OREANDA-NEWS. The discussion at the meeting between Vladimir Putin and senior members of the Federation Council focused on the legal, economic, cultural, social and administrative integration of the two new constituent entities of the Russian Federation: the Republic of Crimea and the Federal City of Sevastopol.

Taking part in the meeting were Federation Council Speaker Valentina Matviyenko, the deputy speakers and heads of relevant committees.

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PRESIDENT OF RUSSIA VLADIMIR PUTIN: Ms Matviyenko, colleagues,

This is a regular meeting – although we do not meet very often, this format is not unusual.  Today I suggest we consider a wide range of issues.  Naturally, we cannot ignore the accession to the Russian Federation of two new constituent entities: Crimea and Sevastopol.

This raises a number of issues before us and before legislators as well. We need to carefully, professionally, consecutively provide for the inclusion of Crimea and Sevastopol into our legal system, without creating any problems for the people living there, moreover by creating conditions for the economic and social development of these two new constituent entities of the Russian Federation.

We need to work more actively with our colleagues in Crimea and Sevastopol, involving them in this effort.  The people in Crimea and Sevastopol should feel that they are not only at the centre of our attention, but also at the focus of our joint efforts.  They are full-fledged, rightful participants in our work.

Therefore, we must include them in the Council of Legislators; we need to work with municipalities.  On the whole, we should do everything to make sure that the people living in Crimea and Sevastopol feel as soon as possible that they are full-fledged citizens of the Russian Federation and begin to take part in our joint work. This is my first point.

Second, we need legislation that would provide for the social and economic development of Crimea and Sevastopol.  There are plenty of issues here that we will touch upon in detail today.

However, we should not leave out our daily national concerns that we deal with on a regular basis. Despite the fact that the events I mentioned are exceptional and unique, we should not ignore our ongoing work.

Therefore, I would like to ask you to pay special attention to these issues that may not seem very attractive at first glance, but that are of vital importance for the citizens of the Russian Federation, wherever they live.  I am referring here primarily to legislative support for economic and social development.

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VLADIMIR PUTIN: I have a few comments.

First, regarding the financing of our infrastructure facilities, primarily those in the energy sector and in communications. We most certainly need to consider everything seriously, so that never, under no circumstances do we have any setbacks in funding infrastructure facilities. This applies to electric power, the energy industry as a whole, and to communications. The Government is now working on it, and so is the Central Bank. If there is any need for a legislative move, I would like to ask you to react promptly.

The same is true of the national payment system. The Central Bank is working on it now together with the Government. This will take some time, but such systems are already successfully operating in such countries as Japan and China. They were launched as purely national systems, aimed exclusively at the home market, at the country and its population. Now they are gradually gaining in popularity.

The Japanese system was introduced as a national one, and now it operates in almost two hundred countries, I believe.  Why can’t we do the same? We should, and we will. It is a pity some companies have made the decision to impose certain limits. I believe this will simply lead to a loss of certain segments of a very profitable market for them. This was not our decision – we need to protect our interests and we shall do so.

Now regarding de-offshoring. Here the Government is making progress, though not too quickly. We would like to ask legislators in both houses of Parliament to turn their attention to this issue and make the necessary decisions.

Now regarding the amnesty for capital. As you may know, we have already done this in the past, but there are a few problems involved here (I will not go into detail now). If we decide to do it, we should address every aspect and make sure we maintain social justice and comply with the laws of the Russian Federation. In short, I believe we should consider it, but there is no need to hurry.

Now over to implementing the Executive Orders of May 2012, primarily those pertaining to the social sphere, which have to do mainly with raising salaries. Most regions of the Russian Federation – the majority, I would like to stress - are managing despite all the difficulties.

Yes, we are aware of the situation with regional financing, and the Finance Ministry should react to this accordingly.  However, the Executive Orders must be acted on. I would like the heads of Russian regions and the Senators that represent them in the Upper House of Parliament to proceed from this same approach.