UPDATE 2: Russia needs flexible legal base for digital tech progress – Putin

(Adds comments on digital economy fund in last four paragraphs)

ST. PETERSBURG, Jun 2 (PRIME) -- Growth of personnel, intellectual, and technological advantages in the Russian digital economy requires a formation of a new flexible regulation base to implement technologies in all spheres of life, President Vladimir Putin said at the St. Petersburg International Economic Forum on Friday.

“In order to increase our staff, intellectual, technological advantages in the digital economy sphere, we intend to act on the directions of systemic importance. I mean that we should shape a principally new, flexible legal framework to implement digital technologies in all spheres of life,” Putin said.

“All decisions should be made with keeping in mind the provision of information security of the state, business, and citizens.”

Deputy Prime Minister Igor Shuvalov said that Putin discussed technologies and the digital economy with some members of the parliament earlier at the forum.

“We talked only about new technologies and the digital economy. I can tell you that the president is obsessed with the topic and understands that the gap and significant growth rates are grounded on the digital economy and the technological leadership,” Shuvalov said.

Communications and Mass Media Minister Nikolai Nikiforov said that any option should be considered to secure high-quality and quick fulfilment of the digital economy program, which Putin earlier ordered to craft and approve by Thursday.

“I wouldn’t rule out any variant; we should be open for any option: our aim is to ensure this real, rapid digital transformation of many industry branches,” the minister told reporters at the forum.

The communications ministry said earlier the initiative comprises eight directions and is focused on creating conditions to develop the digital economy.

Nikiforov also said that Putin will shortly hold a meeting on priority projects, including the creation of a single fund of the digital economy development.

The IT industry needs measures of support to design system software, which are in the foundations of the IT development fund. “Truly, the industry is tired of waiting. We won’t lay the groundwork for the evolution of the whole digital economy without it,” the minister said.

The digital economy development fund could be formed with operators’ contributions of 1.2% of their revenue, which currently feed the universal service fund and use of radio frequencies, among others.

“This model seems suitable to us, and we’re discussing it. But it’s too early to say whether it will be chosen or not,” the minister said.

End