OREANDA-NEWS. September 10, 2009. Vladimir Putin's opening address: Ladies and gentlemen, The Union of Russian Machine Builders is one of the largest national industrial unions. You know better than anybody else the industrial problems that have accrued over the years and the pros and cons of the current situation. All these problems stem from the absence of an explicit development strategy. This has to be acknowledged. This is the cause of Russian engineering's low level of competitiveness, inadequate technological upgrades and, as a result, delays and the loss of traditions and personnel.

We know full well that without a strong, cutting-edge machinery manufacturing industry Russian economy will never be full-fledged, competitive and based on innovations, will never overcome its excessive dependence on raw materials. That was why we made decisions to develop and upgrade the industry even before the crisis. We have established major integrated shipbuilding, aircraft-building and military industrial companies, and started consolidating key government-held, machinery-building assets.

Much remains to be done in this area. We should continue the search for the most effective and economically sound ways to restructure the industry.

Economic instability has brought the above-mentioned, comprehensive problems into the foreground. The problems accrued over the years are now being felt more acutely than ever. Machinery manufacturing-especially in the automobile and agricultural machinery production industries-has been badly affected by the shrinking market. My colleagues attending this meeting know that those problems have been discussed repeatedly in the Government and in industrial enterprises.

That is why our anti-crisis package does not stop with aid to particular companies, however important this may be. We have also advanced stringent demands from the start. They call for industrial modernisation programmes and enhanced production efficiency.

The result of these measures has been the considerable resources and special privileges the industry has received over the past several months. We hope that the money allocated will be spent sensibly, even though the money and other measures might be not enough, as you have told me on many occasions.

I say once again that you know the current global state of machinery manufacturing better than anyone else. The automobile industry is in especially dire straits, with unprecedented production decline and shrinking markets worldwide. Russia shares the resulting losses with the world.

Nevertheless, the industry should use the money allocated and the special privileges I have mentioned not only to cope with current problems, but also to begin producing competitive vehicles.

Wishful thinking aside, no one can make consumers purchase outdated cars, however we may coax the public and whatever prohibitive import duties we may introduce. At best, these measures can have temporary effect. This issue concerns the public and the Government alike. The Government is involved in the market like anyone else, and it should receive quality goods like anyone else, or all government companies and agencies will lose their competitive edge.

We rely largely on the Union of Russian Machine Builders to help us in implementing our industrial policy.

I think the Union can make technological predictions, and coordinate with research and innovation centres. Importantly, it can also be an essential link in the implementation chain. We also need your assistance in promoting Russian machinery abroad.

Clearly, our objectives demand cooperation. Your advice and the efforts on the level of business are of essential importance. Neither the industry nor the Government will succeed on its own. We can achieve results only with synchronized and aggressive teamwork.

Personnel training and upgrading, especially on the factory floor, is one of the key issues demanding special attention. In particular, we should help higher and secondary vocational schools adopt new curricula, organise practical training, and ensure the quality of tuition.

Please speak up on these matters. Corporate plans for long-term development and increasing efficiency also deserve detailed discussion. I have spoken with some of you and your colleagues on those matters. Now, we have good reason to return to this issue.