Mishustin’s Government Makes Decisions Necessary in the Context of Partial Mobilisation

NEW – September 27, 2022

The announcement of partial mobilisation has created significant uncertainty in many areas of life, disrupting the activities of people and organisations.

However, Prime Minister Mishustin immediately after the start of mobilisation qualitatively reduced the scale of this uncertainty, by a government decree guaranteeing the labour rights of those mobilised and securing their jobs for the entire duration of their service. The relevant amendments to the Labour Code will be made before the next plenary session of the State Duma – until September 27.

In close cooperation with the Mishustin government (and, as far as can be judged, largely on its initiative), the issue of loans to conscripts and their families will be regulated by law as soon as possible, first of all, of course, about mortgages (as the most burdensome part of the credit burden).

Mishustin’s government has announced that it will pay priority attention to the entire range of issues related to partial mobilisation when preparing the draft federal budget (which is to be submitted to the State Duma before October 1). In practice, this means a forced revision of the budget in just a week, but most likely without changing its fundamental principles and basic parameters.

Among other things, it is planned to normalise the absurdly complicated variety of social assistance to poor families, which is also absurdly small in size, by introducing a universal social payment – a kind of guaranteed basic income.

Prime Minister Mishustin announced its introduction from the beginning of 2023, emphasising its positive significance for families with children, since the social payment will be sent to women from the early stages of pregnancy until the child reaches the age of 17.

A special feature of the universal benefit will be its extreme simplicity: it will be possible to issue it with the help of a single application submitted to State Services, the Multi-functional Centre, the Pension Fund or the Social Insurance Fund (while the latter two have not yet finally merged into the Social Treasury).

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This measure will affect families that currently have about 10 million children.

In addition to social security, information security is extremely important (which we feel every day when we are faced with hostile propaganda campaigns, fake news, inciting hostility and just plain panic, attacks on computer systems and a new wave of telephone and computer scams).

Its provision requires a complete replacement of imported software, including specialised ones, and the final termination of its operation in Russia by 2025.

To solve this tremendous task, following the results of the strategic session of the government (an innovative form of its work that has already become familiar), Prime Minister Mishustin instructed the Ministry of Digital Development to prepare a draft law by November 1 on the preferential use of domestic software, hardware and software complexes, telecommunications equipment and radio-electronic products by all subjects of critical information infrastructure (and at the same time on the rights of various departments include certain items in it).

In addition, a package of projects aimed at ensuring Russia’s technological independence in the field of software was formed as soon as possible. Until September 27, the Ministry of Digital Development will analyse them to ensure budget financing, and by September 30, it will prepare a draft government decree setting out the requirements for particularly significant (and, accordingly, particularly supported) projects. By the same time, a list of approved projects should be ready with proposals on sources, volumes and mechanisms of their financing until 2025 and for the future until 2030.

Thus, the Mishustin government adequately responds to the challenge of the times.

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Mikhail Delyagin

Mishustin scored another victory over the liberal elite group. And a serious one. The draft of the new budget did not include the notorious “budget rule”, according to which we paid tribute to the world dollar (Bretton Woods) system for many years. Its essence was that the state did not receive money from oil exports if its price exceeded a certain value (obviously lower than market prices). Well, the real essence of this tribute manifested itself at the moment when 300 billion dollars (which, in fact, were formed from it) did not return to us.

Of course, the liberal team gave many other justifications for the existence of such a system, but in recent months its essence has finally and completely clarified, as well as the real essence of the liberal group in the executive power system. Nevertheless, the liberals were desperately trying to keep this tribute, “at least with a carcass, at least a stuffed one” to smuggle it into the new budget.

And they, thank God and thanks to Mishustin, did not succeed. Moreover, he demanded that the budget be made in deficit (so that all the money would go into the economy) and, moreover, he directed all their excess to investments (I remind you that investments are investments in fixed assets, everything else is speculation). In general, from the point of view of the Russian budget, this is a revolution!

Of course, the budget has not yet been adopted, but, most likely, the chances that the “budget rule” will return to it are extremely small. Of course, then it will be necessary to monitor the effectiveness of these investments, to ensure that the Ministry of Finance finances all projects, and so on. Let us note, by the way, that the traditional trick of the liberals, in which the money is paid so late that they do not have time to master it, has already been partially compensated: now this money is returned to the budget again, and does not disappear “to nowhere”.

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In general, another small revolution has taken place, which shows in what direction Mishustin (and Putin, of course, who leads him) is acting. At the same time, it became clear that although the liberals have seriously weakened, the mere existence of Russia within the framework of the dollar system does not yet make it possible to get rid of them completely.

And so far we are in this system, if only because the markets where we sell our products and where we buy someone else’s (and from which the West failed to isolate us) exist precisely in the dollar system and prices for them are determined precisely in dollars. It is for precisely this reason that I write so much about the need to form a currency zone in which prices are determined in domestic currency (currencies). Until this is done, we will not have real independence.

In the meantime, it can only be noted that Mishustin’s next victory may lead to the fact that our economic recession will stop, but this will not be enough for sustainable growth, we need a cheap (really cheap, 2-3%) loan for small and medium-sized businesses, production of consumer goods. And this will be the next battle between Mishustin and liberals.

Mikhail Khazin

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