Putin urges to ensure stability on labor market, prevent unemployment

MOSCOW, Mar 25 (PRIME) -- Russian employers must ensure stability on the labor market and prevent unemployment amid the current difficult economic situation caused by the coronavirus spread, the government will help in this, President Vladimir Putin said in his address to the nation on Wednesday.

“Our most important task – I appeal to all employers now – is to ensure stability on the labor market, to prevent a surge in unemployment, the state will assist business in solving these problems,” Putin said.

He also proposed to raise the size of unemployment benefit to the minimum wage of 12,130 rubles from 8,000 rubles currently.

Russia cannot avoid the spread of coronavirus due to its geographical location but is capable to work on advance to fight with coronavirus, Putin said.

He declared that the next week will be a paid leave for all Russians to prevent the spread of coronavirus.

“Now it is extremely important to prevent the threat of a rapid spread of the disease (coronavirus). Therefore, I declare the next week non-working with the preservation of wages,” Putin said.

Paid holidays will last from Saturday, March 28, to Sunday, April 5, he said.

However, all essential services, including transport, government and healthcare, will continue to work in the period, Putin said.

A vote on amendments to the Constitution preliminarily scheduled for April 22 should be postponed, as life and health of people remains Russia’s priority, Putin said.

The president also said that all social benefits will be prolonged for six months automatically.

Families that have a right for maternity capital will receive 5,000 rubles for a child under three years per month during three months starting from April.

Putin also said that it is necessary to help the stable work of small and medium business so that employers keep their jobs.

All companies of the small and medium business will be given delays on all taxes, except for value-added tax, for six months, Putin said.

The president also proposed to introduce a 6-month moratorium for bankruptcies amid the current situation.

Putin also proposed to introduce holidays on consumer and mortgage loans for Russians who found themselves in a difficult life situation amid the current economic situation and the coronavirus pandemic.

The president also asked the central bank to ensure prolongation of loans for individual entrepreneurs in sectors affected by the coronavirus.

He also proposed to introduce a 15% tax on dividends and interest taken out of the country, adding that Moscow is ready to withdraw from agreements on avoiding double taxation with countries that disagree with such measures.

Putin proposed introducing a personal income tax with a standard rate of 13% on income on deposits and securities, if the total amount of such assets of a citizen exceeds 1 million rubles.

He added that terms for placing money with Russian banks will remain attractive.

(78.8493 rubles – U.S. $1)

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