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Vladimir Putin: Good afternoon, respected colleagues, members of the board,

Today, above all, we shall analyse the results of the Federal Security Service’s work in 2003. I am counting on hearing your plans for the near future, too.

I would immediately like to point out that last year Federal Security Service (FSB) units, on the whole, successfully coped with their tasks. And I would like to congratulate you and all FSB officers for their honest service and for carrying out their difficult and often highly risky duties.

Nevertheless, I shall stress that issues linked to the improvement of national security systems remain on the “agenda of the day” for every state. They are still extremely urgent for our country. Therefore, we shall focus our intent and priority attention to this matter in the future.

Reliable security is a guarantee of Russia’s social stability. This is a condition for the country’s stable democratic development. And, of course, the most important factor in economic growth.

In this connection, I shall point to the key areas of FSB activity, which require particular attention and where society expects you to be effective and to produce results.

Above all, of course, this concerns counteracting terrorism. The security services must take systematic and tough measures to neutralise and eliminate terrorist networks. This has been repeatedly stated. However, I would like to emphasise again that, along with traditional ideas, the newest forms and methods of work must be actively employed. And the security bodies must choose an appropriate response to counteract any provocation from terrorists.

The situation in the North Caucasus, including the Chechen Republic, has to be particularly controlled. The FSB and other security structures have done a lot to normalise the situation and successfully promote the political settlement in the republic. However, people in this region must now have every possible opportunity to enjoy their constitutional rights and economic freedoms.

The security services’ coordinated work in the fight against terrorism is particularly significant, within the framework of the international terrorist coalition, the CIS Anti-Terrorist Centre, the Shanghai Co-operation Organisation and the Collective Security Treaty Organisation. We have repeatedly seen that our opportunities increase when we unite our potentials, which means that there are more results in the fight against international terrorism.

I shall deal with the role of the FSB in guaranteeing economic security separately.

The modern economy is a sphere that is closely connected with both the interests of the state and private interests. And, in exposing legal violations, the security services must act within the strict limits of their competence.

Most importantly, when fighting crime, the rights of economic entities and citizens must be observed to the full. The law enforcement system must be able to protect the businessman from criminal, and, if necessary, from administrative arbitrariness, in a professional and decent manner.

Today, as Russia is actively integrating into the global economy, it is important to guarantee the systemic protection of promising Russian designs and technologies. They must be protected against industrial espionage and other forms of unfair competition that could lead to huge losses for our country. This largely depends on not only the competitiveness of leading industrial sectors, but also on how attractive our country is for investment.

There is also the problem of the state borders. It was no coincidence that the Federal Frontier Service was transferred to the FSB. Today, the security of the state borders requires heightened attention. And there are a great many unresolved problems in this sphere.

They include the expansion of border infrastructure, and the operative protection of unequipped border sections. And, of course, the organisation of interaction with the local self-government bodies in border areas and regional authorities. I also hope that the approved plan to develop the frontier service under its new leadership will be adhered to and completed. I would like to stress that this requires large-scale allocations from the state. This means a great deal of money on the scale of the country. The state has found these funds, and I am counting on the fact that they will be spent by the state rationally and to its benefit.

I would like to say a few words about illegal migration. This is a relatively new problem for Russia. However, it has become an increasingly urgent one in the last few years.

We have taken a series of steps towards liberalising migration legislation. They should put a tough barrier in the way of those people who break the law and operate in the “shadow business.” Russia needs an inflow of labour, but it needs them in particular places. Order should be introduced.

However, the migrants themselves often have no rights; they need protection both with regard to their employers and in relation to official’s arbitrariness. Which, in turn, encourages legal violations and aggravates the criminal situation in individual regions.

Today, respected colleagues, such issues, as counteracting the activity of foreign intelligence workers, fighting organised crime and corruption and strengthening the ranks of the FSB, should be at the centre of your attention. I would like to focus on the latter point. If we have to deal with such instances as the recent criminal treatment of conscripts, then we cannot talk about attracting new people into the law-enforcement and security structures. I feel that everyone does not know what happened. Conscripts were left on an airfield in the wind and sub-zero temperatures while their plane was being re-fuelled. They are all now in hospital. Incidentally, their recruitment offices had sent them to serve in border-guard units. This case, of course, must be thoroughly investigated and the guilty parties punished. This will happen.

The task of strengthening the ranks is an inalienable and extremely important part of your work, the main aim of which is to safeguard national interests, democratic rights and freedoms, while effectively protecting Russian citizens from internal and external threats.

I am counting on the fact that you understand very well the degree of responsibility that has been laid upon you and the scale of the tasks facing you. I am certain that the FSB and the other security structures have all the necessary resources to solve them.

Thank you.