All news

Putin: Current tense geopolitical situation mainly related to economic challenges

According to the Russian president structural problems in the global economy have not been overcome, competition on the global markets will intensify and barriers for technology flows will appear

ST.PETERSBURG, June 17. / TASS / Structural problems in the global economy have not been overcome, and it hasn't been possible to restart growth just yet, Russian President Vladimir Putin during his address said at the St. Petersburg International Economic Forum (SPIEF-2016).

Structural problems accumulated in the global economy persist. It hasn't been possible to restart growth just yet," he said.

"After the 2008-09 crisis, it was possible to partly reduce the financial balances, to restrict, if not to overcome the problem of rising debt, to make cash flow transparent and manageable," said Putin.

The president expects competition on global markets to intensify and barriers for technology flows to appear.

"Restructuring of complete branches is inevitable; many production facilities will lose their value, the demand for trades and competencies will change and competition will intensify on traditional and on emerging markets," Putin said. "Actually we already see attempts now to reserve and monopolize the benefit from new generation technologies," the head of state added.

The president considers it necessary to support export-oriented companies.

"The government is already taking efforts to support export. The Russian Export Center has been set up," he said, adding that another step is to "form a system of supporting export-oriented companies."

According to Putin, Russia’s import-substitution program is aimed at manufacturing products that may be competitive globally. "Import-substitution is an important stage of boosting non-energy export, integrating our companies in global production technological alliances as strong efficient partners rather than those playing supporting roles," he said.

New technology revolution

Putin suggests that companies investing in efficient technologies should obtain more access to financial resources.

"The legislation, tax regulations and technical standards will raise companies’ interest in enhancing labor efficiency and introducing labor-and energy-efficient technologies. Meanwhile the enterprises that are ready to address those tasks have to get a wide access to financial resources, including via mechanisms of development institutions," he said.

The technology potential is fairly significant in "digital and industrial technologies, robotic engineering, energy, biotechnologies, and healthcare," Putin said. "Discoveries in these areas may lead to a real technology revolution, explosive growth of labor productivity," the president said.

"It is already taking place and will take place definitely," Putin said. "Restructuring of complete branches is inevitable; many production facilities will lose their value, the demand for trades and competencies will change and competition will intensify on traditional and on emerging markets," he added.

 Vladimir Putin has instructed the government to speed up the removal of all barriers, which prevent the formation of future markets, envisaged by the National Technology Initiative (NTI)

"I am asking the government to speed up the removal of administrative, legal and other barriers that hinder the development of markets of the future," the president said.

SPIEF is important site for dialog

Vladimir Putin believes that the St. Petersburg Economic Forum has become an important site for a dialog and exchange of opinion.

"Today the forum has become an important site for meeting each other, having talks and exchanging opinion," Putin said.

In his opening remarks Putin recalled the early days of the forum and that St. Petersburg’s first mayor, Anatoly Sobchak was the forum’s brain-father.

Putin thanked the leaders of countries and heads of international organizations, as well as businessmen who have gathered for the forum. By tradition the forum has served as a club for discussing strategic issues, he remarked.

"Such a discussion is still more important today, when the world is undergoing a fundamental transformation deep change concern practically all spheres of life," he added.