ello (@piers)

#Putin: **"Mr Khusnullin, your portfolio is impressive and includes roads, housing construction, and infrastructure. Where shall we begin?"** Khusnullin: "Mr President, first of all, I would like to note that this year marks the 70th anniversary of the Russian construction sector. Construction Worker’s Day was officially established in 1956. The first celebration took place at the Luzhniki Sports Palace to showcase the country’s achievements in construction. "However, the construction sector has made tremendous strides over the past 25 to 26 years. Today, our country boasts hundreds, if not thousands, of landmark projects. These include the facilities built for the Olympic Games and the FIFA World Cup, the Crimean Bridge, expressways, major industrial enterprises, and large-scale residential housing developments. Our cities have changed out of recognition. You travel extensively and you had the opportunity to see just how profound these changes have been in terms of quality." VVP: **"Yes, that is certainly true."** MK: "Thanks to these comprehensive measures and your support, the construction industry has effectively become the driver of economic growth. Despite all the attempts by our detractors and other unfriendly forces to stand in our way, the sector has grown by 34%. "Today, together with related industries, construction accounts for over 20% of GDP. Over the past five years, its contribution has increased by 1.9%. In terms of tax revenue, the sector now accounts for 16.7% of total tax receipts. This is shown in the presentation with its share having increased by 2.9%. Employment in the sector and related industries now stands at 17.7%." VVP: **"Seventeen-point-seven percent of everyone employed in the economy?"** MK: "Yes, 17.7% of total employment. That is an enormous number. "Previously, we looked only at the construction per se. But the construction business has a strong multiplier effect: every ruble invested generates 1.68 rubles in economic activity. Therefore, together with the Federal Taxation Service and the Finance Ministry, we calculated the sector’s full contribution, including all related industries. That is how we arrived at this high figure. Naturally, it has a significant impact on all key economic indicators. "We also examined the regional picture. As you can see on the next slide, the map shows the sector’s contribution across individual regions." VVP: **"Seventeen-point-seven percent amounts to roughly how many people? About 13 million?"** MK: "Yes, 13 million people. If you look at this slide, you can clearly see the extent to which each region depends on the construction sector. At present, 16 out of 85 regions derive more than 20 percent of their regional budget revenue from construction-related activity, while 65 out of 85 regions derive more than 10 percent. Only a handful of regions have a share of 10 percent or less. If you look closely, you will also see that the reunited territories are rapidly gaining momentum, with extensive construction activity taking place there as well. "I would also like to highlight, of course, that the principal matter we are supporting is housing. This is the Infrastructure for Life national project. We are maintaining an unprecedented volume of housing construction, exceeding 100 million square metres. Even the Soviet Union could not boast of building such volumes, including during the reconstruction period. We have maintained this pace for several years in a row. "This year has seen a slight decline; however, it is not feasible to constantly maintain a pace of 110 million square metres. There is a slight reduction, yet I wish to say that the volume of housing supply remains higher than last year. With regard to multi-apartment housing, we are currently maintaining last year’s levels. There is a slight decline in individual housing construction, but we have devised a number of measures to support this sector, which have already been reported to you. I am confident that we will likewise mitigate this issue. "Naturally, housing is being constructed thanks to unprecedented mortgage support. The fact that you, notwithstanding all the circumstances, have kept mortgage lending – primarily family mortgages – means we observe that people are taking them out and paying six percent, as they always have, irrespective of any changes. We are fully meeting all our commitments for every type of mortgage." VVP: **"This is the most reliable instrument, is it not?"** MK: "Yes." VVP: **"The share of overdue payments, I believe, is about one percent, no more, is that correct?"** MK: Indeed, it is even slightly less than one percent. Compared to other instruments, it is the most reliable, and people repay it consistently. As for road construction, we are faring quite well [...]." Kremlin (16.7.26); p (5) http://en.kremlin.ru/events/president/news/80298