The Russian government needs to prepare a new plan to combat COVID-19 amid the emergence of the omicron strain.

This was announced on Tuesday, November 30, by the President of the country Vladimir Putin at the plenary session of the annual VTB Investment Forum "Russia is Calling!"

"I ask the government within a week - now I want to appeal to my colleagues from the government of the Russian Federation - to prepare an updated action plan in connection with the risks of the spread of a new strain of coronavirus," Putin said.

According to him, as a result of the emergence of a new version of infection, the authorities of many countries are again forced to resort to quarantine restrictions.

In these conditions, the pace of global economic recovery again "came into question," the Russian leader noted.

“In the coming weeks, it will become clear how serious the consequences of the new strain are.

However, it is very clear that you need to be prepared for any change in the virus.

First of all, it is necessary to constantly monitor the effectiveness of tests and vaccines, to use clear algorithms to reduce the spread of infection.

It is important to maintain an increased readiness of the healthcare system, ”the head of state emphasized.

He also added that the difficulties associated with the pandemic are affecting people.

In these conditions, the support of citizens and affected industries remains a priority for the economy.

“We are trying to make well-considered decisions to support the economy - the most affected sectors in the first place - and citizens, especially those categories that need government support.

These are elderly people, pensioners, families with children, ”said Vladimir Putin.

As the president noted, against the backdrop of the pandemic, the authorities have already expanded financial assistance to people with low incomes.

In particular, the Russian leader recalled one-off payments to pensioners and families with school-age children.

In addition, from 2022, the country will additionally increase the minimum wage (minimum wage) and the cost of living.

“Of course, this is not an exhaustive list of measures to support citizens.

Based on our financial capabilities, we will work out other decisions in this regard, ”Putin added.

The updated government action plan to combat the consequences of the pandemic can use tools that have previously shown their effectiveness and relevance.

Pavel Sigal, the first vice-president of the all-Russian public organization of small and medium-sized businesses "Support of Russia", spoke about this on the sidelines of the forum in an interview with RT.

“For business, this can be an extension of the moratorium on inspections, the provision of preferential loans to pay salaries to employees in the amount of one minimum wage, as well as the issuance of loans from the state to replenish working capital.

For citizens, new lump sum payments may be implied, similar to 2020 and 2021, when families with children and senior citizens received money, "Sigal suggested.

Fighting inflation

According to Vladimir Putin, due to the calculated actions of the state and business, the Russian economy has already reached pre-crisis levels.

So, from January to September 2021, the country's GDP increased by 4.6%, and by the end of the year, growth may be 4.2%.

“The unemployment rate in September dropped to 4.3% - this is just the pre-pandemic level.

Today we can already say that the labor market in Russia has fully recovered, and this, I note, has not yet happened in all the leading economies of the world, ”the President stressed.

At the same time, one of the key challenges for the Russian economy today remains the growth of inflation, Putin said.

As the head of state explained, the rise in consumer prices in the country has accelerated in many respects under the influence of external factors, which has a sensitive impact on citizens and families with low incomes.

According to the head of state, the solution to this problem today "requires the utmost attention."

At the same time, Vladimir Putin urged not only to cope with the consequences of inflation, but also to act proactively - to remove the factors that provoke price increases.

“We already provide targeted support to manufacturers of goods that are most susceptible to sharp price fluctuations, primarily food.

And here I again draw the attention of the Russian government and colleagues in the regions - an increase in production volumes and an increase in the availability of food in the domestic market are a key criterion for the effectiveness of work in this area, "the president said.

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  • © Alexander Kryazhev

According to the latest data from the Ministry of Economic Development and the Federal State Statistics Service, at the moment the level of annual inflation in Russia is twice the target level of the Central Bank and is about 8%.

At the same time, the annual growth rate of food prices is close to 10.5%.

“Almost half of the rise in prices in Russia is due to the increase in the cost of raw materials and goods abroad.

After all, now record inflation rates are observed almost everywhere - in the USA, China, Germany and the EU as a whole, ”noted Pavel Sigal.

According to the Central Bank's forecast, at the end of 2021, inflation in Russia will be in the range of 7.4-7.9%.

However, already in 2022, the indicator may approach the target level and amount to 4-4.5%.

This was previously stated by the head of the regulator Elvira Nabiullina.

Exchange interest

According to Vladimir Putin, the banking sector and the stock market play an important role in the recovery of the Russian economy and its entry into the trajectory of long-term growth.

According to the president, businesses are increasingly placing debt securities on the stock exchange to raise funds.

The authorities, in turn, intend to support this trend and additionally help small enterprises, including through new solutions.

“For small and medium-sized businesses, the bank commission is now reimbursed for the sale of goods and services to individuals.

Such a procedure, convenient for business and beneficial for consumers, is envisaged until the end of this year.

I think that it should be extended for at least six months, ”Putin said.

Moreover, as the head of state noted, the Russian stock market today actively attracts funds from citizens.

In the first nine months of 2021 alone, the volume of Russians' money investments in securities increased by more than a quarter.

This state of affairs provides additional stability to the market and makes it more attractive, said Vladimir Putin.

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  • © Evgeny Odinokov

According to the President, the inflow of money to the stock market is a serious source of financing for investment projects.

Moreover, according to the head of state, the tool should work reliably for the citizens themselves and bring stable income to those who are ready to “invest in the Russian economy for a long time”.

“In this regard, I ask the Russian government to prepare additional proposals in this regard, including deductions for personal income tax for long-term investments in Russian securities,” Putin instructed.

As Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, told RT in an interview with RT, Russians increasingly prefer to invest money in securities instead of bank deposits to save and increase their savings.

This is largely facilitated by the development of the digital economy, which has simplified access to exchange instruments.

“Now you can buy shares using the application on your mobile phone without leaving your home.

At the same time, the tax deduction proposed by the president will only strengthen the current trend.

With long-term investments, in this case, Russians will be able to return 13% and, in a good scenario, receive about 20% of additional income per year from the money invested.

Such an approach can qualitatively support the interest of Russians in investment, ”Aksakov said.