Russian President Vladimir Putin is holding an annual news conference in the Kremlin to comment on Russia’s home and foreign policy.In opening remarks, Putin said wages increased 13.3 percent last year, while pensions were raised by 5.4 percent. This is not too much compared with some other countries, but pension age is lower in Russia, he noted. The President pointed to a lower natural decrease in population, expressing hope that this trend would continue. He stressed the need to reduce the gap between the rich and the poor by boosting economic growth. Russia’s GDP grew 6.9 percent last year, up from 6.5 percent in 2004. Inflation stood at 9 percent as planned, Putin said. In future, it should be reduced to 4 percent, he added. Another achievement is that Russia paid the Soviet-era debt in 2006.The past year could be called “the year of IPOs”, Putin said. Russian companies floated about $10 billion worth of stock. He said capitalization of Russia’s stock market climbed by more than 80 percent in 2006, and it continues to grow. In the corporate sector, capitalization grew by over 90 percent.Economic growth was fuelled by both external and domestic factors. It was the result of the government and the Central Bank’s efforts, he said.
Asked about his possible successor, Putin said: “There will be no successor. There will be candidates to the presidential post.” He said there should be no preliminary preparation of people to occupy top positions in the state because “many of these are elected positions.” “I do not rule, I simply work,” Vladimir Putin said. “As a citizen of the Russian Federation, I have the right to express my preferences but I will only do it during the election campaign,” he said, stressing the need to ensure fair and democratic elections. After the 2008 elections the authorities should be consolidated and effective, he added.
The government has made a well-considered decision to develop the country’s energy sector, Putin said. Russia’s domestic gas prices are regulated by the government, and they are currently below market levels. As a result, consumers get addicted to gas resources, which has a negative impact on the country’s energy balance and economy as a whole, Putin said. The gap between domestic and export prices should be reduced, “but in any case the price of gas in Russia will be 30 percent lower,” he said.
The government’s decision to gradually raise gas prices was a soft reform of the energy system, aimed at making this industry more viable and competitive. Subsidies for households will be paid up to 2015, the President said.
Turning to Russia’s agrarian policy, Putin said the government would continue its agricultural lending program. Lending to agricultural produces has increased “times over” since the launch of the national agricultural development program. The recently passed bill on the development of the agricultural sector is also aimed at supporting domestic agricultural producers and developing the agrarian sector. “All this will have a positive impact on the agricultural industry,” the President said.
Asked about mortgage rates, Putin said they will be lower if inflation drops to 4-5 percent. Mortgage rates at 11 percent reflect Russia’s economic reality. Mortgage cannot be cheaper if inflation stands at 9 percent.
Vladimir Putin has held annual news conferences since 2001. This time over 1,200 Russian and foreign reporters were accredited to the event.
