Putin instructs cabinet to allocate extra 100 rubles ($1.4 bln) to regions

TASS Russian News Agency | Jul 9, 2020 at 8:01 PM

MOSCOW, July 9. /TASS/. Russian President Vladimir Putin demanded that the government provide the regions with additional assistance totaling 100 bln rubles ($1.4 bln). This is according to the list of instructions of the head of state, published on the Kremlin's website on Thursday. The cabinet is to report about the implementation before August 1.

[Hereby I instruct the government] to provide the budgets of the constituent entities of the Russian Federation with additional financial support in the amount of 100 billion rubles (in addition to the funds allocated from the federal budget in the amount of 200 billion rubles ($2.8 bln) to ensure their balance based on the need [of regions]," according to the instruction.

In his order Putin also asks the government to encourage the regions with high growth rates of spending of "investment nature."

The government should also "provide for an increase of 100 billion rubles in the volume of guarantees issued by the state development corporation VEB.RF in order to provide loans to organizations and individual entrepreneurs operating in sectors of the Russian economy that have been most affected by the worsening situation as a result of the spread of the new coronavirus infection (COVID-19), and socially oriented non-profit organizations for urgent needs to support and maintain employment, resume activities. "

Before July 15, Putin expects the government to come up with "proposals on the creation of long-term financing instruments for the development of transport, network and other infrastructure in the constituent entities of the Russian Federation." The head of state spoke about these measures in his address to the country's citizens on June 23.