- Статьи
- Economy
- It will be done: how will the launch of a new investment cycle change the country's economy?
It will be done: how will the launch of a new investment cycle change the country's economy?
The Kremlin has identified the country's immediate priorities. A new investment cycle will be launched in Russia and help restore large warehouses affected by drone attacks by the Armed Forces of Ukraine: in the Kremlin on August 19, Vladimir Putin discussed key solutions for the Russian economy and regions with the Council for Strategic Development and National Projects. The authorities have agreed to "rebuild" the investment support system, relieve businesses of accumulated debts and give another 100 billion rubles to those in special need in the Russian Federation. How the country's leadership is creating a new model of economic growth and why Putin chastised officials — in the Izvestia article.
How is GDP growing and what is happening in the regions
On August 19, Vladimir Putin held a meeting of the Council for Strategic Development and National Projects in the Kremlin. This is the main presidential platform where the authorities determine the country's priorities, evaluate the implementation of national benchmarks and monitor economic growth. The meeting brought together the entire management team of the Russian Federation: Prime Minister Mikhail Mishustin, speakers of the Federation Council and the State Duma Valentina Matvienko and Vyacheslav Volodin, the leadership of the presidential administration, ministers and heads of regions. On the agenda was an issue of fundamental importance — the implementation of profound structural changes in the Russian economy for the period up to 2030 and the long term.
Russian President Vladimir Putin and Russian Prime Minister Mikhail Mishustin
— We will discuss the progress of a large-scale joint work to achieve long-term development targets for Russia, which, let me remind you, are set in such key areas as demography, education, a comfortable living environment, technological leadership, and digital transformation. And of course, among the national goals is the confident, high—quality development of the domestic economy, reaching higher growth rates in a wide range of industries," Vladimir Putin began.
The economic dynamics are generally modest but positive, the president believes: in the first half of the year, GDP growth amounted to 0.6%, and in the second quarter — 1.3%. But, according to Deputy Prime Minister Alexander Novak, the result over the past three years has exceeded the global average. In addition, Russia has consolidated its position in the fourth place in the world in terms of purchasing power parity, and the main structural shift has been demonstrated by the turn to the domestic market. The Ministry of Economic Development will support economic growth in the Russian Federation through domestic consumption and budget momentum, Maxim Reshetnikov, the head of the department, told Izvestia.
Russians should see and feel changes for the better — this is the main criterion in the implementation of national projects, "and not just successes in reports and reports," the president stressed. Regional financing was also affected — how much money the subjects live on and whether they have enough money for hospitals, schools, roads and salaries for state employees. Currently, the total deficit of regional budgets is 160 billion rubles, the president said. At the same time, he warned that local government spending is growing faster than revenue, and by the end of the year, this gap is traditionally only widening.
Finance Minister Anton Siluanov tried to reassure: the execution of regional budgets in 2026 is going according to plan - since the beginning of the year, their revenues have increased by 6% and amounted to more than 15 trillion rubles. The market debt of the subjects has decreased since the beginning of the year, 43 of them have no market debt, and in another 24 regions it is less than 10% of their own income, the Finance Minister said.
But the regions still need support — for this, payments on budget loans have been shifted for 2030, which will save about 100 billion rubles annually in the next four years. Vladimir Putin instructed the government to allocate another 100 billion rubles to the subjects that have the most difficult time. A separate five-year program will be drawn up for each of them to overcome the financial crisis. At the same time, civil servants themselves should pay more attention to their qualifications: Vladimir Putin criticized officials for absenteeism in the Cadres for the Economy of the Future program and demanded active participation. Attendance dropped to 43%.
— Dear colleagues, but these are not toys, believe me, honestly. It makes sense. And those who went, got acquainted, looked at modern technologies in their own activities, they clearly had to appreciate the benefits of this work. I ask you to pay attention to this," the president said.
One of the key tasks of the authorities, both locally and at the federal level, remains to resolve issues related to the special operation and to support the families of military personnel and participants in their military operations. Putin called on everyone to prepare in advance for the employment of military personnel who will return to civilian life after the end of the special operation.
What will be the new investment cycle?
The Head of State called on the council to further strengthen the country's sovereignty, increase efficiency both in the field of defense and security, and in the socio-economic sphere. According to the president, all damaged warehouse and logistics facilities require prompt restoration — this is especially important — with the support of the state and at a qualitatively new technological level. Obviously, we are talking about Wildberries facilities, which have been regularly attacked by Ukrainian drones since mid-July. One of the last drone raids occurred on August 18 during a massive raid on the Moscow region.
— It is clear that a number of factors affect the economic pace, including external pressure and terrorist attacks on industrial facilities and infrastructure. Of course, there are no critical consequences from such attacks, and there never have been and never can be. But they are harming us, of course, it is obvious, we understand, see and know this," the head of state stressed.
Nevertheless, the country's trade and transport infrastructure continues to work steadily, but for full sovereignty it is necessary to launch a new investment cycle, the president believes. The head of state spoke about this initiative at the last SPIEF. At the same time, he instructed the government to reassemble the investment support system and refocus business from exporting raw materials to the domestic market, digitalization, automation and proprietary technologies.
Deputy Prime Minister Alexander Novak spoke for the first time about what the launch of a new investment cycle will look like. The main principles are: "clearing" the debts of enterprises, full utilization of infrastructure, state support for aviation, electronics and tourism, as well as stable taxes and business protection from unnecessary bureaucracy.
Today, many enterprises have accumulated a serious debt burden, and first of all they work on servicing old loans. Therefore, debt restructuring is fundamentally important so that enterprises can develop again, investment adviser and founder of the University of Finance Yulia Kuznetsova explained to Izvestia.
Deputy Prime Minister Alexander Novak and Deputy Prime Minister Dmitry Grigorenko, Chief of Staff of the Government of the Russian Federation
In addition, the new investment cycle will make more efficient use of what has already been built. Over the decades, Russia has created a huge transport, industrial and energy infrastructure, part of which was export-oriented. After the change in foreign trade, some capacities turned out to be underutilized. Now they want to convert them to domestic cargo flows and the needs of the Russian economy.
— How should the investment cycle itself work? Imagine an enterprise that gets the opportunity to invest 10 billion rubles in new facilities. It buys equipment and materials, hires people, places orders from other companies. Suppliers' revenue is growing — they are also expanding production. Jobs are being created, incomes and consumption are growing. Investments — production — income — demand — profit — next investments. When this chain starts reproducing itself, the economy gets a new source of growth," she explained.
According to experts, such an initiative is an attempt by the country's leadership to find, in fact, the following model of economic growth: not just to support demand with government spending, but to create conditions under which money begins to turn into new production facilities within the country.
Переведено сервисом «Яндекс Переводчик»
