He called on the government to create effective mechanisms to control construction quality and outlays. "Only the creation of competition can radically change the situation," said Putin. "At the same time, you should know that the state will have to control the development of the infrastructure for a long time."
"Knowing the plans of the government is vital for private capital," said the president.
He reminded the assembly about certain vital projects, such as the diversification of oil routes, the increase of the throughout capacity of the Baltic Pipeline System, and the determination of oil routes from East Siberian deposits. He said the construction of the North European Gas Pipeline was a key task in the development of the gas transportation network of Russia. In his words, this "will allow us to diversify export routes by directly linking the network of Russia and the Baltic region with the European gas network."
"For years now the government has not been able to determine its priorities. The issue is long overdue," the president pointed out.
"I remind you that the guideline in decision-making must be federal tasks, rather than the interests of individual companies."
Vladimir Putin said that the use of natural resources must be transparent. The system of using natural resources must be transparent and competitive, with clearly defined rights and duties of the state and business, said the president in his annual state of the nation address to the Federal Assembly.
In his words, competitiveness must be created not just in the oil-processing sector, but also between related industries.
Vladimir Putin also spoke of the need to restore order in the management of state and municipal property. "Each level of power must have only as much property as it needs to fulfill its functions," said the head of state.
He also pointed to the need to delineate the revenue powers of the levels of power. "The constituent members of the Russian Federation must know which services are their responsibility, which functions they must fulfill, and from which sources they should take the money for this," said the president.
At the same time, powers must be rationally distributed between the levels of state power in order to create a renewed system of state power. "State functions that are judged as excessive must not be revived at the level of constituent members of the Russian Federation," said Vladimir Putin.
