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Colleagues, good afternoon.

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Today’s agenda focuses on the situation in the aviation industry.

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We have long wanted to discuss these issues holistically,

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and today we will talk about it in more detail.

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However, I would like to begin with something we discussed last week.

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Today I signed an Executive Order establishing the rules for trading 

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Russian natural gas with so-called unfriendly states.

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We have offered our counterparties from these countries 

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a clear and transparent procedure.

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To purchase Russian natural gas,

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they will have to open ruble accounts with Russian banks to be used 

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to pay for gas distribution starting tomorrow, on April 1 of this year.

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If no payment is made, we will consider this a default on the part 

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of the purchaser – with all the ensuing consequences.

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No one sells us anything without payment,

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and we are not doing charity either.

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This means the current contracts will be suspended.

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I emphasise this again – in a situation where the Western countries’ 

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financial systems are being used as a weapon,

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when companies from these countries refuse to fulfill their contracts 

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with Russian banks, enterprises, and individuals,

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when our dollar and euro assets are frozen,

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it makes no sense to use those countries’ currencies.

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In fact, what has been happening? We supplied resources to our European 

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customers – in this case, gas.

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They received it and paid in euros –

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which they later had frozen.

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Thus, we have reasons to believe that some of the gas supplied 

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to Europe was essentially provided free of charge.

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Obviously, this cannot continue, especially considering that,

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should we continue to supply gas under the same process,

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euro or dollar payments could once again be blocked.

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This development is quite possible,

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especially given that some Western politicians have been 

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talking about it publicly.

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Moreover, EU heads of governments have been suggesting 

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similar approaches. This kind of risk is, of course, unacceptable to us.

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If we look at this issue from a general perspective,

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converting to gas payments in Russian rubles is an important step 

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towards reinforcing our financial and economic sovereignty.

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It has been our long-term plan to consistently and gradually move 

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in this direction, increasing the share of national currency 

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transactions in foreign trade –

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that is, in our currency and the currency of our reliable partners.

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You may have already heard that many long-time energy suppliers 

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in the world market are also talking about diversifying 

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transaction currencies.

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To reiterate, Russia values its business reputation.

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We fulfill and we will continue to fulfill our obligations under all 

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contracts, including our gas contracts.

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We will continue to supply gas as agreed and, I would like to stress,

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at the rates specified in the effective long-term contracts.

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I want to stress that these rates are several times lower than 

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the current rates on the spot market.

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What does this mean? In simple terms, Russian gas means cheaper energy,

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heat and power in European homes,

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affordable fertilisers for European farmers and,

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consequently, cheaper food.

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Finally, it means higher competitiveness for European companies 

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and higher wages for European citizens.

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However, judging by the statements made by some politicians,

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they are willing to disregard their citizens’ interests so they can 

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enjoy the good graces of their overseas master and overlord.

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This is the opposite of populism.

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People are urged to eat less, put on more clothes,

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and use less heating, give up on travel –

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presumably for the benefit of the people who are demanding this kind 

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of voluntary deprivation as a sign of some abstract North 

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Atlantic solidarity.

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This is not the first year that we have been observing such 

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questionable approaches and actions in the economic,

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energy and food policy of the Western countries.

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Incidentally, the food crisis will inevitably be followed by another 

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one, another wave of migration, primarily to the European countries.

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Regardless of this, the decisions that are being made,

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one after another, are pushing the global economy towards crisis.

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They are leading to the disruption of production and logistics chains,

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an increase in global inflation and the aggravation of inequality,

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to a decline in the living standards of millions of people,

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and to the tragedy of mass famine in the poorest countries,

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as I have just said.

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Naturally, the question arises: Who is responsible 

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for this? Who will be held accountable for this?

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Obviously, the United States will again try to resolve its problems –

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just its own problems – at the expense of others.

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In part, it will trigger a new wave of emission and budget deficits.

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The deficit has soared enormously and inflation is setting records 

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in both the leading European countries and in the United States.

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In the process, they are trying to blame us for their own economic 

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mistakes; they are always looking for someone to blame.

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This is perfectly clear, we are aware of this.

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I would add that the United States will also try to make money 

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on the current global instability, as it did during WWI and WWII,

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and its aggressions against Yugoslavia, Iraq and Syria,

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to name a few. Global markets are falling while the stock value 

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of the companies from the US military-industrial complex is 

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going up all the time.

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Money is flowing away to the United States,

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depriving the other regions of the world of development resources.

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Attempts to do everything possible to push Europe towards expensive 

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American liquid natural gas fall into the same category.

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As a result, the Europeans are not only compelled to dip into their 

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pockets but actually to undermine the competitiveness of European 

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companies with their own hands,

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to remove them from the global market.

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For Europe, this means large-scale de-industrialisation 

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and the loss of millions of jobs.

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Another consequence is a drastic reduction in living standards against 

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the backdrop of price increases on food, petrol,

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electricity, housing and utilities.

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This is the price the ruling Western elite are telling people to pay,

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as I said, for their ambitions and short sighted actions –

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both in politics and the economy,

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including the economic war that they are trying to unleash,

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or in fact have already unleased against Russia.

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This did not start just now, nor in the past month.

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Illegal sanctions and restrictions have always been imposed on our 

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country, for many years.

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The goal is to curb Russia’s development, undermine our sovereignty,

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and weaken our industrial, financial and technological potential.

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I will repeat that all these sanctions have been prepared in advance 

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and would have been imposed in any case.

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I would like to emphasise this point.

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In effect, these are sanctions against our right to freedom,

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to be independent, to be Russia.

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They are imposed because we do not want to dance to their tune 

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and to sacrifice our national interests and traditional values.

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The “collective West” does not seem willing to abandon its policy 

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of economic pressure on Russia.

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Moreover, it is certainly going to try to find more reasons 

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for sanctions, or rather pretexts.

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One can hardly count on any change in their approach,

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at least in the near future.

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In this regard, I am asking the Government, the Bank of Russia,

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and the regional governments, to consider this while planning their 

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systemic efforts to promote economic growth and support specific 

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sectors, to keep in mind that the sanctions are not going anywhere,

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just like in previous decades. Such is the objective reality.

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What I would like to note here,

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and I want you to bring this to all your colleagues’ attention,

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when reviewing each specific industry or sector,

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we need to focus not only on overcoming the challenges of this year,

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but also work out long-term development plans based on the internal 

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capabilities of our economy, on Russia’s science and education systems.

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We must primarily rely on private business initiatives and healthy 

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competition, striving to maximise the employment of our industrial 

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facilities, to develop new competencies and generally increase Russia’s 

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international competitiveness.

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At the same time, to make sure that the economic policy is effective,

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we need to look at key indicators like the preservation and creation 

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of jobs, the reduction of poverty and inequality,

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the improvement of people’s quality of life,

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and the availability of goods and services.

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We also focused on these indicators when we were discussing 

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the situation in construction and housing last week.

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Today we will continue the series of industry-related meetings.

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As I have said, the aviation industry is on our agenda today,

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which plays a crucial role in the development of Russian 

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industry, its high-tech areas.

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It is certainly of particular importance for transport services,

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which ensure the connectivity of the regions of our vast country.

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Allow me to remind you that Russian air carriers and aircraft 

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manufacturers were among the first to feel the consequences 

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of the improper decisions by the Western countries.

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A month ago, European and American companies unilaterally refused 

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to meet their obligations under their contracts with aviation 

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and service companies from Russia.

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In fact, they deceived their Russian partners by stopping the supply,

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leasing, maintenance and insurance of aircraft.

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In addition, the European countries closed their airspace to our planes.

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I will leave aside, for now, the impact of this decision on the foreign 

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companies themselves, including damaged reputations and direct losses.

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I will merely note that Russian companies have fulfilled their 

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agreements in full and were ready to continue doing so.

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However, the Western countries took these steps and we must 

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certainly respond to them.

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I suggest proceeding from the premise that we will not be maintaining 

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cooperation with our former partners in the near future.

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We will not close ourselves off from anyone;

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we will not be a closed country,

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but we have to proceed from the realities that are taking shape.

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We have every opportunity to see that Russian aviation not only 

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overcomes the current difficulties but also receives a new 

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impetus for development.

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First, we must support our airlines so they can maintain their 

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sustainable and rhythmic operation,

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to keep jobs and make air service accessible to the Russian people.

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As I have said, these are operational, urgent measures.

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As for long-term plans, we must obviously adjust the strategy 

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for the development of our aviation industry with reliance on our own 

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resources and due account for the new conditions that bring a host 

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of opportunities for Russian aircraft makers, design bureaus,

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and suppliers of materials, components and parts.

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The share of domestic aircraft should increase drastically during 

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the current decade (and this is, of course,

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an opportunity for our aircraft equipment manufacturers)

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. Naturally, it is necessary to achieve high quality,

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reliability and efficiency in the process.

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This is also important for Russian airlines,

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including private companies that should also develop 

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as dynamic and profitable businesses.

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Of course, this matters a lot for passengers –

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they must be able to buy tickets at affordable prices –

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something we will talk more about later –

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while the level of safety, comfort and services must match 

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the highest standards.

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I am referring now not only to interregional flights but also 

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to the development of small aviation and services 

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to difficult-to-access, remote areas.

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I would like to ask you today to speak in detail about solutions that 

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will allow our industry to develop the production 

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of a broad range of domestic aircraft.

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We are endlessly discussing this issue with you.

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It is also important to make sure that technical maintenance 

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and aircraft repair meet the highest requirements.

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Let us start working. I will give the floor to Mr Savelyev.

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Go ahead, please.

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A few things I would like to say in conclusion.

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As I said at the start of our meeting,

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it is certainly necessary to support operations of the Russian air 

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companies, but it is of fundamental importance not to do this 

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at the expense of passengers, as our colleagues have just said.

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I fully share this view. This certainly should be kept in mind.

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It is necessary to make air tickets widely available to people 

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and on this basis to expand the potential of air transport,

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rather than force people to incur additional costs.

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Let me outline a specific target: this year,

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the volume of domestic service should grow in comparison to what it was 

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last year, and the passenger traffic, as of the yearend –

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we have just discussed this and I fully agree with this figure –

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should reach no less than 100 million people.

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00:14:44.623 --> 00:14:49.576
Therefore, in addition to the state support measures already in effect,

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including the reduced-fare tickets for travel to the Russian Far East 

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and other regions, I ask the Government to launch the large-scale 

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programme we have just spoken about,

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a programme to compensate part of the air fare for domestic flights.

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I am referring to flights to be performed, as it was also mentioned,

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between April and October of this year, the most active flying period.

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The Minister of Transport has just described the specific parameters 

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of this programme (I am aware of the debates on this matter)

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, but, of course, I suggest that we primarily be guided by this.

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Nevertheless, the figure that is being mentioned –

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65 billion [rubles], or 47 billion, or 113 billion,

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since there is no unity in the Government as to how to calculate these 

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subsidies – let us, for starters,

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put the figure at 100 billion.

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If we have in view even ten percent of the reserves,

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the resultant figure will be exactly 110 billion.

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But we should also be mindful of the fact that this money comes in with 

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a delay, as Mr Belousov said, and so we will be able to see,

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during the next four to six weeks,

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how this programme is implemented and, if necessary,

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allocate additional funds as needed.

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But I suggest that the calculations be based on the methodology 

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proposed by the Ministry of Transport.

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The second point: many international and domestic flights for which 

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people have bought tickets have been cancelled 

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(we have just spoken about this)

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. Yesterday and today, we discussed these matters with the colleagues.

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It is certainly necessary to reimburse these expenses.

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But if in previous periods, we issued certain certificates,

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today it is more difficult to implement this programme because many 

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routes are closed and we will limit people’s opportunities 

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to use these certificates.

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00:17:00.468 --> 00:17:02.401
Therefore, it is necessary to hand out the money –

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I accept this and I ask the Government to launch this mechanism shortly.

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Third, so far, we have temporarily restricted flights to certain 

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airports in central and southern Russia.

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In this connection, I suggest reimbursing regional airports for their 

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expenses throughout their forced downtime.

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This will make it possible to retain their personnel,

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and the airports will be able to resume normal operations 

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as quickly as possible.

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We must also allocate funds for these purposes in full volume.

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As far as I understand, our colleagues did not voice 

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disagreement on this matter.

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Fourth, lease and letter of credit payments remain a substantial 

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financial burden for the air companies.

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00:17:51.180 --> 00:17:54.003
Naturally, we have to reduce this burden.

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Speaking of letters of credit, I support the concept proposed 

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by the Government and coordinated with the Bank of Russia.

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As for the lease payments, let me remind you that a substantial share 

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00:18:03.890 --> 00:18:07.837
of them was supposed to be made to companies from the so-called 

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00:18:07.837 --> 00:18:10.433
unfriendly countries, and they have violated their 

285
00:18:10.433 --> 00:18:11.662
contractual obligations.

286
00:18:11.662 --> 00:18:15.667
In this connection, I ask the Government to draft a package of measures 

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00:18:15.667 --> 00:18:19.950
for resolving the issue of lease payments, naturally,

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00:18:19.950 --> 00:18:25.484
taking into account the national residential status of any 

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00:18:25.484 --> 00:18:27.955
specific leasing company.

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00:18:27.955 --> 00:18:32.186
Fifth, new air traffic trends considered,

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00:18:32.186 --> 00:18:35.432
I ask the Government to approve, by June 1, 2022,

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00:18:35.432 --> 00:18:39.218
a comprehensive programme for developing the air transport 

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00:18:39.218 --> 00:18:45.143
sector until 2030. It is important that the programme assess future 

294
00:18:45.143 --> 00:18:47.250
freight and passenger traffic volumes,

295
00:18:47.250 --> 00:18:49.428
and that it specify the routes network.

296
00:18:49.428 --> 00:18:53.194
It is necessary to determine the number of the required aircraft 

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00:18:53.194 --> 00:19:00.043
and their types, as well as measures to expand maintenance and repairs,

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00:19:00.043 --> 00:19:02.912
including components, tyres, etc.,

299
00:19:02.912 --> 00:19:05.321
using this data. I would like to note that it is necessary to formalise 

300
00:19:05.321 --> 00:19:10.919
the Russian industry’s obligations regarding the delivery of aircraft 

301
00:19:10.919 --> 00:19:13.801
and components to Russian airlines and delivery deadlines.

302
00:19:13.801 --> 00:19:18.534
It was for this reason that I asked a representative of our largest 

303
00:19:18.534 --> 00:19:21.235
aircraft building company about it.

304
00:19:21.235 --> 00:19:24.171
This should be done in the near future, as soon as possible,

305
00:19:24.171 --> 00:19:27.131
rather than sometime in the foreseeable future.

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00:19:27.131 --> 00:19:33.767
And, of course, this programme should prioritise air traffic safety.

307
00:19:33.767 --> 00:19:37.833
We must stipulate an exhaustive list of measures for this purpose.

308
00:19:37.833 --> 00:19:41.921
I would like to repeat that it is necessary to draft a comprehensive 

309
00:19:41.921 --> 00:19:45.510
programme for transforming the air transport sector,

310
00:19:45.510 --> 00:19:49.810
together with the allocated budgetary funds,

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00:19:49.810 --> 00:19:54.897
by June 2022. I ask our colleagues to strictly adhere to this deadline.

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00:19:54.897 --> 00:19:58.921
I would like to thank those who prepared today’s meeting.

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00:19:58.921 --> 00:20:04.168
I ask you to heed our agreements and matters that transcended 

314
00:20:04.168 --> 00:20:08.539
the framework of our current discussion in your work.

315
00:20:08.539 --> 00:20:10.393
If necessary, you should formulate these aspects 

316
00:20:10.393 --> 00:20:11.734
in the form of separate instructions.

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00:20:11.734 --> 00:20:17.336
Now something that is not directly linked with aviation industry or not 

318
00:20:17.336 --> 00:20:21.750
linked at all – shipping services.

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00:20:21.750 --> 00:20:26.343
I would like to ask the Minister of Transport to evaluate the situation 

320
00:20:26.343 --> 00:20:35.012
with the use of Sovcomflot vessels by Russian consignors.

321
00:20:36.672 --> 00:20:42.868
They have their own freight and chartering problems.

322
00:20:42.868 --> 00:20:47.297
Sovcomflot also has trouble using these vessels.

323
00:20:47.297 --> 00:20:51.284
It is necessary to combine the capabilities and requirements of Russian 

324
00:20:51.284 --> 00:20:52.955
consignors and carriers.

325
00:20:52.955 --> 00:20:57.513
I ask you to analyse this matter and to submit your proposals.

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00:20:57.513 --> 00:21:00.277
Thank you very much, and I wish you all the best.