members of the federation council, deputies of the state, citizens of russia, first of all i would like to thank russian servicemen who fight international terrorism. today, here in the hall this

historic hall of russian military glory, we have our servicemen participating in the anti- terrorism separation syria. they lost their husbands we are really grateful for you and the citizens. >> we honor the memory of our servicemen who gave their lives to fulfill their duties, the memory of all russian citizens murdered at the hands of terrorists.

thank you russia has long been fighting at the forefront on the war on terror, we are fighting for justice, the future of our people and the entire civilization. we are familiar with the international terrorism in the mid- 90s and the people of russia, when the people of russia were the target of terrorist attacks. in moscow, and in moscow metro

they took thousands of lives that we will always remember what happened. it took us almost ten years to defeat the terrorists. so we force them, we drove them out of our country, but, but we are still fighting some remaining cells. still from time to time we have had terrorist attacks and just recently a russian civilian was bombed in the sinai peninsula. it is impossible to defeat international terrorism alone especially when borders are open and the world is witnessing a mass movement of population from country to country. the situation where terrace received financial support we haven't resulted the issue in

afghanistan, and countries in the middle east like iraq, libya, syria are now areas of anarchy posing a threat to the world and we know why that is happening. we have decided to change the regimes in those countries and they got us into this mess, they destroyed and then they distance themselves away from the situation. it's an opening for terrorists and extremists. they pose a special threat, many many people from russia and others countries that have money and weapons, they build up their

forces and soon they will come to russia as well and will continue with their terrace here. we have to be prepared and we have to eliminate them before they get here. this is why we made a decision decision to launch this military operation based on the request from a legitimate government of syria. our forces are fighting for russia they fight for the security of our people, first and foremost. our army has demonstrated their efficiency and we will use his experience to further enhance our military capabilities. we are grateful grateful to our engineers, our workers,

everybody who works at our defense. [applause]. and fighting against terrorism, russia acted with extreme responsibility. our dissatisfaction, our people understand total threat that comes from terrorism. there position is patriotic and moral. i strongly believe that we need to protect our heritage, our culture, our history, we, we need to learn from the lessons of the 20th century when people were not willing to join their forces to fight.

they had to pay the lives of tens of millions of people. today we face this new barbaric ideology a week can't allow these people to achieve their goals. we should set aside all of our differences and join our forces in one united, antiterrorism front based on international law and under united nations. every every civilized nation today has to make a contribution to defeat terrorism. we do not need declarations, we need specific action. there should be no safe haven for terrorists. no double double standard, no contact with any terrorist organization. no attempt to play them, to use them to achieve for your purposes. we know who it is that dropped

it in turkey by letting terrace cells. terrorists use the money to recruit new members, to plan new terrorist attack against our people, the people of france, mali, and other countries. because in turkey where terrace from the north caucasus used to find safe havens, some of them are still there. yet the people of turkey are kind, talented, they like to work, we have a lot of good friends in turkey and they should know -- and those people, some some of the elite who are directly responsible for the deaths of our servicemen in

turkey, we will never remember what they did, how they helped terrorist. we have always considered betrayal the most the pilots in turkey should remember about that. those who tried to justified terrace should remember about that. i don't i don't even understand why they did it. any questions, any problems, problems, any differences, maybe we were not even aware of them. there were other ways to resolve them. we are open to cooperate with turkey on most sensitive issues. we were ready to go farther than where their allies were not even willing to do. why they did it. [applause]. again they decided to punish

turkey by stripping it of their sanity. but we will not respond in the nervous and dangerous way our reaction will not aim to achieve short-term political goals or anything like that, no. our action will be based on responsibility before our people, our country, we don't want any -- but if someone thinks that by committing a violent crime they can get away or have's dorm constrictions on construction workers, something like that, they are wrong. we will long remember what they

did and they will regret what they did. we know what needs to be done. [applause]. we mobilized our armed forces to defeat terrorism. our security agencies, our law-enforcement, but everybody should realize their responsibility. their government, political parties, mass media, everybody. what media, everybody. what makes russia strong is that all groups should develop freely here our diversity, our our culture, our languages, our mutual respect, our dialect between the russia orthodox church, judaism, islam, buddhism, we should confront antiterrorism and all forms. we should treasure our family

between all ethnic groups, this is our core, this, this is our foundation between all states. [applause]. in 2016 we'll have a parliamentary election. i would like to address the leaders of all political parties, everybody who parties, everybody who will be in the electoral process, i would like the historian this is what she wrote. if you don't respect yourself, others will not respect you either. love for your country should not make you blind, you shouldn't tell people that your best than anybody else, we were russians should also be aware where we stand. yes, we should be aware of our problems but we should remain a single nation.

we should remember. [applause]. the competition should be fair, equal, should follow all of the rules, should elect and respect the outcome of the results. everybody votes will pay special it attention to corruption in the forms and corruption that deters russia from developing properly. today government officials, judges and so on have to report their income, their political affiliation, their contracts,

their relatives and close family. all have to be reported if there is another group of interest. this should immediately grab the attention of overseeing agencies they reported to me some cases they recovered were there some problems. so i asked that law-enforcement's law-enforcement's to respond to such cases promptly. law should be hard on those who caused the damage, or course it should also be humane to those who made a mistake. today we have seen criminal cases go to court. there's some insignificant crimes and some of them very young go to prison.

when they are in prison they have a negative effect usually on their future lives. cause them to commit more crimes. i would ask to decriminalize some of them reclassifying some of the crimes. but there is an important point, if they commit the same offense again, they will be regarded as a criminal now. a court should be more objective. i suggest we have a jury and expand the list of cases that a

jury can review. i know that human rights activists insist that we should have 12 members of a jury, but it is not always easy to come up with 12 people. so we could consider reducing the numbers of the numbers to five or seven members of the jury. but they should be fully independent in making their decision. we will fights serious economic challenges, oil prices dropped, prices for other export commodities dropped and russian financial institutions no longer have access to international markets. i know we are facing difficult times today and it affects our economy and living standards of our people in general. i realize that many people as

this question, when will we be able to overcome the difficulties and what needs to be done to get there? the situation is difficult but like i said earlier it is not critical. we keep positive, we have stabilized inflation rates and those are decreasing compared to 2014. it doesn't mean that we should relax, sit back and just wait for the situation to him prove. such an approach is unacceptable. we should be ready that commodity prices and external restrictions will continue for long. of time without changing anything. with our reserve center economic will fluctuate, this is not all,

we should also consider global trends. we see the global economy changing quickly with new economic partnerships emerging. fundamental changes taking place today countries are fewer in the international division of labor. russia cannot be vulnerable. we should see what we need to get done, we should use our competencies, our advantages, which may not be there tomorrow, of course the government should listen and explain to people what is happening. why are we doing what we are doing. we should regard people as our equal partners. what should be our key priorities? first, we are still concentrated

in commodities producing industries. if we trained the structure of our economy this will allow us to address different social issues, create jobs and improve the living centers of our people. we have successful new agriculture industry. but the most important issue is to increase the numbers and certainly in the institution and export programs must achieve, must work hard to achieve the goal. number two, the number of industries and construction life industry and railroad, the government needs to provide specific target programs and financing has been allocated.

we need to support low-income people, the most vulnerable groups for our population. and then we need to make benefit programs more targeted. we need to take into account the needs of people with disabilities, we need to focus on their training and we have done a lot to improve healthcare and education, we have made benchmarks for these. they have been set in the main documents of 2012. we will need to adjust those documents, reese level of responsibility must be increased. i would like you to focus on them and focus on improving and

fulfilling these targets. thirdly we need to focus on the fiscal sustainability. when we look at 2016 the definition should not be higher than 3%, even if it is lower than expected. i like you to take into account a focus on that. overall, i urge all of you, the members of the federation council and the deputies of the state you need to focus on this, fiscal sustainability and of the country. budget planning now every cycle of budget planning you must start with priorities. we need to toughen control over

the movement of state including federal and regional subsidies to agriculture, specific industry. they need to be transferred to users via treasury so that it should be no misappropriation. the rules that misappropriate on other products, we need to introduce a new common backache this and and excise taxes, there are various options and we will discuss them. i am expecting the governor on track government will lay its proposal in the coming years. the tax environment should not change for the business community. we need to bolster the

confidence and trust between the business community and the authority, this year we have completed the plants of that were set forth for the initiative. we have a good plan but we need to move forward together with the agency and the business organizations need to make sure that the appropriate laws armed force. it's a major economic and social issue. we need to expand and this is our solution, if someone is trying to place, that is why we have announced that the corporation so it's more medium

enterprises and urge the government and state companies, banks, two provided a kind of assistance to this corporation. according to surveys we do not see significant progress in terms of supervision and control. while we have been talking about that for a long time. we have been cutting supervision and barriers back, we may cut them in one area but there's a bigger number and other areas. there is control, it doesn't mean we should not see the business community. by july 2016 the government will submit a list of functions that could be removed. one of our business communities have prepared at least 2016 law-enforcement has opened

200,000 cases on economic crimes out of 200,000, 46000 were brought to court. so in some of the cases they collapsed during the court proceedings so only 15% were proven. convinced that 83% have lost the business it means they were cornered, pressurized and then let go. certainly we don't need this to improve the business climate. it only undermines the business climate like law-enforcement folks. the prosecutor's prosecutor's office should use all of its tools to make sure the investigation is appropriate

there has been a long debate on it and certainly the prosecutor's office needs additional tools, additional functions. that is what they're trying to do. do. i know we have tried to separate prosecutor's office and the investigative committee and saying the prosecutor's office had additional functions they could discard certain cases. we need to analyze the franchise, if we talk about economic crimes arrest should only be used in extreme cases. we can use home arrest, house arrest or any other restriction like travel ban. we need to protect and we need

to respect and protect the rights of those who lead the business in a proper way. last year we declared an amnesty of capital that is supposed to come back to russia. the business community is that reluctant to return the capital which means there's not enough guarantee that there are banks in the community right now. what is being said is that some of the decisions are a little better than previous decisions but there are still not enough. so the government needs to consult with the court, other agencies in the business community and adjust the decisions. and the right to expand the amnesty for another six months. the government will provide as much support as possible that want to move forward and be

leaders. that is what we are doing together in the business community based on the needs and the goals our country is facing. we will provide, we are providing support for a substitution program that supports, we need to provide another 20 billing to support this program. we also ensure tax and other kinds of support and benefits before they want to take part of the program, there is a special investment program. regents can come down to zero of the revenue attacks so that investors have a payback period as soon as possible.

in the region they are very concerned with their revenues. they need to have an incentive to bolster their economic base. >> even if the economy and the regions grow federal subsidies should not decrease. the guns, they set by the sense of the product created a start of contracts, as for the rest, these have to be exported to external markets so companies still have the stimulus and the need to cut the cost. when some of the programs were introduced in other countries, in order to get support they had to meet

certain conditions, certain portion of the output should be sold, it was supposed to be sold at external markets. why? well that's an incentive for manufacture to produce high-quality products. we have a different condition than in other countries. we need to proceed from the premise that a products produced should be the top international level in terms of quality. we will support competitive entities and enterprises. concerning no one should think they should be able to sell products for three times the price. russia must be winning

international markets. those who want to take part in the process will get support from the russian export center. we need to make this as a kpi, one of the key performance indicators. they asked us to send out an agency for development, we should do this, if we will assist in purchasing technologies, russian product must be sold to international market. this must be the foundation for the russian economy. certainly we need to dispel the stereotype and if we believe in ourselves, we will achieve a great result. [applause]. the last example is agriculture.

ten years ago half of the food wasn't ported from abroad. we we critically dependent on imports. right now russia is among the exporters. the experts last year was $20 billion. that is a quarter higher than our on sales or a third higher than our exports. i would like to thank the agriculture producers for being achievement. we need to set and by 2020 provide russia with all of the food made by domestic producers so we have water and land resources. this is the foundation for us to be the biggest over high-quality

products. foods, and knowing how to produce them. we know these kind of products steadily increases. in order to ensure this we need to target both farms and enterprises that have a high level of efficiency. that's the foundation for the support of the agriculture. i am referring to medium and small prizes,. we need to cultivate millions of acres were currently were not able. many farms in many regions are not doing anything, we have been talking about that for decades. there's nothing has been changed.

so if there is no one an honorable manner doesn't use it doesn't use the land it should be sold. [applause]. would be to sell off the land to be cultivated lands. in 2016 the government should provide proposals including the necessary legislation. i call upon the members of the federation council and the deputy of the state, we need to have our technology of cultivating and harvesting crops and we need to have the technology in breeding cattle. we need to tap the potential of

the business communities and other institutions. in my previous address i said that we launched our technology initiative and certainly to take 15 or 20 years to implement the breakthrough that will be achieved. certainly we see even today there are a lot of things that can come up with cutting-edge ideas. so we get introduced, a lot of energy efficient technologies and russia could be the pioneer and many areas. certainly we need to modernize our enterprises. we have more than two dozen development institutions. some of the have become a dump

of bad debt. we need to upgrade and streamline the works of these institutions and government is doing that. we need to send the investment potential into domestic savings and we would like to request the central bank and the government to come up with the program on how to improve the market of corporate bonds. it must be prociblzens so they t into it. the yields should not be taxed. and transport, construction, and a good culture good culture we have dozens of major projects in the pipeline. we must produce a positive effect not just toward specific industries but overall to

development of big territory. and the product market project to increase efficiency. we need to introduce target amendment. we need to remove barriers so the products are made is slow to extend the markets. sometime one moment you cannot resolve issues and we need to introduce a mechanism of supporting large-scale major projects. we need to have a special office set up for this. i would like to call upon to call talk about his proposals. e*trade, e commerce is an efficient tool. we have a a lot to offer in russian companies need to internationalize. my colleagues that we were

looking for investors who have come to russia even beside the challenge we are facing at the moment we very much appreciate their friendly approach certainly they see some of the benefits and russia to have additional opportunities in a grower economy. our company is taking part in it now and moving to a new level within the economic unit. we have free movement of capital, and labor across the country of the union. we have agreed to develop together -- next year will hold a summit i am sure we'll have a

showing that it is a positive agenda of the corporation. i suggest we start consultation with that sco and new countries about joining the sco. talks regarding new economic partnership. together a countries account for about one third of global production which is optimized of movement of goods across borders, we can harmonize standards. open access to each other's labor and capital markets. of course the partnership should be equal for russia to partnership would create fundamentally new opportunities to supply food, energy,

engineering services, healthcare services and play a leading role in forming new technology markets. also by rushing will help develop our infrastructure with hubs, the bottom seaports on the baltic sea, and the parties are air transportation system in the arctic and other areas, we will consider the situation with art transport at one of the upcoming council meetings. the arctic sea will also play an important role and will have benefits, few other ports but i

requested some companies to talk to us in this area. it is extremely important for russia to develop this region socially and economically, investors are interested in new a mechanism that we offered there, including priorities development territories, i asked the government to find ways to offer better for areas in the far east where they are much higher than on the average in russia. also, i would ask the parliament to consider offering land to people for free in the far east. we have invested in a lot of farms and people really see changes taking place there

another -- this is a city that produces products which are in much demand. it also has a relative defense industry. however the structure there is under develop for supplies, culture, healthcare facility, all those things are not up to the standards. this is why it is hard to have young people work there. the company company operating in the area need young people. so we need to focus our resources and use them to address different issues in the city. of course will not be able to resolve all of these issues today or tomorrow but it is important press to realize what is done there. colleagues we have long-term agenda that candidate penned on

our election cycle or current situation, obviously this priority is to preserve our nation and help our future generation develop. this will determine the future of any country in our country is no exception. let me start demographics. for demographics. for three years in a row we have had the natural growth. yes, it is not that big but it is that growth. i like to emphasize that according to estimates, we were supposed to face another crisis by now, we would have of the 90s and one generation. those were predictions predictions that specialist gave us, even in the united nations. but we do not believe it's happening primarily because half

of the children born today are second, or third children in the family. so families want to have children. they believe in a future, they believe in the country and they expect the government will support that. next year the benefit program will expire, it covered over 6 million families in russia including some in crimea that they realize the support these efforts are not sufficient to overcome the demographic difficulties. of course, we realize this is a heavy burden for our budget and like we said earlier we have to consider whether we will be able to sustain the burden. yes we can and i think we should extend the benefits program for two more years. [applause].

another important element is developing preschool education. we open a new kindergarten for about 8000 children. providing for all those families. i know the head of the government pay special attention to this program. but we still have families who think this issue, they can't get their children into kindergarten and as long as this problem exists, we cannot relax. i asked the governments and the governors to pay attention to this issue.

our overall goal is to increase life expectancy and over the last decade we increased it over five years. next time it will it will exceed 71 years. but the problem we need to address, we still have a lot of them, next year the russian healthcare system will switch completely to medical insurance principle. then companies, insurance companies that work in this area will look at the interests of their clients including cases where they refused to provide necessary medical services. if things like that happen, those clinics should even some cases be banned. next we provide high-tech medical assistant we used to have a 60000 high-tech surgeries

into 2005 and this number increased to 700 by 2014 and people don't even have to wait to get this surgery. still, there are surgeries that cost a lot and they are performed usually in central hospitals by major cities. i suggest we consider for a long time. we consider where to find additional -- we have members of the government here you all know how it really works. it's territorial and supports territorial clinics first and foremost. so chiefs of federal our high-tech, surgeries are performed, they worry a lot because they don't get sufficient funds.

so what we suggest is to finance and perform surgeries we suggest we set up a special federal fund and the insurance system. i would ask parliament to pass all of the necessary amendment next spring. it is not enough. as we make this decision people still need help, so we need to make sure their people are getting assistance directly from the federal budget. [applause]. we also know that the national healthcare project provided new equipment for the ambulance service. we purchase large number of modern ambulances and so on.

of course these vehicles require repair, this is what province should do, they are responsible for taking care and providing necessary funds. when we did this ten years ago we had this agreement that will make this investment from the federal budget but then, provinces will be required to support and provide necessary repairs. this did not happen. i note your situation is difficult but like i said earlier, you have have to get your priorities straight. you can't just wait for the federal budget to come in and help you again, in some cases we may have to do that. this is not what we agreed on. anyway, i would ask what both the government and provinces to review this issue and work

together to address because people complain that sometimes they can't understand why clinics have to be combined or cultural social centers have to be confined, and consolidated. were talking about the need to change the structure of those organizations. in some cases cases there are overflows. that is true, but we have to be very careful in dealing with the issue. we we have to realize that there certain benchmarks you don't have to do every time. people would have to travel by hundreds of kilometers to get proper medical help. i would ask you to take it seriously for the government. in their proposals on developing healthcare institutions. we need to find the right way

for us to do that. helping these people, these disabled peoples, families with children, we should let an po's participant pay because they work efficiently, they don't have much bureaucracy, they really care about people. in november we had a son some recommendations. it was a special presidential grant program to support working in small towns and rural areas. ntl has a good record, they will have a special status with the government and will enjoy certain benefits and preferences. finally i think it would be appropriate to send 10% of the

local social programs to and tos so they can be more involved in those social programs. we all know, not imposing anything but i would ask invisible and global authorities to consider this, on september 1 of this year i had a meeting, you know at the gifted children center. we really have very talented children, young people. we have we have to do our best to make sure children get the best education possible to engaging rate of activities and choose a profession they like. and it is self-fulfillment, no matter where they live, no matter how much their parents make, they all should enjoy equal opportunity for a good

solid start in their life. [applause]. every year we have more more school children will have 3,500,000 more schoolchildren in the future and this is great. but it is important that this does not have a negative effect on the quality of school education. the level of school education should continue to grow. we need more schools, more more places for schoolchildren in our school. we should create a special program for that, next next year the federal budget will provide additional funds to repair old schools and build new ones. [applause]. will provide additional 50 billion. we take a look at all of those, it is is not enough to have comfortable building for

education. you need personnel, you need teachers, you need faculty, uni breakthrough technology. breakthrough technology. you need opportunities for creativity, athletic activities, and we should take all of the positive element of what we have here in the soviet and pioneer clubs and so on. it should all be modern and we should get businesses and universities involved in this work. let me mention we see that more more young people are interested in engineering and that kind of profession. the number of graduate school are interested in engineering and technical specialties has doubled over the past years. it is important for us to use

this technical competition between schools children to help our schoolchildren and high school to find their profession i suggest we call them young professionals. this is very important. [applause]. in short, russian schools should use vocational to develop our country's future. this is what our young people want and need and this is what our economy needs for proper development. these young people will have to face difficult complex issues and we have to prepare them to be the best in their profession. the proper people with strong, moral foundation. we have to make an important

choice in 2014 for example, when we had with crimea, russia declared to the whole world that we are strong nation with history of thousands of years stands united on common goals and, values. today again we are strong, we are engaged in where open for, rotation within terrorism we make decisions. we know that it is up to us to deal with the issues we face today. but we can always do this together. let me give you another quote this is quite unexpected even for me. these are words that were said by person who is very far, and

he said 100 years ago. here's what he said. >> if we are this disunited we will be destroyed immediately, our strength is in unity, we, we should be like a army, like a family. we are peace loving nation it is a loving word that describes our situation. [applause]. at the same time, russia's part of the changing global world, we are aware of the difficulty and the scale of the current issues. development always faces the difficulties and obstacles. but we will rise up to the challenge, will will be created

and accepted, we will work hard for our common good and for russia will go on together and together we will certainly win. thank you.