President of Russia Vladimir Putin: Mr Fradkov, good afternoon.

Promsvyazbank is one of Russia’s largest banks. It works across all regions of the Russian Federation, including in the new territories. Today, I would like to hear a performance report for this major financial institution, especially considering that this bank probably plays a leading role in terms of fulfilling and supporting state defence order. It has been very active within the defence sector. This is why we established it in the first place, by the way. Go ahead, please.

Promsvyazbank CEO Pyotr Fradkov: Mr President, thank you very much.

Indeed, the bank has been building up its capabilities over the past years. Today, it is one of the country’s largest financial institutions. It holds 7.5 trillion rubles in assets and has increased this figure almost by a factor of six since its restructuring as a full-service state-owned bank, which is quite an unprecedented result. As you can see, it has a lot of potential.

However, we prioritise a balanced growth model both in the defence sector – and you were totally spot on when you mentioned it – as well as in the civilian segment. We never forget about this, and our portfolio of non-military corporate customers exceeds one trillion rubles, and there are also SMEs with a portfolio of over 600 billion rubles. We have been quite effective in terms of managing our profits.

So, I can say that over the past five or six years the bank established itself as a stable and resilient institution. I believe that we can deliver on all the tasks it receives.

Regarding the military-industrial complex, you are absolutely correct that this is a key focus for us. We are addressing two main aspects. First, we are concentrating on supporting the state defence order. Currently, nearly 85 percent of all transactions related to the state defence order are processed through Promsvyazbank, involving significant volumes: up to 80,000 transactions daily. Given the critical nature of these operations for ensuring continuity and uninterrupted settlements, we place a high priority on this. We have established the necessary infrastructure across the country and are confident that there should be no disruptions.

Certainly, advanced lending plays a crucial role, with over 2.5 trillion rubles in loans issued specifically to the defence industry in general. Of this total, 70 percent represents the preferential portfolio, which is a vital factor for defence industry enterprises given the current macroeconomic conditions. This preferential lending allows companies to better plan their financial and economic activities, manage state defence orders more effectively, and modernise their production facilities.

We have also initiated a third focus area. As a bank, we have begun to engage in the development and investment in dual-use technologies, which are currently in high demand. We already have experience with various types of equipment used, among other applications, in the special military operation.

Additionally, I must highlight our work with individual clients, which is a significant aspect for us. Our retail client portfolio…

Vladimir Putin: Military pensioners?

Pyotr Fradkov: Yes, exactly. I wanted to mention that too. On the whole, our total portfolio exceeds 600 billion rubles. However, the key focus for us is military personnel. We are developing a dedicated network specifically for them and are the leading provider of military mortgages in the country.

Mr President, you were absolutely right to point out that this work includes military retirees, including combat veterans and the personnel involved in the special military operation. We are working jointly with the Defenders of the Fatherland Foundation and the Defence Ministry to provide the latest user-friendly banking services, so that combat veterans can use advanced technology to monetise the benefits and privileges accorded to them at the federal and regional levels. In this regard, we have agreements signed with all regions without exception, and they are being acted upon just to make things convenient.

The third area of focus includes work with the defence sector employees, which is also important, because the defence industry is on the rise and the demand for labour is high. This is one of the challenges we face, and we are trying to find effective support mechanisms in cooperation with the defence companies and the regions in order to keep young personnel at these enterprises.

Providing housing at below-market prices is one of our programmes. We can do a good job when we put together the efforts of all stakeholders. Housing discounts range from 15 to 50 percent off the market value. Soon, nearly 4,000 families of the defence industry employees will move into new flats under better terms and conditions. This represents an additional extrabudgetary source of support for this category of our clients.

Of course, the new regions feature prominently on our agenda. We are working hard in these areas. The first one is to expand the network of branches. We now operate through 460 branches in all four regions. I believe that the clients’ level of satisfaction with the quality of banking services is high, which is corroborated by the surveys. In some areas, such as the Donetsk People’s Republic or the Zaporozhye Region, the level of satisfaction with our services is even higher than the national average. In the Kherson and Lugansk regions, it is in line with the national average. Overall, I can say that the task you set is being acted upon in a way that meets the people’s needs.

In addition to lending and financial transactions, we are also promoting services such as legal advice. People are not always good at correctly interpreting the legislation of the Russian Federation, so the demand for this type of service is high, as it is for insurance services and much more. In this sense, we are trying to make life more comfortable across various areas, and we feel this responsibility meaning that our efforts are ongoing.

Vladimir Putin: Good. Let’s take a look at the documents.

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