Vladimir Putin announces new support measures at SPIEF and reports a growth of Russian economy

“The states that until recently acted as leaders of global development are trying by all means, by hook or by crook, to preserve their elusive role of hegemons”

The head of state began his speech by describing the situation in the world.

“We see how a real race has begun between the countries to strengthen their sovereignty, and at three key levels — state, value-cultural and economic. At the same time, the states that until recently acted as leaders of global development are trying by all means, by hook or by crook, to preserve their elusive role of hegemons. In general, there is nothing unusual here when a country or a person tries to maintain and strengthen their position," Vladimir Putin said.

According to him, there is being an explosive technological growth in almost all spheres of life in the countries of the world.

“It is seriously changing management, production processes and even entire industries," the Russian president stressed. “Russia has proven a high level of readiness and receptivity to technological transformations. We can see how our financial sector, e-commerce, transport services, and public administration have already changed. Similar processes are beginning to unfold in the Armed Forces, where we also need a high rate of technological renewal. This is the most important and defining issue for our country.

Huge potential of the BRICS

BRICS has great potential in joining new member countries, Russian President Vladimir Putin said. Saudi Arabia, Iran, the UAE, Egypt and Ethiopia have already joined the work, thanks to which the association's share in global GDP has increased to 36%.

“BRICS has great potential for new participants to join, and we, of course, welcome and will support such an aspiration of interested partners to develop contacts with BRICS on different continents," he stressed.

According to him, Russia will continue to develop relations within the framework of BRICS not only in terms of economy and finance, but also in the field of security, humanitarian cooperation and other sectors.

“Our pace exceeds the global average”

Russia remains one of the key participants in world trade, despite obstacles and illegitimate sanctions, Putin said — the country is actively developing logistics and geography of cooperation:

“Thus, our relations with the countries of Asia (60% growth from 2020 to 2023), the Middle East (2 times growth), Africa (69%) and Latin America (42%) are strengthening.”

“We turned out to be ahead of Japan," Putin said. (The audience greeted this fact with applause.) “But we understand, at the same time, that leadership positions need to be constantly confirmed and strengthened. Other countries are also not standing still. It is important for us to ensure consistently high rates and quality of growth in the long term. That's what our task is today. And it's not just the economies of Germany or Japan that stand next to us on the scale. The thing is that other countries are not standing still either. Indonesia is on everyone's heels. The population is growing and the economy is developing. We must never forget about this.

Last year, the country's GDP grew by 3.6%, and by 5.4% in the first quarter of 2024.

“That is, our pace exceeds the global average. It is especially important that such dynamics is determined primarily by non-primary industries," Putin noted.

Investments in Russia continue to be actively invested — now there are 30 million retail investors in the country, their total assets are estimated at more than 9 trillion rubles. According to Putin, it is necessary to introduce a tax deduction for groups of companies:

“Today, the mechanism of investment tax deduction operates in the regions. It allows companies that invest in development to reduce income tax. Since this year, the deduction has been linked to projects of technological sovereignty and structural adaptation of economies. This makes it possible to manage the quality of investments and stimulate capital expenditures in priority areas. I ask the government to make sure that the deduction can be applied not only within one company, but also within a group of companies, and also provide additional resources for a financing mechanism to replenish the tax deduction.

Putin also suggested discussing the consolidation of the investment standard in legislation.

“It will be really fair”

One of the main proposals is the resumption from 2025 of the indexation of pensions for working pensioners, which was not made due to financial and budgetary constraints. Putin announced this even before the SPIEF speech.

“Today we have the resources to start solving the issue in the interests of the people," the Russian president said. “From February 1, 2025 onwards, pensions are to be increased annually not only for those who have already retired, but also for those who continue to work. It will be really fair. I ask the United Russia party, together with the government, to prepare an appropriate bill and adopt it in the spring session," the Russian president said.

In the spring session, the Russian leader instructed to adopt a law that will create a legal framework for the creative industry:

“I am asking you to adopt a federal law in the spring parliamentary session, which will set a clear legal framework for the creative industry, and in the future will allow you to establish common standards for its support.

Besides, he proposed to increase the period of co-financing by the state of the long-term savings program from three to ten years.

“I consider it is right and justified to extend it to at least 10 years. At the same time, I ask the government, together with the Central Bank, to think over additional incentives for business so that employers can also co-finance the savings of their employees under this program," Putin said.

Launching additional programs on preferential mortgages and increasing the minimum wage

Another initiative is to expand the family mortgage program at a rate of 6% for the purchase of housing in small towns, regardless of the age of children.

“Preferential mortgage terms will be valid in all regions of Russia, for every family that wants to build their own house. This is especially important for large families with many children. I ask the government to launch these programs as early as July 1 of this year," Vladimir Putin said.

He also announced the indexing of the minimum wage.

“It already exceeds the living wage, as defined in the Constitution, and in the future we will tie its indexation to the overall growth of wages in the economy. Starting next year, the ratio of the minimum wage to the median salary, which is received by the majority of people employed in our economy, will be established," the president of Russia stressed.

Thus, the minimum wage in 2025 will amount to 48% of the median salary, by 2030 it should be at least 35 thousand rubles per month.