“We need to keep running to the right, running should be in the business”
— You presidential the Ombudsman, therefore, say that the project-right party in General and in politics in particular has long been studied in the Kremlin. How could it happen?
— Of course, there is the Department of internal policy of [President], which should think about how on the political spectrum should be allocated power, as the interests of some forces being protected. It’s their job. So, of course, they discussed various options for the creation and development of different political structures.
After all, some time ago, the right went under the horizon. The release of Mikhail Dmitrievich [Prokhorov] in this direction failed, as well as my exit before that (in 2011, Titov resigned as co-Chairman of Right cause, he was briefly headed by Prokhorov. —). But I think by that time even in a society not ready request on the right. Left the USSR, of course, bad, but right in the 1990s not great — people had a political apathy, especially all lived well and without any policy. But things are changing. The situation with oil, sanctions, more active political position in a foreign market, on the one hand, satisfies our ambitions of a great power, but, on the other hand, creates a very serious pressure on the economy. Now begins a period of real feelings of crisis: companies start to slip, people skimp on the basics. There comes a time when everyone is starting to feel the crisis on their wallets. Everyone understands that next few years will not be better. The party that thinks only about what is happening today is not so good. And there is a need for political ideas. And people are starting to look for some solutions, I think, where to go — left or right. So now need a party that will say: we need to keep running to the right to go into business, competition, market economy, and not backward.
— You avoid the question about the Kremlin.
— No, so, of course, feels and Department of internal policy of presidential administration. And start conversations and discussions. To be honest, my name was still in the “Civil platform”. I called last year and said that the soon to be Congress of the party.
It was after Prokhorov left the party?
— Yes, it was about the Congress in April of last year (the leader was elected Rifat Shaikhutdinov. —). And I didn’t go to this Convention. I don’t really understand the situation and position of this party. But the need for the right party was, and the discussion continued. I am an internal policy. I have the curator as the Ombudsman — [the first Deputy head of administration Vyacheslav] Volodin. Of course, we meet and discuss different issues. Talked about the state of the right flank. In this discussion all born, we began to move forward. And still we are in coordination.
The presidential Ombudsman must ask the President’s permission to head the party?
— I have not yet met with the President on this occasion. The law formally do not require a permit. But I must speak about these subjects. But I think, as the management of domestic policy — my sponsor as Ombudsman, then no questions should be.
— Even with the support of the Kremlin right-wing party still unpopular in Russia. What do you expect?
— We are looking old research and doing new research. One of them for the party with Western values would vote today 7%. Plus another 20% would think to vote for such a party. Another thing is that this electorate is divided roughly in half. For those who never will cooperate with this power. We conventionally call this electorate “Crimea is not ours”. And to those who are willing to cooperate for the sake of changing the country. They understand that if you go for confrontation, it will lead to what will be even worse. In the end, 10-12% of those who strongly disagree, and 10 to 12% of those who are willing to cooperate, but the adherents of liberal Western values.
— Will try to draw first?
— This group has a very negative stand. They basically deny everything. But it is created by politicians who represent the interests of this group. We think there will be enough people who will support the program “Economics of growth”, which we offer. Wish change go of this negativity and go for us.
— How much you eventually want to get to the Duma elections?
— We are ambitious people, but realists. A few months before the election it is impossible to collect all. There are such reactive voting on new, but our task — to pass the five percent barrier. Our goal is to create in the Duma faction. And start working, and using this tool too.
— The current leader of the party Vyacheslav Maratkanov will remain in the guide?
— We will propose to elect him to the presidency of the Federal political Council (at the party Congress on 29 February. —).
— We’re not changing the Charter at this Convention. There should be three people. If elected, it will be the Chairman of the party, that is, I, the Deputy, who would become the head of the office of the business Ombudsman Tatyana] Marchenko, and Maratkanov.
Business Ombudsman Boris Titov Photo: Oleg Yakovlev/
“They sat and waited for financial relations”
— You have mentioned Mikhail Prokhorov and his experience in the “Right case”. What he failed?
— Prokhorov came to the party from which I left. There was the disloyal majority of regional organizations and members of the Federal political Council. We could not agree. I Prokhorov said: “the next day, you come to the party, forget that you are a billionaire. Money is by and large decide little.” But he did not take into account a rather complex situation from the point of view of dealing with people. In the end they put down.
— It regional offices it was moved or it was made by the presidential administration?
— I did not hold a candle. It must have been those people who could agree with the Kremlin when he initiated the question of his resignation. But I think many acted sincerely. Prokhorov not everyone liked it. They said that Mikhail Prokhorov has built financial relationships with each, and they just sat and waited for financial relations.
— You have learned from this story? You already appear too dissatisfied with the regional office. Smooth out them?
— We are fighting that now. Don’t want deja vu. We should be a team of like-minded people. But first the party must be built from below — from members. Funding should come from below, not from above. So we all will pay a membership fee. Delegates going to the Congress at their own expense. They need to understand that the party is not a sinecure.
— So what do you do with disgruntled regional offices?
— We’re not talking about a disgruntled, we are talking about inactive — those who do nothing. We had about 20% of such organizations. We parted — we reformat them, there come new members and elect new leaders.
With regard to the Krasnodar branch (opposed the arrival of Boris Titov. — ) then there’s about five people, all members of the same Department of a state organization.
— Smoothed out?
— I had to respond.
“234 the problem rested in the wrong office”
— Now you work with the President and want to pass in the state Duma, which, as all know, nothing solves. You are disappointed in the work of the Ombudsman?
— We hear a lot of beautiful words, especially from the government, but killed one of our initiatives. 234 initiatives that were in the last report of the Commissioner of which sold quite a bit. I think the Ombudsman needs. Something we did: created a mechanism to work Institute, and the Amnesty we held, we have helped many criminal cases, have begun to address many systemic issues. But I can not say that we are very far advanced.
— 234 problems come to the wrong office. For example, the system of sight. Need three times to endorse the order before the Prime Minister will give the order for his execution. Then there are those who give the order should it endorse. And if there is no visa, nothing. Moreover, a visa does not give probation the young man 25 years old, who sees a picture and does not endorse simply because he imagined it. In total, comes the understanding that without sharp changes in economic policy, nothing happens. You can do small things, but not solved the problem as a whole. For this we need to move a little to the side. Through political means, from the outside to put pressure on the authorities to adopted a new system of governance and program development.
— You sincerely believe that in the Duma, you will have more of an impact than on a post of the Ombudsman?
— The adoption of the new economic program through the institution or institutions that work with the government, it is simply impossible. And the Duma is very useful. Because even purely technically we go today to the government initiatives, and the government puts a barrier, and “United Russia” in this case to do anything. Even refers the matter to the vote. If it’s a faction, then we’ll go right to the Duma, and we will have little to worry about visa government.
— And what can be achieved by a small fraction?
— The party, if it is supported by the people, will have a very large impact. The government are directed towards those who support people.
“As for the financial sector — there is just a wall”
— Let’s more now let’s talk about your claims to the government, apart from the fact that they do not listen.
— The government has practically stopped. The crisis affected as such a shock. Go thumb reactions previous years, and can’t stop them, “Plato”, the introduction of cash registers for business regulation issues, agriculture. In a crisis it is impossible to do in any case. And everything new the government has not accepted.
— Do you think that the government is inactive?
— First reaction to the crisis was, as in 2008 — to give money to the banks, and everything will spin. Didn’t understand that this is a systemic crisis, not a local. And so they believed that I needed to plug holes with money and all will go well. And when they talked about the fact that the crisis is systemic, the reaction was just ridiculous: let’s write the “Strategy-2030”. We were on Commission, which is engaged in, and laughed. They discuss the fee, what kind of lifestyle a person will lead in 2030: whether it will be to fly the drones, or swim under water. And need today the medium term programme of economic development. You have to quickly decide and reach a new model of economic development.
— The government does nothing well. And the President? You’re the Commissioner of the President.
— Everyone is responsible for its direction. I can say that, when you come to the President, he gives a lot of assignments with very tight resolutions, which are then not fulfilled. I don’t think this is possible in the political sphere, I don’t think it’s possible in the military sphere. But when it comes to economic issues — and is. Here he is instructed to do the self-employed (we are talking about the introduction of patents and registration as individual self-employed entrepreneurs. — ). To me he instructed to form a working group, but not self-employed. Neither the Finance Ministry didn’t and that neither Deputy Prime Minister [Igor] Shuvalov didn’t, which was held meeting. The Prime Minister as Chairman of the party “United Russia” declares that we are self-employed, and at the same time a few days before this decision postponed to July-a month. Two years we talked about it, but no solution.
As for the financial sector — there is just a wall. We only hear: “President, give us money to implement anti-crisis program”. Of course, well, when a financial block is thinking to reduce the debit with the credit. But the economic bloc does not speak about any development programme. We have to think not about how to plug holes in a new way, and how to make money in new ways. But the government do not say, just do nothing.
— And Putin?
— While he is under the influence of the economic policy which was implemented today. It is old dogma that supports the activities of the Central Bank. He is all for we all cringed, i.e. that money supply was under control. This policy was necessary at a certain stage, but not now. In General, while we have not been conveyed to the President our ideas. I hope that in the near future will be able to report them to him.
But the President supported your idea of creating high-performance workplaces.
— Yes, he made it in the may decrees. And all dissolved. The government again ate it.
— The government should send in resignation?
— I believe that our task is not to alter the government as now yells “Fair Russia”. To change these people is also a serious threat, because they know how to fix holes in pipes, how to make sowing grain. In a smaller truncated form of the current problems they can do this and more. They are specialists in this sense. But the development they need to take. The need for a separate development institution — it has existed in all countries who have achieved economic success. They separated the management of the current state of management development.
Business Ombudsman Boris Titov Photo: Oleg Yakovlev/
“The lowest inflation in the future.”
— A key element of your program “Economics of growth” is the idea that the Russian economy desperately short of funds and in conditions of crisis can and should be quantitative easing to increase money supply. Explain how you are going to pour money into the economy.
— First of all, we’re talking about 1.5 trillion rubles per year. It’s not a huge amount to the economy. 1.5 trillion, which on special channels will be delivered in co-financing of specific investment projects. And not like “Moscow — Kazan” — such projects are now funded by existing mechanisms. We’re talking about thousands of projects — from sirdalen to engineering companies that make, for example, automotive parts. The forestry, agriculture. They say: “These projects we have”. Not true, they are! Look at the industrial development Foundation — it applications for 600 billion rubles., Such projects undergo a special evaluation that works on the level of the best investment banks. There are two mechanisms. One — by refinancing such institutions as the industrial development Foundation. Give to the Fund another 500 billion a year, with normal percentage of repayment is at the level of the best investment banks — it will cope with the task of funding a large number of projects. The second way is the refinancing of banks. The scheme is quite complex, but in General you can use the bonds for project bonds, co-financing with the investor who must invest at least 15%, co-financing with commercial Bank, guarantee Agency.
— You are talking about thousands of projects, and whether the demand for their products? Falling incomes, domestic demand is reduced…
— Need to find niches that we can develop to take account of new economic realities. Demand is down, but it is still there. By increasing productivity, introducing new technologies, increasing the competitiveness of goods on the domestic market, we can remove part of the imported goods. On the other hand, in the country to decrease costs, the price of gas, salaries, there is a niche export. For example, many automotive companies are already starting to supply vehicles for export. Agriculture is still not mastered. And, of course, infrastructure and construction. The segment of low-cost housing continues to grow: construction is ongoing, the apartments are sold. The potential of this market is huge.
— We have the results of last year inflation was at double-digits. Even “bound” to channel this money issue will be released into the economy, because the money to purchase equipment, pay salaries…
— [Former Finance Minister Alexey] Kudrin also explained: when you invest in the economy, inflation rises. What is the conclusion? Kudrin chose the path of “close everything and not to develop”, and [Chairman of the Central Bank Elvira] Nabiullina today, too, chooses this path. Yes, on economic growth, inflation may be slightly higher than usual. And this is normal! Question inflation is generally fictional in our country, it is absolutely misinterpreted, and including incorrectly communicated to the President, who says: “we Have high inflation in the country, so we may not conduct quantitative easing”. This is not so: now we have monetary inflation — not inflation at all, and deflation.
— But the man who goes to the store, he how to face inflation?
It’s 1.5 trillion rubles a year will not change. Because inflation will not rise — nor a penny. Today, demand for money, monetary inflation is going down. We have cost inflation (inflation caused by rising production costs. — ) very large, at the expense of the ruble due to falling oil prices. Therefore, it is necessary to reduce costs, in order to enable companies not to raise prices. In all countries, where “economic miracle”, do approximately the same thing: started with the increase in the money supply in the economy. This is followed by an influx of investment, then the decline in inflation. And we believe that it is necessary to restrain the money supply. The lowest inflation is in the cemetery. If this policy continues, we have only one way out — to the Soviet Union. All of our prominent liberals, Westerners, are leading our country straight to the Soviet Union.
“The militiamen, rather, work out room”
— Do you think that the arrest of Dmitry Kamenshchik, the owner of Domodedovo airport, on the background of General growth in the number of criminal cases against businessmen, it is the common position of the current government? Or security officers just trying to do some private orders?
The security forces keep order. The economists task is to keep the economy, the security forces to keep order. Apparently, they just keep the order as our economists. They have a wrong understanding of how it should be done. There are, of course, corruption, but now more and more ideological relation to the business. By the way, a very large number of cases has basically the conflict between business: begins when some kind of carve-up and everyone pulls to their side of law enforcement. And so many law enforcement officers believe that the business we supposedly dishonest.
— The situation of the Kamenshchik — too ideology? You do not see the Parallels with “Bashneft”?
— Apparently, it’s “hitting” in order to take the business, but Kamenshchik does not say. The militiamen, rather, work through the room: I saw that five years have passed since the attack, the anniversary, and no action is taken. And it’s such a failover, the response to what you need still to do something. I think this is standard behavior of our officials, so as just to cover its “effectiveness”.
— When the current international situation around Russia do you believe that investors will come back to us? In General as far as agree with Russian foreign policy?
— If we remained in a strong domestic market, we would not feel any outflow of investors. If in Russia will be profitable to do business, any sanctions we do not overlap. This is the second time for our economy compared with their own economic challenges. In our program, “Economics of growth”, of course, fixed that needs a “reboot”, it is necessary to leave from sanctions, otherwise we just technology is not enough.
— “Reloading” is possible in the present circumstances?
— There is already underway a review of the policy. We leave the solution to the problem of Ukraine, we come to the decision of a question on Syria. Actually there is a dialogue and we understand each other. They [USA] had to react [on Ukrainian crisis], they responded thus — imposed sanctions. Now the confrontation is gradually disappearing, because it is in our mutual interest, in particular on Syria. And about the Crimea already forgotten. I think there will be a joint compromise solution on Crimea. In the West decide when I see the support of their people. But the vast majority of people in the West is clear: it is a myth that severed Crimea from Ukraine. Who even slightly knows about Russia, about the Soviet Union, realizes that Crimea is Russia. And Western governments against public opinion in their countries will not go.
— In foreign policy we are going to improve?
— That’s for sure. We’re going to improve the situation with the West. “In order to unite, we need to dissociate”. See classic still lives in our minds and will live forever (laughs).
The case of the business Ombudsman
According to the office of the Commissioner for entrepreneurs ‘ rights, in 2015-2016, with the assistance of the Ombudsman were discontinued criminal proceedings against the three businessmen and one businesswoman were acquitted. In six cases it was possible to achieve change of a preventive measure. Managed to save the work of several branches of Russian Railways after the management letters. The Commissioner also participated in the work, which resulted in the reduced fines in the system “Platon”, and in repaying the debt to all the developers of the Vostochny space centre. The Commissioner appealed to the mayor of Moscow with a request to cancel the dismantling of the underground shopping pavilions, as a result, the lease term was extended. The Ombudsman was successful with the help in administrative matters, the payment of delay in payment contacts and amendments to the bill on sites aggregators.
Boris Titov began to work in the foreign trade Association “Soyuznefteexport”. In 1991 he became Executive Director of the Mari El refinery group, then was President of the “Interkhimprom” and the President of agrochemical Corporation “Nitrogen”. In 2006, Titov bought his most well — known brand “Abrau-Durso”. In 2004-2012 he was the head of “Business Russia” that positioned itself as an organization of non-oil business. Titov several times in the policy: included in the Supreme Council of “United Russia”, and in 2008 became co-Chairman of the Right cause. After joining the party Mikhail Prokhorov left the presidency. Since 2012, presidential Commissioner for entrepreneurs ‘ rights.