molest excess for you just need to. do your homework to draw the right conclusions we shouldn't attack each other. so let's think about it and let's draw the right conclusions. ok let's move to the other way that t.v. see t.v. network. he did the thank you. t.v. center i have a question of the economy just like you asked a question of the monetary policy of the central bank you said we're enjoying a unprecedented low inflation and the key interest rate has gone down but the central bank is still being criticized one of the main trends was inflation targeting and the know there have been many skeptics skepticism but. the central bank has achieved that but the debate still rages on some economists say that what is good for the average consumer like low inflation.

might mean if not death hurts and not a very healthy situation for producers for the calm in general do you feel that the this policy of inflation targeting has been successful how fair is the the criticism coming from the production sector that they don't have free money enough. targeting inflation is the right thing to do if you want our economy to be healthy if we want investors to trust us we definitely have to do this because this is a and we need to have a balanced budget in we need it smart morning tory policy in this is what central bank does. i can understand the criticism coming from businesses yes of course. they would like to get. cheaper loans

but the thing is we need to. balance everything in a smart way we need to avoid having bubbles in our economy when there is a lot of cheap money available you invest it in something deserving. and you deserve this money into companies that don't have. guaranteed demand. look at what has been happening in recent years. the central bank reduced the interest rate from twice from eleven percent to ten percent in this year the reduced to rate to five times currently the interest rate is eight point twenty five percent. ok. the central bank has demonstrated their goals by twenty year twenty twenty they want to bring the interest rate down to six or seven per cent as the interest rate goes down this is an important factor

of course but that's not the only dynamic there are also commercial rates the average commercial rate for non financial institutions is think ten point eight percent for small and medium enterprises of course it's higher thirteen to fourteen percent i believe if not more what else does the central bank to you they made a decision to. structure. the banking institutions with the so-called general license. allowing them to work with major partners major businesses. they have to have their at least one billion in assets and then in them then there is the basic license banks with operating with a basic license should have at least three hundred million. in assets those by. we

will work with similes you know provinces so i think we still have a large number of banks i think five hundred twenty one the banks in russia. and so it's not like we need to get to read of them but we need to make sure that our system is how the interest of. their clients in case of the volatility in case it's on international markets or there are some difficult situations within the contrary we don't want clients to suffer we don't want clients to face problems that cannot be resolved and we have. two ways in which we . help the banking system to rehabilitate there is the. and then there is another fun we set up recently.

when. we introduce administration for banks through this second fund money that comes from the bank and goes to the owners. executives of the bank. those people will not get any money from this fund i think this was a very important decision and one one other thing i would like to stress because i keep hearing those requests about the central bank people say that. the central bank is actually increasing the government's involvement in the banking sector this is not true like i said we have five hundred twenty one beings and we have other financial institutions apart from the banks and the central bank what they say is that even if they. establish control over certain banks

their ultimate goal is to make those banks private again you've them into private hands. ok let's keep it quiet. there was a question about agriculture so what's the question about agriculture culture. you know i mean. you wouldn't that. we had a bumper crop this year so what unfortunately it seems no one needs that the government decided they will not conduct any interventions so we have a lot of. storage. do you want you taking it outside of siberia it's very difficult logistics wise you know it's really difficult to transport it to either to moscow or to vladivostok and you know

farmers sell crop at the price. we're ready to move towards diversification we are ready to. grow other crops too but it's really hard to understand what the country really needs water the demand will be tomorrow or maybe we'll go back to central planning system once again maybe there are other you know models where you would get a bumper crop and then when you. the record losses well you're saying this their crops that half the price we have to be clear which price are you talking about the price they want to get for their products or the market price of course we need to support green producers and there are different ways to do that we can use a government procurement program and we have to consider that i'm. not ruling this out even though the government is against it. i think we can still think about it

but we definitely agreed with the government that will subsidize rail transportation costs i'm not sure if the decision has been made but we have to make it. this applies to transportation in general and food transportation in particular. guys it's a daughter are you an online outlet. because it's a room for lack of a question of the economy. mr putin. replies an impression that you're often mis informed. by your assistance what about taxes will we seeing creasing taxes in two thousand and eighteen and further on the business community and people.

say freeze ahead of the election and then. we will see. a wave of new taxes or. your assistance report to you what will happen to taxes. you well i don't agree with. me being informed about taxes. are you grieve that the burden is increasing including the burden as you know i've given instructions to the government to review the situation in different parts of russia and we will certainly do that and in the future will create conditions. that would prevent this a limited and brutal growth. but

a tax burden then look at what you're right that the business is they don't care which. taxes in particular they pay as long as they lose their money. and we have agreed that taxes will not be increased until the end of twenty eighteen and we have been. committed to that and we have delivered on this promise you can argue on some of the points but for. key taxes we have been able to order this commitment what will happen after twenty two like i said we have said the key areas like education health care. strengthening our military but we need the sources for all the sources of funding and we are thinking hard where where to get cash for old building projects

how can we. just tax our taxation system to make sure that it works efficiently what kind of tax maneuvering we need in order to make this situation easier for this sectors that we want to develop faster. at this point it would be premature to talk about this issue i think because this is the kind of subject where you have to consult with experts first and then once you make a decision you have to discuss it with the business community and we will certainly do that we will not make this decision behind closed doors just like we do with other issues like raising the retirement age but there is one thing i can tell you right now for sure something we need to pay close attention to there are certain taxes. it. quite

a heavy burden for people and businesses and they don't really serve the interests of the people businesses or. the nation in general for example capital riparian or but. debt that's been accumulated over the years and sometimes it's not there when your own fault it's just because taxation system is imperfect you may have humiliated. and this affects forty two million people and the total volume of this debt is forty one billion. dollars or more because some people will not be happy with me my liberal opponents but think we should release people from this debt and. we should do this without any bureaucratic procedures people don't have to go to the tax inspectorate that some

one number two we should do this same for self-employed people and that's another three fifteen billion rubles in debt and it affects. two point nine million people three million people you start your own business but things don't go the way you planned and. you get further and further in debt in texas so we need to relieve people from this burden. one paid taxes. i can tell you that you're happy about this decision and i agree with that number three we need to really just the system in such a way that we stimulate taxpayers even if they miss on that payment they should not be afraid of contect the tax inspector of course we need discipline with the tax collection but we shouldn't be strict about it as well. then there is another thing

we need to do and there is another situation that we need to pay close attention to i'm talking about the so called good condition no. conditional revenue for example certain banks they me for you you were at work there are. so operators carriers who can. give you certain dead this is also called conditional income and they you are required to be texas were there as well and this runs into billions totally meaningless and we should write all of those debts as well because it just stands in the way of economic development. this is not fear. that's unfair burden. and i think we're assuming we'll do that.

now a question from the city. shock of. a follow up question on your taxes. every region is struggling to get. the money from the federal government so. roughly we get one hundred. billion in taxes then we say in say to the federal government and then we try to get back. and try to get back as much as we can so we possibly. use more money like five percent of the mining tax for example we need that. the road so we need that for

other projects. and there are a few options we're looking at but not going to get into specifics even though it's no secret that we discussed those issues just last week we talked about rood construction and we talked to. you know that we made the decision to restructure. debts of four provinces does anybody else have a question about. different regions and their debts let's combine those questions together you. really can get it. online. look at the region certainly requires a lot of money from the federal budget we are struggling to get money for health care education and we have a two billion ruble debt which is almost the same as the

revenues that budgets. so how can we really leave how can we survive how can we adopt a budget of opportunity is not a budget of disparate. how can we rebalance the situation between the donor regions and the deficit regions so that people across russia could leave equally well so restructuring that you just mentioned did be. one of the tools to resolve this issue and may i hand it over to you. when you explain i've been doing research for three years on. deficits in financing peter gardens so here's some pictures of the situation in kindergartens across russia. ok i have to answer this question first because this is really related to the. question from and the question.

there are doner regions subsidize the regions but we believe that whatever people are living they have to live in approximately equal conditions of course we know that it's hard to do that because different regions develop differently for a variety of reasons but people who live in self sufficient but who live in regions that need subsidies it's not their fault so what we've been doing throughout the years we've been trying to put everybody in a level playing field. for example there are parts of russia the whole country the whole nation contributed to develop those ports. even those regions that require the subsidies to do so it's only fair to redistribute some of the wealth and we have about twelve. regions to day

so we redistribute some of the money of course we should do this carefully we should not undermine those donors desire to develop further on. restructuring i think i said this publicly in the government made a public announcement the decision has been made to restructure. the debt of almost all the regions of the russian federation for these seven years for the next seven years. at five percent. interest. regions which can increase tax collection above inflation and you will get delay for twelve years instead of seven and this will enable those regions. to do the. benefit of four hundred thirty billion rubles and they should use this

money for it to improve their financial situation and second to develop economically and socially think it is extremely important and all the provinces worry extremely encouraged by these news including not a good idea the regions like naga will receive additional support i'd like to emphasize this additional in addition to what i just mentioned and we don't have that many regions who require this kind of assistance just three or four for the entire country but no good is one of them. and this aid will amount to two billion so probles i think it is very important this decision has not yet been made and i have not even discussed this with the government yet we should stop this unlimited growth. of. credit where regions of russia take out loans from commercial banks at

a very high interest you know you can. if you can get a loan from government bank they don't do this so immediately i have this question why maybe there is some colu jand between local authorities and commercial bank but there are certain parameters. where commercial banks don't give loans to companies to businesses if they are in debt but. they easily loans to regions even though they are deeply in debt why because they know that the federal government will always help them. so we need to institute certain limits there i have not discussed this with anybody yet. but i mention it now we all have to do something

about this. such a bitter associated press. katy perry association press as special. as many new yorkers are. going to ask a question in english the u.s. wants russia to do more to persuade north korea to halt its missile programs would russia support the toughest sanctions against north korea. and do you think that cooperation on north korea could warm up u.s. russia relations or have you lost hope of mending them mr trump. thank you.

continuously would it be that. you are interesting people. and really. have you noticed. that your congressman. your senators. so well so nice so handsome they have ties and. sure. they seem to be smart people about. put us on the same shelf with north korea and iran and at the same time the. the u.s. president to address the issues of north korea and the remaining nuclear program together with us. are you. there on the subject are you ok it just looks weird it. just doesn't. make much sense. anyway

but he policy unlike that of certain other countries you speak when you do. is not near-sighted we don't look at our immediate. we do our best to work with everybody on critical security issues we don't get offended we don't act arrogant we don't hold any grudges. when some people make certain decisions as far as north korea is concerned we you know our position we don't recognize north korea as a nuclear state we think that all the things happening there are counterproductive . i would like to repeat that basically there was an agreement between with the north with north korea that in two thousand and five that they will suspend their nuclear program and they've made certain commitments and everybody was happy we all

agreed and signed this agreement then few months later the united states decided to go beyond this agreement and. in the day for their assets their bank accounts of the north korean they said that north korea should do something in addition to this agreement something that goes beyond that agreement north korea then withdrew from this agreement and relaunched its nuclear program why did you do that. this agreement was not enough why did you sign this agreement if you thought this was not enough you provoked north korea to withdraw from this agreement and then it was there were no worse there was a libya and iran mentioned this many times to north korea this is the only way of self-preservation they have to have w m d's and missiles and now they have a missile that can reach the united states. apparently apparently. so what good came out of it we think both sides should stop escalating the

situation so we're going to i think we heard from the united states that they would . stop military drills no now if they have another motor exercise and north korea responded by launching another in missile you have to stop at a certain point you have to stop this from spiraling this is extremely dangerous and we told the united states about this even if you suppose that the united states launch some kind of strike against north korea even if it's conventional weapons if it's. high precision missiles. where where are you going to strike does the cia know specifically which targets they have to hit with no of course not north korea is closed country there are things you may know about it and things that you certainly don't know and just. north korea launches its missiles

consequences will be catastrophic yes we know that there was an instance when the united states used nuclear weapons there was not one instance of one of the u.s. used in nuclear weapons against japan in the even back then i think it was unwarranted but now this will be extremely extremely dangerous if they do that with north korea well we heard as recent statement from rocks who are sin and this is really encouraging i think there has been some shift. with the state department maybe with the cia intelligence services if we all proceed from common sense if we all act like this of course will cooperate with the united states on all these shoes including north korea. ok there was a question from bush today and i think ukraine is not. far from russia as well so let's take a question from ukraine now. thank you. that was my thank

you for the opportunity to ask a question. well ukraine is far away from bashar to stand we only because we are in acquainted with. that which you don't always replied to all of my questions but. you didn't hide the fact that you are sending some of these servicemen to the donbass and what we mean is that we kill ukrainian citizens we know what have we have to do with them some of killed but some get jailed. in ukraine or. taken prisoners would you want to swap your citizens and it's not that difficult because ukrainians don't leave their men behind we want to get back. which is sixty

five people in this not just mr sense are the dozens of crimean tatars for if you win the election perhaps. in case. of that you will you continue to pursue this absurd policy on the so-called peacekeepers you know those. who are there are appointed by you they are conducting a massacre you know you might remember. you know they've been liberated by ukrainian army in their leave a free and flourishing life. let's take another question. then they. have a question ukraine. what about the means could agreements it seems that we are all too far away from resolving the situation. can

they still be used. we also have. systemic. regular meetings between u.s. and russian officials on ukraine could they become the fifth member of the normandy for. that and i have a question on the ukrainian politician mr sarkozy what is he what is his future role in ukraine awatere the prospects for the ukrainian for ukraine in general last fall of the minsk agreements indeed it has demonstrated low efficiency due to the first and foremost constructive position of the current kiev authorities they don't have any desire to implement those agreements they don't want to launch.