Putin Meeting with UN Secretary-General Antonio Guterres

President of Russia Vladimir Putin: Mr Secretary-General,

I am very happy to see you.

As one of the founders of the United Nations and a permanent member of the UN Security Council, Russia has always supported this universal organisation. We believe the UN is not simply universal but it is unique in a way – the international community does not have another organisation like it. We are doing all we can to support the principles on which it rests, and we intend to continue doing this in the future.

We find the expression of some of our colleagues about a world based on rules somewhat strange. We believe the main rule is the UN Charter and other documents adopted by this organisation rather than some papers written by their authors as they see fit or aimed at ensuring their own interests.

We are also surprised to hear statements by our colleagues that imply that some in the world have exceptional status or can claim exclusive rights because the Charter of the United Nations reads that all participants in international communication are equal regardless of their strength, size or geographical location. I think this is similar to what the Bible reads about all people being equal. I am sure we will find the same idea in both the Quran and the Torah. All people are equal before God. So, the idea that someone can claim a kind of exceptional status is very strange to us.

We are living in a complicated world, and, therefore, we proceed from reality and are willing to work with everyone.

No doubt, at one time the United Nations was established to resolve acute crises and went through different periods in its development. Quite recently, just several years ago, we heard it had become obsolete, and there was no need for it anymore. This happened whenever it prevented someone from reaching their goals in the international arena.

We have always said that there is no other universal organisation like the United Nations, and it is necessary to cherish the institutions that were created after WWII for the express purpose of settling disputes.

I know about your concern over Russia’s military operation in Donbass, in Ukraine. I think this will be the focus of our conversation today. I would just like to note in this context that the entire problem emerged after a coup d’état staged in Ukraine in 2014. This is an obvious fact. You can call it whatever name you like and have whatever bias in favour of those who did it, but this was really an anti-constitutional coup.

This was followed by the situation with the expression of their will by the residents of Crimea and Sevastopol. They acted in practically the same way as the people living in Kosovo – they made a decision on independence and then turned to us with a request to join the Russian Federation. The only difference between the two cases was that in Kosovo this decision on sovereignty was adopted by Parliament whereas Crimea and Sevastopol made it at a nationwide referendum.

A similar problem emerged in south-eastern Ukraine, where the residents of several territories, at least, two Ukrainian regions, did not accept the coup d’état and its results. But they were subjected to very strong pressure, in part, with the use of combat aviation and heavy military equipment. This is how the crisis in Donbass, in south-eastern Ukraine, emerged.

As you know, after another failed attempt by the Kiev authorities to resolve this problem by force, we arrived at the signing of agreements in the city of Minsk. This is what they were called – the Minsk Agreements. It was an attempt to settle the situation in Donbass peacefully.

To our regret, during the past eight years the people that lived there found themselves under a siege. The Kiev authorities announced in public that they were organising a siege of these territories. They were not embarrassed to call it a siege although initially they had renounced this idea and continued military pressure.

Under the circumstances, after the authorities in Kiev actually went on record as saying – I would like to emphasise that the top state officials announced this in public – that they did not intend to fulfil the Minsk Agreements, we were compelled to recognise these regions as independent and sovereign states to prevent the genocide of the people living there. I would like to reiterate: this was a forced measure to stop the suffering of the people living in those territories.

Unfortunately, our colleagues in the West preferred to ignore all this. After we recognised the independence of these states, they asked us to render them military aid because they were subjected to military actions, an armed aggression. In accordance with Article 51 of the UN Charter, Chapter VII, we were forced to do this by launching a special military operation.

I would like to inform you that although the military operation is underway, we are still hoping to reach an agreement on the diplomatic track. We are conducting talks. We have not abandoned them.

Moreover, at the talks in Istanbul, and I know that you have just been there since I spoke with President Erdogan today, we managed to make an impressive breakthrough. Our Ukrainian colleagues did not link the requirements for Ukraine’s international security with such a notion as Ukraine’s internationally recognised borders, leaving aside Crimea, Sevastopol and the newly Russia-recognised Donbass republics, albeit with certain reservations.

But, unfortunately, after reaching these agreements and after we had, in my opinion, clearly demonstrated our intentions to create the conditions for continuing the talks, we faced a provocation in the town of Bucha, which the Russian Army had nothing to do with. We know who was responsible, who prepared this provocation, using what means, and we know who the people involved were.

After this, the position of our negotiators from Ukraine on a further settlement underwent a drastic change. They simply renounced their previous intentions to leave aside issues of security guarantees for the territories of Crimea, Sevastopol and the Donbass republics. They simply renounced this. In the relevant draft agreement presented to us, they simply stated in two articles that these issues must be resolved at a meeting of the heads of state.

It is clear to us that if we take these issues to the heads of state level without even resolving them in a preliminary draft agreement, they will never be resolved. In this case, we simply cannot sign a document on security guarantees without settling the territorial issues of Crimea, Sevastopol and the Donbass republics.

Nevertheless, the talks are going on. They are now being conducted online. I am still hoping that this will lead us to some positive result.

This is all I wanted to say in the beginning. I am sure we will have many questions linked with this situation. Maybe there will be other questions as well. We will talk.

I am very happy to see you. Welcome to Moscow.

(In his remarks, the UN Secretary General expressed concern over the situation in Ukraine, while emphasising the need for a multilateral world order based on the UN Charter and international law. Antonio Guterres also presented the two proposals he had put forward the same day during his meeting with Foreign Minister Sergei Lavrov. These proposals concern humanitarian matters, including humanitarian corridors, in particular, for Mariupol residents, as well as setting up a humanitarian contact group in which the UN Office for the Coordination of Humanitarian Affairs (UN OCHA), the International Committee of the Red Cross (ICRC), Russia, and Ukraine would work together to discuss the situation in order to make these corridors truly safe and effective.)

Vladimir Putin: Mr Secretary General,

Regarding the invasion, I am well-versed in the documents of the International Court on the situation in Kosovo. In fact, I have read them myself. I remember very well the decision by the International Court, which states that when fulfilling its right to self-determination a territory within any state does not have to seek permission from the country’s central government in order to proclaim its sovereignty. This was the ruling on Kosovo, and this is what the International Court decided, and everyone supported it. I personally read all the comments issued by the judicial, administrative and political bodies in the United States and Europe – everyone supported this decision.

If so, the Donbass republics, the Donetsk People’s Republic and the Lugansk People’s Republic, can enjoy the same right without seeking permission from Ukraine’s central government and declare their sovereignty, since the precedent has been created.

Is this so? Do you agree with this?

(Antonio Guterres noted that the United Nations did not recognise Kosovo).

Vladimir Putin: Yes, of course, but the court did. Let me finish what I was saying.

If there is a precedent, the Donbass republics can do the same. This is what they did, while we, in turn, had the right to recognise them as independent states.

Many countries around the world did this, including our Western opponents, with Kosovo. Many states recognised Kosovo. It is a fact that many Western countries recognised Kosovo as an independent state. We did the same with the Donbass republics. After that, they asked us to provide them with military assistance to deal with the state that launched military operations against them. We had the right to do so in full compliance with Chapter VII, Article 51 of the UN Charter.

Just a second, we will talk about this in a minute. But first I would like to address the second part of your question, Mariupol. The situation is difficult and possibly even tragic there. But in fact, it is very simple.

I had a conversation with President Erdogan today. He spoke about the ongoing fighting there. No, there is no fighting there; it is over. There is no fighting in Mariupol; it has stopped.

Part of the Ukrainian armed forces that were deployed in other industrial districts have surrendered. Nearly 1,300 of them have surrendered, but the actual figure is larger. Some of them were injured or wounded; they are being kept in absolutely normal conditions. The wounded have received medical assistance from our doctors, skilled and comprehensive assistance.

The Azovstal plant has been fully isolated. I have issued instructions, an order to stop the assault. There is no direct fighting there now. Yes, the Ukrainian authorities say that there are civilians at the plant. In this case, the Ukrainian military must release them, or otherwise they will be doing what terrorists in many countries have done, what ISIS did in Syria when they used civilians as human shields. The simplest thing they can do is release these people; it is as simple as that.

You say that Russia’s humanitarian corridors are ineffective. Mr Secretary-General, you have been misled: these corridors are effective. Over 100,000 people, 130,000–140,000, if I remember correctly, have left Mariupol with our assistance, and they are free to go where they want, to Russia or Ukraine. They can go anywhere they want; we are not detaining them, but we are providing assistance and support to them.

The civilians in Azovstal, if there are any, can do this as well. They can come out, just like that. This is an example of a civilised attitude to people, an obvious example. And anyone can see this; you only need to talk with the people who have left the city. The simplest thing for military personnel or members of the nationalist battalions is to release the civilians. It is a crime to keep civilians, if there are any there, as human shields.

We maintain contact with them, with those who are hiding underground at the Azovstal plant. They have an example they can follow: their comrades-in-arms have surrendered, over a thousand of them, 1,300. Nothing bad has happened to them. Moreover, Mr Secretary-General, if you wish, if representatives of the Red Cross and the UN want to inspect their detainment conditions and see for themselves where and how medical assistance is being provided to them, we are ready to organise this. It is the simplest solution to a seemingly complex issue.

Source: President of Russia

President Putin during the meeting on economic issues (via videoconference). The President held a regular meeting on economic issues via videoconference

President of Russia Vladimir Putin: Good afternoon, colleagues,

We have agreed to hold regular meetings on the situation in the Russian economy and monitor changes in key macroeconomic indicators that characterise business, investment activity and labour market dynamics.

Naturally, this work is of special importance because based on the detailed analysis and consideration of potential risks, we have taken and will take measures on additional support for our people, industries and companies, as well as the economy as a whole.

I would like to emphasise that the economy continues to stabilise. Inflation has slowed; weekly price increases have approached normal levels, and prices on some goods have started dropping.

Analysts believe that two major factors are playing a role in this: the currency market situation, where the ruble has been rapidly growing stronger again, and the second factor, the consumer demand dynamic. I would like to emphasise that after a surge in February and March, consumer activity has objectively declined.

It is very important not to lose control of the situation and to prevent a misbalance in economic dynamics. On the one hand, we need to ensure gradual normalisation of pricing dynamics, and on the other, it is essential to prevent a serious reduction in demand, which could lead to setbacks in the operation of companies and a decrease in budget revenues.

So, in the current situation, it is necessary to support domestic companies to enable them to increase the supply of goods and services. It is also important to encourage domestic demand and the purchasing power of the population.

In this respect, I would like to draw your attention to key, important factors like the employment rate and average income. As I have said more than once, we will judge the efficiency of our economic policy with these indicators.

I should note that the lower lending activity of the banking system is affecting the final demand. Commercial risk and growing interest rates are the reason. Everybody understands that. We know this.

Let me remind you that the key rate increase by the Central Bank was, however, justified and necessary to stabilise the banking sector and financial markets. The decision proved successful and the Bank of Russia is already lowering the key rate gradually, which will make loans cheaper. Other steps are possible based on the real situation in the sector, but this is the prerogative of the Central Bank.

It is important that the Government is also issuing directives to complement these measures. Special programmes to support key industries have been launched. Easy-term loans are available to backbone enterprises in industrial production, trade, agriculture, oil processing and construction. Companies in these industries are also eligible for guarantees from VEB.RF worth a total of 800 billion rubles.

I would like to add that, despite the current challenges, we are keeping the easy-term mortgage programmes, including mortgages for families, with more funds allocated from the federal budget.

At the same time, I believe it is necessary to issue additional directives – primarily, with respect to mortgages. As we can see, the dynamic here is slower than the forecasts, and to make buying homes more accessible to people and stimulate real estate development in general, I propose lowering the easy-term mortgage rate from the recently set 12 percent to 9 percent per annum. Yes, we did recently set this interest rate at 12 percent but the overall situation is positive, which makes it possible to lower it. It is also necessary to extend the easy-term mortgage programme until the end of this year.

Next subject. Many companies are still experiencing a serious shortage of working capital that is used to purchase raw materials, components and services. This shortage must be compensated for. Our business colleagues always mention this at our industry-specific meetings. Therefore, I believe it is possible to introduce two new measures.

I propose expanding the guaranteed support programme by VEB beyond the backbone companies to provide support to other enterprises that do not have this status yet but that are already larger than small and medium-sized businesses and operate in the real sector. I should remind you as well that we already have some special support measures in place for smaller businesses. The VEB guarantees will account for up to 50 percent of a loan. I believe that the total value of the loans supported by this programme must be around 1.1 trillion rubles.

The second thing. I suggest granting a delay in insurance premium payments for companies that supply the domestic market with goods and services. We have talked at length about various support instruments such as a high Central Bank rate, as I mentioned. We have also talked about different support mechanisms for companies and sectors, but this is a systemic measure that covers almost all of the economy. I suggest suspending these payments for one year.

I would like to clarify right now that this measure would apply to all the companies I just mentioned. This list will not include exporters, financial and wholesale trade companies or public sector organisations. The Government will determine a precise list of the sectors included.

A grace period, for suspending these insurance payments, will cover the second quarter of this year. This grace period will also run through the third quarter for manufacturing companies.

We estimate that this measure will apply to over 2.8 million companies with almost 52 million workers. It will allow businesses to keep about 1.1 trillion rubles in the second quarter and another half a trillion rubles in the third quarter. These funds will work inside the economy, ensuring the production cycle. They will provide additional support for related companies, suppliers and contractors.

Let me repeat: insurance payments for the second and third quarters will have to be made starting in May 2023. Moreover, we can also think about additional preferences for manufacturing companies as regards payments in the third quarter. I will not go into detail right now, but it will be possible to do this if the employment and payroll funds are kept at June 1, 2022 levels.

I would like to ask the Government to draft detailed proposals on the criteria for these benefits based on the economic situation in general. I have special instructions for the Finance Ministry – to anticipate compensating for the shortfall in revenue in extra-budgetary funds. This must have enough money to ensure the confident operation of the healthcare and social support systems.

And, of course, I am instructing the Government, in cooperation with the Bank of Russia, to closely follow all developments and analyse the efficiency of the suggested mechanisms with a view to making adjustments whenever necessary.

Let’s get down to discussing today’s agenda.

Ms Nabiullina, go ahead please.

Source: President of Russia