Meeting on economic issues

The meeting was attended by Prime Minister Mikhail Mishustin Mishustin MikhailPrime Minister of the Russian Federation , First Deputy Prime Minister Denis Manturov Manturov DenisFirst Deputy Prime Minister of the Government of the Russian Federation , Deputy Prime Ministers Alexander Novak Novak AlexanderDeputy Prime Minister of the Government of the Russian Federation and Marat Khusnullin Khusnullin MaratDeputy Prime Minister of the Government of the Russian Federation , Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin Oreshkin MaximDeputy Chief of Staff of the Presidential Executive Office , Minister of Economic Development Maxim Reshetnikov Reshetnikov MaximMinister of Economic Development of the Russian Federation , Minister of Finance Anton Siluanov Siluanov AntonMinister of Finance of the Russian Federation , and Central Bank Governor Elvira Nabiullina Nabiullina ElviraGovernor of the Central Bank of the Russian Federation (Bank of Russia) .

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President of Russia Vladimir Putin: Good afternoon, colleagues.

Today we will talk about economic matters. I would like to begin our meeting by saying that the situation in the national economy and its key sectors remains stable, despite external attempts to destabilise the situation in the fuel and energy complex and several other sectors.

At the same time, I would like to emphasise that the difficulties created for us on the fuel market are certainly temporary and cannot affect the overall economic dynamics. It can be described as follows: according to the Economic Development Ministry, the national GDP grew, even if modestly by 0.3 percent, in May, and its growth for the first five months amounted to 0.2 percent.

One of the main factors here is certainly domestic demand from both the government, business and citizens.

It should be said in this context that the bank lending rate is growing.

Is this correct, Ms Nabiullina?

Central Bank Governor Elvira Nabiullina: Yes, this is correct.

Vladimir Putin: I am referring to mortgage loans and lending to enterprises, organisations and the real economy sector. The volume of this loan portfolio is growing, and the money mass is growing accordingly. As of July 1, it has increased by about 13 percent year on year. This dynamic promises continued stable growth in domestic demand.

The public finance system remains stable as well. In June, the federal budget was executed with a surplus. How much was it? It amounted to 196 billion rubles.

A major factor in this sphere was the growth of budget revenues. It is notable that both oil and gas revenues and non-resource revenues increased. These non-resource revenues increased by more than 25 percent in the second quarter year on year.

As for the consolidated budgets of the constituent entities of the Russian Federation, they were executed with a deficit in the first six months of the year, similar to the first half of last year.

In this connection, we should provide additional support to the regions and their budgets, so as to guarantee the implementation of our obligations at the level of regions and municipalities, as well as to continue the implementation of local development programmes.

To be continued.