Page 11 - RusRPTMay21

expectancy is 73). Regional public health systems should be upgraded, as should ambulances. Moreover, medicine should integrate telemedicine technologies and AI.
Education. Authorities will prioritize the development of regional universities and cover the costs of learning for 45,000 students. One hundred universities could receive grants starting from RUB100mn to establish technoparks and incubators. The Russian government aims to build 1,300 schools and to provide school buses.
Travel support. The travel cashback program should be extended until YE21. Families who send their children to summer camps in Russia should receive as much as 50% of the cost back. Students travelling around Russia should have the opportunity to stay on a university campus or in a student dormitory in the cities they visit. An additional cashback should be given to those participating in the Russia – Land of Opportunity competition.
Environmental issues. The environmental issues facing Russia became acute last year. Putin suggested that Russia must reduce CO2 emissions in the next 30 years and produce less CO2 than the EU. Companies should adhere to ecological regulations and bear the costs for any environmental damage they cause. Air pollution in Russia’s largest cities should be regulated by emission quotas and factories should be renovated, e.g. aluminum plants in Bratsk, Irkutsk, Krasnoyarsk and Novokuznetsk. Producers and importers should pay a utilization fee for their products and packages.
Infrastructure stimulus. In addition to the infrastructure credit, additional spending from the NWF should support the stimulus. Putin proposed expanding the St. Petersburg-Moscow-Kazan highway to Ekaterinburg and also mentioned redeveloping tourist destinations, as well as building highways and bridges.
Employment and business support. Authorities plan to keep the social contribution tax for SMEs at 15% (vs. 30% for other businesses) and make it easier to access SOE procurement programs. Putin also proposed introducing KPIs for investment activities, and more measures are expected by 1 June. To promote investment, Putin ordered the government to “fine-tune” the tax system to incentivize the spending of dividends by business owners on investments rather than the accumulation of them abroad.
Regional support. Putin paid much attention to regional development. First, authorities have decided to ease the debt burden of heavily indebted regions, extending the tenure of the 2020 budget credits to 2029. Second, budget loans up to 2029 should substitute for bank loans that exceed 25% of a region’s revenue. Third, regional development should be backed by a 15-year infrastructure credit worth RUB500bn.
International affairs. Putin’s tone was conciliatory, as he said that although malign activity against Russia continues, Russia has not responded, as it still aims to maintain good relations. Russia could retaliate if red lines are crossed, and where these lines are drawn will depend on the situation.
11 RUSSIA Country Report May 2021 www.intellinews.com