Putin approves new package of measures to support people, economy

MOSCOW, May 12 (PRIME) -- Russian President Vladimir Putin has approved a new package of measures to support the people and the economy amid the coronavirus pandemic, he said at a meeting on the sanitary and epidemiological situation in Russia on Monday.

“Now, at the moment of shifting to restoration of the business life, I have approved a package of measures to support the citizens and the economy. Together with the government, we have worked it thoroughly out,” he said.

The period of non-working days in Russia is finishing on Tuesday, Putin also said.

Forced restrictions, imposed in March–May, have hurt the economy, the president said.

“Forced restrictions (imposed) in March–May have affected many economic sectors. We have created and constantly extend the list of the hurt industries and companies, and we have organized a federal-level support for them so that the small and medium businesses and systemically important companies could maintain employment and not accumulate wage debts. We will keep the measures,” he said.

The coronavirus disease has severely affected many industries and the welfare of the people with the number of the unemployed doubling to 1.4 million people from the beginning of April that is why additional help is necessary now, he added.

Putin also said that in May he will host a special meeting devoted to unemployment.

“The situation is difficult and needs comprehensive actions to stabilize the labor market and to support people, who have lost their jobs. I ask the government to prepare such decisions. We will discuss them at a separate meeting until the end of May,” he said.

The president ordered creation of conditions for restoration of operations of the basic industries, including construction, industrial production, agriculture, communications, energy and mineral resources extraction, from Tuesday.

“Operations of the companies does not require direct contacts with consumers so their work can be resumed with low risks if all the sanitary norms are met,” he said, stressing that the exit from the pandemic will not be fast.

Russian regions were to have made plans on lifting the restrictions, considering local situations, by Monday, Putin also said. Moscow’s experience is demonstrating the possibility of beginning operations of construction and industries facilities, but the decisions should be well-weighted, and the high-safety regime must be maintained for 65+ years old people.

If Russian regions’ governors decide to suspend operations of companies, which have not been included in the list of hurt industries, they must provide support to them and discuss the measures with the federal government, he added.

The president said that the number of beds for coronavirus patients in Russia’s hospitals has increased to 130,000 from 29,000, and the number of tests has risen to 170,000 from 2,500 daily and will reach 300,000 daily by the middle of May.

The state of the financial system and reserved accumulated by the government allow for making decisions on new social payments, Putin said.

He said that low-income families with children will be able to receive a lump payment of around 33,000 for each 3–7 years old child for six months from June 1, but not July 1, as was planned before, and that the minimal childcare payment will be doubled from 3,375 rubles. The government will also pay 10,000 rubles for each 3–15 years old child from June 1 so that 27 million children in Russia could receive additional support.

A special federal payment will be issued to social workers from April 15 through July 15.

Around 1.5 million companies including self-employed individuals, small and medium businesses and socially-oriented non-profit organizations will be able to write off their taxes and payroll payments.

Putin also proposed injecting 12 billion rubles in microfinance organizations.

“Almost all Russia’s regions have successful government structures, which provide microfinancial support to self-employed people, family enterprises and small businesses. I suggest injecting money in these compact but effective regional development institutions and allocate 12 billion rubles for the purpose,” he said.

Tax payments for 2019 should be fully returned to self-employed people and taxes and payroll payments for April–June of small and medium businesses hurt by the pandemic should be fully written off, he also suggested.

The president also said that a tax capital of a minimal wage should be granted to all self-employed people, and that special beneficial lending with an interest rate of 2% should be launched from July to support employment in companies affected by the pandemic.

He again stressed the priority of businesses supporting employment.

Putin hoped that the new package of measures will support demand and employment in Russia in July–December.

(73.8725 rubles – U.S. $1)

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