The Russian leader met with top business figures to discuss ways to boost the country’s growth and attract foreign capital
Russian President Vladimir Putin held a meeting with leading business representatives on Thursday, November 16, 2023, to discuss the challenges and opportunities facing the Russian economy. The meeting, which was attended by more than 50 CEOs and heads of major companies, was aimed at finding ways to stimulate economic growth, improve the investment climate, and ease the impact of Western sanctions.
Putin acknowledged that the Russian economy was facing difficulties, such as low oil prices, high inflation, and a weak ruble. He also admitted that the country’s GDP growth was below the global average, and that the living standards of the population had declined. He said that the government was working to address these issues, but that it also needed the support and cooperation of the business community.
“We need to work together to create conditions for the development of entrepreneurship, for the inflow of investments, both domestic and foreign,” Putin said, according to a transcript of his speech published by the Kremlin. “We need to increase the competitiveness of our products and services, both on the domestic and foreign markets.”
Putin praised the resilience and adaptability of the Russian business sector
The president praised the Russian business sector for its resilience and adaptability in the face of external and internal challenges. He said that despite the pandemic, the sanctions, and the geopolitical tensions, the Russian companies had managed to maintain their positions and even expand their presence in some sectors, such as agriculture, industry, and digital technologies.
He also highlighted some of the achievements and initiatives that the government had implemented to support the business sector, such as tax breaks, subsidies, loans, infrastructure projects, and regulatory reforms. He said that these measures had helped to create more than 1.5 million new jobs, increase the share of small and medium-sized enterprises in the GDP, and reduce the administrative burden on businesses.
Putin also expressed his readiness to listen to the suggestions and proposals of the business representatives, and to engage in a constructive dialogue with them. He said that he valued their opinions and expertise, and that he wanted to hear their views on the current situation and the prospects for the future.
Putin faced criticism and questions from some of the business leaders
The meeting, which lasted for more than three hours, was not just a one-way communication from Putin to the business leaders. Some of the participants also voiced their concerns and questions to the president, and asked him to address some of the problems and barriers that they faced in their operations.
For example, Mikhail Fridman, the co-founder of Alfa Group, a diversified conglomerate, asked Putin to clarify the government’s stance on the ownership and protection of private property, especially in the context of the recent arrest and prosecution of some prominent businessmen, such as Mikhail Abyzov and Vladimir Yevtushenkov. Fridman said that these cases had created a sense of uncertainty and fear among the business community, and had deterred potential investors.
Another question came from Kirill Dmitriev, the CEO of the Russian Direct Investment Fund, a sovereign wealth fund that invests in various sectors and projects. Dmitriev asked Putin to comment on the prospects of easing the sanctions imposed by the US and the EU on Russia, and whether there was any possibility of dialogue and cooperation with the new administration of US President Joe Biden. Dmitriev said that the sanctions had limited the access of Russian companies to international markets and capital, and had hampered the development of some strategic sectors, such as energy and defense.
Putin responded to these and other questions in a candid and detailed manner, according to the participants and the media reports. He said that he respected the rights and interests of the private sector, and that he was ready to intervene and protect them if they were violated by the law enforcement or the judiciary. He also said that he was open to dialogue and cooperation with the US and the EU, but that he would not compromise on Russia’s sovereignty and national interests. He said that he hoped that the Western partners would adopt a more pragmatic and constructive approach to their relations with Russia, and that they would recognize the benefits of mutual trade and investment.
Putin’s meeting was seen as a signal of his interest and involvement in the economic agenda
The meeting between Putin and the business leaders was widely covered and commented by the Russian and the international media. Many analysts and observers saw it as a signal of Putin’s interest and involvement in the economic agenda, and as an attempt to woo the investors and boost the confidence of the business sector.
Some also interpreted it as a sign of Putin’s awareness and concern about the public discontent and dissatisfaction with the economic situation and the living standards in the country. According to a recent poll by the Levada Center, an independent research organization, only 29% of Russians approved of Putin’s handling of the economy, while 45% disapproved. The same poll also showed that 53% of Russians thought that the country was moving in the wrong direction, while only 32% thought that it was moving in the right direction.
The meeting also came amid the preparations for the parliamentary elections, which are scheduled to take place in September 2023. The elections are seen as a test of the popularity and legitimacy of Putin and his ruling party, United Russia, which currently holds a majority in the State Duma, the lower house of the parliament. The elections are also seen as a precursor to the presidential elections, which are expected to take place in 2024. Putin, who has been in power since 2000, has not yet announced whether he will run for another term, but he has the option to do so, thanks to a constitutional amendment that he pushed through in 2020.
