“We must fundamentally change the situation in the region, make life in the North Caucasus attractive and, it goes without saying, safe and stable. This is our common goal.”

Issues discussed at the meeting included the social and economic situation in the Stavropol Territory. The prime minister stressed that “although the region has an excellent climate and soil for agriculture, you should develop not only farming. I hope you will focus on investing in industry as well.”

The meeting focused on transport infrastructure in Russia's Far East. Specifically, participants discussed the erosion of a Vladivostok motorway built in the run-up to APEC Leaders Week due to recent rains. The prime minister ordered his deputies to quickly restore the road, to pay compensation to people who lost their property, to investigate the accident's causes, and to identify the guilty parties.

“Today I cited one good figure which in my view characterises the potential of our cooperation – this is a 36% growth of our trade,” the Russian prime minister said.

“We live in a new reality because we have united into a Customs Union. We are creating a common economic space and, hopefully, will soon establish the Eurasian Union. All of these steps will change the business environment.”

Dmitry Medvedev issued a directive to draft proposals on introducing amendments to Russia’s competition promotion programme and an action plan for its implementation before 2015, and submit them to the government.

In his opening remarks, the prime minister said that the goal of today’s discussion is to assess the overall state of competition in Russia. The findings will be used to develop a new set of regulations.

According to the Prime Minister, “the tax policy in this sector should be aimed at encouraging more investment.”

“We need to rearm practically the entire army and navy, as well as other defence and security forces. In three years, at least 30 % of materiel in the army must be new and in five years it must reach levels of 70 %.”

The discussion focussed in particular on the outcome of the meeting on strategic aviation, in which, as the prime minister said, a number of important decisions were made, including one on the construction of a new assembly plant for the An-70 on the grounds of the Kazan Aircraft Production Association.