Tag Archives: Davos

Putin said the era of unipolar world order has come to an end and dismisses “stupid” Western “blitzkrieg” sanctions

President of Russia Vladimir Putin had a major speech at the 25th St Petersburg International Economic Forum on Friday. This speech is a long speech, but a speech we should pay attention to. Read the transcript below (some of it) and make up your mind:

President of Russia Vladimir Putin: Thank you very much. President Tokayev, friends and colleagues,

I welcome all participants and guests of the 25th St Petersburg International Economic Forum.

It is taking place at a difficult time for the international community when the economy, markets, and the very principles of the global economic system have taken a blow. Many trades, industrial, and logistics chains, which were dislocated by the pandemic, have been subjected to new tests. Moreover, such fundamental business notions as business reputation, the inviolability of property, and trust in global currencies have been seriously damaged. Regrettably, they have been undermined by our Western partners, who have done this deliberately, for the sake of their ambitions and in order to preserve obsolete geopolitical illusions.

Today, our – when I say “our,” I mean the Russian leadership – our own view of the global economic situation. I would like to speak in greater depth about the actions Russia is taking in these conditions and how it plans to develop in these dynamically changing circumstances.

When I spoke at the Davos Forum a year and a half ago, I also stressed that the era of unipolar world order has come to an end. I want to start with this, as there is no way around it. This era has ended despite all the attempts to maintain and preserve it at all costs. Change is a natural process of history, as it is difficult to reconcile the diversity of civilizations and the richness of cultures on the planet with political, economic, or other stereotypes – these do not work here, they are imposed by one center in a rough and no-compromise manner.

The flaw is in the concept itself, as the concept says there is one, albeit strong, power with a limited circle of close allies, or, as they say, countries with granted access, and all business practices and international relations, when it is convenient, are interpreted solely in the interests of this power. They essentially work in one direction in a zero-sum game. A world built on a doctrine of this kind is definitely unstable.

After declaring victory in the Cold War, the United States proclaimed itself to be God’s messenger on Earth, without any obligations and only interests which were declared sacred. They seem to ignore the fact that in the past decades, new powerful and increasingly assertive centers have been formed. Each of them develops its own political system and public institutions according to its own model of economic growth and, naturally, has the right to protect them and secure national sovereignty.

These are objective processes and genuinely revolutionary tectonic shifts in geopolitics, the global economy, and technology, in the entire system of international relations, where the role of dynamic and potentially strong countries and regions is substantially growing. It is no longer possible to ignore their interests.

To reiterate, these changes are fundamental, groundbreaking, and rigorous. It would be a mistake to assume that at a time of turbulent change, one can simply sit it out or wait it out until everything gets back on track and becomes what it was before. It will not.

However, the ruling elite of some Western states seems to be harboring this kind of illusion. They refuse to notice obvious things, stubbornly clinging to the shadows of the past. For example, they seem to believe that the dominance of the West in global politics and the economy is an unchanging, eternal value. Nothing lasts forever.

Our colleagues are not just denying reality. More than that; they are trying to reverse the course of history. They seem to think in terms of the past century. They are still influenced by their own misconceptions about countries outside the so-called “golden billion”: they consider everything a backwater, or their backyard. They still treat them like colonies, and the people living there, like second-class people, because they consider themselves exceptional. If they are exceptional, that means everyone else is second-rate.

Thereby, the irrepressible urge to punish, to economically crush anyone who does not fit with the mainstream, does not want to blindly obey. Moreover, they crudely and shamelessly impose their ethics, their views on culture, and ideas about history, sometimes questioning the sovereignty and integrity of states, and threatening their very existence. Suffice it to recall what happened in Yugoslavia, Syria, Libya, and Iraq.

If some “rebel” state cannot be suppressed or pacified, they try to isolate that state, or “cancel” it, to use their modern term. Everything goes, even sports, the Olympics, bans on culture, and art masterpieces just because their creators come from the “wrong” country.

This is the nature of the current round of Russophobia in the West, and the insane sanctions against Russia. They are crazy and, I would say, thoughtless. They are unprecedented in the number of them or the pace the West churns them out at.

The idea was clear as day – they expected to suddenly and violently crush the Russian economy, to hit Russia’s industry, finance, and people’s living standards by destroying business chains, forcibly recalling Western companies from the Russian market, and freezing Russian assets.

This did not work. Obviously, it did not work out; it did not happen. Russian entrepreneurs and authorities have acted in a collected and professional manner, and Russians have shown solidarity and responsibility.

Step by step, we will normalize the economic situation. We have stabilized the financial markets, the banking system, and the trade network. Now we are busy saturating the economy with liquidity and working capital to maintain the stable operation of enterprises and companies, employment, and jobs.

The dire forecasts for the prospects of the Russian economy, which were made in early spring, have not materialized. It is clear why this propaganda campaign was fuelled and all the predictions of the dollar at 200 rubles and the collapse of our economy were made. This was and remains an instrument in an information struggle and a factor of psychological influence on Russian society and domestic business circles.

Incidentally, some of our analysts gave in to this external pressure and based their forecasts on the inevitable collapse of the Russian economy and a critical weakening of the national currency – the ruble.

Real-life has belied these predictions. However, I would like to emphasize that to continue being successful, we must be explicitly honest and realistic in assessing the situation, be independent in reaching conclusions, and of course, have a can-do spirit, which is very important. We are strong people and can deal with any challenge. Like our predecessors, we can resolve any task. The entire thousand-year history of our country bears this out.

Within just three months of the massive package of sanctions, we have suppressed inflation rate spikes. As you know, after peaking at 17.8 percent, inflation now stands at 16.7 percent and continues to drop. This economic dynamic is being stabilized, and state finances are now sustainable. I will compare this to other regions further on. Yes, even this figure is too much for us – 16.7 percent is high inflation. We must and will work on this and, I am sure, we will achieve a positive result.

After the first five months of this year, the federal budget has a surplus of 1.5 trillion rubles, and the consolidated budget – has a surplus of 3.3 trillion rubles. In May alone, the federal budget surplus reached almost half a trillion rubles, surpassing the figure for May 2021 more than four times over.

Today, our job is to create conditions for building up production and increasing supply in the domestic market, as well as restoring demand and bank financing in the economy commensurately with the growth in supply.

I mentioned that we have taken measures to reestablish the floating assets of companies. In most sectors, businesses have received the right to suspend insurance premiums for the second quarter of the year. Industrial companies have even more opportunities – they will be able to delay them through the third quarter as well. In effect, this is like getting an interest-free loan from the state.

In the future, companies will not have to pay delayed insurance premiums in a single payment. They will be able to pay them in equal installments over 12 months, starting in June next year.

Next. As of May, the subsidized mortgage rate has been reduced. It is now 9 percent, while the program has been extended till the end of the year. As I have mentioned, the program is aimed at helping Russians improve their housing situation, while supporting the home building industry and related industries that employ millions of people.

Following a spike this spring, interest rates have been gradually coming down, as the Central Bank lowers the key rate. I believe that this allows the subsidized mortgage rate to be further cut to 7 percent.

What is important here? The program will last until the end of the year without change. It means that our fellow Russians seeking to improve their living conditions should take advantage of the subsidy before the end of the year.

The lending cap will not change either, at 12 million roubles for Moscow and St Petersburg and 6 million for the rest of Russia.

I should add that we must make long-term loans for businesses more accessible. The focus must shift from budget subsidies for businesses to bank lending as a means to spur business activity.

We need to support this. We will allocate 120 billion rubles from the National Wealth Fund to build up the capacity of the VEB Project Financing Factory. This will provide for additional lending to much-needed initiatives and projects worth around half a trillion roubles.

Colleagues,

Once again, the economic blitzkrieg against Russia was doomed to fail from the beginning. Sanctions as a weapon have proved in recent years to be a double-edged sword damaging their advocates and architects just as much, if not more.

I am not talking about the repercussions we see clearly today. We know that European leaders informally, so to say, furtively, discuss the very concerning possibility of sanctions being leveled not at Russia, but at any undesirable nation, and ultimately anyone including the EU and European companies.

So far this is not the case, but European politicians have already dealt their economies a serious blow all by themselves. We see social and economic problems worsening in Europe, and in the US as well, food, electricity, and fuel prices rising, with quality of life in Europe falling and companies losing their market edge.

According to experts, the EU’s direct, calculable losses from the sanctions fever could exceed $400 billion this year. This is the price of the decisions that are far removed from reality and contradict common sense.

This outlay falls directly on the shoulders of people and companies in the EU. The inflation rate in some Eurozone countries has exceeded 20 percent. I mentioned inflation in Russia, but the Eurozone countries are not conducting special military operations, yet the inflation rate in some of them has reached 20 percent. Inflation in the United States is also unacceptable, the highest in the past 40 years.

Of course, inflation in Russia is also in the double digits so far. However, we have adjusted social benefits and pensions to inflation, and increased the minimum and subsistence wages, thereby protecting the most vulnerable groups of the population. At the same time, high-interest rates have helped people keep their savings in the Russian banking system.

Businesspeople know, of course, that a high key rate clearly slows economic development. But it is a boon for the people in most cases. They have reinvested a substantial amount of money in banks due to higher interest rates.

This is our main difference from the EU countries, where rising inflation is directly reducing the real incomes of the people and eating up their savings, and the current manifestations of the crisis are affecting, above all, low-income groups.

The growing outlays of European companies and the loss of the Russian market will have lasting negative effects. The obvious result of this will be the loss of global competitiveness and a system-wide decline in the European economies’ pace of growth for years to come.

Taken together, this will aggravate the deep-seated problems of European societies. Yes, we have many problems as well, yet I have to speak about Europe now because they are pointing the finger at us although they have enough of their own problems. I mentioned this at Davos. A direct result of the European politicians’ actions and events this year will be the further growth of inequality in these countries, which will, in turn, split their societies still more, and the point at issue is not only the well-being but also the value orientation of various groups in these societies.

Indeed, these differences are being suppressed and swept under the rug. Frankly, the democratic procedures and elections in Europe and the forces that come to power look like a front, because almost identical political parties come and go, while deep down things remain the same. The real interests of people and national businesses are being pushed further and further to the periphery.

Such a disconnect from reality and the demands of society will inevitably lead to a surge in populism and extremist and radical movements, major socioeconomic changes, degradation, and a change of elites in the short term. As you can see, traditional parties lose all the time. New entities are coming to the surface, but they have little chance for survival if they are not much different from the existing ones.

The attempts to keep up appearances and the talk about allegedly acceptable costs in the name of pseudo-unity cannot hide the main thing: the European Union has lost its political sovereignty, and its bureaucratic elites are dancing to someone else’s tune, doing everything they are told from on high and hurting their own people, economies, and businesses.

There are other critically important matters here. The worsening of the global economic situation is not a recent development. I will now go over things that I believe are extremely important. What is happening now does not stem from what happened during recent months, of course not. Moreover, it is not the result of the special military operation carried out by Russia in Donbas. Saying so is an unconcealed, deliberate distortion of the facts.

Surging inflation in product and commodity markets had become a fact of life long before the events of this year. The world has been driven into this situation, little by little, by many years of irresponsible macroeconomic policies pursued by the G7 countries, including uncontrolled emission and accumulation of unsecured debt. These processes intensified with the onset of the coronavirus pandemic in 2020 when supply and demand for goods and services drastically fell on a global scale.

This begs the question: what does our military operation in Donbas have to do with this? Nothing whatsoever.

Because they could not or would not devise any other recipes, the governments of the leading Western economies simply accelerated their money-printing machines. Such a simple way to make up for unprecedented budget deficits.

I have already cited this figure: over the past two years, the money supply in the United States has grown by more than 38 percent. Previously, a similar rise took decades, but now it grew by 38 percent or 5.9 trillion dollars in two years. By comparison, only a few countries have a bigger gross domestic product.

The EU’s money supply has also increased dramatically over this period. It grew by about 20 percent or 2.5 trillion euros.

Lately, I have been hearing more and more about the so-called – please excuse me, I really would not like to do this here, even mention my own name in this regard, but I cannot help it – we all hear about the so-called ‘Putin inflation’ in the West. When I see this, I wonder who they expect would buy this nonsense – people who cannot read or write, maybe. Anyone literate enough to read would understand what is actually happening.

Russia, our actions to liberate Donbas have absolutely nothing to do with this. The rising prices, accelerating inflation, shortages of food and fuel, petrol, and problems in the energy sector are the result of system-wide errors the current US administration and European bureaucracy have made in their economic policies. That is where the reasons are, and only there.

I will mention our operation, too: yes, it could have contributed to the trend, but the root cause is precisely this – their erroneous economic policies. In fact, the operation we launched in Donbas is a lifeline they are grabbing at to be able to blame their own miscalculations on others, in this case, on Russia. But everyone who has at least completed primary school would understand the true reasons for today’s situation.

So, they printed more money, and then what? Where did all that money go? It was obviously used to pay for goods and services outside Western countries – this is where the newly-printed money flowed. They literally began to clean out, to wipe out global markets. Naturally, no one thought about the interests of other states, including the poorest ones. They were left with scraps, as they say, and even that at exorbitant prices.

While at the end of 2019, imports of goods to the United States amounted to about 250 billion dollars a month, by now, it has grown to 350 billion. It is noteworthy that the growth was 40 percent – exactly in proportion to the unsecured money supply printed in recent years. They printed and distributed money, and used it to wipe out goods from third countries’ markets.

This is what I would like to add. For a long time, the United States was a big food supplier in the world market. It was proud, and with good reason, of its achievements, its agriculture, and farming traditions. By the way, this is an example for many of us, too. But today, America’s role has changed drastically. It has turned from a net exporter of food into a net importer. Loosely speaking, it is printing money and pulling commodity flows its way, buying food products all over the world.

The European Union is building up imports even faster. Obviously, such a sharp increase in demand that is not covered by the supply of goods has triggered a wave of shortages and global inflation. This is where this global inflation originates. In the past couple of years, practically everything – raw materials, consumer goods, and particularly food products – has become more expensive all over the world.

Yes, of course, these countries, including the United States continue importing goods, but the balance between exports and imports has been reversed. I believe imports exceed exports by some 17 billion. This is the whole problem.

According to the UN, in February 2022, the food price index was 50 percent higher than in May 2020, while the composite raw materials index doubled over this period.

Under the cloud of inflation, many developing nations are asking a good question: why exchange goods for dollars and euros that are losing value right before our eyes? The conclusion suggests itself: the economy of mythical entities is inevitably being replaced by the economy of real values and assets.

According to the IMF, global currency reserves are at $7.1 trillion and 2.5 trillion euros now. These reserves are devalued at an annual rate of about 8 percent. Moreover, they can be confiscated or stolen at any time if the United States dislikes something in the policy of the states involved. I think this has become a very real threat for many countries that keep their gold and foreign exchange reserves in these currencies.

According to analyst estimates, and this is an objective analysis, conversion of global reserves will begin just because there is no room for them with such shortages. They will be converted from weakening currencies into real resources like food, energy commodities, and other raw materials. Other countries will be doing this, of course. Obviously, this process will further fuel global dollar inflation.

As for Europe, their failed energy policy, blindly staking everything on renewables and spot supplies of natural gas, which have caused energy price increases since the third quarter of last year – again, long before the operation in Donbas – have also exacerbated price hikes. We have absolutely nothing to do with this. It was due to their own actions that prices have gone through the roof, and now they are once again looking for somebody to blame.

Not only did the West’s miscalculations affect the net cost of goods and services but they also resulted in decreased fertilizer production, mainly nitrogen fertilizers made from natural gas. Overall, global fertilizer prices have jumped by over 70 percent from mid-2021 through February 2022.

Unfortunately, there are currently no conditions that can overcome these pricing trends. On the contrary, aggravated by obstacles to the operation of Russian and Belarusian fertilizer producers and disrupted supply logistics, this situation is approaching a deadlock.

It is not difficult to foresee coming developments. A shortage of fertilizer means a lower harvest and a higher risk of an undersupplied global food market. Prices will go even higher, which could lead to hunger in the poorest countries. And it will be fully on the conscience of the US administration and the European bureaucracy.

I want to emphasize once again: that this problem did not arise today or in the past three or four months. And certainly, it is not Russia’s fault as some demagogues try to declare, shifting the responsibility for the current state of affairs in the world economy to our country.

Maybe it would even be nice to hear that we are so powerful and omnipotent that we can blow up inflation in the West, in the United States, and Europe, or that we can do things to throw everything into disorder. Maybe it would be nice to feel this power, if only there were truth in it. This situation has been brewing for years, spurred by the short-sighted actions of those who are used to solving their problems at somebody else’s expense and who have relied and still rely on the mechanism of financial emission to outbid and draw trade flows, thus escalating deficits and provoking humanitarian disasters in certain regions of the world. I will add that this is essentially the same predatory colonial policy as in the past, but of course in a new iteration, a more subtle and sophisticated edition. You might not even recognize it at first.

The current priority of the international community is to increase food deliveries to the global market, notably, to satisfy the requirements of the countries that need food most of all.

While ensuring its domestic food security and supplying the domestic market, Russia is also able to scale up its food and fertilizer exports. For example, our grain exports in the next season can be increased to 50 million tonnes.

As a priority, we will supply the countries that need food most of all, where the number of starving people could increase, first of all, African countries and the Middle East.

At the same time, there will be problems there, and not through our fault either. Yes, on paper Russian grain, food, and fertilizers… Incidentally, the Americans have adopted sanctions on our fertilizers, and the Europeans followed suit. Later, the Americans lifted them because they saw what this could lead to. But the Europeans have not backed off. Their bureaucracy is as slow as a flour mill in the 18th century. In other words, everyone knows that they have done a stupid thing, but they find it difficult to retrace their steps for bureaucratic reasons.

As I have said, Russia is ready to contribute to balancing global markets of agricultural products, and we see that our UN colleagues, who are aware of the scale of the global food problem, are ready for dialogue. We could talk about creating normal logistical, financial, and transport conditions for increasing Russian food and fertilizer exports.

As for Ukrainian food supplies to global markets – I have to mention this because of numerous speculations – we are not hindering them. They can do it. We did not mine the Black Sea ports of Ukraine. They can clear the mines and resume food exports. We will ensure the safe navigation of civilian vessels. No problem.

But what are we talking about? According to the US Department of Agriculture, the matter concerns 6 million tonnes of wheat (we estimate it at 5 million tonnes) and 7 million tonnes of maize. This is it, altogether. Since global production of wheat stands at 800 million tonnes, 5 million tonnes make little difference for the global market, as you can see.

Anyway, Ukrainian grain can be exported, and not only via Black Sea ports. Another route is via Belarus, which is, incidentally, the cheapest way. Or via Poland or Romania, whichever you prefer. In fact, there are five or six export routes.

The problem is not with us, the problem is with the adequacy of the people in control in Kyiv. They can decide what to do, and, at least in this particular case, they should not take their lead from their foreign bosses, their masters across the ocean.

But there is also the risk that grain will be used as payment for arms deliveries. This would be regrettable.

Friends,

Once again, the world is going through an era of drastic change. International institutions are breaking down and faltering. Security guarantees are being devalued. The West has made a point of refusing to honor its earlier commitments. It has simply been impossible to reach any new agreements with them.

Given these circumstances and against the backdrop of mounting risks and threats, Russia was forced to go ahead with the special military operation. It was a difficult but necessary decision, and we were forced to make it.

This was the decision of a sovereign country, which has еру unconditional right to uphold its security, which is based on the UN Charter. This decision was aimed at protecting our people and the residents of the people’s republics of Donbas who for eight long years were subjected to genocide by the Kyiv regime and the neo-Nazis who enjoyed the full protection of the West.

The West not only sought to implement an “anti-Russia” scenario but also engaged in the active military development of Ukrainian territory, flooding Ukraine with weapons and military advisers. And it continues to do so now. Frankly, no one is paying any attention to the economy or well-being of the people living there, they just do not care about it at all, but they have never spared money to create a NATO foothold in the east that is directed against Russia and to cultivate aggression, hatred, and Russophobia.

Today, our soldiers and officers, as well as the Donbas militia, are fighting to protect their people. They are fighting for Russia’s future as a large, free, and secure multiethnic country that makes its own decisions, determines its own future, relies on its history, culture, and traditions, and rejects any and all outside attempts to impose pseudo-values steeped in dehumanization and moral degradation.

No doubt, our special military operation goals will be fulfilled. The key to this is the courage and heroism of our soldiers, consolidated Russian society, whose support gives strength and confidence to the Russian Army and Navy, and a deep understanding of the truth and historical justice of our cause which is to build and strengthen Russia as a strong sovereign power.

My point is that sovereignty cannot be segmented or fragmented in the 21st century. The components of sovereignty are equally important, and they reinvigorate and complement each other.

So, what matters to us is not only the defense of our political sovereignty and national identity, but also strengthening everything that determines our country’s economic, financial, professional, and technological independence.

The very structure of Western sanctions rested on the false premise that economically Russia is not sovereign and is critically vulnerable. They got so carried away spreading the myth of Russia’s backwardness and its weak positions in the global economy and trade that apparently, they started believing it themselves.

While planning their economic blitzkrieg, they did not notice, and simply ignored the real facts of how much our country had changed in the past few years.

These changes are the result of our planned efforts to create a sustainable macroeconomic structure, ensure food security, implement import substitution programs and create our own payment system, to name a few.

Of course, sanction restrictions created many challenges for the country. Some companies continue having problems with spare parts. Our companies have lost access to many technological solutions. Logistics are in disarray.

But, on the other hand, all this opens up new opportunities for us – we often talk about this but it really is so. All this is an impetus to build an economy with full rather than partial technological, production, human and scientific potential, and sovereignty.

Naturally, it is impossible to resolve such a comprehensive challenge instantly. It is necessary to continue working systematically with an eye to the future. This is exactly what Russia is doing by implementing its long-term plans for the development of branches of the economy and strengthening the social sphere. The current trials are merely resulting in adjustments and modifications of the plans without changing their strategic orientation.

Today, I would like to talk about the key principles on which our country and our economy will develop.

The first principle is openness. Genuinely sovereign states are always interested in equal partnership and in contributing to global development. On the contrary, weak and dependent countries are usually looking for enemies, fuelling xenophobia or losing the last remnants of their identity and independence, blindly following in the wake of their suzerain.

Russia will never follow the road of self-isolation and autarky although our so-called Western friends are literally dreaming about this. Moreover, we are expanding cooperation with all those who are interested in it, who want to work with us, and will continue to do so. There are many of them. I will not list them at this point. They make up the overwhelming majority of people on Earth. I will not list all these countries now. It is common knowledge.

I will say nothing new when I remind you that everyone who wants to continue working or is working with Russia is subjected to blatant pressure from the United States and Europe; it goes as far as direct threats. However, this kind of blackmail means little when it comes to countries headed by true leaders who know the difference between their own national interests, the interests of their people – and someone else’s.

Russia will build up economic cooperation with these states and promote joint projects. At the same time, we will certainly continue to cooperate with Western companies that have remained in the Russian market despite the unprecedented arm-twisting – such companies exist, too.

We believe the development of convenient and independent payment infrastructure in national currencies is a solid and predictable basis for deepening international cooperation. To help companies from other countries develop logistical and cooperation ties, we are working to improve transport corridors, increase the capacity of railways, transshipment capacity at ports in the Arctic, and in the eastern, southern, and other parts of the country, including in the Azov-Black Sea and Caspian basins – they will become the most important section of the North-South Corridor, which will provide stable connectivity with the Middle East and Southern Asia. We expect freight traffic along this route to begin growing steadily in the near future.

But foreign trade is not our only priority. Russia intends to increase scientific, technological, cultural, humanitarian, and sports cooperation based on equality and mutual respect between partners. At the same time, our country will strive for responsible leadership in all these areas.

The second principle of our long-term development is a reliance on entrepreneurial freedom. Every private initiative aimed at benefiting Russia should receive maximum support and space for implementation.

The pandemic and the more recent events have confirmed how important flexibility and freedom are in the economy. Russian private businesses – in tough conditions, amid attempts to restrain our development by any means – have proved they can compete in global markets. Private businesses should also be credited for Russia’s adaptation to rapidly changing external conditions. Russia needs to ensure the dynamic development of the economy – naturally, relying on private business.

We will continue to reduce administrative hurdles. For example, in 2016–2018, we imposed a moratorium on routine audits of small businesses. Subsequently, it was extended through 2022. In 2020, this moratorium was extended to cover mid-sized companies. Also, the number of unscheduled audits decreased approximately fourfold.

We did not stop at that, and last March, we canceled routine audits for all entrepreneurs, regardless of the size of their businesses, provided their activities do not put people or the environment at high risk. As a result, the number of routine audits has declined sixfold compared to last year.

Why am I giving so many details? The point is that after the moratorium on audits was imposed, the number of violations by entrepreneurs – this was the result – has not increased, but rather it has gone down. This testifies to the maturity and responsibility of Russian businesses. Of course, they should be offered motivation rather than being forced to observe regulations and requirements.

So, there is every reason to take another radical step forward, that is, to abandon, for good and on a permanent basis, the majority of audits for all Russian businesses, except on risky or potentially dangerous activities. Everyone has long since understood that there was no need to check on everyone without exception. A risk-oriented approach should be at work. I ask the Government to develop the specific parameters of such a reform in the next few months.

There is another very sensitive topic for business, which has also become important today for our national security and economic resilience. To reduce and bring to a minimum all sorts of abuse and loopholes to exert pressure on entrepreneurs, we are consistently removing loose regulations from criminal law that are applied to economic crimes.

Last March, a law was signed, under which tax-related criminal cases against entrepreneurs shall only be brought before a court by the tax service – there is no other way. Soon a draft law will be passed on reducing the statute of limitations for tax-related crimes and on rejecting lawsuits to initiate criminal proceedings after-tax arrears have been paid off.

Working comprehensively, although prudently, we need to decriminalize a wide range of economic offenses, for instance, those that punish businesses without a license or accreditation. This is a controversial practice today because our Western partners illegitimately refuse to provide such licenses.

Our own agencies must not single-handedly make our businesses criminally liable for actually doing nothing wrong. The problem is this, and small businesses understand it very well – if a license has expired, and Western partners refuse to extend it, what are businesses to do, wrap up operations? By no means, let them work. State oversight should continue, but there should be no undue interference in business.

It also makes sense to think about raising the threshold of criminal liability for unpaid customs duties and other such taxes. Additionally, we have not for a long time reconsidered the parameters of the terms ‘large’ and ‘very large’ economic loss for the purposes of economic offenses despite inflation accruing 50 percent since 2016. The law now fails to reflect the current realities and needs to be corrected.

We need to reconsider the conditions for detaining entrepreneurs and for extending preliminary investigations. It is no secret that these practices have long been used inappropriately.

Businesses have been forced to cease operations or go bankrupt even before the investigation is over. The reputation of the owners and of the brand name suffers, as a result, not to mention the direct financial loss, loss of market share, and jobs.

I want to ask law enforcement to put an end to these practices. I also ask the Government and the Supreme Court to draft appropriate legislation before October 1 of this year.

In addition, at the Security Council, special instruction was given to look into criminal cases being opened without later proceeding to court. The number of such cases has grown in recent years. We know the reasons. A case is often opened without sufficient grounds or to put pressure on individuals. We will discuss this in autumn to take legislative action and change the way our law enforcement agencies work.

It goes without saying that regional governments play a major role in creating a modern business environment. As is customary during the St Petersburg Forum, I highlight the regions that have made significant progress in the National Investment Climate Rankings compiled by the Agency for Strategic Initiatives.

There have been changes in the top three. Moscow and Tatarstan have remained at the top and were joined by the Moscow Region which, in a span of one year, went from eighth place to the top three. The leaders of the rankings also include the Tula, Nizhny Novgorod, Tyumen, Novgorod, and Sakhalin regions, St Petersburg and Bashkortostan.

Separately, I would like to highlight the regions that have made the greatest strides such as the Kurgan Region, which moved up 36 spots; the Perm Territory and the Altai Territory, up 26 spots; Ingushetia, up 24 spots; and the Ivanovo Region which moved up 17 spots.

I want to thank and congratulate our colleagues in the regions for their good work.

The federal government and regional and municipal governments should focus on supporting individual business initiatives in small towns and remote rural communities. We are aware of such stories of success. That includes developing popular software and marketing locally produced organic food and environmentally friendly products nationwide using domestic websites.

It is important to create new opportunities, to introduce modern retail formats, including e-commerce platforms, as I mentioned above, and to cut the logistics, transportation, and other costs, including by using upgraded Russian Post offices.

It is also important to help small business employees, self-employed individuals, and start-up entrepreneurs acquire additional skills and competencies. Please include corresponding measures tailored specifically to small towns and rural and remote areas as a separate line in the national project for promoting small and medium-sized businesses.

Today I would like to address our officials, owners of large companies, business leaders, and executives.

Colleagues, friends,

Real, stable success and a sense of dignity and self-respect only come when you link your future and the future of your children with your Fatherland. We have maintained ties with many people for a long time, and I am aware of the sentiments of many of the heads and owners of our companies. You have told me many times that business is much more than just making a profit, and I fully agree. It is about changing life around you, and contributing to the development of your home cities, regions, and the country as a whole, which is extremely important for self-fulfillment. There is nothing like serving the people and society. This is the meaning of your life and work.

Recent events have reaffirmed what I have always said: it is much better at home. Those who refused to hear that clear message have lost hundreds of millions, if not billions of dollars in the West, in what looked like a safe haven for their assets.

I would like to once again say the following to our colleagues, those who are both in this audience and those who are not here: please, do not fall into the same trap again. Our country has huge potential, and there are more than enough tasks that need your contribution. Invest here, in the creation of new enterprises and jobs, in the development of the tourism infrastructure, and support schools, universities, healthcare, and the social sphere, culture, and sport. I know that many of you are doing this. I know this, but I wanted to say it again.

This is how the Bakhrushin, Morozov, Shchukin, Ryabushinsky, Akchurin, Galeyev, Apanayev, Matsiyev, Mamontov, Tretyakov, Arsanov, Dadashev, and Gadzhiyev families understood their noble mission. Many Russian, Tatar, Buryat, Chechen, Daghestani, Yakutian, Ossetian, Jewish, Armenian, and other merchant, and entrepreneurial families did not deprive their heirs of their due share, and at the same time, they etched their names in the history of our country.

Incidentally, I would like to note once again that it remains to be seen what is more important for potential heirs: money and property or their forefathers’ good name and service to the country. The latter is something that cannot be squandered or, pardon my language, wasted on drink.

A good name is something that will always belong to your descendants, to future generations. It will always be part of their lives, going from one generation to another, helping them and making them stronger than the money or property they might inherit can make them.

Colleagues,

A responsible and well-balanced macroeconomic policy is the third guiding principle of our long-term development. In fact, this policy has largely enabled us to withstand the unprecedented pressure brought on by sanctions. Let me reiterate that this is an essential policy in the long term, not just for responding to the current challenges. We will not follow in the footsteps of our Western colleagues by replicating their bitter experience setting off an inflation spiral and disrupting their finances.

Our goal is to ensure robust economic growth for years to come, reducing the inflation burden on our people and businesses and achieving the mid-and long-term target inflation rate of four percent. Inflation was one of the first things I mentioned during my remarks, so let me tell you this: we remain committed to this target of a four-percent inflation rate.

I have already instructed the Government to draft proposals regarding the new budget guidelines. They must ensure that our budget policy is predictable and enables us to make the best use of the external economic conditions. Why do we need all this? To put economic growth on a more stable footing, while also delivering on our infrastructure and technological objectives, which provide a foundation for improving the wellbeing of our people.

True, some international reserve currencies have set themselves on a suicidal path lately, which is an obvious fact. In any case, they clearly have suicidal intentions. Of course, using them to ‘sterilize’ our money supply does not make any sense. Still, the principle of planning one’s spending based on how much you earn remains relevant. This is how it works, and we understand this.

Social justice is the fourth principle underpinning our development. There must be a powerful social dimension when it comes to promoting economic growth and business initiatives. This development model must reduce inequality instead of deepening it, unlike what is happening in other countries. To be honest, we have not been at the forefront when it comes to delivering on these objectives. We have yet to resolve any issues and problems in this regard.

Reducing poverty and inequality is all about creating demand for Russian-made products across the country, bridging the gap between regions in terms of their capabilities, and creating new jobs where they are needed the most. These are the core economic development drivers.

Let me emphasize that generating positive momentum in terms of household income growth and poverty reduction are the main performance indicators for government agencies and the state in general. We need to achieve tangible results in this sphere already this year, despite all the objective challenges we face. I have already assigned this task to the Government.

Again, we provide targeted support to the most vulnerable groups – pensioners, families with children, and people in difficult life situations.

Pensions are indexed annually at a rate higher than inflation. This year, they have been raised twice, including by another 10 percent on June 1.

The minimum wage was also increased by 10 percent at the same time, and so was the subsistence minimum – a reference figure used to calculate many social benefits and payments – accordingly, these benefits should also grow, increasing the incomes of about 15 million people.

In recent years, we have built a holistic system to support low-income families with children. Women are entitled to state support from the early stages of pregnancy until the child reaches the age of 17.

People’s living standards and prosperity are the most important demographic factors; the current situation is quite challenging due to several negative demographic waves that have recently overlapped. In April, less than a hundred thousand children were born in Russia, almost 13 percent less than in April 2020.

I ask the Government to continue to keep the development of additional support measures for families with children under review. They must be far-reaching and commensurate with the magnitude of the extraordinary demographic challenge we are facing.

Russia’s future is ensured by families with two, three, and more children. Therefore, we need to do more than provide direct financial support – we need to target and direct the healthcare system, education, and all areas that determine the quality of people’s lives towards the needs of families with children.

This problem is addressed, among other approaches, by the national social initiatives, which regional teams and the Agency for Strategic Initiatives are implementing together. This autumn, we will assess the results of their work, and review and rank the Russian regions by the quality of life in order to apply the best experiences and practices as widely as possible throughout the country.

To be continued.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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World Economic Forum Annual Meeting 2021 will be held on the theme “The Great Reset”

It`s time for the world leaders to come together in Davos once again. The World Economic Forum (WEF) is the Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural, and other leaders of society to shape global, regional, and industry agendas.

The WEF agenda is scheduled to be held between January 25 and 29. Mukesh Ambani, Anand Mahindra, Union Ministers Nitin Gadkari, Piyush Goyal, and others will attend the online event. The decision to host the event online comes amidst the Covid 19 pandemic situation, but WEF will host its physical annual meeting in May in Singapore.

As the WEF writes in its statement, the pandemic has accelerated systemic changes that were apparent before its inception. The fault lines that emerged in 2020 now appear as critical crossroads in 2021.

They will talk about «How to save the world,» and topics around that issue will be Covid 19 and climate change. Fairer economic; financial and monetary systems of different countries. Tech for good; big data and other tech disruptions. Society and future of work; remote work culture and gender parity. Better business, healthy future, and beyond geo-politics.

The «Davos Agenda» will also mark the launch of WEF`s Great Reset Initiative and begin the preparation of the special Annual Meeting during the spring.

To contact the author: post@shinybull.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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President Donald Trump is expected to meet Climate activist Greta Thunberg at Davos World Economic Forum

Last year, people at Davos said it was boring at the World Economic Forum (WEF). It wasn`t as it used to be. It`s probably because Trump wasn`t there. In 2018, Trump joined the club and the globalists in Europe treated him like a rockstar. Trump will joint WEF this week, so what now?

Greta Thunberg is a Climate Activist and she was the person of the year 2019 at Time Magazine. Donald Trump was the person of the year in 2016. The president who didn`t sign the Paris agreement. They are both coming to Davos on Tuesday. Is Climate Change the headline at WEF this time?

WEF founder Klaus Schwab said the forum have changed rapidly in business, society and culture over the last fifty years. The yearly gathering in the Swiss Alps started as a forum for business leaders but now it is also for policymakers and activists as well.

Climate change is here right in front of our eyes and everybody can see it. No doubt. Australia is burning with extreme heat and out-of-control wildfires. We also see melting ice sheets. But, is it the nature going in cycle or is it man-made?

In August 2018, Sweden was burning and that was man-made. A lot of Sweden cars was burning in Gutenburg and many Swedes was horrified because migrant gangs coordinated fire-bombs across multiple cities.

A month before that, a large number of wildfires occurred throughout much of Sweden. It is the most serious in the country in modern history. The summer was unusually warm and dry, significantly raising the risk of fire.

Sweden experienced an unusually long heatwave and had only 13 mm of rain from the beginning of May to late July. May 2018 was the warmest May and July 2018 was the warmest July ever recorded in Sweden.

In March 2019, several wildfires occurred in the south of Sweden, and the risk of fire was unusually high for the time of year.

As of mid-July, temperatues in Scandinavia were more than 10 C (18 F) above normal. Wildfires also occurred in the neighbouring countries like Denmark, Norway and Finland.

Experts say there is more to come.

Anyway, what we see can be catastrophic for the economy and the whole world. Global warming, climate change and the extinction of animal species will effect us all.

There is no doubt that the biggest pollution problems are in Asia, and the worst of them all are China and India. We all know it. We have evidence. We have it on film. We have it on many pictures. No doubt. Millions of people die every year only in China because of their pollution.

Trump didn`t sign the Paris agreement because he said it is too expensive. He wants to create jobs and make people prosper. He is also following his own slogan; America first, and that`s basically why he doesn`t want to shut down the oil and coal industry. The cost is too high.

Leaders at Davos will talk much about the environment and the focus on climate change and sustainable growth will be interesting to watch at WEF this time. It will also be very interesting to see 73 year old Trump arguing against teenager Thunberg.

Trump was like a rockstar last time he visited Davos, and Scwab says Trump is velcome to the Swiss Alps because of his role on the world stage. It was boring at Davos last year, but I bet it will be action again this time.

Schwab said it also will be focus on inclusion and equality; economic development; technology governance; regional development; corporate leadership and ecology, including a project to plant a trillion trees.

The WEF`s mission is cited as “committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas”.

Both, Trump and Thunberg will speak Tuesday on the opening day at the World Economic Forum.

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Elite CEO`s scrambled to take selfie with Trump in Davos and there was overwhelming universial support for the “rockstar”

President Donald Trump were treated like a rock star when he came to Davos, Switzerland last friday. It was like Michael Jackson, Elvis Presley and Beatles combined. It was chaos. Everybody wanted to be where Trump was. Everybody wanted to be around him.

Elite CEOs scrambled to take selfies with him. Theyre elbowing each other out-of-the-way, and there was overwhelming support for Mr Trump. Not only that; The Dow Jones Industrial Average went straight up, over 200 points on the news of Mr Trump`s reception in Davos. Wow!

President Trump was surrounded by a bunch of globalists. A bunch of one-world government globalists types. CEOs and other leaders around the world. What we saw in Davos was a universal support. Except one thing: Mainstream Media. They didnt like it at all.

Right after Mr Trumps inauguration, Mainstream Media were laughing at President Trumps tax cut plan. Some of them said; Trump belive he can cut the taxes. How in the world can he afford to do that? Ha ha ha.

Now, a year later, Trumps $1,5 trillion tax cut and the «resulting boom» has been applauded in Davos. The Prime Minister in Netherland said in an interview that he support some of Trumps politics and that the world need more leaders like him.

I do agree. I support some of his politics, but disagree with other things. So was it with Obama, Bush and Clinton. I belive people around the world should support the U.S president no matter who it is. It`s about respect. He is the boss. A powerful world leader.

President Donald Trump is a leader for the history books, and he is a great president that kids in the future shall study and learn about. People in America should be proud of him. He is not only a representative for the U.S, but also a great mentor on the world stage.

President Donald Trump is one of the world`s greatest leaders, and those who would say otherwise are in a dark place.

Donald Trump is in arguably one of the most interesting and popular personalities in the world right now. This is an incredible and most important marker in earths history. As weve seen the ceremonies of transition of power from president to the next, this one will be remembered for generations to come.

This is a power shift that is not inclusive to America but a power shift that affected the whole world. The inauguration of President Trump signaled the end to the power that has been in control of the human race for thousands of years.

What we see now is a total shift of the control of the earth.

Some people claim that the Luciferian rain is fading out and it`s the end of the world as they know it. Lucifer has lost power and control of the earth in all of his mechanisms of deception and manipulation will be exposed completely.

Donald Trump in his inauguration speech said; «Together we will determine the course of America and the world for many, many years to come (The righteous are now in control of America and the world).

Your voice, your hopes and your dreams will define our American destiny. (The righteous have taken control of the future).

And your courage and goodness and love will forever guide us along the way. We stand at the birth of a new millennium ready to unlock the mysteries of space (The truth about space will be exposed) to free the earth from the miseries of disease (The pharmaceutical industry to be exposed) and to harness the energies industries and technologies of tomorrow (free energy).

Today`s ceremony however has very special meaning. Because today, we are not merely transferring power from one administration to another, or from one party to another, but we are transferring power from Washington DC and giving it back to you, the people

January 20th 2017 will be remembered as the day the people became the rulers of this nation again (On January 20th 2017, the course was broken).

And most importantly, Trump said, We will be protected by God (The Luciferian is crying).

Its being said that this is a transition of power from the Luciferian rulers of the earth to the righteous people of the earth. President Trump with the help of Americas allies including Russia will put an end to this Luciferian World Order agenda.

President Trump went to Davos to represent the interest of the American people to affirm America`s friendship and partnership in building a better world like all nations representing at this great forum. America hopes for a future in which everyone can prosper and every child can grow up free from violence, poverty and fear.

He also said in the speech that the world`s largest company Apple announced it plans to bring $245 billion in overseas profits home to America. Their total investment into the United States economy will be more than $350 billion over the next five years.

Now is the time to bring your business, your jobs and your investments to the United States. This is especially true because we have undertaken the most extensive regulatory reduction ever conceived . Regulation is stealth taxation.

The U.S, like many other countries, unelected bureaucrats, (and we have them all over the place), and they`ve imposed crushing an anti business and anti worker regulations on our citizens with no vote, no legislative debate and no real accountability. In America, those days are over.

I pledged to eliminate two unnecessary regulations for every one new regulation. We have succeeded beyond our highest expectations. Instead of two for one, we have cut 22 burdensome regulations for every one new rule. We are freeing our businesses and workers so they can thrive and flourish as never before.

We are creating an environment that attracts capital, invites investment and rewards production. America is the place to do business. So, come to America where you can innovate, create and build. I belive in America.

As President of the United States, I will always put «America first,» just like the leaders of other countries should put their country first. But America first does not mean America alone. When the United States grow, so does the world.

American prosperity has created countless jobs all around the globe and the drive for excellence, creativity and innovation in the U.S has led to important discoveries that help people everywhere. Live more prosperous and far healthier lives as the United States pursues domestic reforms to unleash jobs and growth. We are also working to reform the international trading system so that it promotes broadly shared prosperity and rewards to those who play by the rules.

We cannot have free and open trade if some countries exploit the system at the expense of others. We support free trade but it need to be fair, and it needs to be recipical. Because in the end, unfair trade undermines us all. The United States will no longer turn a blind eye to unfair economic practices, including massive intellectual property theft, industrial subsidies and pervasive state-led economic planning.

These and other predatory behaviors are distorting the global markets and harming businesses and workers. Not just in the United States but around the globe. Just like we expect the leaders of other countries to protect their interests. As President of the United States I will always protect the interest of our country, companies and our workers.

We will enforce our trade laws and restore integrity to our trading system. Only by insisting on fair and reciprocal trade can we create a system that works not just for the U.S but for all nations.

As I have said, the United States is prepared to negotiate mutual beneficial bilateral trade agreements with all countries. This will include the countries in TPP which are very important. We have agreements with several of them already. We would consider negotiating with the rest either individually or perhaps as a group if it is in the interest of all.

At the end of the speech he said; We must invest in our people. When people are forgotten, the world becomes fractured. Only by hearing and responding to the voices of the forgotten can we create a bright future that is truly shared by all. The nations greatness is more than the sum of its production. The nations greatness is the sum of its citizens. The values, pride, love, devotion and character of the people who call that nation home.

President Trump have dedicated his life to the American people. To the world. I want to remind you that he is doing all this for only $1 dollar. What a man!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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France`s President Macron is a promoter of globalization and openness and he will give a speech in Davos on Wednesday

France`s President Emmanuel Macron is expected to give a speech at the World Economic Forum in Davos tomorrow. He will speak to world leaders and business people and try to sell and promote a pro-European agenda and greater integration and reform while extolling the benefits of free trade.

The theme at Davos this time is «creating a shared future in a fractured world.» Macron is a promoter of globalization and openness, but he is also trying to protect people from the negative consequences of it.

Macrons popularity has bounced back in recent weeks despite what opinion polls show is an image of «president of the rich.» The speech on Wednesday will be Macrons first speech at Davos as President since his election last May.

Last year, Chinese President Xi Jinping were holding a speech about globalization. Now, Macron will be the face of Europe. A man who is pro-business representative for the EuroZone at a time of economic recovery and stability after years of crisis.

Macron defeated Le Pen and prevented a far-right government in France last year when he won the election, and I think he would be more than welcome among the business leaders in Davos this time.

He is a reformist who turned back the Le Pen populist wave and he has turned French politics upside down. Many leaders claim that Macron is the last hope for structural change.

His plans to reform Europe and the EuroZone is ambitious, and for Europe it is an important charm offensive.

Macron won the French election in May last year, and he has vowed to shake the French economy out of its torpor. He has, like President Trump, slashed wealth taxes and levies on capital gains. He has also pushed through reforms to the country`s famously rigid labour laws.

According to a survey from November 2017, a record 72 percent of US investors were optimistic about the French economy, which is a huge hike against 30 percent in 2016.

Mr Trump will try to sell his «America first» agenda while Macron will speak about his «Choose France». Google and Facebook are invited to Macron`s gathering. So are Alibaba, Siemens and Coca Cola to name a few.

Francois Hollande and Nicolas Sarkozy have held similar gatherings of CEOs in Davos, but Macrons conferance goes far beyond those hosted by Hollande or Sarkozy. Sarkozy hosted 25 CEO`s in 2011, while the Socialist Hollande hosted 34 world business leaders in 2014.

Macron and his team has invited 100 CEO`s of the biggest world companies. He has so far been carving out an active role on the world stage and he will use his speech to «propose his international vision for the world of tomorrow.»

German Chancellor Angela Merkel will speak the same day and that is two days before Mr Trump. What Macron will talk about is growing inequality, the need for better environmental protection, and global governance in the face of nationalism and extremism.

The economic outlook has improved, but 9 in 10 of those surveyed at Davos, said they expect political or trade clashes between major powers to worsen. 80 percent saw an increased chance of war.

 

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