Meeting with Head of the Federal Treasury Roman Artyukhin

President of Russia Vladimir Putin: Good afternoon, Mr Artyukhin.

How are things? How is the work progressing?

Head of the Federal Treasury Roman Artyukhin: Thank you very much.

With your permission, I will report on the performance of the treasury system over the past year and on our current projects.

In general, the Treasury has four key responsibilities. In effect, we serve as a bank for the budgets and a single payments and settlements centre. All budgets, without exception, are serviced through the Treasury. Secondly, we act as ф centralised accounting office of the state. Thirdly, as per your instruction, we have been designated the Government's state financial control authority, following the transfer of the powers of the Federal Service for Financial and Budgetary Supervision (Rosfinnadzor).

Naturally, all our functions are carried out through information systems. Two major platforms are the Electronic Budget system and the Unified Information System in the field of procurement, which is widely known. In addition, we have established…

Vladimir Putin: Does that include both state and municipal payments?

Roman Artyukhin: That's right, all of them without exception. I will elaborate. A municipal reform is underway. This is a very large-scale task, which we are carrying out under the leadership of the Finance Ministry to ensure that all payments are processed smoothly and without interruption.

Such large-scale tasks cannot be accomplished without a strong team. We have built a highly professional workforce of 29,000 employees across the country. We service approximately one million legal entities through our treasury accounts and personal online accounts. This, of course, enables us to maintain steady and dynamic progress.

Clear cash planning forms the basis of our work, alongside continuous monitoring by the Government and the Finance Ministry. This allows us to process all payments without disruption. For example, the cash execution of the budget last year reached 99 percent.

Our strong performance is the result of two key factors: concerted cross-government effort and the deployment of digital solutions. A prime example, delivered at your request, is the implementation of digital completion certificates and digital contracts. So, what does this entail in practice? It means that all necessary documents, including completion certificates, are now signed electronically. Previously, standard business practice dictated payment within 30 days. Now, the moment a digital completion certificate is signed, funds flow directly and immediately into the economy. This is a direct outcome of our digital procurement system.

It may also come as a surprise to learn that the Treasury has become Russia's third administrator of budget revenue. While the Tax and Customs Services are widely known in this role, the Treasury now stands alongside them.

The reason for this lies in a significant treasury system reform implemented in 2021: the creation of a single treasury account, which consolidates all liquidity from the entire Russian budget system - encompassing every region and municipality without exception. Crucially, we do not simply hold these resources; we actively manage them by placing funds in deposits and other financial instruments. We do so with a rigorous approach to financial risk, ensuring all placements are repaid on time. As a result, the Treasury generated 1.5 trillion rubles last year. Of this sum, 1.183 trillion rubles accrued directly to the federal budget, while a substantial 328 billion rubles provided a significant boost to our regions. This revenue, the 328 billion rubles I mentioned, derived from interest on their account balances, empowers regions to address their operational funding needs.

Beyond accruing interest, the Russian Treasury also provides treasury loans. The primary instruments are annual loans designed to cover cash flow gaps, offered at an annual rate of just 0.1 percent. To date, 38 regions have utilised these loans, and importantly, all have been repaid on time.

Furthermore, in line with your instructions, we have introduced two new financial instruments: special treasury loans and treasury infrastructure loans. While the Government makes the final decisions on allocations, the role of the Treasury is to formalise the agreements, provide robust treasury support, and most critically, ensure the targeted use of funds is monitored all the way through to the completion of each project. Currently, around 900 projects are being successfully implemented using these loans, which are granted for a 15-year term at a 3 percent rate.

To be continued.