Meeting of the Council for Strategic Development and National Projects

Deputy Prime Minister Alexander Novak delivered a report on the implementation of the Structural Transformation Plan. Minister of Finance Anton Siluanov reported on measures to ensure balanced budgets for the constituent entities of the Russian Federation in 2026–2029. Deputy Prime Minister – Chief of the Government Staff Dmitry Grigorenko spoke about working with regions to achieve the sociological indicators set out in the national development goals.

Head of the Russian Popular Front Executive Committee Mikhail Kuznetsov presented the results of monitoring the implementation of national projects. State Secretary — Deputy Minister of Defence and Chair of the Defenders of the Fatherland Foundation Anna Tsivileva reported on systemic efforts to support special military operation participants and their families.

* * *

President of Russia Vladimir Putin: Colleagues, good afternoon.

Today, we are holding a regular meeting of the Council for Strategic Development and National Projects. We will all work together – Government members, heads of regions, representatives of business associations and civil society groups – to discuss our far-reaching and shared effort to achieve Russia’s long-term development objectives. Let me remind you that these cover key sectors, including demographics, education, creating a people-friendly living environment, technological leadership, and the digital transition.

Of course, national goals also provide for ensuring robust and quality growth for our national economy and generating higher growth rates across a wide spectrum of sectors. I suggest we begin with this particular topic.

According to statistical data, overall economic performance has been quite modest, while remaining in positive territory. GDP growth has been about 1 percent. Let me note that this indicator was 0.6 percent in the first six months, against 1.3 percent growth in the second quarter.

Of course, several factors, including external pressure and terrorist attacks targeting our industrial sites and infrastructure, have been affecting economic growth rates.

It goes without saying that these attacks will not have, do not cause and cannot bring about any critical consequences. True, they do cause harm – this much is obvious, and we understand this, we see this, and we are aware of it.

I would like to emphasise once again that we must reinforce our national sovereignty and be more effective in terms of our defence and security, as well as, of course, on socioeconomic matters.

We are already carrying out the Economic Restructuring Plan, which provides, among other things, for creating modern, productive jobs and increasing output in sectors offering high added value – this is a matter of generating quality, robust growth within the national economy.

I will elaborate on the key conditions for fostering this kind of development separately. For now, let me note that the Government drafted the Economic Restructuring Plan last year and it is designed to cover a period until 2030. In keeping with our agreement, its implementation implies a steady and unrelenting effort with permanent performance assessments, including at the regional level and taking into consideration not only the way regional economies evolve, but also the situation with their budgets and the size of their debt burden. Today, we will hear a detailed report on this topic.

Now, let us address the conditions for economic growth. Spurring investment is the key for this.

Investment in Russia’s core capital increased by over 40 percent between 2019 and 2024. This result was largely due to major infrastructure and industrial projects that were primarily export-oriented. These include chemical production, metal industry, mining, petrochemistry and gas-to-chemicals sector.

The construction sector has demonstrated a robust investment pattern, with contribution from regional development support mechanisms and concessional mortgage programmes.

Since last year, many of the megaprojects have passed the main investment phase. They maintained their investment rates but many of them have been completed. Subsequently, the general capital investment rate has subsided. There are certainly other factors but this one is significant.

Our task now is to launch a new investment cycle and provide businesses with additional opportunities to invest in the development of industry, agriculture, services and housing construction.

I would like to stress that it is imperative to invest in projects that are primarily focused on domestic demand, the technological development of all areas, and digital platforming of economic sectors.

It is important to support the upgrading of urban and rural infrastructure, modernisation of housing and utilities, and construction and maintenance of sea and river ports, railways and motorways.

I should remark that, despite the recent terrorist attacks that I talked about, our commercial infrastructure continues its effective and stable operation. The conditions are challenging, no doubt about that, but everybody involved is coping with the tasks set by the current circumstances.

At the same time, the logistics and storage facilities certainly need to be recovered, including with state support. I am asking the Government to adopt a respective support programme. We must remember that the recovery of the damaged facilities must be done to a qualitatively higher technological standard.

Construction of electrical grids and generating stations is an industry of its own and an essential objective because as regions and territories develop and new projects and digital services are launched, power consumption always grows and will grow, as we all are well aware.

We have already established a package of investment support measures, including tax incentives, administrative mechanisms, credit subsidies and other instruments. I consider it appropriate for the Government to once again assess the effectiveness of these measures, to analyse how they are being utilised by enterprises at both federal and regional levels, and subsequently – together with the Central Bank and business associations – to submit proposals on improving the investment support system.

Let me reiterate: our objective is to ensure steady and sustainable growth in capital investments, including the modernisation of production facilities and the enhancement of labour productivity on a new technological foundation using autonomous systems and industrial robots, digital platforms, and artificial intelligence solutions. This is especially important given the personnel shortages in certain sectors. In this context, as we further improve the investment support system, it is essential to prioritise the stimulation of innovation. We have returned to this point repeatedly, but without such an approach, we will be unable to achieve the necessary pace of economic growth and structural transformation.

I would like to address the use of modern technologies in the social sphere separately. Here, we must double down our efforts – not just on paper, but in practice, in the work of outpatient clinics and hospitals, schools and universities, cultural and sports facilities, and so on.

We must ensure the widest possible dissemination of best regional practices throughout the country.

Of course, it is easiest to cite Moscow – but these are among the most striking examples and cannot go unmentioned. I want to speak about Moscow, where, for example, X-ray images are analysed at a single centre within seconds using computer vision. Examinations are carried out to a high standard and more rapidly than before – this is convenient for patients and reduces the burden on medical staff. Furthermore, expensive medical equipment does not stand idle and can serve a greater number of patients within the same timeframe. In short, this is a clear example of how to increase the efficiency of outpatient clinics and hospitals.

There are many such examples, and not just in Moscow, including telemedicine, automated appointment scheduling with doctors or other specialists, the use of digital assistants in service delivery, and so on. I have personally observed all of these developments during my visits to the regions. They are functioning effectively.

I instruct all agencies in the social sphere, drawing on best practices, to compile a portfolio of breakthrough solutions. These will be mandatory for social organisations participating in the federal project to increase labour productivity.

I also ask my colleagues in the social sector to take an active part in drafting the National Strategy for the Development of Digital Platforms. The preparation of this strategy was announced at the St Petersburg International Economic Forum in June this year.

Once again, the potential of digital platforms must be fully realised not only in the economy, industry and trade, but also in healthcare and education. These areas must unconditionally be included in the National Strategy for the Development of Digital Platforms.

Moving on, those who are already working in the real economy and the social sector, as well as today’s students and future specialists must be offered opportunities for mastering advanced technology and benefit from their advantages by constantly improving their qualifications.

This must have a direct bearing on public administration. Starting this year, there has been a programme for officials in charge of ensuring that regions and various sectors have the workforce they need and that they adapt to technological shifts.

We agreed to launch this programme in December of last year at a State Council meeting, as drafted by Sber, the Presidential Executive Office, Russia – Land of Opportunities organisation and the Russian Presidential Academy of National Economy and Public Administration.

What were its results? Unfortunately, not all officials – in fact, far from it – who had entered this programme actually took it. In fact, only 51 participants completed the first module, which amounts to 43 percent of the total number, and 73 people, or 62 percent, completed the second module. This goes to say that the attendance was quite low, and their performance leaves much to be desired, to tell you the truth.

Colleagues, we are not playing games here. There is a reason why we are doing this. Those who took part and discovered the latest solutions they can use in their work, they had to understand the way this can benefit their work. I would like to draw your attention to this fact.

I ask the Executive Office to take a closer look at the situation we have in this regard, which can go as far as taking specific measures regarding those who have ignored this initiative, as well as those who are simply showing up without actually doing anything. We must understand that if a person fails to show up, if someone is not interested, this means that they do not want to achieve anything, have no ambition, they lack positive ambition. Please, do not treat this as some kind of a formality.

Another thing I wanted to stress is that high-performing specialists and advanced infrastructure can serve as a foundation for ensuring quality social services. Of course, feedback from people is the main criteria in this regard.

Starting this year, people can use the e-government services portal to review and rate various educational, medical, sports and cultural institutions. This means that their heads and local governments can get feedback. For now, 30 regions offer this service. I call on all Russia’s regions to launch online rating of social institutions so that this effort goes hand in hand with developing digital platforms which enable people, for example, to easily use this tool on their mobile devices. I ask the Russian Popular Front to oversee the quality of services and the satisfaction with the way the social sector works.

Colleagues,

I have said on numerous occasions that the joint efforts of government, business, and public associations within the framework of national projects must be directed towards the most important goal: steadily improving people’s quality of life. We discuss this constantly. We must create opportunities for every person in every Russian region to gain a profession and find a well-paying job, to provide for their families and children, and to live in modern, comfortable conditions. Such positive changes must be reflected not only in reports and statements. People themselves must see and feel the improvements. That is the main criterion. And if something is not working as it should, and citizens rightly point this out, those signals must be picked up promptly and decisions taken without delay – both at the federal level and in the regions and locally.

We have a system of sociological assessments in place. Citizens can express their views on the state of education, healthcare, public transport, and other services in their city or district. They can highlight successes or flag shortcomings.

The Government must continuously analyse the results of such monitoring. I emphasise: every minister and every deputy prime minister must engage in meaningful collaboration with the regions, addressing local issues where certain areas are still lagging – and such areas do exist, which means additional efforts and resources are needed. Today, we will hear the Government’s report on this matter.

I would also add that, at my instruction, the Accounts Chamber conducted an audit of national project implementation. It naturally identified weaknesses in this work and made specific findings and recommendations. I trust these will be taken into account and reflected in both the legislative framework and in Government decisions.

I would note that substantial funds are allocated to national projects – from the federal budget, private investors, and regional budgets – and it is essential that all national project objectives and measures are delivered on schedule, in the planned volumes, and with the requisite funding.

Here, special attention must be paid to the state of regional finances.

In the first half of this year, both revenues and expenditures of the consolidated regional budgets increased by 5.9 percent. The overall deficit stood at 160 billion rubles – roughly the same as a year earlier. However, regional expenditure is expected to rise towards the end of the year. At the suggestion of the United Russia party, we have decided to provide additional support to regional budgets by deferring the repayment deadline for budget loans beyond 2030. This measure will leave an additional sum at the disposal of the regions – approximately 100 billion rubles annually over the next four years – which they will be able to use for development purposes.

I propose taking another important decision: to provide assistance to the regions whose budgetary situation is clearly the most challenging. This year, they will receive at least an additional 100 billion rubles. Today, we will discuss the time and the principles for these funds to be be distributed.

I would like to draw the government’s attention to the importance of ensuring the balance and sustainability of the overall budget system. I know that the Ministry of Finance, together with our colleagues from the constituent entities, is already developing additional tools to strengthen regional finances.

At the same time, there are situations in which universal, standard approaches are ineffective, particularly when a region has a budget deficit and a relatively high level of debt. Moreover, interest rates on this debt may significantly exceed the federal rate, resulting in particularly high debt-servicing and repayment costs. For example, as of August 1, 2026, commercial debt accounted for a third of the regions' total public debt.

These constituent entities cannot be left to cope with their current difficulties on their own. On the contrary, we need to take tailored support measures, including providing liquidity to regional budgets and medium-term financing linked to a clear regional development programme. I believe the Ministry of Finance’s approach is entirely justified.

I would like to ask the government to identify such constituent entities, propose a set of mechanisms to restore their financial stability, and, together with the regions, develop and approve financial and economic recovery programs for a period of up to five years.

I repeat: ensuring the sustainability of regional budgets is, among other things, a direct responsibility of the federal government and the Ministry of Finance. I ask that these fundamental considerations be taken into account.

Thank you very much for your attention.

The floor now goes to Mr Novak.

<…>

Vladimir Putin: Colleagues, would anyone like to add anything to the topics we have discussed today or make any comments or suggestions? Please. No? Well, it’s up to you.

We have a list of instructions; it is small, with just three items. The first concerns the completion of the regional section of the Plan for Structural Changes in the Economy through 2030. A report is due by October 1, but no one is responsible for it. (Addressing Prime Minister Mikhail Mishustin.) Perhaps, Mr Novak? Agreed.

The second instruction concerns monitoring the achievement of target indicators. Mr Mishustin, you are responsible for this, aren’t you?

And the third is essentially a request to the Popular Front to continue its work monitoring the ongoing changes.

Colleagues,

We understand the importance of everything we have discussed today. The discussion was fairly thorough, although the reports themselves were, at the same time, relatively formal.Yet the work itself should not be formal or merely procedural.

Everything we do is important. Not a single issue is minor – not a single one. And I ask you to approach this work with a clear understanding of the importance of what we are all doing together.

Thank you very much.