the President of Russia Vladimir Putin has addressed to citizens of Russia on the situation with the pandemic coronavirus in the world and the situation in our country. He stressed that the main and absolute priority in decisions of the leadership of the country today — the lives and health of people. In order to reduce the probability of infection and the spread of coronavirus, the next week declared off-hours, with pay. The full text of the statement published on the website Kremlin.Ru.
“Dear citizens of Russia! Dear friends!
I question that interests all of us.
We see how dire the situation with the epidemic of coronavirus in the world. In many countries, continues to increase the number of cases. We had the whole world economy, now is projected to decline.
Thanks to the measures taken in advance we have so far managed to hold back and wide and rapid spread of the disease. But we must understand that Russia – even just because of its geographical position – it can’t dissociate itself from the threat. Next to our borders are the States, already seriously affected by the epidemic, and completely block its penetration in our country is objectively impossible.
But what we can do, is to run a professional, organized and proactive. And the main priority here – the life and health of our citizens.
the deployment of timely medical care and prevention connected all opportunities and resources. I particularly want to go to the doctors, paramedics, nurses, employees of hospitals, polyclinics, rural health posts, ambulance services, to our scientists. You are now at the forefront of protecting the country. I sincerely thank all of you for your commitment.
I Ask the citizens with the utmost attention to the recommendations of the doctors and authorities. From this now very much depends. This is especially true of the most vulnerable groups: older people and those who suffer chronicesKimi diseases. For them and for all citizens, the challenge now is to reduce the risks.
Naturally, the question arises about organizing a Nationwide vote on amendments to the Constitution, with a pre – defined date-April 22. You know how seriously, how seriously I treat this. And of course, I will ask you to come and Express their opinion on this issue – a fundamental key for our country, for our society.
However, as said before, an absolute priority for us is health, life and safety of people. Therefore, I believe that the vote should be deferred to a later date.
Rate how the situation will develop in the regions and in the whole country, and only relying on professional opinion, recommendations of doctors, specialists, decide on a new day of voting.
Next. It is extremely important to prevent the risk of a rapid spread of the disease.
So I declare the next week after hours, with pay. That is, the weekend will last from Saturday, March 28, through Sunday, April 5.
Naturally, all the subsistence structures, including medical facilities, pharmacies, shops, companies, providing banking, financial payments, transportation and authorities at all levels will continue its work.
Again, a long weekend is provided in order to reduce the speed of spread of the disease.
I Appeal to all citizens of the country. Let’s not rely on our Russian “Avos”. Do not think, please, as we can be, “Ah! I will not touch it”. It can affect anyone. And then what is happening today in many Western countries, both in Europe and overseas, may be our immediate future. All recommendations must be observed. It is necessary to keep themselves and their loved ones, to show discipline and responsibility. And believe me, the safe thing to do now is to stay at home.
Separatelyabout stops on the current socio-economic situation. Here we also need additional steps, primarily to ensure the social protection of citizens, the preservation of their income and jobs, and support small and medium businesses, which employed millions of people.
In this regard will implement the following priority measures.
First. All social benefits and entitlements, which rely to citizens over the next six months should be automatically extended, without providing any additional certificates, and walking on the courts. For example, if a family is entitled to benefits for housing, she will not have to regularly prove their income to get such support.
Also note: payment for the 75th anniversary of the great Victory the veterans and home front workers, 75 and 50 thousand rubles respectively, should be implemented before the may holidays, earlier than usual, in April.
Second. It is necessary to support families with children. I propose in the next three months, starting from April, paid to all families entitled to maternity capital, additionally, on five thousand rubles monthly for each child under the age of three years.
This support is particularly important for families where children are not attending nursery school or kindergarten, for parents who are on sick leave or on leave to care for a child.
as for our new support measures, namely payments for children aged three to seven years, then I instruct the Government to force all organizational activities, so that families began to receive these payments not in July as planned, and a month earlier in June. Also I am asking the governors to expedite the transfer of necessary information from the regional registry offices to the tax office. Colleagues, it is fundamentally important to start paying. Pay attention to it.
Third. We need to support those who were injured or lost their jobs. Now the hospital is calculated based on the seniority of the employee and hisplaty. As a result, employees, especially young people, can receive very low payment for sick leave. This, of course, unfair. I propose to establish a rule: the payment of hospital should be calculated based on the amount of not less than 1 minimum wage per month. While such a rule will be valid until the end of the year, and then will make a decision considering the situation.
Russia’s Economy, like the economies of other countries, due to the effects of epidemics is experiencing strong negative pressure. Right, as I said, to support those who may face loss of employment.
Now, with the exception of certain categories of citizens, the maximum payment for unemployment benefit is limited to the amount of 8 thousand rubles per month. I propose to increase it to the level of the minimum wage, that is up to 12 130 rubles.
Fourth. Another area of risk is the loan people. It is clear that a sharp reduction in revenues to pay the debt in the former regime difficult or impossible.
I Propose to provide for the vacation of both the consumer and mortgage loans. What was going on. If the person was in a difficult life situation, namely, his monthly income has dropped dramatically, by more than 30 percent, he should have the right to suspend servicing its debt and roll it over. Of course, without any penalties.
Ask the Bank of Russia to provide similar mechanism to extension of credits and for individual entrepreneurs.
If the payment of the debt due to objective reasons is in principle impossible, and in this case, the citizen should not get into a dead end, to become hostage to creditors. The bankruptcy procedure should be feasible and not burdensome. I ask the Government and Parliament to expedite the necessary changes to the legal framework.
Fifth. Small, medium enterprises, micro-enterprises, especially in the service sector are facing objective difficulties, with reduced orders, revenue decline.
Need helpwhose such companies to continue stable operation, and means to retain their employees. Again, our most important task, to appeal to all employers is to provide stability in the labour market and prevent the surge in unemployment.
the State will provide business assistance in the solution of this problem.
Offer for those businesses, for those industries that are most affected by the current difficult situation, to provide the following support measures.
small and medium businesses find it necessary to grant a postponement of all taxes, except VAT, for the next six months. And for micro enterprises, except for this deferral of taxes, the deferral of insurance premiums to social funds.
with regard to Bank loans, then there are small and medium-sized businesses, micro-enterprises, find themselves in a difficult situation needs to obtain a deferment on loans for the next six months.
In General, I ask the Government and the Central Bank to propose and adopt additional measures to ensure sustainable lending to the real sector, including the provision of state guarantees and subsidies.
Next. Businesses caught in a difficult situation, you need to protect from bankruptcy. In this regard, I propose to introduce a six months moratorium on the filing of statements of creditors on the bankruptcy of companies and the recovery of debts and penalties.
Again, these measures will be extended to companies that operate in sectors most affected by the current difficult situation. However, I instruct the Government to monitor the situation and, if necessary, to expand, to change the list of industries that need support.
Sixth. Now we must do everything to maintain the income of citizens, primarily employed by small and medium-sized enterprises.
To such companies appeared to do this, additional resources are offered two times, from 30 to 15 percent, to reduce their insurance premiums. This very low rate will be extended for the amount of salary exceeding the minimum wage, the minimum wage. If the salary will be at the level of the minimum wage or somehow even below, the rate remains the same, 30 percent.
please note that reduced rate is introduced for several months, not only as a crisis measure, and what is called “long-term”, for the future. And thus we create long-term incentives for employers to raise salaries to its employees.
And finally, I propose two measures. Will tell about them separately.
First. All payments of income (interest and dividends), stretching from Russia abroad in an offshore jurisdiction, should be subject to appropriate tax.
Now two-thirds of such funds, and, in fact, it is the income of specific individuals, as a result of different types of schemes, the so-called optimization subject to a real tax rate of only 2 percent. While citizens of even small wage pay income tax at 13 percent. To put it mildly, unfair.
So I suggest for those who bring their income in the form of dividends to foreign accounts to provide tax rate on such dividends to 15 percent. Of course this will require adjustments to our agreements on the avoidance of double taxation with certain countries. I ask the Government to do this. If foreign partners do not accept our offer, then Russia will come out of these agreements unilaterally. And let’s start with those countries through which significant resources of Russian origin, which is the most sensitive for our country.
Second. In many countries the interest income of individuals from Bank deposits and investments in securities are subject to income tax. We have such income is not taxed.
Offer to citizens, whose total volume of Bank deposits or investments in debt securities exceeds $ 1 million, to establish a tax on interest income in the amount of 13 percent. That is repeat , it is not the contribution, only the interest received from such investments, will be taxed on personal income.
let me Stress that this measure will affect only about one percent of investors. The conditions for placing funds in Russian banks will remain attractive and some of the most profitable in the world.
the Proposed solution is not simple. But please treat them with understanding. And add all the extra revenues that will result from the implementation of two identified measures, offer earmarked to Finance measures to support families with children, assistance to people faced with unemployment or find themselves in a hospital.
Dear citizens of Russia!
All measures taken and still to be taken, will work, will result, if we show solidarity, understanding of the complexity of the current situation. If the state, society, citizens will have to act together if we do all that depends on each of us.
We need to remember about their personal responsibility for their families, for those who live nearby who need our help and support. By and large, it is in this solidarity lies strength of the society, the reliability of mutual assistance, the efficiency of our response to the challenge that we face.
Thank you for your attention.”