http://en.kremlin.

ru/events/president/news/70565

Presidential Address to Federal Assembly

Vladimir Putin delivered his Address to the Federal
Assembly. The ceremony took place in Gostiny Dvor,
Moscow.

President of Russia Vladimir Putin: Good afternoon,

Members of the Federation Assembly – senators, State

Duma deputies,

Citizens of Russia,

This Presidential Address comes, as we all know,

at a difficult, watershed period for our country. This is
a time of radical, irreversible change in the entire world,
of crucial historical events that will determine the future
of our country and our people, a time when every one of us
bears a colossal responsibility.
One year ago, to protect the people in our historical lands,
to ensure the security of our country and to eliminate
the threat coming from the neo-Nazi regime that had taken
hold in Ukraine after the 2014 coup, it was decided to begin
the special military operation. Step by step, carefully
and consistently we will deal with the tasks we have
at hand.

Since 2014, Donbass has been fighting for the right to live
in their land and to speak their native tongue. It fought
and never gave up amid the blockade, constant shelling
and the Kiev regime’s overt hatred. It hoped and waited
that Russia would come to help.

In the meantime, as you know well, we were doing

everything in our power to solve this problem by peaceful
means, and patiently conducted talks on a peaceful solution
to this devastating conflict.

Behind our backs, a very different plan was being hatched.

As we can see now, the promises of Western leaders, their
assurances that they were striving for peace in Donbass
turned out to be a sham and outright lies. They were simply
marking time, engaged in political chicanery, turning
a blind eye to the Kiev regime’s political assassinations
and reprisals against undesirable people, their
mistreatment of believers. They increasingly incited
the Ukrainian neo-Nazis to stage terrorist attacks
in Donbass. The officers of nationalist battalions trained
at Western academies and schools. Weapons were also
supplied.
I would like to emphasise that, prior to the special military
operation, Kiev held negotiations with the West about
the delivery of air-defence systems, warplanes and other
heavy equipment to Ukraine. We also recall the Kiev
regime’s vain attempts to obtain nuclear weapons; they
discussed this issue publicly.

The United States and NATO quickly deployed their army

bases and secret biological laboratories near Russian
borders. They mastered the future theatre of war during
war games, and they prepared the Kiev regime which they
controlled and Ukraine which they had enslaved for a large-
scale war.

Now they admit this publicly and openly, and they feel no
shame about it. They seem to be proud and even to be
revelling in their own perfidy, while calling the Minsk
Agreements and the Normandy Format a diplomatic show
and a bluff. It turns out that all this time, while Donbass
was ablaze, while blood was being spilled, and while Russia
sincerely made every effort to achieve a peaceful solution
(I want to emphasise the word “sincerely”), they gambled
on people’s lives, and in effect, were playing with marked
cards, as they say in certain circles.

This appalling method of deception has been tried

and tested many times before. They behaved just
as shamelessly and duplicitously when destroying
Yugoslavia, Iraq, Libya, and Syria. They will never be able
to wash off this shame. The concepts of honour, trust,
and decency are not for them.
Over the long centuries of colonialism, diktat
and hegemony, they got used to being allowed everything,
got used to spitting on the whole world. It turned out that
they treat people living in their own countries with
the same disdain, like a master. After all, they cynically
deceived them too, tricked them with tall stories about
the search for peace, about adherence to the UN Security
Council resolutions on Donbass. Indeed, the Western elites
have become a symbol of total, unprincipled lies.

We firmly defend our interests as well as our belief that

in today’s world there should be no division into so-called
civilised countries and all the rest and that there is a need
for an honest partnership that rejects any exclusivity,
especially an aggressive one.

We were open and sincerely ready for a constructive

dialogue with the West; we said and insisted that both
Europe and the whole world needed an indivisible security
system equal for all countries, and for many years we
suggested that our partners discuss this idea together
and work on its implementation. But in response, we
received either an indistinct or hypocritical reaction, as far
as words were concerned. But there were also actions:
NATO’s expansion to our borders, the creation of new
deployment areas for missile defence in Europe and Asia –
they decided to take cover from us under an ‘umbrella’ –
deployment of military contingents, and not just near
Russia’s borders.

I would like to stress –in fact, this is well-known – that no

other country has so many military bases abroad
as the United States. There are hundreds of them – I want
to emphasise this – hundreds of bases all over the world;
the planet is covered with them, and one look at the map is
enough to see this.

The whole world witnessed how they withdrew from

fundamental agreements on weapons, including the treaty
on intermediate and shorter-range missiles, unilaterally
tearing up the fundamental agreements that maintain world
peace. For some reason, they did it. They do not do anything
without a reason, as we know.

Finally, in December 2021, we officially submitted draft

agreements on security guarantees to the USA and NATO.
In essence, all key, fundamental points were rejected. After
that it finally became clear that the go-ahead
for the implementation of aggressive plans had been given
and they were not going to stop.

The threat was growing by the day. Judging

by the information we received, there was no doubt that
everything would be in place by February 2022
for launching yet another bloody punitive operation
in Donbass. Let me remind you that back in 2014, the Kiev
regime sent its artillery, tanks and warplanes to fight
in Donbass.

We all remember the aerial footage of airstrikes targeting

Donetsk. Other cities also suffered from airstrikes. In 2015,
they tried to mount a frontal assault against Donbass again,
while keeping the blockade in place and continuing to shell
and terrorise civilians. Let me remind you that all of this
was completely at odds with the documents and resolutions
adopted by the UN Security Council, but everyone
pretended that nothing was happening.

Let me reiterate that they were the ones who started this
war, while we used force and are using it to stop the war.

Those who plotted a new attack against Donetsk

in the Donbass region, and against Lugansk understood that
Crimea and Sevastopol would be the next target. We
realised this as well. Even today, Kiev is openly discussing
far-reaching plans of this kind. They exposed themselves
by making public what we knew already.

We are defending human lives and our common home,

while the West seeks unlimited power. It has already spent
over $150 billion on helping and arming the Kiev regime.
To give you an idea, according to the Organisation
for Economic Cooperation and Development, the G7
countries earmarked about $60 billion in 2020–2021 to help
the world’s poorest countries. Is this clear? They spent $150
billion on the war, while giving $60 billion to the poorest
countries, despite pretending to care about them all
the time, and also conditioning this support on obedience
on behalf of the beneficiary countries. What about all this
talk of fighting poverty, sustainable development
and protection of the environment? Where did it all go? Has
it all vanished? Meanwhile, they keep channelling more
money into the war effort. They eagerly invest in sowing
unrest and encouraging government coups in other
countries around the world.
The recent Munich Conference turned into an endless
stream of accusations against Russia. One gets
the impression that this was done so that everyone would
forget what the so-called West has been doing over the past
decades. They were the ones who let the genie out
of the bottle, plunging entire regions into chaos.

According to US experts, almost 900,000 people were killed

during wars unleashed by the United States after 2001,
and over 38 million became refugees. Please note, we did
not invent these statistics; it is the Americans who are
providing them. They are now simply trying to erase all this
from the memory of humankind, and they are pretending
that all this never happened. However, no one in the world
has forgotten this or will ever forget it.

None of them cares about human casualties and tragedies

because many trillions of dollars are at stake, of course.
They can also continue to rob everyone under the guise
of democracy and freedoms, to impose neoliberal
and essentially totalitarian values, to brand entire countries
and nations, to publicly insult their leaders, to suppress
dissent in their own countries and to divert attention from
corruption scandals by creating an enemy image. We
continue to see all this on television, which highlights
greater domestic economic, social and inter-ethnic
problems, contradictions and disagreements.

I would like to recall that, in the 1930s, the West had

virtually paved the way to power for the Nazis in Germany.
In our time, they started turning Ukraine into an “anti-
Russia.” Actually, this project is not new. People who are
knowledgeable about history at least to some extent realise
that this project dates back to the 19th century. The Austro-
Hungarian Empire and Poland had conceived it for one
purpose, that is, to deprive Russia of these historical
territories that are now called Ukraine. This is their goal.
There is nothing new here; they are repeating everything.

The West expedited the implementation of this project

today by supporting the 2014 coup. That was a bloody, anti-
state and unconstitutional coup. They pretended that
nothing happened, and that this is how things should be.
They even said how much money they had spent on it.
Russophobia and extremely aggressive nationalism formed
its ideological foundation.

Quite recently, a brigade of the Armed Forces of Ukraine

was named Edelweiss after a Nazi division whose personnel
were involved in deporting Jews, executing prisoners of war
and conducting punitive operations against partisans
in Yugoslavia, Italy, Czechoslovakia and Greece. We are
ashamed to talk about this, but they are not. Personnel
serving with the Armed Forces of Ukraine
and the Ukrainian National Guard are particularly fond
of chevrons formerly worn by soldiers from Das Reich,
Totenkopf (Death’s Head) and Galichina divisions and other
SS units. Their hands are also stained with blood. Ukrainian
armoured vehicles feature insignia of the Nazi German
Wehrmacht.

Neo-Nazis are open about whose heirs they consider

themselves to be. Surprisingly, none of the powers that be
in the West are seeing it. Why? Because they – pardon
my language – could not care less about it. They do not care
who they are betting on in their fight against us, against
Russia. In fact, anyone will do as long as they fight against
us and our country. Indeed, we saw terrorists and neo-
Nazis in their ranks. They would let all kinds of ghouls join
their ranks, for God’s sake, as long as they act on their will
as a weapon against Russia.

In fact, the anti-Russia project is part of the revanchist

policy towards our country to create flashpoints
of instability and conflicts next to our borders. Back then,
in the 1930s, and now the design remains the same and it is
to direct aggression to the East, to spark a war in Europe,
and to eliminate competitors by using a proxy force.

We are not at war with the people of Ukraine. I have made

that clear many times. The people of Ukraine have become
hostages of the Kiev regime and its Western handlers, who
have in fact occupied that country in the political, military
and economic sense and have been destroying Ukrainian
industry for decades now as they plundered its natural
resources. This led to social degradation
and an immeasurable increase in poverty and inequality.
Recruiting resources for military operations in these
circumstances was easy. Nobody was thinking about people,
who were conditioned for slaughter and eventually became
expendables. It is a sad and dreadful thing to say, but it is
a fact.

Responsibility for inciting and escalating the Ukraine

conflict as well as the sheer number of casualties lies
entirely with the Western elites and, of course, today’s Kiev
regime, for which the Ukrainian people are, in fact, not its
own people. The current Ukrainian regime is serving not
national interests, but the interests of third countries.

The West is using Ukraine as a battering ram against Russia

and as a testing range. I am not going to discuss in detail
the West's attempts to turn the war around, or their plans
to ramp up military supplies, since everyone is well aware
of that. However, there is one circumstance that everyone
should be clear about: the longer the range of the Western
systems that will be supplied to Ukraine, the further we will
have to move the threat away from our borders. This is
obvious.

The Western elite make no secret of their goal, which is,

I quote, “Russia’s strategic defeat.” What does this mean
to us? This means they plan to finish us once and for all.
In other words, they plan to grow a local conflict into
a global confrontation. This is how we understand it and we
will respond accordingly, because this represents
an existential threat to our country.

However, they too realise it is impossible to defeat Russia

on the battlefield and are conducting increasingly
aggressive information attacks against us targeting
primarily the younger generation. They never stop lying
and distorting historical facts as they attack our culture,
the Russian Orthodox Church and other traditional religious
organizations in our country.

Look what they are doing to their own people. It is all about
the destruction of the family, of cultural and national
identity, perversion and abuse of children, including
pedophilia, all of which are declared normal in their life.
They are forcing the priests to bless same-sex marriages.
Bless their hearts, let them do as they please. Here is what
I would like to say in this regard. Adult people can do
as they please. We in Russia have always seen it that way
and always will: no one is going to intrude into other
people’s private lives, and we are not going to do it, either.

But here is what I would like to tell them: look at the holy
scripture and the main books of other world religions. They
say it all, including that family is the union of a man
and a woman, but these sacred texts are now being
questioned. Reportedly, the Anglican Church is planning,
just planning, to explore the idea of a gender-neutral god.
What is there to say? Father, forgive them, for they know
not what they do.

Millions of people in the West realise that they are being led
to a spiritual disaster. Frankly, the elite appear to have
gone crazy, and it looks like there is no cure for that. But
like I said, these are their problems, while we must protect
our children, which we will do. We will protect our children
from degradation and degeneration.

Clearly, the West will try to undermine and divide our

society and to bet on the fifth columnists who, throughout
history, and I want to emphasise this, have been using
the same poison of contempt for their own Fatherland
and the desire to make money by selling this poison
to anyone who is willing to pay for it. It has always been
that way.
Those who have embarked on the road of outright betrayal,
committing terrorist and other crimes against the security
of our society and the country’s territorial integrity, will be
held accountable for this under law. But we will never
behave like the Kiev regime and the Western elite, which
have been and still are involved in witch hunts. We will not
settle scores with those who take a step aside and turn their
back on their Motherland. Let this be on their conscience,
let them live with this – they will have to live with it.
The main point is that our people, the citizens of Russia,
have given them a moral assessment.

I am proud, and I think we are all proud that our multi-

ethnic nation, the absolute majority of our citizens, have
taken a principled stance on the special military operation.
They understand the basic idea of what we are doing
and support our actions on the defence of Donbass. This
support primarily revealed their true patriotism – a feeling
that is historically inherent in our nation. It is stunning
in its dignity and deep understnding by everyone – I will
stress, everyone – of the inseparable link between one’s
own destiny and the destiny of the Fatherland.

My dear friends, I would like to thank everyone, all

the people of Russia for their courage and resolve. I would
like to thank our heroes, soldiers and officers in the Army
and the Navy, the Russian Guards, the secret services staff,
and all structures of authority, the fighters in Donetsk
and Lugansk corps, volunteers and patriots who are now
fighting in the ranks of the BARS combat army reserve.
I would like to apologise that I will not be able to mention
everyone during today’s speech. You know, when I was
drafting this speech, I wrote a very long list of these heroic
units but then removed it from my text because, as I said, it
is impossible to mention everyone, and I was afraid
to offend anyone I might leave out.

My deepest gratitude to the parents, wives and families

of our defenders, the doctors and paramedics, combat
medics and medical nurses that are saving the wounded;
to the railway workers and drivers that are supplying
the front; to the builders that are erecting fortifications
and restoring housing, roads and civilian facilities;
to the workers and engineers at defence companies, who
are now working almost around-the-clock, in several shifts;
and to rural workers who reliably ensure food security
for the country.

I am grateful to the teachers who sincerely care

for the young generations of Russia, especially those that
are working in very difficult, almost front-line conditions;
the cultural figures that are visiting the zone of hostilities
and hospitals to support the soldiers and officers;
volunteers that are helping the front and civilians;
journalists, primarily war correspondents, that are risking
their lives to tell the truth to the world; pastors of Russia’s
traditional religions and military clergy, whose wise words
support and inspire people; government officials
and business people – all those who fulfill their
professional, civil and simply human duty.
My special words go to the residents of the Donetsk
and Lugansk people’s republics, and the Zaporozhye
and Kherson regions. You, my friends, determined your
future at the referendums and made a clear choice despite
the neo-Nazis’ threats and violence, amid the close military
actions. But there has been nothing stronger than your
intent to be with Russia, with your Motherland.

(Applause)

I want to emphasise that this is the reaction of the audience

to the residents of the Donetsk and Lugansk people’s
republics, and the Zaporozhye and Kherson regions. Once
again, our deepest respect for them all.

We have already begun and will expand a major

socioeconomic recovery and development programme
for these new regions within the Federation. It includes
restoring production facilities, jobs, and the ports
on the Sea of Azov, which again became Russia’s landlocked
sea, and building new, modern road,s like we did in Crimea,
which now has a reliable land transport corridor with all
of Russia. We will definitely implement all of these plans
together.

Russia’s regions are currently providing direct assistance

to the cities, districts and villages in the Donetsk
and Lugansk people’s republics and the Zaporozhye
and Kherson regions. They are doing it sincerely, like true
brothers and sisters. We are together again, which means
that we have become even stronger, and we will do
everything in our power to bring back the long-awaited
peace to our land and ensure the safety of our people. Our
soldiers, our heroes are fighting for this, for their
ancestors, for the future of their children
and grandchildren, for uniting our people.

Friends, I would like to ask you to pay your respects to our

fellow soldiers who were killed in the attacks of neo-Nazis
and raiders, who gave up their lives for Russia, for civilians,
the elderly, women and children.

(A minute of silence)

Thank you.

We all understand, and I understand also how unbearably

hard it is for their wives, sons and daughters, for their
parents who raised those dignified defenders
of the Fatherland – like the Young Guard members from
Krasnodon, young men and women who fought against
Nazism and for Donbass during the Great Patriotic War.
Everyone in Russia remembers their courage, resilience,
enormous strength of spirit and self-sacrifice to this day.

Our duty is to support the families that have lost their loved
ones and to help them raise their children and give them
an education and a job. The family of each participant
in the special military operation must be a priority
and treated with care and respect. Their needs must be
responded to immediately, without bureaucratic delays.

I suggest establishing a dedicated state fund for bringing

targeted, personalised assistance to the families of fallen
fighters, as well as veterans of the special military
operation. This entity will be tasked with coordinating
efforts to offer social, medical support and counselling,
and also address matters related to sending them to health
resorts and providing rehabilitation services, while also
assisting them in education, sports, employment
and in acquiring a new profession. This fund will also have
an essential mission to ensure long-term home care
and high-technology prosthetics for those who need that.

I am asking the Government to work with the State Council

Commission on Social Policy and with the regions to resolve
the organisational matters as quickly as possible.

The state fund must be transparent in its work, while

streamlining assistance and operating as a one-stop-shop,
free from red tape or administrative barriers. Every family
without exception, and every veteran will have their
personal social worker, a coordinator, who will be there
for them in person to resolve in real time any issue they
might face. Let me emphasise that the fund must open its
offices in all regions of the Russian Federation in 2023.

We already have measures in place for supporting Great

Patriotic War veterans, combat veterans, as well
as participants in local conflicts. I believe these essential
elements will be added to the state fund’s mission moving
forward. We need to explore this possibility, and I am
asking the Government to do so.

Make no mistake: the fact that we are establishing a state

fund does not mean that other institutions or officials
at other levels of government will be relieved of their
responsibility. I expect all federal agencies, regions
and municipalities to stay focused on veterans, on service
personnel and their families. In this context, I would like
to thank the senior regional officials, mayors,
and governors who routinely meet with people, including
by visiting the line of contact, and support their fellow
countrymen.

On a special note, let me say that today, career service

personnel, mobilised conscripts, and volunteers all share
frontline hardships, including in terms of provisions,
supplies and equipment, remuneration, and insurance
payments to the wounded, as well as healthcare services.
However, there are complaints that make it all the way
to my office, as well as to the governors, as they have been
telling me, and to the military prosecutor’s office
and the Human Rights Commissioner, showing that some
of these issues have yet to be resolved. We need to get
to the bottom of each complaint on a case-by-case basis.

And one more thing: everyone understands that serving

in the special military operation zone causes immense
physical and mental stress, since people risk their lives
and health every day. For this reason, I believe that
the mobilised conscripts, as well as all service personnel,
and all those taking part in the special military operation,
including volunteers, must benefit from a leave of absence
of at least 14 days every six months without counting
the time it takes them to travel to their destination. This
way, every fighter will be able to meet family and spend
time with their loved ones.
Colleagues, as you are aware, a 2021–2025 plan for building
and developing the Armed Forces was approved
by a Presidential Executive Order and is being implemented
and adjusted as necessary. Importantly, our next steps
to reinforce the Army and the Navy and to secure
the current and future development of the Armed Forces
must be based on actual combat experience gained during
the special military operation, which is extremely
important, I would even say absolutely invaluable to us.

For example, the latest systems account for over 91 percent,

91.3 percent, of Russia's nuclear deterrence forces.
To reiterate, based on our newly acquired experience, we
must access a similarly high quality level for all other
components of the Armed Forces.

Officers and sergeants who act as competent, modern

and decisive commanders, and they are many, will be
promoted to higher positions as a matter of priority, sent
to military universities and academies, and will serve
as a powerful personnel reserve for the Armed Forces.
Without a doubt, they are a valuable resource in civilian life
and at governments at all levels. I just want our colleagues
to pay attention to that. It is very important. The people
must know that the Motherland appreciates their
contribution to the defence of the Fatherland.

We will widely introduce the latest technology to ensure

high-quality standards in the Army and Navy. We have
corresponding pilot projects and samples of weapons
and equipment in each area. Many of them are significantly
superior to their foreign counterparts. Our goal is to start
mass production. This work is underway and is picking up
pace. Importantly, this relies on domestic research
and the industrial base and involves small- and medium-
sized high-tech businesses in implementation of the state
defence order.

Today, our plants, design bureaus and research teams

employ experienced specialists and increasing numbers
of talented and highly skilled young people who are
oriented towards breakthrough achievements while
remaining true to the tradition of Russian gunsmiths, which
is to spare no effort to ensure victory.

We will certainly strengthen the guarantees for our

workforce, in part concerning salaries and social security.
I propose launching a special programme for low-cost
rental housing for defence industry employees. The rental
payments for them will be significantly lower than
the going market rate, since a significant portion of it will
be covered by the state.

The Government reviewed this issue. I instruct you to work

through the details of this programme and start building
such rental housing without delay, primarily, in the cities
that are major defence, industrial and research centres.

Colleagues,

As I have already said, the West has opened not only

military and informational warfare against us, but is also
seeking to fight us on the economic front. However, they
have not succeeded on any of these fronts, and never will.
Moreover, those who initiated the sanctions are punishing
themselves: they sent prices soaring in their own countries,
destroyed jobs, forced companies to close, and caused
an energy crisis, while telling their people that the Russians
were to blame for all of this. We hear that.

What means did they use against us in their efforts

to attack us with sanctions? They tried disrupting economic
ties with Russian companies and depriving the financial
system of its communication channels to shutter our
economy, isolate us from export markets and thus
undermine our revenues. They also stole our foreign
exchange reserves, to call a spade a spade, tried
to depreciate the ruble and drive inflation to destructive
heights.

Let me reiterate that the sanctions against Russia are

merely a means, while the aim as declared by the Western
leaders, to quote them, is to make us suffer. “Make them
suffer” – what a humane attitude. They want to make our
people suffer, which is designed to destabilise our society
from within.

However, their gamble failed to pay off. The Russian

economy, as well as its governance model proved to be
much more resilient than the West thought.
The Government, parliament, the Bank of Russia,
the regions and of course the business community and their
employees all worked together to ensure that the economic
situation remained stable, offered people protection
and preserved jobs, prevented shortages, including
of essential goods, and supported the financial system
and business owners who invest in their enterprises, which
also means investing in national development.

As early as in March 2022, we launched a dedicated

assistance package for businesses and the economy worth
about a trillion rubles. I would like to draw your attention
to the fact that this has nothing to do with printing money.
Not at all. Everything we do is solidly rooted in market
principles.

In 2022, there was a decline in the gross domestic product.

Mr Mishustin called me to say, “I would like to ask you
to mention this.” I think that these data were released
yesterday, right on schedule.

You may remember that some predicted that the economy

would shrink by 20 to 25 percent, or maybe 10 percent.
Only recently, we spoke about a 2.9 percent decline,
and I was the one who announced this figure. Later it came
down to 2.5 percent. However, in 2022, the GDP declined
by 2.1 percent, according to the latest data. And we must be
mindful of the fact that back in February and March of last
year some predicted that the economy would be in free fall.

Russian businesses have restructured their logistics

and have strengthened their ties with responsible,
predictable partners – there are many of them, they are
the majority in the world.

I would like to note that the share of the Russian ruble

in our international settlements has doubled as compared
to December 2021, reaching one third of the total,
and including the currencies of the friendly countries, it
exceeds half of all transactions.

We will continue working with our partners to create

a sustainable, safe system of international settlements,
which will be independent of the dollar and other Western
reserve currencies that are bound to lose their universal
appeal with this policy of the Western elite, the Western
rulers. They are doing all this to themselves with their own
hands. We are not the ones reducing transactions in dollars
or other so-called universal currencies – they are doing
everything with their own hands.

You know, there is a maxim, cannons versus butter.

Of course, national defence is the top priority, but
in resolving strategic tasks in this area, we should not
repeat the mistakes of the past and should not destroy our
own economy. We have everything we need to both ensure
our security and create conditions for confident progress
in our country. We are acting in line with this logic and we
intend to continue doing this.

Thus, many basic, I will stress, civilian industries

in the national economy are far from being in decline, they
have increased their production last year by a considerable
amount. The scale of housing put into service exceeded 100
million square meters for the first time in our modern
history.

As for agricultural production, it recorded two-digit growth

rates last year. Thank you very much. We are most grateful
to our agricultural producers. Russian agrarians harvested
a record amount – over 150 million tonnes of grain,
including over 100 million tonnes of wheat. By the end
of the agricultural season, that is, June 30, 2023, we will
bring our grain exports to 55–60 million tonnes.

Just 10 or 15 years ago, this seemed like a fairy tale,

an absolutely unfeasible plan. If you remember, and I am
sure some people do remember this – the former Deputy
Prime Minister and the Minister of Agriculture are here –
just recently, agrarians took in 60 million tonnes overall
in a year, whereas now 55–60 million is their export
potential alone. I am convinced we have every opportunity
for a similar breakthrough in other areas as well.

We prevented the labour market from collapsing.

On the contrary, we were able to reduce unemployment
in the current environment. Today, considering the major
challenges coming at us from all sides, the labour market is
even better than it used to be. You may remember that
the unemployment rate was 4.7 percent before
the pandemic, and now, I believe, it is 3.7 percent. What is
the figure, Mr Mishustin? 3.7 percent? This is an all-time
low.

Let me reiterate that the Russian economy has prevailed

over the risks it faced – it has prevailed. Of course, it was
impossible to anticipate many of them, and we had
to respond literally on the fly, dealing with issues as they
emerged. Both the state and businesses had to move
quickly. I will note that private actors, SMEs, played
an essential role in these efforts, and we must remember
this. We avoided having to apply excessive regulation
or distorting the economy by giving the state a more
prominent role.

What else there is to say? The recession was limited

to the second quarter of 2022, while the economy grew
in the third and fourth quarters. In fact, the Russian
economy has embarked on a new growth cycle. Experts
believe that it will rely on a fundamentally new model
and structure. New, promising global markets, including
the Asia-Pacific, are taking precedence, as is the domestic
market, with its research, technology and workforce no
longer geared toward exporting commodities but
manufacturing goods with high added value. This will help
Russia unleash its immense potential in all spheres
and sectors.

We expect to see a solid increase in domestic demand

as early as this year. I am convinced that companies will
use this opportunity to expand their manufacturing, make
new products that are in high demand, and to take over
the market niches vacated or about to be vacated
by Western companies as they withdraw.

Today, we clearly see what is going on and understand

the structural issues we have to address in logistics,
technology, finance, and human resources. Over the past
years, we have been talking a lot and at length about
the need to restructure our economy. Now these changes
are a vital necessity, a game changer, and all for the better.
We know what needs to be done to enable Russia to make
steady progress and to develop independently regardless
of any outside pressure or threats, while guaranteeing our
national security and interests.

I would like to point out and to emphasise that the essence

of our task is not to adapt to circumstances. Our strategic
task is to take the economy to a new horizon. Everything is
changing now, and changing extremely fast. This is not only
a time of challenges but also a time of opportunities. This is
really so today. And our future depends on the way we
realise these opportunities. We must put an end –
and I want to emphase this – to all interagency conflicts,
red tape, grievances, doublespeak, or any other nonsense.
Everything we do must contribute to achieving our goals
and delivering results. This is what we must strive
to achieve.

Enabling Russian companies and small family-run

businesses to successfully tap the market is a victory
in itself. Building cutting-edge factories and kilometres
of new roads is a victory. Every new school, every new
kindergarten we build is a victory. Scientific discoveries
and new technologies – these are also victories, of course.
What matters is that all of us contribute to our shared
success.

What areas should we focus the partnership of the state,

the regions and domestic business on?

First, we will expand promising foreign economic ties

and build new logistics corridors. A decision has already
been made to extend the Moscow-Kazan expressway
to Yekaterinburg, Chelyabinsk and Tyumen, and eventually
to Irkutsk and Vladivostok with branches to Kazakhstan,
Mongolia and China. This will, in part, allows us
to considerably expand our ties with Southeast Asian
markets.

We will develop Black Sea and Sea of Azov ports. We will

pay special attention to the North-South international
corridor, as those who work on this every day know.
Vessels with a draft of up to 4.5 meters will be able to pass
through the Volga-Caspian Sea Canal this year. This will
open up new routes for business cooperation with India,
Iran, Pakistan, and the Middle Eastern countries. We will
continue developing this corridor.

Our plans include expedited modernisation of the eastern

railways – the Trans-Siberian Railway and the Baikal-Amur
Railway (BAM) – and building up the potential
of the Northern Sea Route. This will create not only
additional freight traffic but also a foundation for reaching
our national goals on developing Siberia, the Arctic
and the Far East.

The infrastructure of the regions and the development

of infrastructure, including communications,
telecommunications and railways will receive a powerful
impetus. Next year, 2024, we will bring to a proper
condition at least 85 percent of all roads in the country’s
largest metropolises, as well as over half of all regional
and municipal roads. I am sure we will achieve this.

We will also continue our free gas distribution programme.

We have already made the decision to extend it to social
facilities – kindergartens and schools, outpatient clinics
and hospitals, as well as primary healthcare centres. This
programme will now be permanent for our citizens – they
can always request a connection to the gas distribution
system.

This year, we will launch a large programme to build

and repair housing and utility systems. Over the next ten
years, we plan to invest at least 4.5 trillion rubles in this.
We know how important this is for our people and how
neglected this area has been. It is necessary to improve this
situation, and we will do it. It is important to give
the programme a powerful start. So, I would like to ask
the Government to ensure stable funding for this.

Second, we will need to significantly expand our economy’s

production capabilities and to increase domestic industrial
capacity.

An industrial mortgage tool has been created, and an easy-

term loan can now be taken out not only to purchase
production facilities, but also to build or upgrade them.
The size of such a loan was discussed many times and there
were plans to increase it. It is a decent amount for a first
step: up to 500 million rubles. It is available at a rate of 3
or 5 percent for up to seven years. It sounds like a very
good programme and should be put to good use.

New terms for industrial clusters took effect this year,

including a lower fiscal and administrative burden
on resident companies, and long-term state orders
and subsidies to support demand for their innovative
products, which are just entering the market.

According to estimates, these measures will generate high-

demand projects worth over 10 trillion rubles by 2030.
Investment is expected to reach about 2 trillion this year
alone. Please note that these are not forecasts, but existing
benchmarks.

Therefore, I would like the Government to expedite

the launch of these projects, give a hand to businesses
and come up with systemic support measures, including tax
incentives. I am aware that the financial bloc does not like
to provide incentives, and I partly share this approach:
the taxation system must be consistent and without niches
or exemptions, but this particular case calls for a creative
approach.

So, starting this year, Russian companies will be able

to reduce their revenue taxes if they purchase advanced
domestic IT solutions and AI-enhanced products. Moreover,
these expenses will be credited at one and a half times
the actual cost, meaning that every ruble invested
in purchasing such products will result in a tax deduction
of 1.5 rubles.

I propose extending these deductions to purchases of all

kinds of Russian high-tech equipment. I would like
the Government to come up with a list of such equipment
by specific industry and with the procedure for granting
deductions. This is a good solution to reinvigorate
the economy.
Third, a crucial issue on our economic development agenda
to do with the new sources of funding investment, which we
have been talking about a lot.

Thanks to our strong payments balance, Russia does not

need to borrow funds abroad, kowtow and beg for money,
and then hold long discussions on what, how much
and on what conditions we would pay back. Russian banks
are working stably and sustainably and have a solid margin
for security.

In 2022, the volume of bank loans for the corporate sector

increased, I repeat, increased. There was considerable
concern about that, but we have reported growth,
an increase of 14 percent, or more than we reported
in 2021, before the miliary operation. In 2021, the figure
was 11.7 percent; last year, it was 14 percent. The mortgage
portfolio went up by 20.4 percent. We are growing.

Last year, the banking sector as a whole operated

at a profit. It was not as large as in the preceding years, but
it was considerable nevertheless: 203 billion rubles. This is
another indicator of the stability of the Russian financial
sector.

According to our estimates, inflation in Russia will

approach the target figure of 4 percent in the second
quarter this year. I would like to remind you that
the inflation rate has reached 12, 17 and 20 percent in some
EU countries. Our figure is 4 or 5 percent; the Central Bank
and the Finance Ministry are still discussing the figure, but
it will be close to the target. Given these positive dynamics
and other macroeconomic parameters, we are creating
objective conditions for lowering long-term interest rates
in the economy, which means that loans for the real
economic sector will become more affordable.

Individual long-term savings are a vital source

of investment resources around the world, and we must
also stimulate their attraction into the investment sphere.
I would like the Government to expedite the submission
of draft laws to the State Duma to launch the relevant state
programme as soon as this April.

It is important to create additional conditions to encourage

people to invest and earn at home, in the country.
At the same time, it is necessary to guarantee the safety
of people’s investment in voluntary retirement savings. We
should create a mechanism here similar to the one used
for insuring bank deposits. I would like to remind you that
such savings, worth up to 1.4 million rubles, are insured
by the state on guarantee deposits. I propose doubling
the sum to 2.8 million rubles for voluntary retirement
savings. Likewise, we must protect people’s investment
in other long-term investment instruments, including
against the possible bankruptcy of financial brokers.

Separate decisions must be taken to attract funds to rapidly

growing and high-tech businesses. We will approve support
for the placement of their shares on the domestic stock
market, including tax benefits for both the companies
and the buyers of their stock.
Freedom of enterprise is a vital element of economic
sovereignty. I will repeat: against the backdrop of external
attempts to contain Russia, private businesses have proven
their ability to quickly adapt to the changing environment
and ensure economic growth in difficult conditions. So,
every business initiative aimed at benefiting the country
should receive support.

I believe it is necessary to return, in this context,

to the revision of a number of norms of criminal law
as regards the economic elements of crime. Of course,
the state must control what is happening in this area. We
should not allow an anything-goes attitude here but we
should not go too far, either. It is necessary to move faster
towards the decriminalisation I mentioned. I hope
the Government will consistently and seriously conduct this
work together with Parliament, the law-enforcement bodies
and business associations.

At the same time, I would like to ask the Government

to suggest, in close cooperation with Parliament, additional
measures for speeding up the de-offshorisation
of the economy. Businesses, primarily those operating
in key sectors and industries should operate in Russian
jurisdiction – this is a fundamental principle.

Colleagues, in this context I would like to make a small

philosophical digression. This is what I would like to single
out.

We remember what problems and imbalances the Soviet

economy faced in its later stages. This is why after
the collapse of the Soviet Union and its planned system,
in the chaos of the 1990s, the country began to create its
economy along the lines of market relations and private
ownership. Overall, this was the right thing to do.
The Western countries were largely an example to follow
in this respect. As you know, their advisers were a dime
a dozen, and it seemed enough to simply copy their models.
True, I remember they still argued with each other –
the Europeans argued with the Americans on how
the Russian economy should develop.

And what happened as a result? Our national economy was

largely oriented to the West and for the most part
as a source of raw materials. Naturally, there were
different nuances, but overall, we were seen as a source
of raw materials. The reasons for this are also clear –
naturally, the new Russian businesses that were taking
shape were primarily oriented toward generating profit,
quick and easy profit in the first place. What could provide
this? Of course, the sale of resources – oil, gas, metals
and timber.

Few people thought about other alternatives or, probably,

they did not have the opportunity to invest long-term. This
is the reason other, more complex industries did not make
much headway. It took us years – other governments saw
this clearly – to break this negative trend. We had to adjust
our tax system and make large-scale public investments.

We have achieved real and visible change. Indeed,

the results are there, but, again, we should keep in mind
the circumstances in which our major businesses developed.
Technologies were coming from the West, cheaper sources
of financing and lucrative markets were in the West,
and capital started flowing to the West as well.
Unfortunately, instead of expanding production and buying
equipment and technology to create new jobs in Russia,
they spent their money on foreign mansions, yachts
and luxury real estate.

They began to invest in the economy later, but initially

the money flowed rapidly to the West for consumption
purposes. And since their money was there, that is where
their children were educated, where their life was, their
future. It was very difficult and almost impossible
for the state to track and prevent these developments,
because we lived in a free market paradigm.

Recent events have clearly shown that the image

of the West as a safe haven for capital was a mirage. Those
who failed to understand this in time, who saw Russia only
as a source of income and planned to live mostly abroad,
have lost a lot. They just got robbed there and saw even
their legitimate money taken away.

At some point I made a joke – many may still remember it –

I told Russian businesspeople that they will make
themselves sick running from courtroom to courtroom
and from office to office in the West trying to save their
money. That is exactly how it turned out.

You know, I will say something that is quite simple, but

truly important. Trust me, not a single ordinary citizen
in our country felt sorry for those who lost their assets
in foreign banks, lost their yachts or palaces abroad, and so
on. In their conversations around the kitchen table, people
have all recalled the privatisation of the 1990s, when
enterprises that had been built by our entire nation were
sold for next to nothing and the so-called new elites
flaunted their lavish lifestyle.

There are other key aspects. During the years that followed
the breakup of the Soviet Union, the West never stopped
trying to set the post-Soviet states on fire and, most
importantly, finish off Russia as the largest surviving
portion of the historical reaches of our state. They
encouraged international terrorists to assault us, provoked
regional conflicts along the perimeter of our borders,
ignored our interests and tried to contain and suppress our
economy.

I am saying this because big business in Russia controls

strategic enterprises with thousands of workers that
determine the socioeconomic well-being of many regions
and, hence, the overall state of affairs. So, whenever leaders
or owners of such businesses become dependent
on governments that adopt policies that are unfriendly
to Russia, this poses a great threat to us, a danger to our
country. This is an untenable situation.

Yes, everyone has a choice. Some may choose to live

in a seized mansion with a blocked account, trying to find
a place for themselves in a seemingly attractive Western
capital, a resort or some other comfortable place abroad.
Anyone has the right to do that, and we will never infringe
on it. But it is time to see that in the West these people have
always been and will always remain second class strangers
who can be treated any way, and their money, connections
and the acquired titles of counts, peers or mayors will not
help at all. They must understand that they are second class
people there.

There is another option: to stay with your Motherland,

to work for your compatriots, not only to open new
businesses but also to change life around you in cities,
towns and throughout your country. We have quite a few
businesspeople like this, real fighters in our business
community, and we associate the future of our business
with them. Everyone must know that the sources of their
prosperity and their future can only be here, in their native
country Russia.

If they do, we will create a very strong and self-sufficient

economy that will not remain aloof in the world but will
make use of all its competitive advantages. Russian capital,
the money earned here, must be put to work
for the country, for our national development. Today, we
see huge potential in the development of infrastructure,
the manufacturing sector, in domestic tourism and many
other industries.

I would like those who have come up against the predatory

mores of the West to hear what I have to say: running
around with cap in hand, begging for your own money
makes no sense, and most importantly, it accomplishes
nothing, especially now that you realise who you are
dealing with. Stop clinging to the past, resorting
to the courts to get at least something back. Change your
lives and your jobs, because you are strong people – I am
addressing our businesspeople now, many of whom I have
known for years, who know what is what in life.

Launch new projects, earn money, work hard for Russia,

invest in enterprises and jobs, and help schools
and universities, science and healthcare, culture and sports.
In this way, you will increase your wealth and will also win
the respect and gratitude of the people for a generation
ahead. The state and society will certainly support you.

Let us consider this as a message for your business: get

moving in the right direction.

Colleagues,

Russia is an open country and at the same time, a distinct

civilisation. There is no claim to exclusivity or superiority
in this statement, but this civilisation of ours – that’s what
matters. Our ancestors passed it to us and we must
preserve it for our descendants and pass it on to them.

We will develop cooperation with friends, with all those

who are ready to work with us. We will adopt the best
practices but will primarily rely on our own potential,
on the creative energy of Russian society, on our traditions
and values.

Here I would like to mention the character of our people

who have always been distinguished by their generosity,
magnanimity, mercy and compassion, and Russia,
as a country, fully reflects these traits. We know how to be
good friends, how to stand by one’s word. We will never let
anyone down and will always support those in a difficult
situation without hesitation.

Everyone remembers that during the pandemic we were

actually the first to support some European countries,
including Italy and other states when they were going
through the most difficult weeks of the COVID outbreak,
and let’s not forget how we are helping Syria and Turkiye
after a devastating earthquake.

It is the people of Russia that are the foundation of our

national sovereignty and our source of power. The rights
and freedoms of our citizens are immutable – they are
guaranteed by the Constitution and we will not depart from
this despite the external challenges and threats.

I would like to emphasise in this context that elections

to local and regional government bodies next September
and the presidential elections in 2024 will take place
in strict accordance with the law and observance of all
democratic, constitutional provisions.

Elections always reveal different approaches to resolving

social and economic goals. That said, the leading political
forces are consolidated and united in the main idea –
the security and wellbeing of the people; our sovereignty
and our national interests override everything else for us.

I would like to thank you for this responsible, firm position

and recall the words of Pyotr Stolypin, a patriot
and a proponent of a strong Russian state. He said this
in the State Duma over a hundred years ago, but it is still
consonant with our times. He said: “In the cause
of defending Russia, all of us must unite and coordinate our
efforts, our commitements and our rights for supporting
one historical supreme right – the right of Russia to be
strong.”

Volunteers at the frontline include deputies of the State

Duma and regional parliaments, representatives from
different levels of executive government bodies,
municipalities, cities, districts and rural areas. All
parliamentary parties and leading public associations are
taking part in collecting humanitarian aid to help
at the front.

Thank you once again – thank you for such a patriotic stand.

Local governments as a public authority closest

to the people play a huge role in strengthening civil society
and solving everyday problems. People’s trust in the state
as a whole, social welfare of the country’s citizens and their
confidence in the successful development of the country
depends on how they work.

I would like to ask the Presidential Executive Office

and the Government to submit proposals on creating tools
of direct support for the best managerial teams
and practices in large, medium-sized and small
municipalities.

The free development of society means being ready to take

responsibility for yourself and your loved ones, for your
country. These qualities must be encouraged from a young
age in the family. Of course, the system of education
and our national culture are extremely important
for strengthening our common values and our national
identity.

The state will use the resources of the Presidential Grants

Foundation, the Foundation for Cultural Initiatives,
the Institute for Internet Development and other
instruments to support all forms of creative endeavour,
such as contemporary and traditional art, realism
and avant-garde, classical and innovative works. It is not
genres or trends that matter. Culture must serve the good,
beauty and harmony, ponder some very complicated
and contradictory issues in life, but its main mission is not
to tear down society but to nurture the best human
qualities.

Cultural development will be a priority of rebuilding

peaceful life in Donbass and Novorossiya. We will have
to rebuild, repair and provide equipment to hundreds
of cultural facilities there, including museum collections
and buildings, which help people feel the connection
between the past and the present and create a link
to the future, to feel their affiliation with the common
cultural, historical and educational space of the centuries-
old great Russia.

We must work together with our teachers, academics

and professionals to seriously improve the quality of school
and university textbooks, first of all in the humanities –
history, social science, literature and geography – so that
our young people learn as much as possible about Russia,
its great past, its culture and traditions.
We have brilliant, talented young people who are willing
to work for the benefit of our country in areas like scientific
research, culture, the social sphere, business and public
administration. The Leaders of Russia competition, as well
as the Leaders of Revival competition currently taking place
in the new constituent entities of the Federation, are
opening up new horizons for career growth for these very
people.

Notably, a number of winners and finalists in these

competitions have voluntarily joined military units. Many
of them are now working in the liberated territories helping
rebuild economic and social life, and they are acting
professionally, decisively and courageously.

Generally speaking, nothing can replace the school of war.

People return entirely different, and they are ready to lay
down their lives for the Fatherland, wherever they may be
working.

Let me stress that it’s precisely those who were born

and raised in Donbass and Novorossiya, who have fought
for them, they will be and should form the foundation
of our joint effort to develop these regions. I want them
to hear me: Russia is counting on you.

With the ambitious tasks facing our country in mind, we

must seriously revise our approaches to the system
of professional education, to our science and technology
policy.

At the recent meeting of the Council for Science

and Education, we discussed the need to prioritise our
efforts, to concentrate resources on obtaining specific
and fundamentally meaningful scientific results, primarily
in areas where we have done a fair amount of work
and which are of critical importance to our country,
including transport, energy, housing and utilities, public
healthcare, agriculture, and the manufacturing industry.

Innovative technology invariably relies on existing

fundamental research. Here, just like in culture –
and I want to emphasise this – we must give researchers
greater freedom for creativity. We should not have
everyone just focused on the results that we will need
tomorrow. Fundamental science makes its own rules.

Also, setting and fulfilling ambitious goals is a powerful

incentive for young people to choose science as their field
and a chance to prove their leadership skills and being
the best in the world. Our research teams have much to be
proud of.

Last December, I met with some of our young researchers.

One of their questions concerned housing. A mundane, but
important issue. Housing certificates for young researchers
are already available. Last year, an additional one billion
rubles was set aside for these purposes. I hereby instruct
the Government to identify reserves to expand this
programme.

In recent years, the prestige of secondary vocational

education has grown significantly. The demand
for graduates of technical schools and colleges is just huge,
colossal. You see, if our unemployment has fallen
to a historic low of 3.7 percent, it means that people are
working, new personnel is needed.

I believe that we should significantly expand

the Professionalitet project, under which educational
and industrial clusters are created, the educational base is
updated, and enterprises and employers develop
educational programmes based on the needs of the economy
in close contact with colleges and technical schools.
And of course, it is very important for mentors with
experience in real, complex production to join in.

The task is clear: in the next five years we need to train

about a million specialists of working professions
for the electronics industry, the robotics industry,
mechanical engineering, metallurgy, pharmaceuticals,
agriculture and the defence industry, construction,
transport, nuclear and other industries that are key
to ensuring the security, sovereignty and competitiveness
of Russia.

Finally, a very important question is about our higher

education. Significant changes are also overdue here,
considering the new requirements for specialists
in the economy, social sectors, and in all spheres of life
in our country. What we need here is a synthesis of all
the best that was in the Soviet system of education
and the experience of recent decades.

In this regard, the following is proposed.

First, to return to the basic training of specialists with

higher education, which is traditional for our country.
The term of study can be four to six years. At the same time,
programmes can be offered that differ in terms of training,
depending on the specific profession, industry and labour
market demand even within the same specialty and one
university.

Second, if a profession requires additional training or niche

specialisation, in this case a young person will be able
to continue education by doing a master’s degree
or choosing residency training.

Third, postgraduate studies will be made into a separate

level of professional education, the task of which is to train
personnel for scientific and teaching professions.

I want to emphasise that the transition to the new system

should be smooth. The Government, together with
parliamentarians, will need to make numerous amendments
to legislation on education, on the labour market, and so on.
Here you need to think everything through, work out every
detail. Young people, our citizens should have new
opportunities for quality education, employment
and professional growth. I repeat: opportunities, not
problems.

And I would like to specifically note that those students who

are studying now will be able to continue their education
under existing programmes. And also, the level of training
and higher education diplomas of citizens who have already
completed studies under current undergraduate, specialist
or master’s programmes are not subject to revision. They
must not lose their rights. I ask the Russian Popular Front
to take all issues related to changes in the field of higher
education under special control.

This year was declared the Year of the Teacher and Mentor
in Russia. Teachers are directly involved in building
the country’s future, and it is important to raise the social
status of their work. Parents should talk to their children
more about gratitude for their teachers, and teachers
should instil in children respect and love for their parents.
Let’s always remember this.

I will talk about support for children and Russian families

in a minute.

I would like to note that the so-called children’s budget,

or budget allocations to support families in Russia, has
increased manifold rather than by a small percent over
the past few years. These expenses are the fastest growing
part of the country’s main financial document – the budget,
the law on the budget. I would like to thank the parliament
members and the Government for their uniform,
consolidated understanding of our national priorities.

On February 1, the maternity capital in Russia was again

adjusted for inflation. As we promised, it was adjusted
by last year’s inflation rate, that is, by 11.9 percent. Russian
citizens – residents of the new regions of the Federation –
are also entitled to this support now. I suggest granting
maternity capital to families in the Donetsk and Lugansk
people’s republics and the Zaporozhye and Kherson regions
where children were born starting from 2007, that is, when
this programme was launched throughout Russia. I will
recall that at one time we made a similar decision
for the residents of Crimea and Sevastopol.

We will continue implementing large-scale programmes

aimed at improving the living standards of Russian families.

I would like to emphasise that the Government

and the regions of the Federation have been given
a practical goal – to ensure noticeable, tangible growth
in real wages in Russia.

As we all know, an important indicator, a starting point

here is the minimum wage. We raised it twice last year,
almost by 20 percent overall.

We will continue raising the minimum wage, doing it

at a rate that is higher than the inflation rate and the real
wage growth rate. Since the start of this year, the minimum
wage was adjusted by 6.3 percent.

I suggest supplementing the planned increase

by an additional 10 percent starting January 1, 2024. Thus,
the minimum wage will have grown by 18.5 percent
to constitute 19,242 rubles.

Now I would like to mention adjustments to the taxation

system for the benefit of Russian families. Starting last
year, families with two or more children have been relieved
of paying tax on the sale of housing if they are purchasing
a new, bigger flat or house.

It is necessary to make better use of these instruments –

they have proven to be in demand. Families should have
more money in their family budgets to be able to resolve
their most important and urgent problems.

I suggest increasing the amount of social tax deductions:

for children’s education costs – from current 50,000 rubles
to 110,000 rubles per year, and for costs on personal
education, medical treatment or purchase of medications –
from current 120,000 to 150,000 rubles. The state will
reimburse the 13 percent income tax paid on these
increased amounts.

Naturally we need not only to increase this deduction, but

also to make this benefit easily available to people. This
deduction should be granted proactively, quickly and online.
This process should be easy for applicants.

Next. The well-being, the quality of life of Russian families,

and therefore the demographic situation, depend directly
on the state of things in the social sphere.

I know that many regions of the Federation are ready

to significantly speed up renovation of social infrastructure,
cultural and sports facilities, relocation of people from
dilapidated housing, and comprehensive development
of rural areas. This attitude will certainly be supported.

We will use the following mechanism here: the regions will

be able to receive now and use the funds that have been set
aside in the 2024 federal budget for national projects,
through interest-free treasury loans – they will be
automatically repaid in April of 2024. It is a good tool.
We will keep this issue under constant review, and I ask
the State Council Commission On Economy and Finance
to become involved in this work.

However, we don't need to rush and chase after numbers,

especially to the detriment of the quality of the facilities
being built. Additional financial resources must be used
efficiently to give a high return.

This is particularly vital for the modernisation of primary

health care, a large-scale programme that we launched
in 2021. I ask the Government and regional leaders not
to forget that the benchmark – I have said this many times –
is not the numbers in reports, but concrete, visible, tangible
progress in the availability and quality of medical care.

I also instruct the Government to adjust the regulatory

framework for organising the procurement of ambulances
with diagnostic equipment. They allow for medical check-
ups and preventive examinations to be carried out directly
at enterprises, schools, offices and in remote communities.

We have launched a large-scale school renovation

programme. By the end of this year, a total of almost 3,500
school buildings will have been renovated. I would like
to point out that most of them are in rural areas and we
have done this on purpose. This year such work is also
being carried out in the Donetsk and Lugansk people's
republics, in the Kherson and Zaporozhye regions. It is
meaningful and visible, people really see what is happening.
This is very good.
From 2025 onwards, federal funds will be regularly
and systematically allocated to the regions for repairing
and renovating kindergartens, schools, vocational schools
and colleges so as to avoid situations where buildings are
in dilapidated condition.

Next, we have set a major goal, to build more than 1,300

new schools between 2019 and 2024. Of these, 850 are now
open. Another 400 will open this year. I want the regions
to stay on track to meet these objectives. The amount
of federal funding for this 2019–2024 programme is almost
490 billion rubles. We will not cut these costs, we will keep
this amount intact.

This year, we increased the amount of infrastructure budget

loans. We are sending additional funds, not as previously
planned, but an additional 250 billion rubles for expanding
transport, utility and other infrastructure in the regions.

I hereby instruct the Government to allocate, in addition

to these funds, an additional 50 billion rubles – which will
be purposefully used to upgrade public transport
in the constituent entities of the Federation this year. This
upgrade will be used for the latest technology. Please pay
special attention to small towns and rural areas.

We have decided to extend the Clean Air project through

2030. The goal is to improve the environment in major
industrial centres. I want industrial companies and regional
and local authorities to keep in mind that a significant
reduction in harmful emissions remains on the agenda.
In addition, we have accomplished much in reforming
the waste management industry. We are building up
recycling and sorting capacity which will help us build
a closed-loop economy. Further elimination of old landfills
and hazardous material sites is our top priority. I want
the Government, in conjunction with the regions, to draft
a list of harmful sites that will be eliminated upon
the completion of this programme.

We will continue to restore unique water bodies, including

Lake Baikal and the Volga River. In the medium term, we
will extend this work to other rivers such as the Don, Kama,
Irtysh, Ural, Terek, Volkhov and Neva rivers, and Lake
Ilmen. We must not forget about medium and small rivers.
I want all levels of government to pay attention to this.

As part of an earlier instruction, a draft law on promoting

tourism in specially protected nature areas has been
submitted. It was recently discussed at a meeting with
the Government. It should clearly define what can be built
and where and what cannot, and generally set forth
the principles of the ecotourism industry. This is a critically
important issue for our country. I ask the State Duma
to speed up consideration of this draft law.

Now I will say a few words about what is happening around

us.

Colleagues, I will talk about one more issue.

In early February, the North Atlantic alliance made

a statement with actual demand to Russia, as they put it,
to return to the implementation of the Strategic Arms
Reduction Treaty, including admission of inspections to our
nuclear defence facilities. I don’t even know what to call
this. It is a kind of a theatre of the absurd.

We know that the West is directly involved in the Kiev

regime’s attempts to strike at our strategic aviation bases.
The drones used for this purpose were equipped
and updated with the assistance of NATO specialists.
And now they also want to inspect our defence facilities?
In the current conditions of confrontation, it simply sounds
insane.

I would like to draw your attention specifically to the fact

that they are not letting us conduct full-scale inspections
under this treaty. Our repeated applications to inspect
different facilities remain unanswered or are rejected under
formal pretexts, and we cannot verify anything on the other
side.

I would like to stress that the United States and NATO are
openly saying that their goal is to inflict a strategic defeat
on Russia. And what, after such statements they are
supposed to tour our defence facilities, including the latest
ones, as if nothing happened? A week ago, I signed
an executive order putting new land-based strategic
systems on combat duty. Are they going to poke their nose
there as well? Do they think we will let them go there just
because?

Having made this collective statement, NATO actually

claimed to be a participant in the Treaty on Strategic
Offensive Arms. We agree with this, please go ahead.
Moreover, we believe this framing of the issue is long
overdue. Let me recall that the US is not the only nuclear
power in NATO. Britain and France also have nuclear
arsenals. They are developing and upgrading them
and these arsenals are also directed against us – they are
also directed against Russia. The latest statements by their
leaders merely confirm it – listen for yourselves.

We cannot just ignore this and have no right to do so

especially now. Nor can we forget that the Soviet Union
and the United States initially signed the first Treaty
on Strategic Offensive Arms in 1991 in a completely
different situation – in conditions of abating tensions
and growing mutual trust. Subsequently, our relations
reached a level that allowed Russia and the US to say they
no longer considered each other enemies. Wonderful,
everything was going very well.

The Treaty of 2010 that is in force contains critically

important provisions about indivisible security
and the direct link between strategic offensive
and defensive arms. All of that has long been forgotten.
The United States withdrew from the ABM Treaty. It is now
a thing of the past. Importantly, our relations have
degraded which can be credited entirely to the United
States.

After the Soviet Union broke up, they began to revise

the outcomes of World War II and to build an American-
style world ruled by one master. To do this, they began
to rudely destroy the foundations of the international order
laid down after WWII in order to cross out the legacy
of the Yalta and Potsdam conferences. Step by step, they
proceeded to revise the existing international order,
to dismantle security and arms control systems, and plotted
and carried out a series of wars around the world.

To reiterate, all of that was done for the sole purpose

of dismantling the post-WWII architecture of international
relations. This is not a figure of speech. This is how it all
unfolded in reality. After the Soviet Union collapsed, they
sought to perpetuate their global dominance regardless
of the interests of modern Russia or other countries for that
matter.

Sure enough, the international situation changed after 1945.

New centres of growth and influence have been formed
and are rapidly expanding. This is a natural and objective
process that cannot be ignored. But the United States trying
to refashion the international order to suit exclusively its
own needs and selfish interests is unacceptable.

Now, they are using NATO to give us signals, which, in fact,

is an ultimatum whereby Russia should, no questions asked,
implement everything that it agreed to, including the New
START Treaty, whereas they will do as they please. As if
there is no connection between strategic offensive weapons
and, say, the conflict in Ukraine or other hostile Western
actions against our country. As if there are no vociferous
claims about them seeking to inflict a strategic defeat on us.
This is either the height of hypocrisy and cynicism,
or the height of stupidity, but they are not idiots. They are
not stupid after all. They want to inflict a strategic defeat
on us and also to get to our nuclear sites.
In this regard, I am compelled to announce today that
Russia is suspending its membership in the New START
Treaty. To reiterate, we are not withdrawing from
the Treaty, but rather suspending our participation. Before
we come back to discussing this issue, we must have a clear
idea of what NATO countries such as France or Great
Britain have at stake, and how we will account for their
strategic arsenals, that is, the Alliance's combined offensive
capabilities.

Their statement comes, in fact, as a request to join this

process. Well, come onboard, we do not mind. Just try not
to lie to everyone this time and present yourselves
as champions of peace and detente. We know the truth. We
are aware of the fact that certain types of US nuclear
weapons are reaching the end of their service life. In this
regard, we know for certain that some politicians
in Washington are already pondering live nuclear tests,
especially since the United States is developing innovative
nuclear weapons. There is information to that effect.

Given these circumstances, the Defence Ministry

and Rosatom must make everything ready for Russia
to conduct nuclear tests. We will not be the first to proceed
with these tests, but if the United States goes ahead with
them, we will as well. No one should harbour dangerous
illusions that global strategic parity can be disrupted.

Colleagues, citizens of Russia,

Today, we are together living through challenging times

and overcoming all difficulties together as well. It could not
have been otherwise because we have been raised
on the example of our great ancestors and must be worthy
of their behests that are passed down from generation
to generation. We are moving only forward owing to our
devotion to our Motherland, our will and our unity.

This cohesion was on display from the first days

of the special military operation – hundreds of volunteers,
representatives of all ethnicities of our country came
to recruitment offices. They decided to stand
by the defenders of Donbass, to fight for their native land,
for their Fatherland, for the truth and justice. Today,
warriors from all regions of our multi-ethnic Motherland
are fighting shoulder to shoulder on the frontlines. They
pray in different languages, but they all pray for victory,
for their fellow soldiers and for the Motherland. (Applause.)

Their difficult military labour, their exploits are finding

a powerful response all over Russia. People are supporting
our fighters. They don’t want to stay on the sidelines.
The front is now passing through the hearts of our people
in their millions. They are sending medicine,
communication devices, transport, warm clothes
and camouflage nets, to name a few – everything that helps
protect the lives of our fighters.

I know the comfort letters from children and schoolkids

give to our soldiers at the front. They take them into battle
as a cherished possession because the sincerity and purity
of children’s wishes bring tears to their eyes. They feel
more forcefully for whose sake they are fighting and whom
they are defending.
Warriors, their families and civilians greatly appreciate
the care with which volunteers are surrounding them. They
have been acting boldly and decisively from the very start
of the special military operation. Under fire and shelling
they are leading children, elders and all those in trouble out
of basements; they were and still are bringing food, water
and clothes to hot spots; they are setting up humanitarian
aid centres for refugees and helping doctors in field
hospitals and on the combat contact line; they continue
to risk their lives to save others.

The Russian Popular Front alone raised over five billion

rubles as part of the All for Victory initiative. The flow
of donations does not stop. Every contribution is important
and this applies to those made by large companies
and businesspeople. But especially touching and inspiring
are the donations of people with modest incomes, which are
contributing part of their savings, salaries and pensions.
This coming together to help our warriors, civilians
in the zone of hostilities and refugees is worth a lot.

Thank you for this sincere support, cohesion and mutual

aid. It is impossible to overstate their importance.

Russia will meet any challenges because we are all one

country, a big and united nation. We are confident
in ourselves and confident in our strength. The truth is
on our side. (Applause.)

Thank you.

The Anthem of the Russian Federation plays.