Translated material
“Let them not hope for a change of course”
The President promised business that the war would not affect economic policy
“Even if there are different opinions on economic problems within the country, the position of business and government in foreign relations will be united. I have no doubt about it. The authorities, the state will protect business. Business will take a constructive position, naturally, developing the decisions that have been made,” President Dmitry Medvedev said at a meeting with the business community in the near future yesterday. But he was talking about the mineral extraction tax, and not about VAT, which the largest Russian business organizations tried to reduce from 18 to 12 and even to 10%.It is unlikely that anyone will be able to accuse the Russian president of inattention to domestic business. Dmitry Medvedev held meetings with entrepreneurs both as a candidate for the country's highest office and as the elected president. Yesterday he met with them as head of state. Whether the participants wanted it or not, this meeting took place under the sign of the military conflict in the Caucasus. The situation in the financial markets, the activities of Russian companies abroad, and even the tax issue had to be considered under the sign of “August”. For example, speaking about the possibility of reducing taxes, the president noted that the issue was being discussed: “It is, of course, difficult, especially when the situation that happened in August arises. In the near future we will put an end to this discussion.”
Clearly answering the question that not only business, but also politicians and, of course, political scientists are asking themselves about how military actions in the Caucasus will affect Russia’s economic and political course, Dmitry Medvedev promised: “Despite what happened in August “, nothing in the fundamental economic policy will change, there should be no change in priorities.” “We do not need militarization or nationalization of the economy, but, of course, we need order, and this order will be ensured by the state while maintaining the basic values, rights and freedoms that flow from our Constitution,” the president said. Recalling that he considers the main task for today to be the protection of property rights and the strengthening of the court, Mr. Medvedev emphasized: “All development priorities of our country remain, let them not hope for a change of course.”
However, some changes will still follow - for example, business’s zone of “social responsibility” will clearly expand. Of course, at the expense of South Ossetia. “This week I will sign the relevant special agreements on the development of friendly ties, including the military component. I hope this will open up opportunities for Russian business, for the restoration of the republic and humanitarian assistance,” said Mr. Medvedev. “I think the creation of a fund is a good idea,” the president recalled the initiative of the Metalloinvest holding company Alisher Usmanov, which raised a billion rubles to help South Ossetia. “I think many entrepreneurs can join him,” he added.
In addition, entrepreneurs, thanks to their business and human connections abroad, can contribute to clarifying the Russian position in the Georgian-South Ossetian conflict and generally influence the improvement of Russia’s image abroad. The head of the small business organization OPORA, Sergei Borisov, believes, for example, that in the context of worsening relations with the West, it is necessary to intensify “quiet diplomacy” and lobbying efforts to promote Russian companies abroad. In response, business was promised support abroad, although what it will look like in the current political conditions is not yet very clear.
The president himself acknowledges the possibility of introducing formal or informal sanctions against Russian companies. “Putting pressure on the Russian Federation with sanctions is pointless. In some banana republic, you can probably close a couple of channels, and after that the situation will be dramatic; in our country it won’t be like that. In my opinion, the hottest heads are beginning to realize this,” said Mr. Medvedev. “We don’t need isolation or an arms race. We will not allow ourselves to be exhausted, as the Soviet Union once was. But, of course, we will take all necessary measures to strengthen our defense capability,” the head of state continued. “If someone nevertheless tries to take sanctions, we understand that the losses will be symmetrical,” he tried to reassure those gathered.
Businessmen, in turn, expressed full understanding of the situation. “Although the basic position of business, expressed at the April meeting with you, has not changed: we believe that the excessive presence of the state in the economy is harmful, but in pre-crisis conditions the state, in our opinion, is obliged to act energetically and in a timely manner, since disentangling the crisis is much more difficult than act proactively,” Mr. Shokhin emphasized.
True, the president then corrected Mr. Shokhin: according to him, there is neither a crisis nor a pre-crisis situation in our country. “We have a very serious internal economic potential and an equally serious reserve of internal strength. And despite the global economic problems that exist today, nevertheless, the situation in our economy is, on the whole, absolutely stable, there are no crisis or pre-crisis situations,” Mr. Medvedev said.
This meeting was also marked by another presidential aphorism - this time regarding the World Trade Organization. “The WTO is not a carrot, it is a set of rather complex responsibilities, and if we accept them, let them do it humanely, and not scare us,” said Dmitry Medvedev. Noting that “this topic is now suspended,” the President , however, stated that “we consider it correct for Russia to join the WTO, but on terms acceptable to us.”