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The conversation revolved around the topic of ensuring balanced economic development amid a structural transformation.

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Excerpts from the transcript of the meeting with the Delovaya Rossiya National Public Organisation

President of Russia Vladimir Putin: Good afternoon.

Delovaya Rossiya’s head [Alexei Repik] and I have discussed your work. In fact, Delovaya Rossiya is among Russia’s leading public organisations, bringing together business owners and senior corporate executives representing our domestic manufacturers, industrial enterprises, as well as the services and high-technology sectors.

Your companies have been proactive in reinforcing their positions on the domestic market, while forging deeper cooperation ties with their Russian and foreign partners, and, of course, tapping promising export markets.

I would like to note that it is to a large extent thanks to the efforts of businesses and their entrepreneurial drive that the Russian economy has been demonstrating resilience and growth. For instance, despite all the challenges and external pressure, the economy expanded significantly in 2023 and reported robust growth rates both for our country and in terms of economic growth rates around the world too. GDP increased by 4.1 percent in 2023 and grew by another 4.3 percent in 2024. The Government initially expected the same growth rate of 4.1 percent, but no – the data were ultimately revised up [to 4.3. percent]. And these two tenths of a percentage point also matter a great deal.

This is truly a result of joint efforts of and the partnership between the state, businesses and the people working for them, which can be described as the convergence of entrepreneurial liberty, proactive approaches, as well as the skills of workers, engineers, and specialists in various sectors. I hope that the Government has contributed to this outcome too, alongside our regional teams. They were all in this together, and this is a shared result.

It is essential that just like an overwhelming majority of your colleagues and all of us, you understand that you represent your professional workforce. It is together, together with these people – the workers and their teams, as I have already said, but let me place a special emphasis on this point – that you have been working as a single team. You are the ones adding new pages to Russia’s history of business achievements and enabling its economy to succeed.

A key mission of Delovaya Rossiya lies in identifying the barriers that hinder the dynamic growth of the domestic economy – and therefore, the country’s overall development across all areas of national importance. It is crucial not only to talk about problems, but also to offer concrete solutions, grounded in the daily practical experience of businesses and informed by thorough expert and legal analysis.

This is precisely what happens whenever Mr Repik takes part in such discussions: he has already raised a number of specific points and issues. Naturally, this gathering is intended for open discussion and for conveying these matters to government agencies. We are joined online by many of our colleagues from various ministries, government agencies, and the federal administration. I hope to refer some of your questions directly to them as they arise.

Indeed, you work together with these institutions to develop solutions. And if something is missing, that is exactly why we are here: to clarify what that is and to determine what needs to be done, what realistically can be done, and to move forward more effectively. You are currently holding a plenary session of the forum. We are also connected with the regions via video link, so there is an excellent opportunity for dialogue and exchange. As I mentioned earlier, I would like to hear your questions and, most importantly, your proposals.

Finally, next month, in June, the St Petersburg International Economic Forum will take place. I expect that the proposals we are discussing today will be further developed and in demand as part of the preparations for this major event.

Let us begin our work.

Mr Repik, the floor is yours.

Chairman of the Delovaya Rossiya National Public Organisation Alexei Repik: Thank you very much, Mr President.

Celebration fireworks were held across Russia several days ago, when we celebrated the 80th anniversary of the Great Victory. We commemorated our veterans and expressed gratitude to those who worked on the home front, who braced themselves during a challenging time to provide unprecedented assistance to those on the front line while ensuring the operation of our plants, factories, transport infrastructure, schools and hospitals.

I believe that today, when neo-Nazis have reared their heads again with support from, and often on the instructions of their handlers, crossed the line and moved a hybrid war from the economic space to the battlefield, it is important to speak on behalf of all Russian businesspeople to express gratitude to the defenders of our Fatherland, to participants in the special military operation for their combat labour and heroism. This is extremely important to us.

Mr President, you can rest assured that we are doing our best on the home front, just as we did 80 years ago.

Vladimir Putin: Excuse me, but you have mentioned defenders and their combat labour. I would like to speak about this as well. Sorry, I will not interrupt you again, but it must be said that those who are doing their combat labour now are your former personnel.

I would like to point out the following: while the Kiev authorities are using force to mobilise their people, catching them like stray dogs in the street, our men sign up of their own free will. As for the numbers, you know that they [in Ukraine] are straining to mobilise 30,000 people, while here, between 50,000 and 60,000 men, including your former personnel, sign up every month. Thank you for reminding me of this.

Alexei Repik: Yes, Mr President, I know how important this is for our teams, how deeply we care about every one of our boys, and how we are waiting for them to return to us and resume their work, because their teams are waiting for them.

But most importantly, even though some of our boys are now engaged in defending our Motherland, everything on the home front remains in order. We have also managed to mobilise, ramp up production, and deliver everything needed to the front lines, while maintaining the conditions for a normal, day-to-day life. Our teams have grown accustomed to the endless bombardments of sanctions. Of course, there were moments when we took a hit or faltered, but we have learnt to correct our mistakes and adapt quickly. And now, I am confident that the economic security framework is reliably protected.

Mr President, our meeting is taking place at a crucial time, amid the potential for upcoming negotiations. Certain well-known figures will once again plot their schemes, threaten us with their hundredth or five-hundredth round of sanctions and try to scare us with talk of impending catastrophe. Let’s say it plainly: it will not work. We made it through in 2022, and we will make it through again.

At pivotal moments in history, it becomes both important and easy to see who people really are. A Vladimir Vysotsky song said: “If you sat on the fence with your arms folded and did not enter the struggle against a rascal and a butcher, this means that you were neither here nor there in your life.” That is what matters. The Delovaya Rossiya business community did not flinch or waver at the most critical moment. We did not try to hedge our bets or run away. We stood tall and carried on, defending our right to sovereign development and our right to live according to our own principles and to do what we believe is right.

Once again, Mr President, I want to assure you: no matter the pressure, our economic security framework is reliably protected.

You have said that a number of topics were discussed during preparations for the congress. Our speakers will talk about industry-specific and regional issues and proposals later today, but there are two blocks of issues that concern virtually every one of us.

The first has to do with monetary policy and maintaining investment activity. It is very important to remind everyone about the critical significance of looking out for a moment when our efforts to bring down the inflation rate will produce a result and our overheated economy starts to cool down. The trouble is that we can see the first signs of this. This is not only a surprise May frost; there are several serious indicators pointing in this direction.

Here is what I mean. The producer price index, including not only in power generation but also in manufacturing, is on the decline, that is, prices are falling. Next, the corporate loan portfolio has decreased by 40 billion rubles in the first four months of this year. I would like to remind everyone that last year it grew every month, increasing by over 14 trillion rubles overall. Besides, the inflation rate has stopped growing as of last week.

Our second priority concerns the format of foreign companies’ return to the Russian market.

Initially, foreign companies had preferential arrangements in the new Russia. When major transnational corporations entered Russia in the early 1990s, they felt at ease in our market, securing the best sites for their construction projects and the best places in malls, and holding large-scale advertising campaigns, with the names of their brands all over the news. This actually promoted public commitment to these brands.

We agree that foreign investment did a lot of good for us, but foreign investment was repaid many times over on the growing domestic market. That is why when many foreign investors had to leave the Russian market in 2022 or dramatically reduce their presence here, domestic businesses found a solution, and many of our solutions turned out to be not worse, and sometimes even better than the initial ones [offered by foreign companies].

Mr President, no economy in the world can develop well while remaining self-sufficient. But the need to ensure our technological sovereignty, and our readiness to meet the most pressing domestic requirements in a critical situation for Russia have turned from a theoretical possibility, the viability of which was questioned by many, into reality. We have truly done everything we could to handle that situation. That is why when we hear a growing number of signals from our historical partners, who are also our rivals, about discussing a plan for their return to the Russian market, their fear of losing it forever, and their readiness to take the first step to reconcile with us – actually retreating their steps – we must act carefully to formulate an objective and balanced stance on this matter.

The economy should not shut down. Companies from other countries are welcome to come to our market, and we welcome healthy competition in general. Likewise, we welcome potential foreign investment in Russian companies that have reclaimed their respective home markets. When it comes to foreign companies, we believe it would be wrong to treat every one of them the same way. There are companies that, despite difficulties, hardships, and pressure from their own politicians, continued to operate here and to invest in our country. They should be treated with great care and respect, as if they were our own companies. Others scaled down their presence or left altogether, but did so respectfully without harming consumers. Some transferred their businesses to Russian investors with an option to return some time in the future.

In our view, the most appropriate format is for them to return by way of creating joint ventures with their Russian partners, with the latter maintaining a certain level of shareholder control in the form of a majority stake or a golden share. I believe this format should be mandatory for companies operating in the strategic industries.

The companies that put a padlock on their door and let their Russian counterparts down, and failed to fulfill their contractual or warranty obligations must first compensate for the losses we have incurred before they can return. In case of damage caused to consumers, they should pay adequate compensation amounts to the budget of the Russian Federation.

Companies that engaged in outright anti-Russia rhetoric, supported the Armed Forces of Ukraine, and publicly accused Russia while refusing to do business with us are not welcome back. Russian consumers have a good memory for such things. Generally speaking, before any dialogue about a possible return can even begin, I believe such companies must first offer a public apology.

The time when we greenlighted everything foreign to our own detriment is gone for good. Domestic investors must be our top priority. Wherever they are not, the situation must be corrected. I am still not sure why employees of our companies who, for various reasons, went abroad to work remotely ended up, regardless of their tax residency, in the same personal income tax bracket in 2024 as employees who stayed and worked in Russia. Let me remind you that previously, the difference stood at 17 percent.

In general, I believe that those who live and work here in Russia and contribute much more to our economy and spend their money here should be prioritised. It is just like with the investors: those who fled should pay the price for their shortsightedness rather than obtain preferences.

You mentioned that today, along with the speakers here at the Kremlin, we are joined by over 300 congress delegates at Delegatskaya Street, and by members of regional branches from all Russian regions. The entrepreneurs from Delovaya Rossiya can share their achievements and successes over recent years and put forward their proposals on ways to implement structural transformation of the economy and to improve factor productivity in line with your instructions. So, if I may, I suggest that we move on to reports.

Vladimir Putin: Yes, all right.

If you do not mind, I would also say a few words to comment on your statement.

You have raised an important issue. We encountered a similar situation around the turn of 2018–2019, when the Russian farming sector gained sufficient momentum for growth and actually started meeting the basic domestic food market needs. At that time, agricultural producers bluntly asked me in meetings, “Just do not let anyone back in.” Because they will be hugely subsidised. They all cheat – we know they do. They all sign WTO documents, agreeing not to subsidise certain segments, but they still do. They use hidden subsidies, which gives their companies vast preferences, including in our market. This is the first point.

The second has to do with shelf space. Local producers cannot secure enough shelf space where customers could see their goods. That is nonsense! How many times have we talked about this? It is like talking to a brick wall – nothing works. Now Alexei [Repik] says that our entrepreneurs have achieved a great deal – local brands are emerging by the hundreds and thousands, and indeed, some products are of better quality than those that foreign manufacturers used to present on our market. You know this better than anyone else. They enter the market, they gain a foothold, and before you know it, there is no getting rid of them. And no matter how hard you try, you cannot get through. Now they have foolishly banned their companies from working here. However, we see that they are reaching out to me, large businesses, too, and they want to come back. For God’s sake, please. But it is very important, as Alexei [Repik] correctly said, first of all, we need to look at how they behaved. Furniture manufacturers – Belarus used to make good furniture, God bless them. What Russian companies are now making is no worse, and maybe even better. They have better technologies now, and new tools, and we can make it all ourselves now.

It is a complicated process, indeed. It is certainly more complicated and more diverse than in agriculture, although even there, things are not so simple. Incidentally, our quality requirements for agricultural products have always been tighter than in the European Union, for example, and in industrial production, too.

We definitely need to look at each applicant’s behaviour. Those who have been disrespecting and insulting us should remain where they are; I wish them the best.

Mr Reshetnikov, the floor is yours.

Minister of Economic Development Maxim Reshetnikov: Mr President, thank you very much for the opportunity to speak.

Overall, we share a common understanding and approach with Delovaya Rossiya and Mr Repik. Indeed, we have discussed these matters on many occasions. When considering the return of foreign companies, we will be assessing not only how those companies conducted themselves – we agree with the approach – but also the amounts invested by domestic businesses. If our entrepreneurs have taken a particular market niche and invested in it, we must, without a doubt, give them some time to see a return on the investment.

We will be reviewing each case individually to make sure that businesses that believed in the promise of the future and invested in the domestic market are given an opportunity to earn a reasonable return on their investment.

There is one more point. In many cases, foreign companies left Russia and ceased supplying products that are vital to us. This has been especially true in the pharmaceutical sector: several Western companies quit our market and stopped supplying essential medicines.

However, we are not sitting on our hands waiting for the situation to normalise. As per your directive, Mr President, we have implemented a special mechanism and established a dedicated government commission that, in essence, grants compulsory licenses to our domestic companies that are willing to manufacture the products that we need.

We are in no way violating the rights of those foreign companies. Our manufacturers will pay appropriate royalties at a reasonable rate to the Western rights holders. These payments will be deposited into special accounts and be held there until the situation gets resolved and those funds will be unlocked to those foreign companies. Importantly, Russian companies are producing the medicines that we need.

We are prepared to apply the same approach to other types of products. The point is that we will not sit and wait for Western companies to decide whether or not to resume supplying key technologies. We are ready to take decisive action in this regard.

We are working in close coordination with Delovaya Rossiya and Mr Repik across these areas, and we share these approaches.

Thank you.

Vladimir Putin (addressing Alexei Repik): I have just a few other thoughts on your speech. You have said that no economy in the world is self-sufficient. While it is true, it must be made clear what economic self-sufficiency is in today’s world. We must understand this.

My second remark. “We will not be scared by these new possible sanctions” one must get scared. Once you are scared, you lose everything. But it is absolutely necessary to understand what may happen and be prepared for any actions of our possible future ill-wishers.

They do many things that harm them. You’d think they will not go against their own interests, but they do, and it’s borderline ridiculous – please, excuse my words. But how? The world’s leading economies are falling into a recession just to harm us. It is like buying a ticket and refusing to travel — just to spite the conductor. What sense does that make? This is why we must take seriously even their public statements, because they might act on them.

Of course, we must at least mitigate the negative consequences for us. This brings us to the answer of whether a self-sufficient economy is viable in today’s world. Naturally, everything is interconnected in today’s world: that’s a given. However, there are key moments that form a pillar of economic independence and sovereignty. And we must be fully prepared for all possible developments.

Now, let’s move on.

Alexei Repik: Mr President, it is very inspiring to know that your ideas are also shared by the head of your country, your leader. To be honest, it is now easier for all of us.

Vladimir Putin: So you share my thoughts, right?

Alexei Repik: Yes.

Vladimir Putin: That is good to hear.

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It is time to round off our meeting. I hope it was interesting for everyone who attended, primarily businesspeople, of course. Our colleagues in the Government expressed their views on the issues you have raised, which are of concern to you. I sincerely hope that our meeting today will be beneficial for business development and that our future cooperation will have a substantial impact on the maintenance and quality of our economic growth.

We spoke about a minor slowdown aimed at ensuring further development, as I said at the beginning of our meeting, within the framework of macroeconomic indicators, which are the basis for development. We, or rather you, find it difficult to operate when inflation rates are not kept within the planned targets, which hinders our ability to plan long-term investments and significantly complicates our work.

We have accomplished a great deal. Otherwise, we would not have reported growth of 4.1 percent in 2023 and 4.3 percent in 2024. It can be said that we are aware of the overall trend and the reasons behind that growth. It was not only the defence complex that ensured it, although many are pointing in that direction. It is true that our defence industry greatly contributed to our economic growth, but growth was not only based on the defence industry; it also stemmed from all the other matters we discussed today. It is not the defence industry. For example, is winemaking connected to defence? Your sector – the hospitality business, high technology and other sectors. All of them have greatly contributed to our economic development.

We must adopt exclusively pragmatic decisions. As I have said, we demonstrated good growth rates in previous years. And what are the achievements of those who tried to hinder our development and harmed themselves in the process? As the saying goes, He that mischief hatches, mischief catches.

The United States has been acting very pragmatically in all situations, taking good care of its concerns. We continue to supply nuclear fuel to the US, and there are no problems. You are laughing, but this is true. Why is that? Because it is profitable and the right thing to do. The US economic growth rate is significant, although not as high as 4.3 percent. Meanwhile, the leading European economies have actually slid into recession.

This is the result [of their actions]. We must act pragmatically every time, and we must do this together. Our businesses, the administration and the workforce must work together, as I said. It is always useful to listen to the people. Please, do so.

The Government and the Central Bank have also done their part. Overall, that is how we are working. We held a regular meeting with our businesses late last year. Our colleagues indicated what we should pay more attention to, and the Government is generally trying to do this. In short, we need feedback. In this sense, our meeting today provides the feedback we want to have so that our results benefit Russia.

Thank you very much. I wish you every success. Thank you, and all the best.