Vladimir Putin answered
media questions following a working visit to the People’s
Republic of China.
May 15, 2017
13:2
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Vladimir Putin answered
media questions following a working visit to the People’s
Republic of China.
President of Russia
Vladimir Putin: Good afternoon.
Let me dispense with
opening remarks and get straight on with answering any questions you
may have. Please, go ahead.
Question: I have
a question about the forum. This was a big event. Much has been
written and said about it. There have been many comments, many nuances,
and, as I understand it, a considerable amount remains unclear.
Considering these nuances,
do you think this Chinese initiative is viable, can it be coupled with
the Eurasian Economic Union project, and what will it mean
for Russia and for all of us in practical terms?
Thank you.
Vladimir Putin: Let me
start by saying that the meeting was very timely,
for the following reasons. Of course,
on the sidelines, as they say, my colleagues
and I discussed and assessed what is happening here
in Beijing. I would like to stress that nearly everyone said
that at a time when we see growing uncertainty in major
political and economic power centres (say, in the United States,
where an intense internal political power struggle continues, creating
a nervous atmosphere in both politics and the economy;
in Europe, where everyone is waiting to see what happens with Brexit,
the process and its results; and in the European Union
itself, where individual countries have many issues to address), we are
all obviously looking out for signals that give hope of greater
stability.
In this sense,
the Chinese initiative is very useful and timely. Furthermore –
and this was not China’s initiative, but that
of the participants in today’s meeting – we expressed
the desire to make this a regular event. President of China
Xi Jinping, who chaired the event, said that the next forum would
take place in 2019.
As for just how
effective this will be, time will tell, but everything we discussed today is,
for all intents and purposes, already happening. All we are doing now
is giving an institutional framework to what is already underway
in real life.
What I mean here is
primarily infrastructure development, importantly, through joint efforts. You
may know that we have established priority development zones and free
ports in the Far East (Vladivostok, Nakhodka and others),
and many are keen to take part in these infrastructure
development projects.
As I said during
my remarks today, we are talking here about developing transport, railway,
aviation, port and airport infrastructure, and there are
opportunities for cooperation here.
Energy sector development
is another aspect. You have heard about the initiative to develop
the big Asian energy ring, and this project could be interesting
and very useful for us, as we have substantial, even surplus,
generating capacity, particularly in the eastern part
of the country. Projects are already underway in the energy
sector today, funded by large-scale investment, including that from China.
As for the initiative’s
name, Silk Route, or Belt and Road, look at the Yamal LNG
project, for example. We are carrying out this project together with
partners from Europe, French companies, and with our Chinese partners. Our
partners have invested tens of billions of dollars in this
project. This is only one project. In reality, there are many more,
and I am sure this number will grow. The initiative is therefore
very useful, timely, and, I hope, will have good development prospects.
Question: Mr
President, you said at the forum and at your meeting with
Xi Jinping that the main event in Russian-Chinese relations this year
would be the Chinese President’s visit to Russia in July. Based
on what a Chinese politician said about a journey
of a thousand miles that begins with one step, which steps should
the two countries’ negotiators focus on in the next few
months? Should they focus on the energy dialogue, on Russian
agricultural exports, for example poultry, on infrastructure and transport
projects, or on energy prices in order to achieve their
goal in time for President Xi Jinping’s visit?
Vladimir Putin: We
need to restore the volume of trade that has recently declined.
However, last year’s results showed a positive trend: an increase
of 4 percent last year and over 30 percent, or more precisely
near 40 percent, in the first two or three months this year.
This is a serious positive improvement.
However, this is not
the main goal, because volumes calculated in monetary terms, although
important, are not the main thing. It is more important that even
in the past few years when we have seen a decline
in bilateral trade, the physical volumes have not decreased but have
even grown in some sectors. The most important indicator is
the structure of our trade.
I would like
to say that we are moving in the right direction, because
the delivery of Russian machinery, equipment and agricultural
products to China has increased substantially. This structure has been
gradually improving in the past two or three years, which is
a heartening indicator.
In addition, we are
cooperating in very promising high-tech areas such as space
exploration and aircraft manufacturing. As you may know, we are
working on a wide-body jet, and this project depends
on the engine. We did not have an engine for this plane
(this is an ongoing project), but we have created a new highly
competitive product, an average-thrust engine. This is the first such
project in 29 years. Our next goal is to create a 35-tonne
high-thrust engine. This will enable us to create a wide-body jumbo
jet jointly with our Chinese partners. There are reasons to believe that
we can do this. As you know, it will be a synergistic product that
calls for combining the efforts of many industrial
and research sectors.
We cooperate quite
successfully in the space sector and we have every opportunity
to expand this cooperation. Supplying China with rocket engines is one
item on the agenda here.
Then there is
military-technical cooperation, the high-tech component of which is
increasingly prominent. We therefore have great prospects.
I will not even go
into the energy sector, which plays a key part in our
cooperation. I will just say that work on the Power
of Siberia gas pipeline is on schedule. There are no price disputes
here; we have settled practically all issues. We will produce liquefied natural
gas together and have confident prospects for entering third country
markets.
I do not know if you
saw Gazprom Chairman [Alexei] Miller’s report, but we had 2.7 trillion cubic
metres of gas reserves on the Yamal Peninsula alone. These
reserves have now increased to 4.2 trillion. These figures are
on a global level, and this is only one location
In this respect, we
are confident and, to be honest, not even the prices daunt us much,
because we will offset any problems through volumes.
Question: News came
in during the forum that North Korea has carried out another missile
launch. What is your view on such reports and how do you assess
the threats these launches pose?
VladimirPutin: Firstly,
I would like to reiterate that we categorically oppose any expansion
to the club of nuclear powers, including by means
of including North Korea. We have made our position clear to our
partners, including the North Koreans. We consider this counterproductive,
harmful and dangerous.
On the other
hand, we understand that the recent global developments,
in particular blatant violations of international law, invasion
of foreign states, regime change and the like, are spurring this
arms race. In this context, we should act comprehensively
to strengthen the system of international guarantees with
reliance on international law and the UN Charter.
In any case, we
believe that nuclear and missile tests are unacceptable. Dialogue with
North Korea must be resumed, attempts to intimidate the country must
stop and a way to settle these matters peacefully must be found.
Is this possible?
I believe so, especially considering the positive experience
of such dialogue with North Korea. As you may remember, there was
a period when North Korea announced the termination of its
nuclear programme. Regrettably, the negotiating parties failed
to muster the patience to translate this intention into reality.
I believe we should resume these discussions.
As for the latest
missile launch, the Russian Defence Minister reported to me about it
immediately, and the issue was later covered in the media.
I have nothing more to say on this. This launch did not present
a direct threat to Russia. However, such launches can provoke
a conflict, which is not good at all.
Question: A question
on Syria. How do you assess the current situation there? Do you
believe the de-escalation zones currently being established can be
effective? Also, Kurdish media showed photos of a visit
by Russian military specialists.
Vladimir Putin:
A visit where?
Question: To their
positions. Perhaps they came as consultants.
Does Russia not fear
a negative reaction from Turkey over our consulting the Kurds
and working with them?
Vladimir Putin: Let me start
with the final part of your question.
I discussed this
matter with the Turkish President. He expressed his concerns in this
respect during our meeting in Sochi. I said to him then
and I can say publicly now that there is no secret here. Unlike other
countries, we have not declared any intention of supplying arms
to Kurdish fighters. They do not have any great need for our supplies
in any case, as they have other supply channels. We do not see any
need to get involved in arms supplies.
But the Kurds are
a real factor in the situation in Syria and their
fighters are taking part in operations against the so-called Islamic
State and are among the most combat-ready groups; therefore, we think
it perfectly justified to maintain working contacts with them, if only
to avoid possible confrontation and situations that could pose
a threat to our service personnel.
I do not see anything
here that could give our Turkish partners cause for concern. We are in contact,
our position is open, and I hope that our Turkish partners understand
it too. I am aware of the Turkish President’s concerns –
and we discussed this yesterday – over the United States’
announcement that it will supply arms to the Kurds. We do not do
this.
As for the de-escalation
zones, I hope very much that they will prove effective, above all
and most importantly, for maintaining the ceasefire.
The most important thing today is to reinforce and strengthen
the ceasefire regime, and on this basis to build
the conditions for reconciliation and the subsequent
political process.
If the situation
develops as planned, we can hope to achieve our goals. However,
without the ceasefire, there can be no effective political process,
and everyone realises this. This is why we need to take these steps
now.
How do we do this? We
reached an agreement in Astana, and I thank Kazakhstan
and President of Kazakhstan Nursultan Nazarbayev for providing
this venue. Now, we will work on this at the military level and,
at the meeting in Ankara (between Russia, Iran and Turkey),
in constant consultation with the Syrians, of course, we will
discuss the specific borders of these de-escalation zones,
and discuss the verification issues: how, where, who and what
will be monitored. These are entirely practical and specific issues that
need to be discussed, and it is too early yet to speak about
them publicly.
Question: Mr
President, an international cyberattack was reported on May 12.
It hit targets in 150 countries, including agencies, banks
and companies in Russia. How much has this attack harmed Russia
and the world in general? What can be done to prevent other
attacks like this one? And what can you say about the continued
allegations of a Russian hand, or Kremlin’s hand, despite
the fact that Russia was among the countries hit
by the latest cyberattack?
Vladimir Putin: The damage
to us, that is, to Russian banks, the healthcare system
and other sectors, has been insubstantial. However, this is
an alarming and negative trend overall, which is a cause
for concern.
As for the source
of this threat, I believe that Microsoft has named the culprits;
it has pinned the blame on US security agencies. Russia has nothing
to do with this. I am surprised to hear that there are any other
versions. By the way, this is a brilliant illustration
of what is happening in this sphere, which shows that they search
for the culprits where there is none.
What else can I say?
As you may know, last year we invited our American partners to join
hands on the issue of cybersecurity and even sign
an intergovernmental agreement. Regrettably, our proposal was rejected.
The previous US Administration later said it was ready to get back
to our proposal, but nothing has been done in practice.
We believe that
the genies that are let out of such bottles, especially
the genies that are created in secret laboratories, can ultimately
turn back on their creators. Therefore, we should discuss this
as soon as possible at a high political level
to create a system of protection against such attacks.
Question: A question
on the domestic economy, although it is related to China. There
is a Government resolution that says that all state-owned companies will
have to pay 50 percent of their net profit in dividends.
Vladimir Putin:
The decision has yet to be finalised.
Question: There is
a draft resolution, if I am not mistaken.
Vladimir Putin: There is
a draft resolution, but it only becomes final once it is approved.
Question: Yes. Rosneft is
not covered by this initiative since it is not a state-owned company.
However, there is also Gazprom with its huge investment programme that
includes, among other things, China and construction
of the Power of Siberia pipeline. Last year, Gazprom also
benefited from an exemption, and paid less than everyone else.
Would it be advisable
to create an exemption for Gazprom this year as well so
that it has more money to invest, considering that otherwise it would have
negative cash flow?
Vladimir Putin: As a matter of fact, we are about to move
to International Financial Reporting Standards (IFRS), while there are
also Russian Accounting Standards. Under IFRS, a major company like
Gazprom has huge profits, but only on paper, without generating cash flow.
For this reason, when the Government decides on this issue, it
will look at the real situation instead of gains on paper,
and the final decision will be taken accordingly. We discussed this
issue with the Prime Minister just before departing for Beijing.
Under IFRS, they report
huge profits, but these gains are only on paper, without actual cash flow.
However, there are still profits, and the Government will make
the decision based on the actual situation.
Question: Will Rosneftegaz
also pay out 50 percent in dividends?
Vladimir Putin: Yes, 50
percent is what Rosneftegaz will pay.
Question: We heard just
a couple of hours ago that Energy Minister Alexander Novak has
reached agreement with the Saudis on extending oil production limits
for another nine months, until March 2018, as far
as I know. How do you assess this agreement’s prospects, given
the shaky and volatile situation with oil?
Vladimir Putin: I think the prospects are good, and the fact that our main
partner on this matter – and Saudi Arabia is unquestionably our
main partner here – has respected all previous agreements in full is
cause for optimism.
More importantly, Saudi
Arabia has an interest in maintaining stable and fair oil prices
for a number of reasons. I will not list them now, but
I think the experts are well aware of these conditions.
Finally, I think it
right that the decision was taken not for 2, 3 or 4 months, but
for 9 months, into next year. This is the most important condition
for stability.
Russia will pursue
the policy it has chosen on this issue. I met recently behind
closed doors with the heads of our biggest oil and gas
companies. This meeting is no secret. We discussed this matter with
the Energy Minister, and we support this proposal.
Question: My question
concerns the domestic economic situation. Experts at the Central
Bank issued a report today saying that the economy stands
to lose more than it stands to gain from an artificial weakening
of the ruble.
Do you agree with this
and do you think we should restrain the strengthening
of the ruble exchange rate? Is the current value fundamental,
in your opinion?
Vladimir Putin: There is
a contradiction in your question. You speak of artificially
weakening the ruble, and then ask whether it makes sense
to artificially strengthen it.
We cannot do anything
artificially, and in this sense, I agree with the Central
Bank. The Central Bank’s position is based on a range
of differing but extremely important components for our economy.
Practice has shown that the Bank’s actions are balanced and correct.
The Central Bank asked
about the same thing that interests all of you, the extension
of the production limitation agreement with Saudi Arabia, but no one,
including the Central Bank, knew what the decision would be,
as it only came today. The Bank has to be very careful
in its actions. Fluctuations on global markets are linked not only
to the decision between Russia and Saudi Arabia, but
to a number of other factors as well, and this is
having a serious impact on our economy, for now, at least.
The Central Bank’s
position has always been that if there are fluctuations in the other
direction, it should not take any hasty action. In this sense, it is
absolutely right. It takes a gradual approach and is cautious about
lowering the key rate. We look constantly at what this would mean
for the budget and for individual export-oriented
and import-oriented companies. Overall, we see a satisfactory balance
and have no intention of taking artificial steps.
Question: We saw you
playing the piano yesterday. As a music lover, do you not feel
regret that Russia did not take part in Eurovision? Could this situation
have been avoided?
Vladimir Putin: I was
sorry that the piano was so out of tune. That is what I regret.
It was difficult even for me, who plays with two fingers, to play
anything on it. I would not say that I played, rather, I just
put a couple of fingers to the keys while waiting
for our Chinese friend and partner. I thought that if Mr Peskov
was filming anything, it was more likely for internal consumption,
for the archives, but they decided to make it public. Never
mind. I do not think I misled anyone here.
As for Eurovision,
those who wanted to watch it could do so online.
As for the fact that our relevant organisations refused
to take part in the event, I think this was the right
decision because, as I see it, the current authorities
in Kiev are not in a position to host events of this
kind.
Question: Continuing with
your piano playing, I think you played Moskovskiye Okna [Moscow Windows],
and the Leningrad anthem [City on the Free Neva]. What
melody would you play before a meeting with Trump? And what
instrument? Thank you.
Vladimir Putin: I do
not know. I think I should meet with him first, discuss things,
and choose a tune depending on the results.
Question: Mr President,
allow me to return to the topic of today’s Belt
and Road Forum. How will the Chinese initiative affect countries
along this Silk Route where there are conflicts and instability, such
as Syria, Iraq and Afghanistan? And how could this affect
countries like China and Russia that are interested in making this
work?
Vladimir Putin: The aim of large-scale and long-term programmes of this
kind is to make the world more stable and fair. After all,
the ultimate goal of the initiatives that were discussed today
is to promote steady development, increase citizens’ incomes
and improve education and healthcare. In other words, they seek
to eradicate the root causes behind terrorism and other problems
of this kind.
In this sense, there
is no doubt that implementing socioeconomic development programmes around
the world and in specific regions should have a positive
impact on the situation in the problematic places
in the world.
For China as well
as for Russia this means that cooperation will continue, but on a more
global scale and with greater confidence that other parties willing
to promote international cooperation will be joining our programmes.
I have already mentioned Russia’s proposal to create an Asian
Energy Ring. What could be bad about China, South Korea, by the way,
and Japan all working together on a single major project? There
is no doubt that this would benefit all these countries from both
an economic and a political point of view.
Question: We have been
discussing the economy a lot over these days. China is
a powerful country and has very ambitious plans. Do you not fear that
if everything planned under the Silk Route project eventually becomes
reality, China will economically swallow Russia as well? Would we be able
to withstand this pressure?
Vladimir Putin: Russia is
not the country to fear anything. And there is no danger
at all of China’s actions being aimed at someday swallowing
others. We agreed on everything together, after all, and we do not
take decisions that would be to our own detriment. We agree only
to those proposals that benefit us, and if something benefits us
and our economy, what is there to fear? It would be a shame not
to make use of the opportunities this cooperation creates. Russia
is open for cooperation with all countries, and today China is
demonstrating its openness to the entire world.
I met yesterday with
some big business representatives, foreign business representatives,
and heard their assessments. I expressed a similar sentiment,
in cautious terms, during my remarks yesterday
at the opening, and then yesterday evening I heard
my own argument repeated during this conversation with representatives
of European big business. They said, “It is amazing to see how China
is showing greater openness and commitment to an open economy,
while the countries that we always looked
to as the locomotives of open markets, are acting
and talking in a way that frightens us”.
With this kind
of approach, there is therefore no fear of any future threats.
Question: I would like
a clarification regarding the new social and economic
development strategy that [Alexei] Kudrin has drawn up. He has done his part
of the work and passed it on to the customer.
Will this strategy be submitted to public discussion?
I am asking because it
has been put together behind the scenes, by the experts, but
the issue is serious and important. Perhaps the strategy is
to form the foundation for a new series
of presidential executive orders in May 2018?
I would not like this
strategy to end up as yet another strategy that the authorities
never use and that has no significant influence on the economic
and social sectors. What can be done to avoid this situation?
Vladimir Putin: It always
looks as though we are drafting strategies and making plans
and that nothing comes of any of them.
This is absolutely not
the case. If we did not draft strategies and plans, we would be
acting in a state of chaos. Strategies set the development
vectors and define the priorities. Of course, life obliges us to make
adjustments. Some of what is planned is accomplished and some is not.
This is by far not the worst thing. In this sense, our programme
until 2020 has considerable importance, and so do the May 2012
Executive Orders that you mentioned. However, of course, changing
circumstances, especially in the economy, and the large
number of uncertainties, do oblige us to make adjustments along
the way.
As for Kudrin’s
programme not being put to public discussion – complain to him
about this. I presume that any serious strategy or proposal coming
from the government, at the highest level, should undergo broad
public discussion.
However,
the Government is drafting a programme too. I have agreed with
Prime Minister Dmitry Medvedev that he will present it very soon. We also have
other groups working on programmes, the Stolypin Club,
for example. These are different approaches and often different
visions.
I believe,
or rather, I am certain that we in the Presidential
Executive Office and I personally not only examine thoroughly all
of these proposals, but look at how they can be used for our
economy’s and social sector’s strategic development over the coming
years.
Let us round up now.
Question: Six months
ago, replying to a question from our colleagues
as to whether you would take part in the next presidential
election, you said this question would be answered in due time. Has that
time come?
Vladimir Putin: No.
Any more questions? Let us
end on something positive, on a “yes.”
Question: I would
like to ask about something positive, but I will touch upon
a sufficiently sensitive issue anyway – the development
of the Arctic.
Russia is currently
drafting a programme for the Arctic’s socioeconomic development
until 2025. Initially, the Ministry of Economic Development suggested
allocating about 211 billion rubles in budget funding, and now there
are plans to reduce this sum to 51 billion. If so,
at the expense of what projects would it come? I ask
because our Arctic projects, especially the development of crude oil
deposits, are still subject to sanctions. Is there any link here?
And will
the icebreaker Leader, due to be built in our country, be
financed from the budget or will the funding come from some
other source that has appeared?
Vladimir Putin: You
know, we have a plan to build an icebreaker fleet, including
a nuclear icebreaker fleet and vessels with other modern features,
and this work will continue. This plan may be delayed somewhat
for many reasons, including a shortage of budget funds
and the need to carry out a certain scope of work
in the northern seas as the relevant projects become ready.
The first stage
of the Yamal LNG project is to start operating this year,
and icebreakers and tankers should be ready by that time.
As you have seen, the first tanker has already called
at Sabetta, a new port built from scratch.
Everything is developing
gradually. There is never enough budget funding for every project.
To be honest, budget funding is not a panacea and is not
the main economic development tool. Attracting private investment is
the main tool of economic development. We need to create
favourable conditions for attracting such investment.
By the way, the programmes mentioned by your colleague are
being drafted precisely for this purpose.
We will address this issue
in a serious and systemic manner, without overemphasising any
aspect of our work. When I say ‘our’ work, I am referring
to the work of the Government, the business community
and the whole of society.
Thank you very much.
I wish you all the best.
See also
May 14, 2017
May 15, 2017
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