© Sputnik / Konstantin Mikhalchevskii
Speaking in a televised address on Wednesday, President Vladimir Putin announced a number of measures designed to support the Russian people and the national economy amid the increasingly serious threat of coronavirus in the country. He said there was no feasible way to keep the virus out, but that an efficient, coordinated effort to preempt and mitigate the damage will help protect people from the worst outcomes.
Week-long holiday
One of the immediate decisions taken by the government was to declare next week a long national holiday in Russia. Salaries for the days off will still be paid, Putin said. This is expected to help slow the spread of the coronavirus.
The president warned against underestimating the threat posed by the virus and said everyone should act responsibly.
Please, don't think like people often do: 'This cannot touch me.' It may touch anyone.Constitution vote postponed
Russia will also postpone the national vote on constitutional amendments, which is currently scheduled for April 22. The package of constitutional amendments was tabled by Russia's president back in January and greenlit by legislators earlier this month.
Benefits & frozen credits
A big chunk of the measures announced by Putin deal with various benefits. The usual checks for eligibility will be suspended for six months, while some of the payments - like paid sick leave and unemployment payments - will be given a boost.
Russians whose monthly incomes suffer a sharp drop for whatever reason will be able to ask for a suspension of payments on any credits they owe. Similar support will be given to small businesses, which will also get tax breaks and protection from bankruptcy to help keep them afloat during the economic slowdown.
Comment: More details from Putin's proposal:
"I suggest loan and mortgage holidays," Putin said Wednesday addressing the nation in a televised speech. The said steps also include new payments for families with children.
Families that have children aged three and younger will be eligible for an additional monthly payment of 5,000 rubles (some $63) per child for the next three months starting from April.
"The Russian economy, like the economies of other countries, is experiencing strong negative pressure due to the consequences of epidemics. And it is necessary to support those who might face losing their jobs," Putin stated, proposing an increase in unemployment benefits.
People, whose income dropped drastically due to the coronavirus outbreak, should be able to temporarily stop their mortgage and loan payments without facing any penalties, Putin said.
Taxing the rich
Wealthier individuals and big companies are expected to cover some of the cost of the emergency measures, according to Putin's plan. Russians who have money in bank accounts and have invested in equities over a certain threshold will have to pay income taxes on their revenues - this previously came under an exemption.
The tax on corporate dividends paid to foreign jurisdictions will get a hike from two percent to 13 percent. Putin said most of this money goes directly to individual business owners, who avoid paying due taxes in Russia this way.
Comment: Putin said: "Currently two-thirds of such funds, and, in fact, this is the income of specific individuals (as a result of various kinds of schemes of the so-called optimization), are subject to a real tax rate of only 2 percent. While citizens, even with small salaries, pay income tax of 13 percent. This is, to say the least, unfair. Therefore, I propose for those who withdraw their income in the form of dividends to foreign accounts, to provide a tax rate on such dividends of 15 percent."
"It will require changing our agreements with certain nations on avoiding double taxation," Putin said. "If our foreign partners do not accept our suggestion, Russia will withdraw from such agreements unilaterally."
Brace for impact
Russia has so far largely been spared by the Covid-19 pandemic. It currently has 658 cases of the coronavirus, and the country was quick to implement certain crucial measures - like restricting international travel - to keep the disease in check.
However, the number of infected people has jumped by 163 in 24 hours, fueling concerns that an explosive growth of positive tests may happen within days.
The national economy is also beginning to experience the effect of the global economic slowdown. Russia came to the crisis prepared better than many thanks to large reserves and macroeconomic stability, but it still must brace itself to navigate through the storm.
Comment: Violating quarantine in Russia may result in up to seven years in prison, if new regulations are passed. Russian military specialists have arrived in Italy to help with the crisis there: How's that for optics? While the EU does nothing, help comes from Russia with love. Here's how the mayor of Bergamo described the situation to RT (keeping in mind that the public nature of the crisis will cause more people with serious illnesses to go to the hospital who otherwise might have received treatment elsewhere, thus contributing to overwhelming the system): Extrapolating from Italy's Sismg mortality data, Bergamo province ordinarily experiences between 150 and 200 deaths per week around this time of year, with spikes of up to 300. There is no doubt some overlap between the Covid-related deaths this last week, and people who would have died regardless, but it does show that the region is experiencing more deaths among the elderly than usual, especially considering that only 8% of deaths in Italy on average are from respiratory illness.
Italy recorded 683 deaths over the last day, a dip from 743 the day before. Note that unlike Spain, Italy's death cases are "confirmed" by testing, although everyone who dies while testing positive counts as a covid-related death, even if the virus can't be identified as the cause of death. 99.2% of deaths have been in people with serious pre-existing conditions, and only 12% have listed the coronavirus as a direct cause of death.
Local French authorities have banned alcohol sales in Aisne, ostensibly to cut back on family violence. Spain officially overtook China's death toll with 3,434 reported deaths (again, Spain is not testing, so these are all guesses). Wuhan recorded zero new cases, and Hubei residents boarded trains in large crowds as restrictions were finally removed. India banned the export of hydroxychloroquine. London City Airport is closing under the lockdown. Prince Charles tested positive, suffering mild symptoms.
New Yorks governor says NYC will close some streets to cars, allowing them to be used by pedestrians, because people don't currently have enough space to adequately follow the new "social distancing" rules. Pennsylvania reversed the Covid-19 gun sale ban by classifying gun shops as "life-sustaining businesses". Trump's response to Romney testing negative was slightly amusing:
Here's UN Chief Guterres's take on the current situation: Sounds to us like he's exaggerating...
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