“We need to set ourselves the objective of bringing inflation down to a new record low. The Central Bank is set to keep inflation from rising above 7.5%. This will be no easy task, given the rates we had early this year, but it’s not unrealistic. If achieved, this rate will be the lowest since 1991. And by 2014, we should try to bring it down further to 4-5%.”

“We hope that the building materials industry and the construction sector as a whole will promote the growth and modernisation of Russia’s entire economy.”

The meeting focused on LUKoil’s major projects in Russia and abroad, primarily in Iraq, as well as on taxation issues. Vagit Alekperov told Vladimir Putin about LUKoil’s plans for cooperation with Rosneft, noting that it is the first time in history that two Russian oil companies are creating a consortium.

Vladimir Putin and Alexander Khloponin discussed development plans for the North Caucasus Federal District, focusing on the draft of the long-term state programme, to be launched in 2012, according to Mr Khloponin. The prime minister emphasised the need to implement pending projects, stating that the Government can and will embark on them in the near future, without delay.

In his opening remarks, the prime minister focused on two new state-run agencies, the Export Credit and Investment Insurance Agency, which will help Russian exporters enter new markets, and the Direct Investment Fund, established to attract foreign capital to Russia.

Prime Minister Putin assured Mr Gurry that the Russian government is highly committed to protecting intellectual property, noting several recent and critical amendments to legislation.