During the meeting they discussed this year's harvesting, and work underway to help the regions hit by drought.

“The main issue to which we paid attention during the meeting is the development of bilateral trade and economic contacts, and assistance to South Ossetia in restoring its infrastructure and social sphere, and in creating the conditions for normal, peaceful life of its citizens.”

“We are happy that South Ossetia is growing stronger as a sovereign state. You have held parliamentary elections while at the same time strengthening democratic institutes. Today we are to sign an intergovernmental agreement on socio-economic development and an agreement on the maintenance of law and order. These are additional instruments that will not only provide the basis for bilateral cooperation but will also help create the groundwork for South Ossetia’s development.”

At the meeting, Mr Putin and Mr Tokarev discussed Transneft’s participation in the expansion of pipeline transport capacity with outflow to the east and west, as well as the northwest – BPS-2 and a southern route.

“Let me recall that our strategic goals in this respect are to make the domestic space industry more competitive, and to more effectively use its potential both for resolving domestic socio-economic tasks, and for entering high-tech international markets. Obviously, we should not forget the industry’s role in our defence capability. Defence-related projects amount to 63% of what is being done in the missile and space industry.”

The First Deputy Prime Minister disclosed the budget deficit target for 2010: 3.2 trillion roubles or about 7.5% of GDP. “This is the maximum deficit we can afford. If we are to preserve macroeconomic stability, as early as 2011 and 2012 we must gradually but substantially reduce it to 3% by 2012,” noted Mr Zubkov.

At the meeting, Mr Putin and Mr Gref discussed Sberbank financing the reconstruction of the Sayano-Shushenskaya hydropower plant, as well as providing housing for the families of the victims of the disaster at the hydropower plant. The bank’s new services to the public were also discussed.

“We have approved a list of high-priority services, and have required that government agencies provide them electronically by the end of 2011. After additional analysis and consultations, we are adding almost 20 more services to the list. This will be the list of priority services,” said Sergei Sobyanin. He added that in the near future the government would approve an executive order outlining deadlines for implementing the project.

The meeting participants discussed measures to prevent illegal fishing and the smuggling of fish by vessels sailing under so-called “flags of convenience.”