school essays. Having bold dreams always helps if you are
seeking to achieve an ambitious goal. We must help every child
discover his or her talent and help them live up to their
potential. The future of Russia is in its classrooms. Schools
must respond to the current challenges in order
for the country to do the same.
International experts agree that Russia has one
of the best primary school systems in the world. We will
keep up our proactive efforts to develop general education at all
levels. Let me emphasise that every child should have access
to a quality education. Equal educational opportunities are
a powerful driver in terms of promoting national development
and social justice.
We need to shift to completely new
education methods, including personalised learning, in order
to cultivate in our children a readiness for change
and creative curiosity, and teach them to work in teams,
which is very important in the modern world, and other life
skills applicable to the digital era. We will absolutely support
talented teachers who are motivated to pursue continuous professional
growth. And, of course, we need to build an open and modern
system for school management selection and training. School
administrators are the ones in charge of building a strong
faculty and productive morale.
We will continue to enhance
the comprehensive system to support and develop our children’s
creative skills and talents. This system must extend
to the entire country and incorporate the resources
of such projects as Sirius and Quantorium, as well
as extracurricular education centres and children’s creative centres
all over Russia.
We need to build a modern career guidance
system where schools partner with universities, research groups
and successful companies. I propose starting a new early career
guidance programme for schoolchildren, Ticket to the Future,
from the next academic year. The programme will allow kids
to try out real jobs in major Russian companies. We will allocate 1
billion rubles for this project this year alone.
I believe mentorship is another important
aspect to improve. Only by bringing together advanced knowledge
and moral foundations, by ensuring a true partnership
and mutual understanding between generations can we become stronger.
Colleagues, today knowledge, technology
and expertise make the most important competitive advantages. They
are the key to a real breakthrough and improved quality
of life.
As soon as possible, we need
to develop a progressive legal framework and eliminate all
barriers for the development and wide use of robotic
equipment, artificial intelligence, unmanned vehicles, e-commerce and Big
Data processing technology. And this legal framework must be continuously
reviewed and be based on a flexible approach to each area
and technology.
We have all the resources to promptly
implement 5G and Internet of Things technologies.
We need to build our own digital platforms. It
goes without saying that they should be compatible with the global
information space. This would pave the way to reorganising
manufacturing processes, financial services and logistics, including using
blockchain technology, which is very important when it comes to financial
transactions, property rights, etc. These initiatives have real-world
application.
We need to start making or localising key
technologies and solutions, including those used in developing
the Arctic and the sea shelf, and building new energy,
transport and urban infrastructure systems. This is also important
in areas related to improving the quality of life, such
as cutting-edge rehabilitation tools for people with disabilities.
It is our duty to support high-technology companies,
offer start-ups a favourable environment and introduce new industrial
solutions. I am talking about a user-friendly infrastructure,
taxation systems, technical regulations and venture financing.
Technological development should be firmly rooted in fundamental
research. Over the recent years, we have been able to expand
research, and are now leading in a number of areas.
The Russian Academy of Sciences and Russia’s leading research
institutions made a major contribution to achieving this.
Building on the advances made
in the preceding years, including in developing
the research infrastructure, we need to take our research
to a new level. Projects to build cutting-edge mega science
research facilities are already underway in Gatchina and Dubna.
The Council for Science and Education has adopted
a decision recently to build a powerful synchrotron collider
at the Novosibirsk Akademgorodok and a new generation
collider in Protvino, Moscow Region.
With these facilities, Russia will become one
of the world’s leading countries in terms
of the capability and performance of its research
infrastructure. These units will give a serious competitive edge
to Russian research teams and high-technology companies,
for example for developing new medications, materials and microelectronics.
Of course, this infrastructure
and ambitious research projects will not fail to attract our
compatriots and researchers from abroad. In this regard, we need
to create a legal framework that would enable international research
teams to operate in Russia.
Large research and education centres should
begin working to full capacity. They will integrate the possibilities
of universities, academic institutions, and high-tech companies. Such
centres are already being set up in Kazan and Samara, Tomsk
and Novosibirsk, Yekaterinburg and Tyumen, Vladivostok
and Kaliningrad, and other cities.
It is important to focus them
on the implementation of major interdisciplinary projects,
including in such a promising field as genome research.
A cardinal breakthrough in this area will pave the way
to developing new methods for diagnosing, preventing
and treating many diseases, and will expand the selection
possibilities in agriculture.
We need to reinforce the superiority
of the national mathematics school. It gives Russia a strong
competitive edge in the age of digital economy. International
mathematics centres will also provide platforms for such work. These are
already operating in Kazan and Novosibirsk. Following
the adopted decisions, we will open more in St Petersburg, Moscow
and Sochi.
Young Russians are already proving their leadership
in science and in other areas. Last year, Russian schoolchildren
won 38 medals at international academic competitions. Our teams
triumphantly won the Olympiad in natural sciences and robotics,
the WorldSkills competition, and our students showed the best
results in programming for the twelfth time.
Based on the best practices
and experience, we need to quickly modernise the vocational
education system, achieve qualitative changes in the training
of students, especially in the advanced areas
of technological development, to establish the ‘applied
bachelor’ level in those vocational professions that actually require
an engineering degree, and also to organise centres
for advanced professional retraining and professional growth.
I also propose creating the most
convenient and attractive conditions for talented young people from
other countries to enrol at our universities. They already come
to study here. But we also need to create conditions for the best
foreign graduates of our universities to work in Russia. This
fully applies to foreign scientists and qualified specialists.
I think we need to seriously improve
the procedure for granting Russian citizenship. The focus should
be on the foreign nationals Russia needs: on young, healthy
and well-educated people. For them, we need to create
a simplified system for obtaining Russian citizenship.
Colleagues,
To ensure breakthrough development
and upgrade education, healthcare and the quality
of the urban environment and infrastructure, it will be
necessary to allocate considerable additional funds in the next
six years for these purposes.
Question: at what expense? Where do we get
these funds? First of all, it is essential to clearly prioritise
these tasks and enhance the efficiency of government spending.
It is necessary to involve private companies more actively in funding
major projects. The future Government will have to establish new
taxation rules as soon as possible. They should be stable
and fixed for the next few years.
Let me emphasise that we need such fiscal solutions
that would ensure budget revenues at all levels and guarantee
the implementation of all social commitments. Importantly, they
should encourage rather than impede economic growth. It is the build-up
of economic potential of the country and each of its
regions that is the main source of additional resources.
To achieve this, our economic growth rates should exceed those of the world’s.
This is a difficult task but not instance case of wishful thinking.
This is a fundamental condition for a breakthrough
in resolving social, infrastructure, defence and other tasks.
The new Government should set itself the goal of reaching such
growth rates as its key guideline.
In the last few years, we have enhanced
the sustainability of our economy. The dependence
of the economy on hydrocarbon prices has been substantially
reduced. We have increased our gold and currency reserves. Inflation has
dropped to a record low level – just over two percent. Of course,
we all understand that the growth of prices for many basic
necessities is much higher. This should be strictly monitored by different
agencies, including the Anti-Monopoly Service. But on the whole,
this low inflation level creates additional opportunities for development.
Let me remind you that quite recently, in 2015, inflation was almost 13
percent – 12.9 percent to be exact.
In effect, Russia has formed a new
macroeconomic reality with low inflation and general economic
sustainability. For the people this is a condition for real
income growth and cheaper mortgage loans. For entrepreneurs it means
predictability in business and cheaper loans. Business should also
adapt to these new macroeconomic conditions. Finally, it makes it possible
to attract long-term loans and private investment into large-scale
infrastructure projects.
Now we have an opportunity, without speeding up
inflation, and maintaining a careful and responsible approach,
to gradually cut interest rates and make loans more affordable.
I count on the support of the Bank of Russia
in that, while making its decisions, implementing monetary policy measures
and developing financial markets, it will work in contact with
the Government in the interests of the common goal
of creating a proper environment for increasing
the economic growth rates.
In order to further change
the national economy structure and improve its competitiveness, it is
imperative to use the sources of growth
at a fundamentally different level. Where are they? First of all,
it is important to increase labour productivity on a new
technological, managerial and personnel basis. We are still lagging
noticeably behind in terms of this indicator.
It is necessary to ensure that labour
productivity in medium-sized and large enterprises of basic
industries, such as manufacturing, construction, transport, agriculture
and trade, grows at a rate of at least 5 percent per
year, which will allow us to reach the level of the leading
world economies by the end of the next decade.
I want to emphasise that increasing
productivity is also about higher wages and, hence, increased consumer demand.
In turn, this constitutes an additional driver for economic
growth.
All our actions should push companies
to produce technically complex products and to implement more
efficient technologies. It is necessary to make an inventory
of subsidies and other instruments for direct support
of industries, and to target them on making competitive
goods.
Increased investment is the second source
of growth. We have already set the task of bringing it up
to 25 percent of the GDP, and then to 27 percent.
Unfortunately, this goal has not been achieved yet. To ensure sustainable
growth, we need to do so at all costs. I hope that the new
Government in conjunction with the Bank of Russia will present
a concrete plan of action in this area.
Investment should be primarily used
for upgrading and technologically re-equipping the industries
and retrofitting the manufacturing industry. We need to ensure
the highest dynamics here, to reach a level where,
on average, every second enterprise within a year carries out
technological changes. That is when the renewal effort
in the economy and industry will be noticeable.
Promoting small businesses is the third
large-scale reserve of economic growth. By the middle
of the next decade, their contribution to the country's GDP
should approach 40 percent, and the number of employed there
should grow from 19 million to 25 million people.
One of the main problems facing
entrepreneurs is access to financial resources. There is a government
programme in place for small production businesses that offers loans
with only 6.5 percent interest. I think this programme must continue.
Overall, this support mechanism must become widely available.
Finally, another source of growth is
the development of non-resource exports. It is necessary
to remove all administrative barriers and create the most
favourable conditions for the companies entering foreign markets.
Within the next six years, we must double
the amount of non-resource and non-energy exports to reach
$250 billion – specifically, increase machine engineering exports
to $50 billion. Exports of services, including education, healthcare,
tourism and transport, must reach $100 billion per year.
In the early 2000s, we were deeply
dependent on food imports. The situation has turned around
completely. Now we are on the verge of more changes.
In just four years from now, we plan to be supplying more food
to global markets than we will be importing from abroad. We need
to increase exports of meat and high-added value products,
as well as to make the country more self-sufficient
in beef, milk and vegetable supplies.
I want to stress that development
of the agricultural industry is strongly related to commodity production.
However, this development must not be at the expense of small
farms and their workers. We must support family businesses
and farmers. We will develop cooperative agriculture and create
conditions for residents of rural areas to increase their income.
Every now and then we hear about problems with people’s interests being
affected, I am aware of them. Such cases must be taken very
seriously.
Nevertheless, I want to say thank you
to the agricultural industry workers
for the record-breaking harvest of 134 million tonnes. Note that
it is more than the record harvest in the Soviet Union.
In 1978, the USSR produced 127.4 million tonnes. Now it is common
for Russia to exceed 100 million tonnes.
Clearly, such a large harvest has
a downside as well. The prices have gone down; there are some
storage and transport issues. We have established discount rates
on transporting crops by railway until July 1, 2018, to support
our producers.
It is necessary to consider extending this
measure to the next harvesting seasons as well
as to arrange additional deliveries to the Urals, Siberia
and the regions far away from ports. We must help those who want and can
process crops locally. Added value needs to be increased. Then we can go
into the livestock industry with this product. We will certainly discuss
these and other problems reported by agricultural workers
at the agricultural producers’ forum in March, and will
elaborate on additional measures to support the industry.
Colleagues,
In order for the economy
to operate at its full capacity, we need to radically improve
the business climate and guarantee entrepreneurial freedom
and competition.
Let me highlight a fundamental point
in this regard. The state must gradually reduce its share
in the economy. In this connection, it has to be noted that
the state has taken over a number of financial assets
in an effort to revive the banking sector. These
initiatives are headed in the right direction and have
my support. That said, these assets should be put on the market
and sold without delay.
We need to get rid of everything that
enables corrupt officials and law enforcement officers to pressure
businesses. The Criminal Code should not serve as a tool
for settling corporate disputes. These should be referred
to administrative and arbitration courts.
I ask the Working Group on Monitoring
and Analysing Law Enforcement Practice in Entrepreneurial Activity,
together with the Supreme Court, law enforcement agencies, the Prosecutor’s
Office and representatives of the business community
to draft specific proposals on this subject. This matter should not
be approached in a light-minded manner. All the proposals must
undergo careful examination and approval, and this should be done
as soon as possible.
At the same time, criminal law should be
strictly enforced in the case of offences infringing upon
the interests of citizens or society or violating economic
freedoms. I am referring to offences against property and assets
held by citizens, illegal takeovers, competition law violations, tax
evasion and embezzlement of public funds.
I would now like to move
on to another important subject. While the number
of various inspections seems to be declining, during meetings with
businesses I often hear that radical change has yet to materialise.
The presence of inspectors at enterprises should become
the exception, and be limited to high-risk facilities.
Otherwise, remote monitoring methods can be used. The entire control
and oversight system should move to a risk-oriented approach
within two years. Let me remind you that the relevant legislative
framework is already in place.
It is important to support start-up
entrepreneurs, to help people take the first step, so that they can
open their own businesses with just one click, make the compulsory
payments, receive services and loans online.
Sole proprietors and self-employed individuals
who use digital services, generally need to be freed from reporting,
and allowed to pay taxes via a simple transaction
in automatic mode. As for businesses that use cash register
equipment, their tax reporting needs to be simplified. You know, this is
just a routine issue, at first glance, but this tedious routine is
what prevents us from moving forward vigorously. We need to do everything
to clean out this space. I will add that the intensive
introduction of digital technologies and platforms will allow us
to make consistent progress towards greater transparency and away
from shadow economy.
Now I would like to address all
representatives of Russian business, those who run their own small
business, a family enterprise or a farm, an innovative
company or a large industrial enterprise. I know, I know we
still have a lot to do. And I assure you, we will do
everything to give our entrepreneurs new opportunities to expand
production, to open businesses and to create modern jobs. But
at the same time I expect that Russian business will increase
its contribution to the country's breakthrough development,
and respect for entrepreneurial work in society will grow. It is
very important.
Colleagues, we need to build modern services
for business, but this is not all; the system for interaction
between the state and society, between the state
and the people should be clear and understandable, convenient
and comfortable.
We have already set up a network
of multifunctional centres. A person anywhere
in the country can now use public services
as a one-stop-shop. Allow me to remind you that it was
a special programme which we have developed and implemented.
We need to move forward, to ensure
the provision of virtually all public services in real time via
remote services within six years. All document circulation between state
agencies should be digitised, which is important both for the state
agencies and for citizens, so as not to browse
the Internet for hours looking for information. It will be
possible to get everything in one place. I will add that
digitalisation of the entire public administration system
and its greater transparency is also a powerful factor
in fighting corruption.
Government officials of all levels should be
interested in improving their efficiency and be strictly focused
on obtaining concrete results. By the way, we are always talking
about corruption and officials. I have to say,
and I do not have the right to not say this: the vast
majority of our public servants are honest, decent and goal-oriented
people. However, what I said will help everyone, including government
officials and users of government services. This line
of thinking should be used to rebuild the public service system,
where appropriate, and to introduce project work methods.
Of course, it is necessary to ensure
the advancement of modern professional personnel
in the government and municipal service, business,
the economy, science and industry, in all spheres.
As you may be aware, the first Leaders
of Russia competition took place, and a number
of other projects are being implemented to support young workers,
entrepreneurs, innovators, volunteers, schoolchildren and students. They
brought together hundreds of thousands of young people from all
regions, and became an important step in their lives
and professional careers.
I want to emphasise: for all those
who want to work, show themselves, and are ready to honestly
serve the Fatherland and the people, and to succeed,
Russia will always be a country of opportunity. This is
the guarantee of our successful development and confident
movement forward.
All the projects and the priorities
that I mentioned today, such as spatial development, investment
in infrastructure, education, healthcare, the environment, innovative
technologies and research, measures to support the economy,
to promote talent, the youth, all of this is designed
to work for one strategic task – Russia’s breakthrough
development.
At the same time, we cannot forget about
reliably ensuring its security.
Colleagues,
The operation in Syria has proved
the increased capabilities of the Russian Armed Forces.
In recent years, a great deal has been done to improve
the Army and the Navy. The Armed Forces now have 3.7 times
more modern weapons. Over 300 new units of equipment were put into
service. The strategic missile troops received 80 new intercontinental
ballistic missiles, 102 submarine-launched ballistic missiles
and three Borei nuclear-powered ballistic missile submarines.
Twelve missile regiments have received the new Yars intercontinental
ballistic missile. The number of long-range high-precision weapons
carriers has increased by 12 times, while the number of guided
cruise missiles increased by over 30 times. The Army,
the Aerospace Forces and the Navy have grown significant
stronger as well.
Both Russia and the entire world know
the names of our newest planes, submarines, anti-aircraft weapons, as well
as land-based, airborne and sea-based guided missile systems. All
of them are cutting-edge, high-tech weapons. A solid radar field
to warn of a missile attack was created along Russia’s perimeter
(it is very important). Huge holes appeared after the USSR disintegrated.
All of them were repaired.
A leap forward was made
in the development of unmanned aircraft; the National
Defence Control Centre was established; and the operational command
of the far maritime zone was formed. The number of professional
service members has increased by 2.4 times, and the availability
of equipment in the Armed Forces grew from 70 percent
to 95–100 percent. The years-long queue for permanent housing
was eliminated, and the waiting period was cut by 83 percent.
Now, on to the most important defence
issue.
I will speak about the newest systems
of Russian strategic weapons that we are creating in response
to the unilateral withdrawal of the United States
of America from the Anti-Ballistic Missile Treaty and the practical
deployment of their missile defence systems both in the US
and beyond their national borders.
I would like to make a short journey
into the recent past.
Back in 2000, the US announced its
withdrawal from the Anti-Ballistic Missile Treaty. Russia was
categorically against this. We saw the Soviet-US ABM Treaty signed
in 1972 as the cornerstone of the international
security system. Under this treaty, the parties had the right
to deploy ballistic missile defence systems only in one of its
regions. Russia deployed these systems around Moscow, and the US
around its Grand Forks land-based ICBM base.
Together with the Strategic Arms Reduction
Treaty, the ABM Treaty not only created an atmosphere of trust
but also prevented either party from recklessly using nuclear weapons, which
would have endangered humankind, because the limited number
of ballistic missile defence systems made the potential aggressor
vulnerable to a response strike.
We did our best to dissuade the Americans
from withdrawing from the treaty. All in vain. The US pulled out
of the treaty in 2002. Even after that we tried to develop
constructive dialogue with the Americans. We proposed working together
in this area to ease concerns and maintain the atmosphere
of trust. At one point, I thought that a compromise was
possible, but this was not to be. All our proposals, absolutely all
of them, were rejected. And then we said that we would have
to improve our modern strike systems to protect our security.
In reply, the US said that it is not creating a global BMD
system against Russia, which is free to do as it pleases,
and that the US will presume that our actions are not spearheaded
against the US.
The reasons behind this position are obvious.
After the collapse of the USSR, Russia, which was known
as the Soviet Union or Soviet Russia abroad, lost 23.8 percent
of its national territory, 48.5 percent of its population, 41
of the GDP, 39.4 percent of its industrial potential (nearly
half of our potential, I would underscore), as well as 44.6
percent of its military capability due to the division
of the Soviet Armed Forces among the former Soviet republics. The military
equipment of the Russian army was becoming obsolete,
and the Armed Forces were in a sorry state. A civil
war was raging in the Caucasus, and US inspectors oversaw
the operation of our leading uranium enrichment plants.
For a certain time, the question was
not whether we would be able to develop a strategic weapon
system – some wondered if our country would even be able to safely
store and maintain the nuclear weapons that we inherited after
the collapse of the USSR. Russia had outstanding debts, its
economy could not function without loans from the IMF
and the World Bank; the social sphere was impossible
to sustain.
Apparently, our partners got the impression
that it was impossible in the foreseeable historical perspective
for our country to revive its economy, industry, defence industry
and Armed Forces to levels supporting the necessary strategic
potential. And if that is the case, there is no point
in reckoning with Russia’s opinion, it is necessary to further pursue
ultimate unilateral military advantage in order to dictate
the terms in every sphere in the future.
Basically, this position, this logic, judging from
the realities of that period, is understandable, and we
ourselves are to blame. All these years, the entire 15 years since
the withdrawal of the United States from the Anti-Ballistic
Missile Treaty, we have consistently tried to reengage the American
side in serious discussions, in reaching agreements
in the sphere of strategic stability.
We managed to accomplish some of these
goals. In 2010, Russia and the US signed the New START
treaty, containing measures for the further reduction
and limitation of strategic offensive arms. However, in light
of the plans to build a global anti-ballistic missile
system, which are still being carried out today, all agreements signed within
the framework of New START are now gradually being devaluated,
because while the number of carriers and weapons is being
reduced, one of the parties, namely, the US, is permitting
constant, uncontrolled growth of the number of anti-ballistic
missiles, improving their quality, and creating new missile launching
areas. If we do not do something, eventually this will result
in the complete devaluation of Russia’s nuclear potential.
Meaning that all of our missiles could simply be intercepted.
Despite our numerous protests and pleas,
the American machine has been set into motion, the conveyer belt is
moving forward. There are new missile defence systems installed in Alaska
and California; as a result of NATO’s expansion to the east,
two new missile defence areas were created in Western Europe: one has
already been created in Romania, while the deployment
of the system in Poland is now almost complete. Their range will
keep increasing; new launching areas are to be created in Japan and South
Korea. The US global missile defence system also includes five cruisers
and 30 destroyers, which, as far as we know, have been deployed
to regions in close proximity to Russia’s borders. I am not
exaggerating in the least; and this work proceeds apace.
So, what have we done, apart from protesting
and warning? How will Russia respond to this challenge? This is how.
During all these years since the unilateral US
withdrawal from the ABM Treaty, we have been working intensively
on advanced equipment and arms, which allowed us to make
a breakthrough in developing new models of strategic weapons.
Let me recall that the United States is
creating a global missile defence system primarily for countering
strategic arms that follow ballistic trajectories. These weapons form
the backbone of our nuclear deterrence forces, just
as of other members of the nuclear club.
As such, Russia has developed, and works
continuously to perfect, highly effective but modestly priced systems
to overcome missile defence. They are installed on all of our
intercontinental ballistic missile complexes.
In addition, we have embarked
on the development of the next generation of missiles.
For example, the Defence Ministry and enterprises
of the missile and aerospace industry are in the active
phase of testing a new missile system with a heavy
intercontinental missile. We called it Sarmat.
Sarmat will replace the Voevoda system made
in the USSR. Its immense power was universally recognized. Our
foreign colleagues even gave it a fairly threatening name.
That said, the capabilities of the Sarmat
missile are much higher. Weighing over 200 tonnes, it has a short boost
phase, which makes it more difficult to intercept for missile defence
systems. The range of the new heavy missile, the number and power
of its combat blocs is bigger than Voevoda’s. Sarmat will be equipped with
a broad range of powerful nuclear warheads, including hypersonic,
and the most modern means of evading missile defence.
The high degree of protection of missile launchers and significant
energy capabilities the system offers will make it possible to use it
in any conditions.
Could you please show the video.
(Video plays.)
Voevoda’s range is 11,000 km while Sarmat has
practically no range restrictions.
As the video clips show, it can attack
targets both via the North and South poles.
Sarmat is a formidable missile and, owing
to its characteristics, is untroubled by even the most advanced
missile defence systems.
But we did not stop at that. We started
to develop new types of strategic arms that do not use ballistic
trajectories at all when moving toward a target and, therefore,
missile defence systems are useless against them, absolutely pointless.
Allow me to elaborate on these weapons.
Russia’s advanced arms are based
on the cutting-edge, unique achievements of our scientists,
designers and engineers. One of them is a small-scale heavy-duty
nuclear energy unit that can be installed in a missile like our
latest X-101 air-launched missile or the American Tomahawk
missile – a similar type but with a range dozens of times
longer, dozens, basically an unlimited range. It is a low-flying
stealth missile carrying a nuclear warhead, with almost an unlimited
range, unpredictable trajectory and ability to bypass interception
boundaries. It is invincible against all existing and prospective missile
defence and counter-air defence systems. I will repeat this several
times today.
In late 2017, Russia successfully launched its
latest nuclear-powered missile at the Central training ground. During
its flight, the nuclear-powered engine reached its design capacity
and provided the necessary propulsion.
Now that the missile launch and ground
tests were successful, we can begin developing a completely new type
of weapon, a strategic nuclear weapons system with
a nuclear-powered missile.
Roll the video, please.
(Video plays.)
You can see how the missile bypasses
interceptors. As the range is unlimited, the missile can
manoeuvre for as long as necessary.
As you no doubt understand, no other country
has developed anything like this. There will be something similar one day but
by that time our guys will have come up with something even better.
Now, we all know that the design
and development of unmanned weapon systems is another common trend
in the world. As concerns Russia, we have developed unmanned
submersible vehicles that can move at great depths (I would say
extreme depths) intercontinentally, at a speed multiple times higher
than the speed of submarines, cutting-edge torpedoes and all
kinds of surface vessels, including some of the fastest. It is
really fantastic. They are quiet, highly manoeuvrable and have hardly any
vulnerabilities for the enemy to exploit. There is simply
nothing in the world capable of withstanding them.
Unmanned underwater vehicles can carry either
conventional or nuclear warheads, which enables them to engage
various targets, including aircraft groups, coastal fortifications
and infrastructure.
In December 2017, an innovative nuclear
power unit for this unmanned underwater vehicle completed a test
cycle that lasted many years. The nuclear power unit is unique
for its small size while offering an amazing power-weight ratio. It
is a hundred times smaller than the units that power modern
submarines, but is still more powerful and can switch into combat mode,
that is to say, reach maximum capacity, 200 times faster.
The tests that were conducted enabled us
to begin developing a new type of strategic weapon that would
carry massive nuclear ordnance.
Please play the video.
(Video plays.)
By the way, we have yet to choose names
for these two new strategic weapons, the global-range cruise missile
and the unmanned underwater vehicle. We are waiting
for suggestions from the Defence Ministry.
Countries with high research potential
and advanced technology are known to be actively developing so-called
hypersonic weapons. The speed of sound is usually measured
in Mach numbers in honour of Austrian scientist Ernst Mach who
is known for his research in this field. One Mach is equal
to 1,062 kilometres per hour at an altitude of 11 kilometres.
The speed of sound is Mach 1, speeds between Mach 1 and Mach 5
is called supersonic, and hypersonic is above Mach 5. Of course, this
kind of weapon provides substantial advantages in an armed
conflict. Military experts believe that it would be extremely powerful,
and that its speed makes it invulnerable to current missile
and air defence systems, since interceptor missiles are, simply put, not
fast enough. In this regard, it is quite understandable why
the leading armies of the world seek to possess such
an ideal weapon.
Friends, Russia already has such a weapon.
The most important stage
in the development of modern weapons systems was
the creation of a high-precision hypersonic aircraft missile
system; as you already know for sure, it is the only one
of its kind in the world. Its tests have been successfully
completed, and, moreover, on December 1 of last year, these
systems began their trial service at the airfields
of the Southern Military District.
The unique flight characteristics
of the high-speed carrier aircraft allow the missile to be
delivered to the point of discharge within minutes.
The missile flying at a hypersonic speed, 10 times faster than
the speed of sound, can also manoeuvre at all phases of its
flight trajectory, which also allows it to overcome all existing and,
I think, prospective anti-aircraft and anti-missile defence systems,
delivering nuclear and conventional warheads in a range
of over 2,000 kilometres. We called this system Kinzhal (Dagger).
Video, please.
(Video plays.)
But this is not all I have to say.
A real technological breakthrough is
the development of a strategic missile system with fundamentally
new combat equipment – a gliding wing unit, which has also been
successfully tested.
I will say once again what we have repeatedly
told our American and European partners who are NATO members: we will make
the necessary efforts to neutralise the threats posed
by the deployment of the US global missile defence system.
We mentioned this during talks, and even said it publicly. Back
in 2004, after the exercises of the strategic nuclear
forces when the system was tested for the first time,
I said the following at a meeting with the press (It
is embarrassing to quote myself, but it is the right thing
to say here):
So, I said: “As other countries increase
the number and quality of their arms and military
potential, Russia will also need to ensure it has new generation weapons
and technology.
In this respect, I am pleased
to inform you that successfully completed experiments during these
exercises enable us to confirm that in the near future,
the Russian Armed Forces, the Strategic Missile Forces, will receive
new hypersonic-speed, high-precision new weapons systems that can hit targets
at inter-continental distance and can adjust their altitude
and course as they travel. This is a very significant statement
because no country in the world as of now has such arms
in their military arsenal.” End of quote.
Of course, every word has a meaning
because we are talking about the possibility of bypassing
interception boundaries. Why did we do all this? Why did we talk about it?
As you can see, we made no secret of our plans and spoke openly
about them, primarily to encourage our partners to hold talks. Let me
repeat, this was in 2004. It is actually surprising that despite all
the problems with the economy, finances and the defence
industry, Russia has remained a major nuclear power. No, nobody really
wanted to talk to us about the core of the problem,
and nobody wanted to listen to us. So listen now.
Unlike existing types of combat equipment, this
system is capable of intercontinental flight at supersonic speeds
in excess of Mach 20.
As I said in 2004, in moving
to its target, the missile’s gliding cruise bloc engages
in intensive manoeuvring – both lateral (by several thousand km)
and vertical. This is what makes it absolutely invulnerable to any
air or missile defence system. The use of new composite
materials has made it possible to enable the gliding cruise bloc
to make a long-distance guided flight practically in conditions
of plasma formation. It flies to its target like a meteorite,
like a ball of fire. The temperature on its surface reaches
1,600–2,000 degrees Celsius but the cruise bloc is reliably guided.
Play the video, please.
(Video plays).
For obvious reasons we cannot show
the outer appearance of this system here. This is still very
important. I hope everyone understands this. But let me assure you that we
have all this and it is working well. Moreover, Russian industrial
enterprises have embarked on the development of another new type
of strategic weapon. We called it the Avangard.
We are well aware that a number of other
countries are developing advanced weapons with new physical properties. We have
every reason to believe that we are one step ahead there
as well – at any rate, in the most essential areas.
We have achieved significant progress in laser
weapons. It is not just a concept or a plan any more. It is not
even in the early production stages. Since last year, our troops have
been armed with laser weapons.
I do not want to reveal more details. It
is not the time yet. But experts will understand that with such weaponry,
Russia’s defence capacity has multiplied.
Here is another short video.
(Video plays.)
Those interested in military equipment are
welcome to suggest a name for this new weaponry, this
cutting-edge system.
Of course, we will be refining this
state-of-the-art technology. Obviously, there is far more in development
than I have mentioned today. But this is enough for now.
I want to specifically emphasise that
the newly developed strategic arms – in fact, new types
of strategic weapons – are not the result of something left
over from the Soviet Union. Of course, we relied on some ideas
from our ingenious predecessors. But everything I have described today is
the result of the last several years, the product
of dozens of research organisations, design bureaus
and institutes.
Thousands, literally thousands of our experts,
outstanding scientists, designers, engineers, passionate and talented
workers have been working for years, quietly, humbly, selflessly, with
total dedication. There are many young professionals among them. They are our
true heroes, along with our military personnel who demonstrated the best
qualities of the Russian army in combat. I want
to address each of them right now and say that there will
absolutely be awards, prizes and honorary titles but, because I have
met many of you in person many times, I know you are not after
awards. The most important thing is to reliably ensure
the security of our country and our people. As President
and on behalf of the Russian people, I want
to say thank you very much for your hard work and its results.
Our country needs them so much.
As I have already said, all future
military products are based on remarkable advances that can, should
and will be used in high-technology civilian sectors. I would
like to stress that only a country with the highest level
of fundamental research and education, developed research,
technology, industrial infrastructure and human resources can successfully
develop unique and complex weapons of this kind. You can see that
Russia has all these resources.
We will expand this potential and focus
on delivering on the ambitious goals our country has set itself
in terms of economic, social and infrastructure development.
Effective defence will serve as a guarantee of Russia’s
long-term development.
Let me reiterate that each of the armament
systems I referred to is uniquely important. Even more importantly,
taken together all these advances enable the Defence Ministry
and General Staff to develop a comprehensive defence system,
in which every piece of new military equipment will be assigned
a proper role. On top of strategic weapons that are currently
on combat alert and benefit from regular updates, Russia will have
a defence capability that would guarantee its security
in the long term.
Of course, there are many things that we have
to do in terms of military construction, but one thing is
already clear: Russia possesses a modern, high-technology army that is
quite compact given the size of the territory, centred
on the officer corps, who are dedicated to their country
and are ready to sacrifice anything for its people. Sooner
or later, other armies will also have the technology,
the weapons, even the most advanced ones. But this does not worry us,
since we already have it and will have even better armaments
in the future. What matters is that they will never have people
or officers like the Russian pilot Major Roman Filipov.
I hope that everything that was said today
would make any potential aggressor think twice, since unfriendly steps against
Russia such as deploying missile defences and bringing NATO
infrastructure closer to the Russian border become ineffective
in military terms and entail unjustified costs, making them useless
for those promoting these initiatives.
It was our duty to inform our partners
of what I said here today under the international commitments
Russia had subscribed to. When the time comes, foreign and defence
ministry experts will have many opportunities to discuss all these matters
with them, if of course our partners so desire.
For my part, I should note that we
have conducted the work to reinforce Russia's defence capability
within the current arms control agreements; we are not violating anything.
I should specifically say that Russia's growing military strength is not
a threat to anyone; we have never had any plans to use this
potential for offensive, let alone aggressive goals.
We are not threatening anyone, not going
to attack anyone or take away anything from anyone with
the threat of weapons. We do not need anything. Just
the opposite. I deem it necessary to emphasise (and it is
very important) that Russia's growing military power is a solid guarantee
of global peace as this power preserves and will preserve
strategic parity and the balance of forces
in the world, which, as is known, have been and remain
a key factor of international security after WWII and up
to the present day.
And to those who in the past 15
years have tried to accelerate an arms race and seek unilateral
advantage against Russia, have introduced restrictions and sanctions that
are illegal from the standpoint of international law aiming
to restrain our nation's development, including in the military
area, I will say this: everything you have tried to prevent through
such a policy has already happened. No one has managed to restrain
Russia.
Now we have to be aware of this reality
and be sure that everything I have said today is not a bluff ‒ and it is not a bluff,
believe me ‒ and to give
it a thought and dismiss
those who live in the past
and are unable to look
into the future, to stop
rocking the boat we are all in and which is called the Earth.
In this connection, I would like
to note the following. We are greatly concerned by certain
provisions of the revised nuclear posture review, which expand
the opportunities for reducing and reduce the threshold
for the use of nuclear arms. Behind closed doors, one may say
anything to calm down anyone, but we read what is written. And what
is written is that this strategy can be put into action in response
to conventional arms attacks and even to a cyber-threat.
I should note that our military doctrine says
Russia reserves the right to use nuclear weapons solely
in response to a nuclear attack, or an attack with
other weapons of mass destruction against the country or its
allies, or an act of aggression against us with the use
of conventional weapons that threaten the very existence
of the state. This all is very clear and specific.
As such, I see it is my duty
to announce the following. Any use of nuclear weapons against
Russia or its allies, weapons of short, medium or any range
at all, will be considered as a nuclear attack on this
country. Retaliation will be immediate, with all the attendant
consequences.
There should be no doubt about this whatsoever.
There is no need to create more threats to the world. Instead,
let us sit down at the negotiating table and devise together
a new and relevant system of international security
and sustainable development for human civilisation. We have been
saying this all along. All these proposals are still valid. Russia is ready
for this.
Our policies will never be based on claims
to exceptionalism. We protect our interests and respect
the interests of other countries. We observe international law
and believe in the inviolable central role of the UN.
These are the principles and approaches that allow us to build
strong, friendly and equal relations with the absolute majority
of countries.
Our comprehensive strategic partnership with
the People’s Republic of China is one example. Russia and India
also enjoy a special privileged strategic relationship. Our relations with
many other countries in the world are entering a new dynamic
stage.
Russia is widely involved in international
organisations. With our partners, we are advancing such associations
and groups as the CSTO, the Shanghai Cooperation
Organisation and BRICS. We are promoting a positive agenda
at the UN, G20 and APEC. We are interested in normal
and constructive cooperation with the United States
and the European Union. We hope that common sense will prevail
and our partners will opt for honest and equal work together.
Even if our views clash on some issues, we
still remain partners because we must work together to respond
to the most complex challenges, ensure global security,
and build the future world, which is becoming increasingly interconnected,
with more and more dynamic integration processes.
Russia and its partners
in the Eurasian Economic Union seek to make it a globally
competitive integration group. The EAEU’s agenda includes building
a common market for electricity, oil, petroleum products and gas,
harmonising financial markets, and linking our customs authorities. We
will also continue to work on a greater Eurasian partnership.
Colleagues, this is a turning period
for the entire world and those who are willing and able
to change, those who are taking action and moving forward will take
the lead. Russia and its people have expressed this will
at every defining moment in our history. In just 30 years, we
have undergone changes that took centuries in other countries.
We will continue to confidently chart our own course,
just as we always have. We will stick together, as we always have.
Our unity is the most durable foundation for future progress.
In the coming years, it is our goal to further strengthen this
unity so that we are one team that understands that change is necessary
and is ready to devote its energy, knowledge, experience
and talent to achieving common goals.
Challenges and big goals give special meaning
to our lives. We must be bold in our plans and actions, take
responsibility and initiative, and grow stronger, which means being
of use to our families, children, the whole country; changing
the world and our country for the better; and creating
the Russia that we all dream about. Only then will the next decade
and the entire 21st century undoubtedly be
an age of outstanding triumphs for Russia and our shared
success. I believe it will be so.
Thank you.
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