Page 46 - RusRPTMar23

There were no surprises in Putin’s speech, contrary to many observers’ predictions: there was no announcement of a new wave of mobilization, nor any rebranding of the “special military operation” as a counter-terrorist effort.
1. Putin announced almost no new financial support for Russian citizens.
Putin largely refrained from dangling carrots in front of the country. In his speech, he limited himself to promising a further 10% increase in the minimum wage, bringing it to $253 starting in 2024 (in Russia, the minimum wage is also the basis for calculating other welfare payments). He also pledged to add annexed Ukrainian territories to Russia’s maternity capital program, which gives families a one-off lump sum on the birth of their first child. In addition, Putin promised to create a state fund to support soldiers wounded in Ukraine. Among its tasks will be providing prosthetic limbs, arranging social and medical support, and resolving issues around sanitorium treatment.
He also proposed to promote discounted rental accommodation for employees of defense sector industries, and promised to invest in upgrading transport and public infrastructure in the regions.
Economists estimate that the new social measures will cost 400-500 billion rubles ($5.2-6.6 billion) from the state budget. Finance Minister Anton Siluanov said that the president’s proposals were “strong,” but they would be funded without increasing the budget deficit or raising taxes.
2. Putin urged Russian businesses to think of the motherland.
Putin had a separate “parting word” for big businesses in his address, describing their dependence on the West as a strategic risk for Russia and warning that they would always be regarded as “second-rate outsiders” in the West. The Russian president urged businessmen not to “beg” and “cling to the past,” but to invest in Russia, which he said will enable entrepreneurs to “increase their capital and earn the recognition and gratitude of the people.”More than once, Putin urged businesses to pull together and focus their operations on the Russian market. But judging by the mood among Russia’s businessmen and officials, while the message may be getting through, it will have little practical impact: the elites are tired of the war and all the stresses it brings, The Bell reported. “Forget about business as usual. Our task is literally to survive and save our business. Or, if a side has already been chosen for you, you need to show your loyalty in order to benefit at all,” one businessman on the Forbes list said.
Many still hope that Western sanctions can be lifted on an individual basis, especially following the unexpected removal of former Sevastopol Governor Dmitry Ovsyannikov and singer Grigory Leps from the sanctions list. In reality, though, the businessmen who spoke to The Bell have enjoyed little success in this regard. One major financier said, with some surprise, that even his longtime contacts in Europe no longer spoke to him and his partners. This silence has been embraced by former European officials and especially those currently in office.
3. Russia exits the New START treaty.
46 RUSSIA Country Report March 2023 www.intellinews.com