House with a mezzanine – Newspaper Kommersant No. 54 (7499) dated 03/30/2023

On March 29, Russian President Vladimir Putin held a meeting with members of the government in Novo-Ogaryovo, at which all participants of the event began, notes a special correspondent for Kommersant Andrey Kolesnikov, with genuine enthusiasm, previously unobserved, to agitate the population to invest in the Russian economy. The normally reserved Finance Minister Anton Siluanov, for example, was even more active than everyone else.

The meeting seemed to be optimistic from the start.

“It is known that the Russian economy has been demonstrating positive dynamics since July last year,” Vladimir Putin said, “including through the development of business niches of Western companies in our market, at the expense of those who left our market, and also thanks to the active development of ties with fast-growing countries of the east and south.

That is, it was clearly stated that the departure of Western companies has an exceptionally beneficial effect on the development of the Russian economy.

And it turned out that the economy just needed a little more help. Push it to “strengthen positive trends” and “increase its effectiveness.”

However, the Russian president did not hide his concern:

“We need to act quickly, without unnecessary bureaucracy and delays, since the illegitimate restrictions imposed on the Russian economy in the medium term can really have a negative impact on it.

Even better to support the economy can, it was noted, only the dynamics of domestic demand. And Vladimir Putin made several fundamental proposals that are now impossible to refuse – neither to himself, nor to the participants in the meeting.

It seems that the greater the danger of negative trends in the medium term, the more liberal these proposals become (and not vice versa, no), and the president’s speeches at first glance begin to resemble his own speeches of the level of 2002-2004.

Judge for yourself:

— It is necessary to consistently remove structural restrictions that hinder business activity. I mean bottlenecks in logistics, finance, training, and so on. And of course, we need to support projects that are primarily aimed at the technological and infrastructural development of Russia…

Moreover, Vladimir Putin spoke uncomplimentarily about the state of Russia’s technological sovereignty:

– So far, the dynamics of our manufacturing industry remains weak, unfortunately … Below the level of last year. Please pay attention to this, it is extremely important! The primary goal is to restore the most affected industries, such as the automotive industry and the timber industry.

Thus, the timber industry complex was publicly recognized as the most affected branch of the national economy (everything about the auto industry was already clear).

“At the same time, it is necessary to ensure the rapid launch of new projects in the manufacturing industries, especially in the production of high-tech products. Decisions to support such projects have been made, including the cluster investment platform and industrial mortgage… The government has developed these new tools and done it in a timely manner, and the tools, in my opinion, are very good. I ask you not to delay only with their introduction… We also talked about this with the Minister of Industry and Trade, Deputy Prime Minister Denis Manturov. He promised that all adjustments would be made in the very near future and the process would be launched. I hope this is happening.

Certainly not.

Most talked about where to get the money:

— Of course, the key issue for launching business ideas is funding from both the banking sector and the stock market. This is primarily about equity and so-called mezzanine financing.

In Vladimir Putin’s speech, as the situation worsens, new words appear that can lull the excessive anxiety of listeners. “Mezzanine financing” – probably, a bad thing will not be called such a beautiful word.

— I would like to note that wages and real disposable incomes of the population as a whole throughout the country began to grow again in real terms. Yes, these are still very modest figures, and I will not reproduce them here, but still they are, the president noted.

But then I decided to reproduce it, and it’s good: a person now needs to hear something like this every single day in order to adequately repel panic attacks on himself, first of all himself.

“I’ll tell you – you yourself know, but nevertheless, real wages have been growing since October 2022: 0.3%, 0.4%, 0.6% …” said Vladimir Putin, and not that, of course , a wave of bliss spilled over the body, but it became somehow different. — The real disposable income of citizens in the fourth quarter increased by 0.9% compared to the same period in 2021. Of course, this is very little, but it is still a move in the right direction!

Yes, well, thank you for this!

– By the end of March, inflation will fall below 4%! the president continued. “According to some estimates, it will continue to slow down, which means that the real incomes of citizens should accelerate!” I expect that an additional increase in the minimum wage by 18.5% at the beginning of next year will also make its contribution.

And we all count too.

— I would also note that unemployment in Russia remains at a record low level. However, even in this case, this does not mean that all problems in the labor market have already been resolved,” Vladimir Putin warned against being too optimistic. In general, there are questions about the quality of jobs.

But still not to their number.

And about the main thing:

– According to Rosstat, over the past year, life expectancy in Russia increased by 2.7 years. Now she is 72.8 years. The death rate continues to decline. It is essential to support these demographic trends!

This is, of course, an increasingly difficult task. But you have to strive.

Deputy Prime Minister Tatyana Golikova supported the president’s optimism in her speech. How else?

Meanwhile, the floor was given to First Deputy Prime Minister Andrei Belousov. “On the financial support of all our plans,” Vladimir Putin explained.

And here it turned out that all hope is that the population should be helped first of all by itself.

“The capitalization of the Russian financial market,” admitted Andrey Belousov, “has decreased by almost 39% compared to the previous year, and the trading volume …

Here Vladimir Putin coughed, but I am sure that it was not on purpose, and it was hard to hear, but still possible if you try.

“…by 41%,” Andrey Belousov concluded. “The number of new share offerings has fallen from 11 in 2021 to just two in the past. The shortage of long-term money has worsened, including due to the departure of foreign investors. Investor confidence has fallen significantly, including due to the closure of information for market participants… The risks associated with the growth of uncertainty have increased, including due to problems with payments and the foreign exchange market, since the stock and foreign exchange markets are closely linked.

Yes, a completely different picture unfolded here.

But there is a way out.

– It is proposed to introduce a new type of investment accounts for individuals, – Andrey Belousov said, – for the development of existing investment accounts … payment of personal income tax (tax on personal income.— “b”)…

In addition, it is proposed to “launch a program of long-term savings for citizens.”

“It will be formed through voluntary contributions from the citizen and co-financing from the state,” Andrey Belousov explained. “Long-term savings agreements will be concluded with non-state pension funds (which everyone, apparently, trusts like relatives.— A.K.), which are under strict control by the Bank of Russia. Administration will lead the Treasury.

Immediately became calmer in my soul.

“Moreover, the funds contributed by citizens will be insured by the state for an amount twice as large as for bank deposits, in the amount of 2.8 million rubles,” said the First Deputy Prime Minister. “In addition, it is proposed to introduce an institution of equity life insurance .. It is proposed to turn this insurance product into a full-fledged investment tool for citizens…

The state needed the money of citizens – not for the first and not for the last time. And Andrey Belousov tried to be eloquent, but the true gift of eloquence unexpectedly showed up in Finance Minister Anton Siluanov (“I know how you feel about proposals of this kind, but this is still a special case,” the president seemed to convince him.— A.K.).

There was even a fear that things might not really be very good – if Anton Siluanov was suddenly so changed by his usual restraint.

He seemed, I’m not afraid of this word, perky:

— This is all agreed, this is very correct, but I would like to say how to create interest in financial investments among our citizens! Our citizens are one of the main investors. And this interest was especially noticeable in 2021. The number of investors, our ordinary people, amounted to 20 million people! It has doubled compared to 2020 by 2021! Of course, now the interest in financial investments has changed.

Certainly.

— The situation is understandable, interest is declining… But what is being offered now… Not just an opportunity to keep money under your pillow or in a bank, but to give you the opportunity to safely invest this money!…

Still would then have the opportunity and lay out.

– The first option is for especially cautious investors!.. This is a long-term savings program… That is, if people do not want to take risks, but want to save money for their child’s education when they have a baby… Or to buy an apartment… Or for an additional income in the future… And to receive… In the medium term, of course, in the future… More than on deposits…

That’s just the point, that in the medium term.

But she, as was said at the beginning of the meeting, is fraught with danger.

“For people who want to take risks and earn more,” the Minister of Finance continued energetically, “new instruments of individual investment accounts are emerging, where people themselves will choose the securities in which they will invest, or they can apply to the appropriate management companies (as if with with the help of the bank, they cannot do it even now.— A.K.)… You can buy shares in Sberbank, invest in Gazprom!.. — lured Anton Siluanov. — People will make their own decisions.

And it’s not hard to imagine which ones will be accepted.

Andrey Kolesnikov