OREANDA-NEWS. August 6, 2010.  The government will allocate some 35 billion roubles to agricultural producers affected by drought, Prime Minister Vladimir Putin said during the Government Presidium meeting. In addition, in order to help agricultural producers, grain will be distributed from the intervention fund without auctions, on applications from the regions. The abnormally high temperatures and drought conditions have prompted the government to impose a temporary ban on the export of grain and grain-based products from Russia.

During the meeting Minister of Healthcare and Social Development Tatyana Golikova reported that over 1,069 people affected by the wildfires have each received 100,000 roubles in compensation from the federal budget, while 2,858 people in eight regions received 10,000 roubles each in immediate compensation for basic necessities. Prime Minister Vladimir Putin entrusted the minister with supervising compensation payments from regional budgets.

In his address to the meeting, Prime Minister also said that the Federal Service for Financial Markets has prepared a draft law aimed at substantially strengthening the national capital market's infrastructure, eliminating excessive administrative barriers and protecting investors' rights.

On August 5, for the first time in the history of Russian Olympic movement, a Strategy for Developing the Olympic Movement was approved, Deputy Prime Minister Alexander Zhukov reported.

Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon, ladies and gentlemen. Let us begin by sharing some valuable information. Ms Golikova (to the healthcare minister), please tell us about the relief efforts conducted by teams from the Ministry of Healthcare and Social Development in the regions hit by wildfires. Please, go ahead.

Tatyana Golikova: Mr Putin, colleagues. Following your instructions, professionals from our ministry joined the relief teams formed by the Emergencies Ministry. Our task was to oversee the provision of medical assistance, necessary medications and supplies, and compulsory medical insurance policies.

We are doing more than helping the fire victims; special groups are working onsite during fires and taking proactive measures to prevent the spread of diseases. It is also our job to ensure the regular and timely payment of social benefits and issue the documents required to apply for them.

As of today, we have issued 1,038 insurance policies to replace those that were lost in fire. As of this morning, 1,069 families in the Moscow, Ryazan, Lipetsk and Vladimir Regions have each received 100,000 roubles in compensation for property that was lost. Residents of other regions will receive theirs before the end of this week. Also, 2,858 residents of the Nizhny Novgorod, Moscow, Ryazan, Voronezh, Lipetsk, Vladimir and Belgorod Regions and the Republic of Mordovia have been paid 10,000 roubles of emergency financial support.

As for injuries, as of today, 458 people have applied to our teams for medical assistance; out of that number, the teams served 386 outpatients and hospitalized 72 people, of which 46 are still in the hospital. Unfortunately, as you know, 50 people died, including 44 killed in the fires and six more who died in the hospital.

I would like to add that we have organised local customer services. You have visited these places and you have seen that nearly all government agencies have established such services there. The Healthcare Ministry centres are particularly focused on urgently issuing replacements for lost documents required to apply for social benefits. The centre also registers changes of address for delivering pensions because this situation is causing much anxiety among senior citizens. We are also arranging for financial support payments of 25,000 roubles from the Pension Fund.

Vladimir Putin: What about the 100,000 rouble lost property compensation payments from the regional budgets?

Tatyana Golikova: That is underway too. The only problem is that they need to compare and verify the lists. We have urged every region to draw up some kind of payment schedule, permanent or temporary, so that we knew what we're doing.

I have already cited the regions where people are already receiving their compensations; others will join the programme after the lists have been verified.

Vladimir Putin: This process should be monitored anyway.

Tatyana Golikova: We have been collecting data every morning and every evening, and we monitor this jointly with the Emergencies Ministry.

Vladimir Putin: Good, but I'd like to repeat that you should also collect information about regional compensations, all right?

Tatyana Golikova: Yes, Mr Putin.

Vladimir Putin: Thank you. Mr Shoigu (addressing the emergencies minister), you have been asking for an additional 4,000 metric tons of jet fuel for the aircraft participating in firefighting efforts.

Sergei Shoigu: Yes, Mr Putin.

Vladimir Putin: I have signed an order asking the Finance Ministry to allocate another 90 million roubles to the Federal Agency for State Reserves. Please take the government order with you when you leave.

Mr Levitin (to the transport minister), please say a few words about your efforts to ensure transport security.

Igor Levitin: Mr Putin, we have developed a comprehensive transport security programme, as was mandated by a presidential decree. This involves nearly all the federal executive bodies. The programme's budget is 46.7 billion roubles until 2014; this year's budget is 7.8 billion.

The North Caucasus Federal District was the first area our commission visited. We have also travelled across other regions and chosen seven bus terminals and 11 railway stations to install pilot security equipment. We will also install new security systems at 24 metro stations in Moscow and seven metro stations in St Petersburg.

The Emergencies Ministry is also planning to set up eight pilot zones for the programme in every city that has a metro system. The programme is getting underway.

Vladimir Putin: How about the North Caucasus?

Igor Levitin: The North Caucasus is our topmost priority. That is why we traveled there first and visited all the regions there. 

Vladimir Putin: Thank you very much. Our next issue is the Olympic meeting that took place today. Mr Zhukov (to Deputy Prime Minister Alexander Zhukov), you have the floor.

Alexander Zhukov: Yes, Mr Putin, an Olympic meeting was held today. This is the first time that a Strategy for the Olympic Movement and the Olympic Committee was approved in Russia. The strategy until 2020 comprises several distinct stages, each having to do with Russian athletes' participation in the Olympics - first in the 2012 London Games and then, of course, in Sochi. Our plan is aimed at increasing the Russian Olympic Committee's influence on the international arena, which is currently lacking. It also provides for a dedicated effort to promote physical fitness and high performance sports in Russia by the Olympic Committee, sports federations and government agencies.

Furthermore, today we elected new official bodies, such as the executive board of the Olympic Committee. We reduced the number of executives (cut the number of vice presidents by half, for example). We appointed to the executive board representatives of those sports federations in which the biggest number of Olympic medals is contested. In short, we have determined our development guidelines for the next few years.

Vladimir Putin: Good. One more thing: today I signed a government resolution on government awards for promising young professionals in science and technology. This was your initiative. Could you please comment on this?
Alexander Zhukov: Yes, Mr Putin.  This science and technology award is given to professionals younger than 33, for projects which make a significant contribution to national science and/or technology, such as the development of new-generation technology and materials which could promote economic growth and efficiency. Seven prizes worth 500,000 roubles each will be awarded every year. The prize money will be tax-exempt. Also, the award is special because the winners will be selected according to very strict criteria. The most important consideration will be the potential practical application of the innovation in question. 


Vladimir Putin: All right. We began today by discussing the problems that were created by extremely high temperatures in central Russia, but the wildfires are only one part of our problems. There are other problems, and in agriculture for instance, there is a problem of drought. We have discussed how to help the agricultural producers that have been hit by drought, including offering relief by distributing grain from our intervention fund.

Needless to say, the government would be interested in auctioning off these reserves. But this time our goal is not to get more money but to support the producers of grain who need help now.  Therefore, we'll distribute this grain without an auction upon the requests from the regions. They will have to provide this assistance in line with the objective criteria drafted by the Ministry of Agriculture.

These criteria should take into account all aspects of the financial and economic operation of agricultural companies, their conditions and current requirements. This is the first point.

Second, we will give monetary assistance to those agricultural companies that have been hit by the drought. The total financial support will amount to 35 billion roubles. These funds will be allocated in two stages - in August and in October to November of this year. Why October to November? Because we must wait to observe the results of the harvest.

Out of these 35 billion roubles, 10 billion roubles is direct non-repayable aid, that is, subsidies to agricultural companies, and 25 billion roubles is provided in three-year budget loans with preferential terms. These funds will be used to buy seeds and resolve other current problems.

I'd like to inform you of one more decision. In conditions of the abnormal heatwave and the drought I think it is expedient to introduce a temporary ban on the export of grain and any grain-containing products from the Russian Federation.

Yes, we have enough reserves - 9.5 million tons, but we must prevent an increase in domestic food prices and keep livestock and form a reserve for next year. As the saying goes, store is no sore. We must act with caution. This ban will be temporary. We'll discuss what we'll do after December later on when we know the results of the harvest.

I'd like to request that the Ministry of Agriculture and other government agencies act in accordance with the government resolution which was signed today.

Now let's turn to today's agenda.

This agenda contains a number of important issues, including those related to the implementation of our plans to establish an international financial centre in Russia.

We are going to considerably enhance the infrastructure of the domestic securities market, remove excessive administrative barriers and reliably protect the rights of investors.

The Federal Service on Financial Markets (FSFM) has prepared a draft law to reach one of these goals. The basic idea is to remove double control in the issue of securities. Now both federal supervisory bodies and stock exchanges are monitoring this, which is excessive. Therefore, there is a proposal to eliminate the government registration of additional issues of shares if they are already circulating in the stock exchange.

This will decrease the costs linked with the investment of capital in the Russian stock market and make it more appealing to domestic and foreign investors.

We completed work on another key law the other day - on countering the use of insider information and the manipulation of the market.

Incidentally, the State Duma discussed this law for more than a year and a half. Probably, this long period of discussion is justified in this case. This is a very complicated and sensitive issue for everyone involved.

Nevertheless, I'd like to emphasise to the FSFM, the Ministry of Economic Development and our colleagues from the professional, scientific and expert community that the work on draft laws in this sphere must be carried out faster. Needless to say, this should not be done at the expense of quality.

I'd like to ask you to streamline your work accordingly.

In addition, at the presidium we'll discuss drafts of technical regulations that establish mandatory requirements for marine and river vessels.

They are necessary to enhance the safety of navigation, enable the domestic industry to start producing more modern, reliable and effective marine equipment, upgrade our own merchant marine and fishing fleets, develop the natural resources of the Far North and the Russian shelf, and revive such promising markets as domestic river shipments and, of course, tourism.

The government allots considerable funds to support shipbuilding. This year alone it appropriated 14.3 billion roubles for this purpose. Therefore, we have the right to count on an adequate return from our shipbuilding companies, all the more so since there are opportunities available for this - in 2009 our shipbuilding industry registered a growth of more than 30%.
Let's get down to work now. I'm giving the floor to Deputy Finance Minister Sergei Shatalov. Mr Shatalov, first I'd like to thank you and your colleagues from the Ministry of Finance for making prompt decisions related to combating the wildfires and helping the people affected by them.