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The meeting addressed the development of infrastructure for living, including steps to improve housing conditions for citizens, the renovation of municipal infrastructure and public spaces, ways to enhance the quality of housing and communal services, the development of the road network, and the operation of public transport.

Reports were delivered by Deputy Prime Minister Marat Khusnullin, Head of the Republic of Tatarstan and Chairman of the State Council Commission on Infrastructure for Life Rustam Minnikhanov, Head of the Republic of Buryatia and Chairman of the State Council Commission on Effective Transport System Alexei Tsydenov, Mayor of Moscow and Chairman of the State Council Commission on State and Municipal Administration Sergei Sobyanin, Governor of the Moscow Region and Chairman of the State Council Commission on Data Economy Andrei Vorobyov, and Governor of the Sakhalin Region and Chairman of the State Council Commission on Investment Valery Limarenko.

New social, housing, and industrial facilities built in Russia's regions were unveiled at the State Council Presidium meeting, including the Yunost sports complex in Dokuchayevsk, DPR.

Additionally, the meeting participants saw the recently renovated Shchelkovo inter-district water and wastewater treatment facilities, a block of flats in Naryan-Mar, and a flexible thin-film solar cell production facility in Saransk.

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President of Russia Vladimir Putin: Good afternoon, colleagues,

We will discuss the status of implementation of the Infrastructure for Life national project today. The issue is about ensuring continued development and improvement of the vast swaths of land in our country, creating a modern, comfortable, safe and friendly environment in all regions and municipalities, solving housing issues, and creating jobs, as well as ensuring wide availability of transport and social services, and high-quality and safe roads.

Supporting core population centres should contribute to bringing comprehensive solution to these issues. Two thirds of our people live in such centres. Such core centres – 2,160 in all – in conjunction with major metropolitan areas will reinforce Russia’s economic and infrastructural framework and thus ensure a more harmonious and sustainable nationwide settlement model.

The development of core population centres will rely, among other things, on master plans which should clearly show what a particular city, a district centre or a village will look like six to12 years from now, describe upcoming changes in the socioeconomic sphere, and list the infrastructure projects to be implemented.

The constituent entities have already begun drawing up master plans. However, this document does not yet have a clear legal status. Work on the draft law in question is underway, but please do not delay it. Also, it is important to clearly show interrelations between master plans and general and comprehensive plans for developing territories.

At this point, we risk creating a pile-up of duplicate and contradictory documents, which is clearly not a good thing. I would like to hear your thoughts about ways to deal with what we have on our hands now.

Colleagues,

It is also important to analyse today the state of affairs in the industries that are called to ensure the achievement of the Infrastructure for Life national project’s goals.

The construction sector has been making dynamic strides in recent years, and its capabilities make it possible to address ambitious goals. As you may be aware, the plan is to build 1.383 billion sq m of housing by 2036, of which 663 million sq m by 2030, or 33 sq m per person on average.

However, given the current market and macroeconomic situation, there are risks of a slowdown. Nationwide, over 2,000 housing construction projects have been pushed six months back. Developers are facing a decline in demand which, in turn, is falling due to the high cost of money. Mortgage lending, which recently hit record highs, is contracting.

In addition, not all citizens, or families, who are entitled to low-cost mortgage loans, are willing to take them out. Banks impose extra five to 10 percent commissions on them. Things should be straightened out here, all the more so as the state provides banks with financial resources to help them issue such loans.

The cost of bank project financing for construction companies is growing as well. Against this background, coupled with falling demand, the launch of new projects has also fallen by 23 percent compared to last year.

Developers’ debts are mounting, which imperils sustainable business operations with prospects of them leaving the market altogether, which may lead to workforce cuts in the industry and make matters worse for the entire economy. Clearly, the Government, in conjunction with the Bank of Russia, needs to take measures that match the situation.

In addition, it will be necessary to draft a temporary interest rate subsidising programme for construction project funding loans primarily in small towns. We have discussed this several times on earlier occasions, and I would like you to pay close attention to this, because construction volumes are small, and they certainly need government support, with commissioning deadlines in small towns set for 2026.

Private housing construction is what our citizens need most. Last year, 62.3 million square metres of private were built, which is about 58 percent of the total housing input in the country. Our systemic solutions such as the dacha amnesty, social gas supply programmes, road construction and renovation, development of the village first-aid station system, and a clear procedure for connecting to power grids contributed to this. All of these are important for people.

It is necessary to increase this segment of housing, pay special attention to land plot allocation, infrastructure, and create reliable mechanisms for people to invest their assets in building a house.

Today we will also discuss plans to relocated people from dilapidated buildings: 345,000 people will move into new apartments by 2030, and at least 6.2 million square metres of housing unfit for habitation will be liquidated.

However, we should understand that the volume of dilapidated housing may grow faster than before: almost 2.2 million sq m per year, including because the lifespan of the buildings erected en masse during Soviet times is expiring. Of course, I would like to hear proposals on this matter, on how this problem is to be addressed.

Colleagues, achieving the goals and targets that I have just outlined depends on the work at all levels of government. Regional teams have a special role here.

What must we take up straight away? Requirements that are not included infederal legislation must be wiped off from the regional and municipal legislative acts. But there is a problem. While some things have already been cancelled at the federal level, they are still in effect in the regions. This just creates bureaucratic problems.

The next area is utilities infrastructure. Over the past six years, more than 600 billion rubles have been allocated from the federal budget alone for its development, with 3,655 different infrastructure facilities and more than 10,000 km of networks being upgraded.

Estimates show that a broader renovation of utilities infrastructure until 2030 will require at least 4.5 trillion rubles both from the budget and private investments. The use of all internal resources and reserves of the industry must also be ensured, including for identifying risk zones and preventing emergencies.

It is also important that clearer standards be set up regarding maintenance and repairs of blocks of flats. There are over 950,000 of them in Russia. People living in all of them must understand how the fee for housing services is calculated, and, of course, how and where these funds go, including fees for major repairs.

These areas are administered by property management companies. Much has already been done to improve the quality and transparency of their performance, and licensing requirements are being tightened. However, we must continue to monitor these issues, because these companies are directly responsible to people, and, in fact, exist thanks to their money.

Colleagues, the name of the national project, Infrastructure for Life, has been formulated very accurately. All of its areas directly concern the needs, requirements, and interests of people.

Developing and renovating roads is one of these areas. Today, more than half of regional roads and 85 percent of the road network in 105 urban agglomerations meet the standards. However, it is clear that road surfaces, especially in our climate, need constant repairing. Therefore, the current momentum should not be slowed down, and the tasks set in this area must be solved with high quality and effect.

Let me add that the new national project envisages further development of public transport. At least 85 percent of the rolling stock and vehicles must be up-to-date, comfortable, environment-friendly and safe.

Let’s discuss these and other issues related to sources of funding. Of course, various opportunities must be used to solve the problems I have just mentioned.

Colleagues, work to create a comfortable living environment is already underway in the regions. Today, we have regions on the line where such infrastructure projects are being implemented.

Let’s get to work. The floor goes to Marat Khusnullin. I know that he is ready to say a few words and pass the baton to the regions, which will tell us how the work is going in their municipalities. Please, Mr Khusnullin.

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