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FNPR Newsletter. July 17, 2024

17.07.2024

July 17, 2024

Dear Colleagues,

Since the previous newsletter, some important events have taken place which we would like to inform you about.

The Russian GDP grew by 5.1% over the first 4 months of the current year. This was achieved, while the unemployment rate remained at a record low of 2.6%. In May, the industrial production increased by 5.3% compared to the previous year (in April - 3.9% compared to the previous year). The highest growth among the industries was recorded in the financial sector, IT, trade and manufacturing. Thereby, the shortage of labor resources is the main limitation for expanding the production of goods and services. The annual inflation in Russia accelerated to 8.7% in June compared to 8.3% in May. In monthly terms, consumer prices increased by 0.74%. The Russian economy will grow to 5% in the first half of 2024.

According to the Russian Public Opinion Research Center, the level of trust in the President Putin has grown by 3% since the beginning of 2024 and is more than 81%. In 2024, 68% of Russians support the decision to conduct a special military operation in Ukraine, and 65% of respondents believe that the military operation is rather successful for the Russian troops.

On June 5 to 8, the International Economic Forum was held in St. Petersburg. The main theme of SPIEF-2024: “The Foundations of a Multipolar World – The Formation of New Areas of Growth”. This year, it was attended by more than 21 thousand representatives from 139 countries. 1073 agreements were concluded on the sidelines of the Forum for a total amount of 6.4 trillion Rubles.

An important place in the agenda was given to activing international cooperation aimed at the extension of equal interaction with developing countries. Russian and foreign guests of the Forum took an active part in such events as the Russian-African Conference “Water is more valuable than gold”, the Eurasian Economic Union (EAEU) and the Association of Southeast Asian Nations (ASEAN) session, business dialogues with representatives from Azerbaijan, Brazil, Venezuela, India, Kazakhstan, China, Kyrgyzstan, Oman, South Africa, African and Latin American countries.

Particular attention was paid at the Forum to new opportunities for trade and economic cooperation between the BRICS countries in view of the planned expansion of the association. As experts noted, today, the BRICS member countries are already accounting for more than a third of the global economy volume. Discussed at the Forum were the ways to build an independent system of international financial transactions, advanced transport corridors, cooperation in the digital economy and much more.

Separate discussions were devoted to the prospects for the development of business partnerships within the framework of the Shanghai Cooperation Organization, incl. in the field of transport, energy and green economy.

An important event in the socio-economic life of Russia was the discussion of a draft law on improving the taxation system, which will affect both companies and workers. Starting from 2025, a new progressive personal income tax will consist of 5 rates - from 13% to 22%. It is also planned to increase the profit tax rate from 20% to 25%. The FNPR proposed progressive taxation for individuals with high and ultra-high incomes several years ago, since the introduction of a “flat scale” of taxation, and has supported it now.

On June 14, President Vladimir Putin of Russia held a meeting with the leadership of the Ministry of Foreign Affairs of the Russian Federation.

In particular, V. Putin stated that the world is rapidly changing, with a multipolar world being shaped; and the BRICS potential will allow it to become one of its foundations. Russia has repeatedly proposed solutions to establish an optimal international security system for all, but the West has ignored its ideas. The President proposed to create a new security system in Eurasia in which all countries could be involved.

Regarding peace negotiations with Ukraine, Russia is ready to immediately cease fire and start negotiations, as soon as Kyiv withdraws troops from the entire territory of the Donetsk, Lugansk, Zaporozhye and Kherson regions within their administrative boundaries that existed at the time of their entry into Ukraine; and also serves an official notice about abandoning plans to join NATO.

As V. Putin stated on the eve of the Swiss discussion of Ukrainian initiatives, Russia is making another real peace proposal, but if the West and Kyiv refuse, they will be responsible for further bloodshed. This is not a question of freezing the conflict, it is about its final completion. The status of Crimea and Sevastopol, Donetsk republic and Lugansk republic, Zaporozhye and Kherson Oblasts as regions of the Russian Federation should be fixed in international treaties.

As expected, the Ukrainian authorities and the leadership of Western countries have rejected this proposal, which indicates a desire to prolong the conflict and reluctance to reach a diplomatic settlement.

On July 5, Hungarian Prime Minister Viktor Orban arrived in Moscow and met with the Russian President. According to Orban, he flew to Russia to continue the “peace mission,” while Hungary will soon become the only country in Europe which will be able to conduct dialogue with both sides of the conflict. Putin stressed that Russia and Hungary continue the dialogue in the current difficult geopolitical situation, his conversation with Orban was frank and useful, and he also perceives his visit as an attempt to establish a dialogue with Europe.

State visits to the Democratic People’s Republic of Korea (DPRK) and the Socialist Republic of Vietnam (SRV) took place in mid-June, in the course of which agreements on strategic cooperation were signed with both countries. In addition, Russia and Vietnam agreed on a complete transition to payments in national currencies.

Russia’s special military operation in Ukraine has been continuing, as well as attacks by the Kyiv regime on civilians living in the border territories of the Russian Federation.

On June 23, the Crimean peninsula was attacked by Western weapons. 4 missiles were shot down, whereas the fifth one deviated from the target, and its fragments fell in the area of the city beach of Sevastopol, where children and vacationers were located. 4 people died, including two children; 124 people were injured, including 27 children; the Western media, however, kept silent about this, as they did about many other attacks on civilian targets.

On July 8, the armed forces of the Russian Federation launched a precision weapon attack on Ukrainian military industry facilities and air bases of the Ukrainian Armed Forces. Statements by representatives of the Kyiv regime about an allegedly intentional missile strike by Russia on civilian targets (in particular on a children's hospital) are absolutely untrue. Numerous published photos and video footage from Kyiv clearly confirm the fact of destruction due to the fall of an air defense missile launched from a Ukrainian anti-aircraft missile system located within the city. Such false statements were made on the eve of a regular NATO Summit in order to obtain new packages of military assistance, which would inevitably lead to a prolongation of the conflict.

We will continue to inform you about the most important events in the life of the Russian trade union movement, and will be ready to give you comprehensive explanations.