Putin says Russia can nationalize firms to keep jobs, defense order

MOSCOW, Mar 31 (PRIME) – Russia can nationalize companies to keep employment or to ensure execution of the state defense order, President Vladimir Putin said on Wednesday at a meeting with the trade unions.

“Yes, such an instrument is possible. Also … using this instrument is possble in cases of malicious non-fulfillment of the state defense order by some companies,” Putin said.

“Everything is clear here except management’s effectiveness. Because state money is disbursed and it is disbursed accurately, rhythmically, without delays. But there are failures. I want (head of the Russian Union of Industrialists and Entrepreneurs) Alexander Nikolayevich (Shokhin) to pay attention to this and everyone to keep it in mind.

Putin also said that the government’s decision to cut the fiscal burden on the payroll is long-term.

"Let me remind you that we’ve halved the fiscal burden on the payroll to small and medium companies. This decision, I will say once again, is long-term. We have no plans to abolish it and we expect business to meet us halfway," Putin said.

The president also said that he did not rule out nationalization of companies o keep employment. He said that the step was acceptable in case of state defense order non-fulfillment.

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