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businesses. Alexei Kudrin, a long-serving former finance minister and now head of the Audit Chamber, recently lamented how only four of the country’s largest 10 companies are privately-held, and said that only 25% of Russia’s privatization plan had been completed.
2.7 Putin promises more social spending in September at United Russia congress
President Vladimir Putin spoke at the party congress for the ruling United Russia political party 24 August. In addition to meeting with party officials over the weekend in the lead-up to next month’s parliamentary elections, Putin announced that there would be additional social outlays and spending starting from September instead of after the State Duma convenes for the first time following the elections. Putin also discussed Russia’s economic agenda, pushing the government to sustain the growth momentum.
The government should prioritize sustainable growth via an infrastructure stimulus. According to Putin:
· The economy has already recovered from COVID-19, but the government must maintain the strong growth momentum, as well as increase incomes and keep job creation high. While the unemployment rate is about 5%, there are still people that need help to find work.
· To maintain the growth momentum, the government should push forward with infrastructure projects, in particular extending the Moscow-Kazan-Ekaterinburg highway to Tyumen; developing the Northern Latitudinal Railway in the Yamal-Nenets Autonomous District; and developing the Baikal-Amur Mainline (BAM).
· Another RUB340bn will be invested in overhauling Russia’s fleet of regional aircraft.
The social agenda appeared to be even more generous than the one discussed over the weekend. The initiatives include:
· A one-time payment of RUB10,000 to pensioners to be disbursed in September before the new State Duma convenes following next month’s elections. In addition, Putin promised to index pensions above the inflation rate next year.
19 RUSSIA Country Report September 2021 www.intellinews.com