Government meeting

Agenda: the outcomes of visits to Iran and Armenia, the extension of the preferential profit tax rate for companies in the radio electronics industry, and support for industrial enterprises in developing new products.

Mikhail Mishustin's opening remarks:

Good afternoon, colleagues.

This week, the government delegation undertook several foreign visits. In Tehran, we engaged in discussions with the President and First Vice President of Iran, focusing on the advancement of bilateral relations. We reached an agreement to enhance Russian-Iranian cooperation across the board. Our discussions emphasised the implementation of joint projects in energy, transport infrastructure, agriculture, high technology, and the digital economy. We also addressed in detail Iran's accession to the Eurasian Economic Union as an observer state. We anticipate that a free trade agreement between the union and Iran will soon enter into force, significantly improving the conditions for Russian exporters in the Iranian market.

In Yerevan, alongside our partners, we participated in the Eurasian Economic Forum, where we discussed key priorities, particularly the digital transformation of our economies. A relevant conference was held during the event.

Additionally, we convened the third meeting of the Eurasian Intergovernmental Council this year.

We will persist in our efforts to fully harness the industrial potential of the union, support technological and knowledge-intensive enterprises, and uphold the four freedoms of the union: the movement of goods, services, capital, and labour.

A key focus is enhancing the efficiency of customs administration, a topic we explored thoroughly during the interparliamentary commission meeting.

Close collaboration in this area is essential for ensuring the free movement of goods and will contribute to boosting revenues for our nations' budgets.

We are also working together to establish a unified transport space. We have approved a three-year roadmap that reflects our commitment to modernising logistics infrastructure and developing international corridors.

On the sidelines of the intergovernmental council, we also addressed key topics on the bilateral agenda with the Prime Minister of Belarus and the Chairman of the Cabinet of Ministers of Kyrgyzstan.

Colleagues,

It is crucial to continue expanding our network of sustainable partnerships with foreign nations, enhancing infrastructure for foreign economic activities, fostering technological and industrial cooperation, and exploring new markets. Addressing this issue is essential for achieving the national development goals set forth by the President.

Now, let's proceed to today's agenda.

The Government remains committed to supporting domestic microelectronics, a sector that drives growth across various related industries, particularly in high-tech fields ranging from automotive to aerospace. We recently held an in-depth discussion on its current status and future prospects at the forum in Sochi, which saw the participation of over 3,000 representatives from science, business, and government. I would like to extend my gratitude to the Academy of Sciences and its president for their active involvement and for organising all the events at the forum.

Russia has implemented a comprehensive set of measures to support enterprises in the electronics industry. One of these measures is a reduced profit tax rate, which allows companies to save substantial resources, amounting to tens of billions of roubles annually.

This measure is currently set to remain in effect until the end of December. During discussions with company representatives and visits to various stands, we received requests to consider extending this initiative. The Government plans to propose an extension for an additional three years, with a modest increase in the rate, in line with current macroeconomic conditions.

This decision will help sustain the positive momentum the industry has built in recent years and will significantly contribute to achieving one of the key national objectives outlined by the President - ensuring the country's technological and industrial sovereignty.

Additionally, let's discuss the development of new domestic products within the industry.

The President highlighted that, under the current circumstances, it is crucial to concentrate on priority tasks for accelerated development. We will broaden the array of tools available to leading enterprises and allocate an additional 1 billion roubles in grants for research and development projects, with a requirement to implement the results in production.

These funds are intended to support at least eight innovative projects in mechanical engineering, particularly in the transport and oil and gas sectors. We anticipate that this decision will boost investment activity among manufacturers of high-tech products.

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