ask the european union for emergency financial assistance. earlier, other countries asked for assistance. greece and iceland is still in a challenging position. in france, you perhaps know and heard about it. their retirement age was raised to 65 years and it equally applies to both male and females. in estonia, they've passed a law that would have faced in raising the retirement age to 65. the decision was made. at the height of the economic crisis, some countries such as

greece, poland, and lativa made decisions on freezing pension benefits. economic crisis leads to social tensions in many countries. we see destabilization of entire regions and consequences are unpredictable. you've heard now that they've lowered sovereign rating of the u.s. and experts are saying most likely these are the electoral gambling. nevertheless, this and negatively affects the economy. the lesson for us is that economic and government weaknes s in the face of external shocks will affect national sovereignty. if you are weak, there will

always be someone that will come over or fly over and give advice on which way to move, which path to choose and which policy to pursues. . and all this in seemingly kind types of advice are harmless, but behind them is a willingness to dictate its policy and interfere in internal affairs. we know and understand net. that. we have to be independent and strong. we have to pursue policies that meet the interests of citizens of our country, and then they will support you in our

undertakings. in the years, i visited a lot of regents, practically all of them, and i visited companies, hospitals, schools, and with servicemen and teachers and medical practitioners, and people experienced difficulties. in 2010, we do not have a full recovery. a lot of people encountered difficulties, layoffs. all of us know that this crisis came to us from outside, but combatingcourse of this, we never used the excuse that these are external consequences. there are certain factors we could not really influence. and again, we never tried to dodge responsibility, and took

it upon ourselves in full extent. by constitution, russia is a social-year-old their state. -- a social-welfare. we will never renege on our social promises. let's take a look at what we've accomplished. the country that went through a serious economic challenge an and tests, had a budget deficit, nevertheless, it was able to provide more than 250,000 apartments free of charge to service veterans and war veterans. there is also of plan of rehabilitation of old housing. new compartment. apartments.

we affected the lives of 10 million citizens . in 2010, by 45 pension benefits were increased. 38 new perinatal and high-tech medical centers were opened. graphiccale democr programs were instituted. just like as we promised in the beginning of the year. in 2007, we increased 1.5 times financing of education. and civil-science was financed 2 times more than before the crisis. in 2010, we increased our gdp by 4%.

this is the best rate in all g- 8 countries. in the first quarter, by 2012, the russian economy will be compensated for the losses and during the years of crisis. we're for forecast that the russian economy will fall recover in 2013 or 2014. or do it before that. this is not wishful thinking, this is based on sound economic analysis. even today, we need to look ahead. we should concentrate all our resources on renovation of our industry and infrastructure. we need to use the potential and reserves that each of the russian federation regions have. before the end of the year, the government will approve long- term strategies for overages of russia. it will give impetus for development of russian

territories, with the assistance of a bank, we have a special program for regions such as the northern caucasus. this year, we will have direct investment into social economic projects in the far east. we have to improve the quality of investment and lower our dependency on exports of raw materials and develop banking systems. we have to effectively support preneurship.tre russia should become a competitive country. this is a basic requirement both for the government, for business, and for the social sphere. n productivity, we looag behind leading countries. we have tosa, increase our productivity 2.5

times. we should raise the share of innovation in our industrial output from 15% to 35%. in the previous year, we will able to increase 3.2%, which is a pretty good figure. gdp of russia should be, one oce of the five leading economies in the world. in gdp per capita and we are trying to get a level of $35,000 per capita. this a bit higher than today's indicators in such countries as italy and france. we need to stabilize the growth of the population and provide access for all citizens to quality health care and education. form a massive middle class. today, with the participation of a wide range of experts, we are

finalizing our 2020 strategy. primarily talk about new reserves for growth and properly emphasizing priorities. for us, positive growth is investment into a person and his capability and his talents and ability to self realize and self-initiate. and i'm convinced only this will be a foundation for high growth rate and the entire technological breakthrough. the country needs decades of a sustainable and tranquil growth without tumbling around and going from one extreme to another in social experiment based either on extreme liberalism or social democrats

agree. we do not need one or the other extreme. all of that will distract us from a steady course. of course, we need to preserve civil accord and oppose any attempts to bring a split and intra-ethnic strife. we need to find solutions that will allow our country to move forward and build strong, innovative economies. each year on this path to growth should bring real improvement in the lives of citizens. this is the core idea of our policy. dear colleagues, in the beginning of 2010, it was forecasted that we would go through long stagnation or a second wave of crisis. this bleak forecast, thank god,

did not come true. nothing of the sort happened. it is not just because of the fate, the destiny and market prices on commodities. about 30% growth for our main exports -- oil, gas, chemicals, and machinery -- really helped. all major world car companies are present in russia. they are indispensable part of the russian automotive industry. right now we are putting up new demands on local sourcing this is not aese, simple dialogue with our partners, but in general, they understand our demands and they are making it a step forward and they have a pretty good local sourcing.

we should have an output not at 25,000 but at 300,000 cars. the numbers are important because when you have the numbers that high it makes economic sense to relocate production. and our counterparts understand that both on the engine and auto parts, high level of local sourcing is our approach to building ia technological invention. in ship building and pharmaceuticals and medical equipment. for example, we give $1 a million contracts to foreign companies, for pharmaceuticals and medical equipment. and we have to be adamant in our desire to have foreign partners

relocate their production to russia. before 2020, we will spend 140 billion rubles on our medical industry and pharmaceutical industry for making reserves. we are planning to develop 17 research and development centers for developing new pharmaceuticals and medical equipment. domestic and foreign companies in 2010 alone already invested in russia more than 40 billion rubles for production of pharmaceuticals. in ship building we are setting up partnerships in europe and southeast asia. we will build a new shipyards and specialized in promising areas such as icebreakers and drilling platforms. in 2010, by the way,

shipbuilding grew at 8%. our main goal is to have the entire production and technological cycle on the territory of russia's, starting with research and development and to output, mass production of finished goods and products. it is very important to have type "a'" jobs in russia and maintain a high level of technological production and an engineering culture. the experience of recent years a demonstrated that we are capable of successfully modernizing and giving an impetus to the entire sectors of the economy. we worked out an effective and universal model, including targeted support, using finances of the bank and other

development institutions. if it is necessary for strategic alliances with leading foreign partners. we have established specialized funds for attracting foreign direct investment into russia. information of a large scale --. joint projects. we would find it and the amount of 62 billion rubles -- we would fund it. consider the highest priority of this project, as an exception, we would suggest to transfer an additional 10 billion roubles from oil and gas revenue. i will address this issue later. we have to be careful about it, but considering this absolute priority in forming a new structure of our economy, as an exception, we suggest to transfer 10 billion rubles of oil and gas revenues on this fudn. nd.

we believe along with the improvement of the investment climate, there will be barriers of investment -- will increase flow of capital in russia. we will give it to the level of 60 or $70 billion of foreign direct investment. of course, raise this bar. in 2010, the influx of fdi was $40.5 billion. we are planning to modernize to stimulate high production on russian territory. importation of high-tech equipment that is not produced in russia. we should put priorities right. in some case, it is more efficient to buy abroad. it will give a fast return. if we have domestic reserves, we

can create our own breakthrough technologies. so we need to invest into r&d. the deputies make suggestions on a this regard, and we will certainly take them into account. the government is planning to support innovation activities of our producers. caoal finance -- expenditures for r&d and subsidized loans for this purpose. last year, more than 70 billion rubles were provided by the budget. as successful model of public- private partnership would be a technological platforms that would join the interest of government, business, and science are around technologies and new manufacturing. we believe that there were be also benefits of creating special economic zones and technological parks. the government already invested

60 billion rubles. this year, we will spend another 17 billion rubles. today in russia, there are 24 special economic zones. in 12 regions we have technological parks. in these ind. clusters, we have 650 companies registered. from medicine to consumer electronics, from nanotechnology to construction materials. our investment is about 300 billion rubles. i would like to attract your attention to this. we are not focusing on what is going on at in moscow. this is going on throughout the entire russian territory. from a singular breakthrough, and particular deals and projects, we should it go towards a massive, wide range support of domestic companies that are and trouble is and,

trying to find their place on a foreign markets. therefore, -- they are trail blazing and trying to find their place on foreign markets. this company will take part of a shot at financial risk and will let our exporters -- take part of our financial risk and will let our exporters build our capacity. this year, we are planning to provide guarantees and insurance billion. we are planning to increase up to $14 billion. in the interest of development of our interest and the economy, we are using the advantage of integration. 2010 it was the year of the birth of the customs union between russia, belarus, and kazakhstan. we have a unified customs tariff and a unified customs code.

business appreciate it this opportunity. by 28%, the trade increased. i think this is an historic event. for the first time on it opposed-soviet space, we have zero real integration -- in a post-soviet space, we have a real, genuine integration. within a customs union, we have identified standards and regulations. through technical rhetorician standards, we will push it toward modernizing their production and we will use the best world practices, including our partners in europe in formulating those standards. from customs union, we will make that step towards a unified economic space. starting january 1, 2012, we will have a unified market with unified legislation and a free flow of goods, services, and

people. in our near future, we will have a coordinated economic policy. it would be genuine integration breakthrough. it will radically change economic and geopolitical consideration of eurasia. i will emphasize the customs union and unified economic space is open to other countries, our partners. and i believe that this initiative and i worked suggestion -- our european union neighbors -- to create a harmonize economic space between lisbon and pacific would be supported. i know reaction is a generally positive. we are talking about dialog and economic partnership and possibly have zones of free trade and more advanced forms of

economic integration. we have something on a common to strive for, because we have a continent-wide market that's worth 3 trillion euros. initially, we would like to ask our european partners to remove some bottlenecks they have to create energy infrastructure. the starting point would be cancelling of entry visas to europe. we talk about it a lot. dear colleagues, i would like to talk about our defense and aviation industry, considering that there were a lot of requests from duma deputies. in the time of crisis we reneged on our support of the aviation industry.

we invested 270 billion rubles in the aviation industry, and we were able to promote all projects that have to do with our aviation, both civil and military. we were able to consolidate our aviation complex. it was so convoluted legislation. we were moving very slowly. there were a lot of special interest, provisions there. but as a result, the entire complex came aboard. 130 -- planes. 148 in -- would be produced and would be reviving the production of the largest cargo plane. the superjet 100 will be ready for supply. 150 orders have been received. this year, they will release 10

of these aircraft. i was pleased to see how the work was progressing. when i came to the far east, i saw on the one side, they had won at side speaking italian, french, russian. this is the first russian aircraft designed entirely on a digital format. this is a positive event. yesterday, as you know, the first superjet 100 landed. in our joint civilian-aviation fleet in armenia. it is symbolic that it bears the gregarin.reka karyuri this is midrange aircraft with a

new engine, and a new composite wing. and we have a generation of fighters. and we are building a new center. and we have good foundation there. that was created in a previous decades, primarily in the soviet times. we have titanium that will manufacture experimental materials for aircraft manufacturer. i believe the foundation of our aviation industry is being laid down very solid, and we will meet all the interests and demands of russia, both on a military and civilian aircraft. renovation of aircraft, of intra-aircraft, weapons system will be one of the priorities

for russia. aircraft brigades already received new weapons systems, s- 400. in the near future, there will be a production of a new weapons system that will be able to meet the task of anti-aircraft and anti-ballistic missiles. they will be able to hit targets on the outer space. and there will be new missiles, both tactical and strategic. starting in 2013, and the production of strike missile complexes will be doubled. we also model is our civilian mousavi. in 2013, we are planning to start flight testing of our launcher of light and heavy -- by 2013, russ-m launcher would be finished.

it would be started from the new national civilian launching site and will launched into space, both passenger and cargo ships. the construction work on this launching site will start this year. this case, it will be fully, sovereign, independent facilities. we had only one launching site that was re-equipped for civilian purposes. there was no dedicated launching site -- going back to defense issues. for the first time i knew the history of russia, large scale operation, about three trillion rubles, will be appropriated for the development of russian navy. these are figures from the program of modernization of russian forces. overall, we are planning to spend -- is as scary figure --

20 trillion rubles. compared to the previous program, this is a threefold increase. and it has to do not with our desire to have a military-heavy budget. the thing is that a lot of weapons systems our obsolete and the need to be replaced. of course we need to replace them with the new, higher technological weapons systems. we are making plans on modernizing the entire defense industry because we can make new weapons systems only using new hardware and equipment. in 10 years, we will spend more than three trillion rubles. and more than 200 billion rubles will be spent on research and develop a. based on this, there will be technologies of a dual use. because of that, the increase in

military -- we will see a tool of for modernization of defense industry itself and the entire economy of russia. military contractor and has to be done that rhythmically and appropriately and timely, of course occurred we certainly have issues and problems there and deputies were appropriately pointing out these issues. and we will keep an eye on it. i ask you to do the same. lot.ve accomplished and our military and defense industry output increased 1.5 times. one other fact. in 2010, up to 75% of investment i made the defense industry was for -- in the defense industry was for the procurement of