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FNPR Newsletter. May 31, 2024

31.05.2024

May 31, 2024

The Russian economy keeps showing a stable growth. According to the results of the first quarter of 2024, Russia's GDP increased by 5.4% in annual terms. Among other things, the wholesale trade turnover increased by 11.7% as compared to previous year, the retail trade turnover by 10.5%, the construction industry by 3.5%.

On April 25, 2024, during the Congress of the Russian Union of Industrialists and Entrepreneurs, a General Agreement for 2024–2026 was signed between all-Russian trade union associations, all-Russian employers' associations, and the Government of the Russian Federation. It should be noted that following the Constitutional amendments of 2020, the compliance with the principles of social partnership has become mandatory.

On May 1, Russia, like many other countries of the world, celebrated the Day of International Workers’ Solidarity. This year it was held under the motto “Decent work for everyone is a guarantee of the family well-being and the country's development!” As part of the May Day celebration, the FNPR held a large-scale action - an online vote for a resolution calling for the protection of social and labour rights and economic interests of workers: decent wages, safe jobs, social guarantees, and the principles of social partnership laid down in the Constitution of Russia. During the vote, the FNPR May Day Resolution was supported by more than 9.2 million people.

On May 7, 2024, the official inauguration ceremony of Vladimir Putin as President of the Russian Federation was held at the Kremlin. As a reminder, 77.49% of eligible voters took part in the March presidential elections. Of the four candidates on the ballot, Vladimir Putin received the largest number of votes (87.28%).

On May 14, 2024, the President approved the new composition of the Government of the Russian Federation which, apart from the prime minister, included ten deputy prime ministers and 21 ministers. Plans of the new government are still being finalized. However, in the coming years, according to official statements, the government intends to prioritize both the promotion of economic growth and strengthening of technological sovereignty and the social development issues, such as improving the welfare of citizens, upgrading the public services and reducing inequality.

In this regard, the government proposes to switch to progressive taxation of corporate profits, as well as to establish a multi-stage scale of progressive tax on personal income. At the same time, enterprises actively investing in the production development, as well as large families, would receive tax deductions. Currently, there are only two personal income tax rates - 13% for the majority of the population, and 15% for persons with annual income of more than five million rubles. At the same time, the corporate tax rate for all enterprises is 20% except for a few special categories.

In May, a discussion of this government initiative began in the State Duma, the lower house of the Russian federal parliament. It should be noted that for a long time Russian trade unions have demanded the transition to a full-fledged progressive taxation system in order to increase government spending on social needs, and to ensure a more equitable distribution of the tax burden.

On May 9, Russia widely celebrates the Day of the Victory of the Soviet people over Nazi Germany in the Great Patriotic War of 1941-1945. Russiaт trade unions cherish the memory of those historical events. On the eve of the Victory Day, the FNPR president Mikhail Shmakov, other trade union leaders and activists laid flowers at the obelisk with the names of trade unionists who died during the War.

On May 16-17, President Putin paid a State visit to China which became a significant foreign policy event. Following the negotiations, President Vladimir Putin of Russia and Chairman Xi Jinping signed a joint statement on deepening strategic partnership and comprehensive cooperation in the context of the 75th anniversary of the establishment of diplomatic relations between the two countries. The Russian Federation and the People's Republic of China formed a significant portfolio of 80 joint large-scale investment projects in a variety of areas, the most important of which are projects in the trade and banking sectors.

The parties also opposed the prolongation of the special military operation in Ukraine and further escalation of the conflict. Russia is “positively assessing China’s objective and unbiased position on the Ukrainian issue” and sharing the approach that “conflicts should be resolved on the basis of the UN Charter.” Russia stated that it welcomes China's involvement in diplomatic efforts to resolve the crisis.

President of Russia and other Russian officials have repeatedly stated that Russia is ready for peace negotiations; the problem, however, is that neither the Ukrainian leadership nor their NATO and EU sponsors want any negotiations. Currently, Western countries keep providing multilateral support to the armed forces and nationalist formations of Ukraine sending not only heavy weapons, but also thousands of mercenaries from dozens of countries to the combat zone. Thus, the President of France has announced his intention to send regular French military contingents to Ukraine; the US leadership is declaring support for the Ukrainian junta to launch strikes on the territory of the Russian Federation, and NATO General Secretary Jens Stoltenberg calls for lifting of restrictions on strikes by Western weapons on Russian territory. Such irresponsible statements only lead to further escalation of the conflict. Surprisingly, no one thinks about possible disastrous consequences of such declarations for the population of the EU countries and the United States.

However, the attempts by the Kiev authorities and their Western patrons to achieve their goals on the battlefield are also failing to succeed. The Russian armed forces keep systematically liberating the eastern territories with a predominantly Russian-speaking population from Ukrainian nationalist armed formations. On May 10, Russian troops launched a successful offensive on the territory of Kharkov region. As President Putin stated, Russia has no plans to take over the city; the intensified combat in that region is aimed to set up a buffer zone on the border, since the armed forces of the Kiev regime have been regularly shelling the city of Belgorod and other Russian border territories. Russia regards these attacks targeting residential areas as acts of terror directed against civilians, including children. In particular, an entire section of a 10-storey apartment house collapsed as a result of yet another bombing on May 12 in Belgorod, killing 17 and injuring about 30 people.

FNPR and its affiliates have been regularly helping civilians suffering from constant attacks on the part of Ukraine. In May, trade unions organised solidarity actions sending humanitarian aid to residents of the Donetsk and the Lugansk regions, as well as to participants in the special military operation. One of these actions was carried out on May Day by Moscow trade unions which formed a convoy with more than 60 tons of humanitarian aid.