Putin orders to keep cargo and passenger service between Russia’s regions running

NOVO-OGARYOVO, April 8. /TASS/. Russian President Vladimir Putin ordered to keep cargo and transport service between regions running, adding that shutting it down might have destructive consequences.

"We cannot stop the economy, close transport, cargo and passenger service between regions, shut down companies en masse, regardless of the actual situation, even if there are just several infection cases in the entire region. We must understand what damage, what destructive consequences this might cause," the president said during a video link-up with the heads of regions on measures to fight the coronavirus Wednesday.

The head of state noted that even Moscow, with its population density and concentration of transport flows — and, therefore, bigger risk of infection spread — does not implement blanket shutdown of companies.

"Many Moscow companies continue to work or have switched to remote mode," the president said.

Higher insurance guarantees and extra pay for medical staff fighting coronavirus

Vladimir Putin suggested setting higher insurance guarantees for healthcare workers fighting the coronavirus. "It will be proper to make one more decision, that is, to set higher insurance guarantees for them at the expense of the federal budget, just as it is done for personnel of the Russian Armed Forces," Putin said.

The president also proposed surcharges to salaries for work with patients having the novel coronavirus. "I consider necessary to implement one more measure: to set a special federal payment for three months, starting from April, for specialists working directly with coronavirus patients and risking their life every minute," the head of state said.

"Such extra payment for doctors directly working with patients having the coronavirus infection will be 80,000 rubles ($1,060), for middle-grade medical staff, medical assistants and nurses — 50,000 rubles ($660), and for junior medical staff — 25,000 rubles ($330) per month," the president said. Extra payments will also be made for ambulance staff, he added.

Repayment holidays

Russian President Vladimir Putin instructed the government to make repayment holidays on consumer and mortgage loans available to a larger number of Russians.

"In March, I instructed [the cabinet] to ensure an option of repayment holiday on consumer and mortgage loans for citizens. I am asking the government to return to this issue and consider expanding this support measure so that it becomes available to a larger number of people," the head of state informed.

On April 6, the Russian government set the maximum amount of consumer loans, which allows borrowers affected by the consequences of the pandemic to apply for repayment holidays.

The maximum amount for consumer loans was set at 250,000 rubles ($3,317), for consumer loans to individual entrepreneurs — 300,000 rubles ($3,980), for car loans — 600,000 rubles ($7,961).

On April 7, Deputy Finance Minister Alexei Moiseyev said that the government was considering an option to increase the maximum amount of mortgage loan in several regions of Russia.

Losses for businesses

President Vladimir Putin has instructed the government and the Central Bank to prepare a program of additional measures to support businesses within five days.

"I instruct the government, together with Central Bank, to prepare a program for additional business support within five days. It should allow companies to keep their employment and employee income as much as possible," Putin said.

The president added that in his opinion it is necessary in the first place to provide assistance to the companies that are trying to keep their employees.

"I consider the following formula to be fair: first of all, it is necessary to help those companies that maintain their employment. But if people become unemployed, in this case we should provide our assistance directly to them — citizens whose incomes decreased, families with children who are now experiencing difficulties, people who cannot repay the same amount on their loans as they did before," the head of state explained.

The coronavirus crisis may lead to even more substantial losses for businesses, the Russian president said, adding that it is necessary to soften the blow.

"It is necessary to mitigate the downturn, soften the blow for businesses, whose losses are already rather substantial and may be even worse," he stated.

Fiscal debts of businesses

Russian President Vladimir Putin suggested an annual installment plan of tax payments for companies in respect of taxes deferred because of the coronavirus pandemic.

"We will restructure such debts. They can be repaid smoothly, monthly, in equal installments during at least one year after expiry of the deferral," Putin said.

Russian authorities have earlier provided a deferral for all taxes, except VAT, for six months to come for small and medium enterprises. "The situation should not occur when companies will have to repay accumulated debts after six months at once," the president said.

"This is the greatest point of concern for the business community; this would highly adversely affect the business," the head of state said.

Measures across regions

Vladimir Putin has called on Russian governors to avoid using the same approach to combating the novel coronavirus. "I have given an expanded mandate to heads of regions because I believe that it is ineffective and even harmful to use some united approach," the Russian leader explained. 

Putin noted that regional heads should act depending on the general situation in each settlement, enterprise and each region, approving appropriate and thought-out measures to protect citizens’ health and safety. The president also recalled that in accordance with his decree, all regions must prepare a plan for optimal prophylactic measures depending on the risk of the infection spreading.

Putin said that he would like to hear the details regarding those plans during the video conference.

In late December 2019, Chinese officials notified the World Health Organization (WHO) about the outbreak of a previously unknown pneumonia in the city of Wuhan, in central China. Since then, cases of the novel coronavirus — named COVID-19 by the WHO — have been reported in every corner of the globe, including Russia.

On March 11, 2020, the WHO declared the coronavirus outbreak a pandemic. According to the latest statistics, over 1,400,000 people have been infected worldwide and more than 82,000 deaths have been reported. That said, over 300,000 individuals have recovered from the illness across the globe.

To date, a total of 8,672 coronavirus cases have been confirmed in Russia, with 580 patients having recovered from the virus. Moscow accounts for the majority of cases (5,841). The country’s latest data indicates 63 fatalities nationwide. Earlier, the Russian government set up an Internet hotline to keep the public updated on the coronavirus situation.