9 april 2010

Prime Minister Vladimir Putin attends United Russia’s interregional conference held in the Siberian Federal District to discuss Siberia’s socio-economic development strategy through 2020 and plans for 2010-2012

Vladimir Putin

At the United Russia’s interregional conference in the Siberian Federal District on Siberia’s socio-economic development strategy through 2020 and plans for 2010-2012

Participants:
“The point of departure should be people’s needs. We should not assess our achievements in output or mining figures, although this is important. We should first of all assess the quality of our efforts by improvements in people’s lives, their satisfaction with their jobs, family incomes, housing, the quality and accessibility of education and healthcare, and infrastructure development of our cities and villages.”

Vladimir Putin's address:

Colleagues, friends, participants of the meeting,

As this meeting is being held in Novosibirsk, today we are going to speak about Siberia. We will discuss what we can and should do for local people, and for boosting the local economy and social development.

But this meeting will not be limited to this, as we are in fact starting work on drafting a socio-economic development strategy for all Russian regions. We must consolidate academics, the business community and public organisations towards this end.

A similar conference will be held in all the eight federal districts; after that we will have to implement their decisions in the form of laws and governmental regulatory acts, and in the budgets of all levels within the framework of federal and local programmes.

Today, United Russia seems to be the only party capable of attaining this goal, first of all because it has a large network and holds the dominant position in the local and regional governments. It also has the necessary organisational, intellectual and political resources for tackling such challenging tasks, and is prepared to assume responsibility for implementing these plans.

We are inviting all constructive political forces willing to join forces with us to work jointly toward achieving these development goals.

I think that out approach to regional development should be based on the following principles.

First, the point of departure should be people's needs. We should not assess our achievements in output or mining figures, although this is important. We should first of all assess the quality of our efforts by improvements in people's lives, their satisfaction with their jobs, family incomes, housing, the quality and accessibility of education and healthcare, and infrastructure development of our cities and villages.

Second, the solutions we propose must not create new problems. We must avoid reconstructing an archaic, distorted structure of the economy based on single-industry cities, which abound in Siberia.

We built such cities in the past thinking that we were doing the right thing because we needed to resolve problems the country was facing at the time. We built a plant and a town around it, and that was it. If a crisis hit that particular economic sector, the town was left without the means of survival. We must not allow such construction now.

To prevent a repetition of this problem, each region should have a place for both small and midsized businesses, for innovation, for the development of high technologies and modern highly efficient farming.

While mining resources and building industrial facilities, we must minimise their negative environmental effect, which means that we must use cutting-edge technology.

Third, we must also create a modern infrastructure and a favourable environment for business in which no one would be left outside the mainstream of economic or social development.

Yesterday evening we had an informal meeting with governors, parliament speakers and mayors of several Siberian cities to hold a preliminary discussion of the issues on the agenda of this conference. Some regions have more resources, while others are better located geographically; many participants in yesterday's meeting pointed this out.

Our task is to find competitive advantages of every region and to use them to maximum advantage, as a cornerstone for preserving Russia as a sovereign state.

Fourth, some tasks of economic and social modernisation are the same in all regions. Yet each federal district has its specific elements, which we must take into account. A specific feature of the Siberian district is the need to develop new territories that do not have enough roads and generating facilities, and where these large and expensive projects, or at the least most of them, must be built from scratch.

Moreover, we must create a quality of life in Siberia that will attract people, so that Siberia will not decline but flourish and its population will not decrease but grow.

By the way this is exactly what we see happening in many large Siberian cities. The population of Novosibirsk is growing. Oh, it must be the city's residents who are applauding. I will speak some more about demography later today.

Fifth, the projects we are planning are mostly complicated and multilevel, combining many aspects, from building social infrastructure to licensing and mining. To avoid mistakes and squandering of effort and resources, we should start with creating an effective management system.

The Ministry of Regional Development must become a full-scale manager of such projects, coordinating the efforts of the federal, regional and municipal authorities, development institutes, major companies and natural monopolies, as well as private investors and public organisations. The ministry must not limit its efforts to such traditional functions as the distribution of funds, collection of financial reports on projects that are seldom connected to each other, or projects and programmes of individual territories.

We also intend to actively use the capabilities of the Government Commission on Regional Development to promptly amend action plans and deal with routine problems.

I'd like to say that the goal of our work is not to provide central guidance in consolidating common management standards and models, some of which are ineffective. Such directive management has been proved inadequate.

Out goal is different. Each member of the federation, each city, municipality, business and public association must see and understand its role in the common logic of the country's development and modernisation and their place in the general picture of things; they must know that they are parts of a common effort to resolve nationally important problems. At the same time, they must have individual, highly practical short-, medium- and long-term development plans.

Our goal is to make full use of the capabilities of the federal and local governments and the business and civil initiative. We must create conditions for and encourage the development of those [regions] that want and are trying to achieve more.

Colleagues,

Now let us talk about Siberia proper. The exploration of Siberia is one of the most vivid and convincing proofs of the people's huge creative potential. It is regrettable that not enough is being said about Siberia's exploration and people's achievements and enterprise during that period, their ambitious plans and ability to implement them.

It was thanks to the efforts of Siberia's trailblazers, Cossacks, industrialists and peasants, that Russia became a huge Eurasian state spanning from the Baltic to the Pacific coast.

New cities and roads were built beyond the Urals, spurring trade, industries and mining. Schools, universities and research centres were opened, and the trans-Siberian Railway was built across Siberia.

The history of Siberia is also a history of mutual assistance, respect and friendly relations between various ethnic groups. The culture and traditions of Siberia's indigenous peoples have become an inalienable part of our common heritage.

The Siberian Federal District consists of 12 regions, which together account for 30% of the country's total territory and have 20 million residents. It has a powerful scientific and educational potential, for example, the Siberian branch of the Russian Academy of Sciences. The district's companies produce competitive products varying from up-to-date energy equipment to nanomaterials and automatic control systems.

Let me cite a few examples. The Krasnoyarsk Territory produces most of our spacecraft, including the GLONASS navigation system satellites. By the way, I visited an educational institution yesterday and inspected how the work is going in this sphere. We have achieved a great deal in this area.

The Irkutsk Aviation Plant is another example. It alone accounts for 15% of Russia's weapons export. That is a unique case.

Let us not forget about Novosibirsk's Valery Chkalov Plant, which takes an active part in one of our most important civil aviation projects, the Sukhoi SuperJet 100.

Siberia is the heart of Russia's hydro energy, coal and non-ferrous metals industries. Siberian plants produce 50% of the world's palladium, 18% of nickel and 13% of platinum.

We have recently started developing the East Siberian oil and gas region. The first stage of the pipeline to the Pacific Ocean has been constructed.

Finally, the Siberian Federal District harvested a record 18.3 million metric tons of grain in 2009, which means that we have almost reached one ton of grain per capita. According to expert evaluations, including those performed in the Soviet era, such production creates sufficient bread supply for the region and promotes a steady development of the livestock sector.

In order to support agriculture the government purchased 720,000 tons of grain from Siberian producers this winter. I would like to emphasize that it equals 40% of the total government intervention in the grain market and the funds were earmarked for Siberia.

We will certainly work on resolving long-term issues. We will develop sea ports in the Far East, build grain elevators and improve our tariff policy, so that Siberian grain producers can fully realize their potential in the Russian and international food markets.

Since 2000 the federal government has earmarked a total of 1 trillion roubles for supporting the Siberian regions. Budget transfers have increased by 10 times from 20 to 200 billion roubles per year. Further tens of billions of roubles have been spent on infrastructure facilities of federal importance.

Despite the financial downturn the region's economy has grown by 50% over the past 10 years. The residents' income has surged by more than 100%.

However, last year brought the existing problems to the surface. The region's industry is not enough diversified. That is what I mentioned at the beginning of my address today: the economy in many Siberian settlements is mono-structured, which makes it too dependable on fluctuations in raw material markets. Due to high transportation costs and inefficient technology, it is especially difficult for local enterprises to adjust to new economic conditions. The inflexible labour market makes it impossible for people to find new decent jobs when they need them.

Unfortunately we cannot overlook that Siberia is behind in terms of living standards and the quality of its economy. But we need to catch up and resolve these issues. Our strategy should be aimed at dynamic development and that is what we will speak about today.

Let me cite Emperor Alexander III, who said more than a hundred years ago: "I hope that the vast and rich Siberian territory, being an integral part of Russia, will enjoy access to the government authorities, the benefits of education and the industry growth for the common good and glory of our Fatherland." These words are no less apt today.

* * *

Ladies and gentlemen, I have promised to say a few words about the demographic situation. We have both moral and material incentives for our work.

In 2000, 198,000 children were born in Siberia. In 2009, that number was 274,000. Since 2000, Siberian birth rates have increased by 40%... That applause is for those who made this possible.

In 2009, the number of people arriving in Siberia exceeded the number of those leaving the region for the first time in many years. In effect, people have started deliberately choosing this land for their life and professional career.

We should realise that they will be followed by real investment and state-of-the-art technology, which will lay the foundation for the region's sustained development.

Consequently, we must do everything possible in order to attract skilled specialists from other Russian regions to Siberia, so that they can have families here, raise children, open their businesses and build their homes.

And now a few words about the construction industry. In the past ten years, 45.5 million square metres of housing were built in Siberia. Housing-construction rates have expanded more than twofold. I would like to note that a considerable number of Siberian regions exceed Soviet-era levels for both the pace and volume of housing construction. Back then, this, as well as the sort of extraordinary grain harvest I mentioned, would have won prestigious awards from the Soviet government. At present, such statistics are perceived in a more routine way.

Unfortunately, many Siberian cities and towns are notorious for their slums and dilapidated housing. The percentage of rundown housing exceeds average nationwide levels by a third! The share of rundown housing in Russia is 2.7%, while in Siberia it is 3.8%.

Naturally, this situation has evolved over the decades. In Soviet times, the money earned by Siberians was actively invested in the development of the former Soviet republics and other regions of Russia, while the so-called residual funds went to meeting Siberians' needs.

But today, we must solve the problem of rundown housing. As I have repeatedly said, the people must be relocated from the slums, no matter what.

In the past few years, we have been implementing the Russian Housing Development Fund programme. The programme is designed to demolish these slums and provide people with decent housing. About 30,000 Siberian residents have already received new flats through this programme. A total of 41 million square metres of housing, inhabited by two million people, have undergone major renovations. In effect, 10% of the Siberian Federal District's population has felt the effects of this programme. Moreover, many cities have their own housing renovation programmes. In effect, people are getting new homes.

In 2008 and 2009, the Russian Housing Development Fund's programme for the Siberian Federal District received 28.2 billion roubles. As you know, we will continue the Fund's programmes.

But other mechanisms should also be utilised. We must subsidise mortgages for young families, families with many children and young professionals, facilitate the adoption of regional and municipal housing programmes and create investment incentives for companies to encourage them to build housing for their employees.

This entails construction of permanent housing in South Siberia and comfortable towns for temporary workers serving their shift in the newly developed Arctic and polar areas.

Instead of huddling in temporary houses around oil and gas fields or coalmines, people should live in a normal environment and a favourable climate, where it is possible to give their children a good education.

Here is one more paradox. Although Siberia has a huge area, few private homes or low-rise apartment houses are built here.

Nevertheless, some successful projects can be mentioned. For instance, the Lesnaya Polyana (Forest Glade) neighbourhood of low-rise apartment houses, built in Kemerovo, continues to expand. Fifty thousand square metres of new housing have been commissioned there in 2010, and there are plans to commission another 40,000. A 450 million rouble loan from the federal government for building an access route is also scheduled to be issued this year.

Frankly speaking, we are ready to invest in infrastructure projects and to facilitate their implementation.

Kemerovo's Lesnaya Polyana neighbourhood offers affordable housing for people with different income levels. All the required social infrastructure, including day-care centres, schools and general practitioners' offices, has been built.

I believe that we must prioritise the construction of low-rise flats and simplify the process for allocating land for the construction of private homes to the greatest possible extent. The regions and municipalities have been charged with providing the required infrastructure. As I have already said, this can be done with our support, if need be. Every region must implement projects similar to the Lesnaya Polyana project. This task is quite feasible.

Moreover, the people of Siberia, not the people of some distant lands, must have access to top-quality healthcare. This is a highly important issue everywhere, in our country and the entire world, and it has special significance for Siberia.

I believe you already know why this is so important for Siberia. It is because the average life expectancy in many Siberian regions still falls short of nationwide levels. Consequently, we must prioritise such aspects as telemedicine, expanded air-ambulance networks, the creation of an extensive network of primary care facilities and major, multiregional basic clinics with high-tech medical equipment.

What can be accomplished for Siberians in this area? What can we do and what will we do in the near future? It is our intention to work with the regions to build a neurosurgery clinic in Novosibirsk. The foundation of the clinic has already been laid. There are also plans to build a cardiovascular surgery centre in Krasnoyarsk and a traumatology and orthopaedics centre in Barnaul. And we need to finish the perinatal centres in Kemerovo, Krasnoyarsk, Tomsk and Chita, and instal new equipment there. I would like to add that the Irkutsk perinatal centre has already been commissioned.

Ten billion roubles worth of federal funding will be invested in the construction of high-tech medical centres in Siberian regions.

However, there are also some problems here. As you can see, I am trying to focus on various problematic issues during my speech. The Krasnoyarsk centre is scheduled for commissioning in 2010, while the deadline for commissioning the Barnaul and Novosibirsk centres is 2011. But the government still has not confirmed the final date. We must do so in the near future.

The federal government has fulfilled all its financial commitments for the Kemerovo centre and allocated 750 million roubles. All this has already been accomplished. From now on, the centre's construction must be financed out of the regional budget.

The administrations of the constituent entities are insisting that the cost estimates for the Krasnoyarsk, Chita and Tomsk centres be increased. All this must be examined accordingly. At present, the Ministry of Healthcare and Social Development is trying to find out whether such proposals are justified.

I call on all my colleagues to join these consolidated and serious efforts. Naturally, all these projects must be completed and will be completed, no matter what.

* * *

Colleagues, with its rich scientific traditions, Siberia has become a pilot area for the development of new models for restructuring higher education. From 2007 to 2010, we spent 9.6 billion roubles to establish and develop the largest institution of higher education in the Russian East - Siberian Federal University.

I am sure that in the near future its graduates will be working in many large, well-known companies and government agencies, where they will honourably serve both Siberia and all of Russia.

In late 2009, two other well-known Siberian universities - Tomsk Polytechnic University and Novosibirsk University - won the competition to receive the status of national research universities.

Each of them will receive 1.8 billion roubles for further growth, with which they will be able to buy new equipment, organise internship programmes and develop new academic programmes and curricula.

However, the Ministry of Education and Science will closely monitor a series of benchmarks for these research universities, including an increase in the number of scientific works published, an increase in the number of patents received and the creation of small, innovative companies.

I should add here that 18 additional Siberian institutions have applied for research university status. We will have another competition. Not all of them will receive this status, otherwise it wouldn't be a competition. Nevertheless, their interest shows that people do not want to stand still, but strive to work in a new way and bring innovations to life.

And so we assessed our resources once again and decided to adopt a series of additional measures to bolster higher education and science. A meeting on these issues was held here yesterday, discussing grants for leading professors, the establishment of an innovative infrastructure and financial support for research and development projects that the universities will carry our under contracts with businesses and industrial enterprises.

Certainly, university research centres should be closely connected with other regional development institutions, including technology parks, business incubators, and industrial and technological innovation zones.

We are building one such technology park in Akademgorodok, here in Novosibirsk. It will specialise in bio-, nano- and information technology, as well as electronics and instrument-making. Fifty companies have thus far registered to reside, so to speak, in this technology park.

In 2009, companies in the technology park manufactured 3.3 billion roubles worth of products. This is a good trend. From 2007 to 2009, one billion roubles' worth of federal funds had been invested in the park, and another 194 million roubles will be invested in 2010.

Construction has been completed on the Technological Support Centre; work on other projects continues.

A special economic zone for technology and innovation has been established in the Tomsk Region. A cluster of new materials, medical and telecommunications equipment is being formed there. There are plans to invest over 25 billion roubles in this zone, 6.5 billion roubles of which have already been invested. This economic zone has created almost one thousand new jobs.

There are plans to invest 4.3 billion roubles in it in 2010, including three billion roubles from the federal budget.

Radically new technology for Russia for extracting gas from coal beds is a promising field for the Kuznetsk Basin. I discussed this issue with Governor Tuleyev yesterday.

This project also has an important human aspect. Condensed underground methane poses a serious threat for mineworkers' life and health. Gas production with the use of new technology, and, consequently, removing gas from mines, will make work safer for miners. A total of 4.3 billion roubles have been invested in the project, which is now in progress.

We also should continue restructuring the coal industry and resolving social and economic problems in coal-producing regions.

Incidentally, the governor reminded yesterday that we should resolve some issues regarding pension insurance. We have discussed this issue with the State Duma Chairman. The mineworkers are waiting for this decision. I ask our party in the State Duma to accelerate the adoption of this law.

I know that entrepreneurs and the owners of these assets have certain doubts about this project, as there will be specific costs involved. We will reach a compromise with them. They will not grow poor, as we have always supported them and, I would like to emphasise, will continue supporting them, because, indeed, their work serves a useful purpose.

The industry has done quite well recently, in part thanks to their efforts. It has survived the downturn well. But social problems should be resolved. Both the state and the business community should be responsible for this.

Next. In Irkutsk, together with the Russian Nanotechnology Corporation, we plan to implement a unique project for our country to manufacture polycrystalline silicon, which is the basic raw material in electronics and solar power technology. The Russian Nanotechnology Corporation is participating in the implementation of the project. A 4.5 billion rouble loan and 3 billion rouble guarantee are involved. I hope that investors will invest another 11.5 billion.

Other regions of Siberia should find their own path toward a modern economy. We need to bring in new capital to supplement the traditional natural riches of Siberia - coal, gold, oil, nickel and so on. We need innovative industries, advanced technology and a reliable, resilient, and modern infrastructure.

A few more words on this point. Today, Siberians often cannot even travel to neighbouring regions without transferring at some stop along the way, much less the European part of Russia. The environment in Siberian cities suffer from traffic jams and intense transit. We talked yesterday about how it's often necessary to go through Moscow to travel between neighbouring regions.

Steps have already been taken to fix the problem. In Novosibirsk, the second runway at Tolmachevo Airport has been completed. Practically everything there is finished; services just need to be set up so the runways can operate normally. In Krasnoyarsk, a bypass road has opened outside of the city. Similar bypasses are under construction in Irkutsk and Novosibirsk. Here, in Novosibirsk, construction has begun on a third bridge across the Ob River.

By the way, this work will cost us pretty penny. For example, construction of Tolmachevo's second runway lasted from 2002 to 2009, with almost three billion roubles invested from the federal budget. It will officially open in July, as I've mentioned. We allocated 1.6 billion roubles for the construction of the Novosibirsk bypass in 2010. It is expected to be completed in 2013. The Irkutsk bypass will cost 1.1 billion roubles. It should be completed in 2010.

But, considering the scale of the problems, even this clearly won't be enough. We must make fundamental changes and transform transport from the Achilles' heel of Siberia into a strength of the region.

We need to modernise airports in regions like Gorno-Altaisk, Kyzyl, Barnaul, Kemerovo and a number of other cities.

At the same time, we have started to restore the transport system in remote areas. In 2009, renovations of the airport in Khatanga were completed. In 2010, the same will be done in Igarka. Work is planned in Tura and Yeniseisk. Regional aviation will develop accordingly. There is huge demand for it here - it is critically important for Siberia.

There are new Russian-made regional planes, as I mentioned. You've probably seen them already. The An-148 has turned out very well. The engines are placed in a high position and the plane can take off and land on an unpaved airstrip. In other words, it's a good airplane and an economical one. It can certainly be used in this region.

We cannot manage without modern transport corridors, which will allow us to effectively arrange the social and economic space of Siberia and provide additional access for our goods to the neighbouring markets of Kazakhstan, Mongolia and China.

This is why we made a point not to delay reconstruction of such basic facilities as the Chuya Highway and the Baikal Highway from Chelyabinsk to Chita. We will finish work on the Chita-Khabarovsk highway at the same time.

As a result, this year we will solve a strategic problem - we will provide a straight automobile corridor from Moscow to Vladivostok that will follow a safe, normal route. This will be done for the first time in our country's history. Just as the Trans-Siberian Railway was once built from the European part of Russia to the Far East, we will finish building a motor highway from European Russia to Vladivostok.

By the way, we will have spent a total of 71 billion roubles on this road (the Chita-Khabarovsk road is called Amur) between 2001 and 2010.

In 2014, the Republic of Tyva should finally have a railway, which will allow us to build a major coal-mining complex there, and, more importantly, it will rescue the republic from this transport impasse, which is hindering its development.

In total, over 130 billion roubles are planned to be invested in this project, including 49 billion roubles from the Investment Fund. Money from the Investment Fund used for these purposes in 2010 will be capped at four billion roubles.

The government is currently planning to auction off the right to develop the coal deposits of Tyva. Many major companies plan to submit bids.

And I ask the Ministry of Regional Development and the Ministry of Natural Resources to work together with their colleagues from the Republic of Tyva to help co-ordinate the work of investors and consider establishing a consortium that will invest in general-use infrastructure. Such an approach will ensure the balanced development of this region.

I would like to draw your attention to this one example - it applies to other regions, the country as a whole and Siberia. Someone gets a licence for a deposit and builds some infrastructure. Then other persons obtain other licences, practically in the same region, but there is no infrastructure there. This is one of the reasons for this meeting today (to return to the beginning of my speech) - to outline the comprehensive development of regions of the country and, in this case, Siberia. We need to determine in advance what is required, where, and how much in order for our country and the regions of the Russian Federation to develop harmoniously.

Next. As a matter of fact, we need to build transport infrastructure from scratch in order to develop the southeast of Transbaikal and the Lower Angara River area. Mining, metallurgy and timber industry clusters will be formed there, creating thousands of new jobs.

By the way, 29.9 billion roubles - almost 30 billion - has already been invested in the project to develop the Angara River and Lower Angara River areas. There is both a railway and the Kansk-Abakan-Boguchany-Kodinsk highway there. In 2010 alone, funding for this infrastructure will reach 1.6 billion roubles.

A project that is comparable in complexity and scale has already been completed in the north of the Krasnoyarsk region. In 2009, oil production began at the new Vankor oil and gas field. Around 3.4 million tonnes of oil have been produced. The target for 2010 is already 13.5 million tonnes. I should also mention that from the very beginning, everything has been done in a smart way there, meaning we have been using modern energy-saving and energy-efficient technologies. The average wage of the workers employed at Vankor is 74,000 roubles a month.

Now we must take the next step - developing and implementing a programme for the comprehensive development of the deposits in the Yamal-Nenets Autonomous Region and the north of the Krasnoyarsk Region. The government is working on a draft programme now. I'd like to point out that the draft programme calls for a 75 million tonne increase in oil production. Our specialists understand that this is a very large amount.

We also must substantially increase the capacity of Siberian power systems, by a third at least. This means that we must build new plants with combined capacity of 15 GW.

The Boguchany hydroelectric power plant is perhaps the largest power facility under construction in Siberia. Its first generating unit should come online in December 2010. Boguchany will be completely operational by 2013. Private investment in the construction of the Boguchany hydroelectric power plant in 2010-2012 is estimated at 24.6 billion roubles. And nearly 2 billion in federal funding is planned for some works under the project in 2010.

We will finish reconstruction of Sayano-Shushenskaya hydroelectric power plant by the same deadline. As you know, two of its units have already been repaired and are operational. Two more will resume operation at the end of 2010.

Recently in Khakassia we held a special meeting on investment plans in the power industry. We had a very frank, meaningful and perhaps, at times, even a harsh discussion with the heads of the generating companies. But I am convinced that the construction of new power industry facilities in Siberia will be completed as planned.

And one more major aspect of our work. In creating a new economy, we should adhere to the strictest environmental standards. The United Russia party will maintain an ongoing dialogue with environmental organisations and with concerned public associations in order to jointly ensure that environmental protection laws are enforced. This is especially important for Siberia, with its truly unique natural environment.

Every citizen of our country has probably heard of Lake Baikal and the Altai mountains. We hear about them literally from grade school onward. But not everyone can spend a holiday there. The huge tourism potential of Siberia is obviously not being tapped now. It all hinges, of course, on infrastructure, for there is an obvious lack of normal modern services.

And after all, tourism in the Siberian regions will mean new jobs and the right conditions for the development of small and medium-sized businesses that we are constantly talking about. This is one of the most promising ways to solve the problem of single-industry cities and economic diversification.

Therefore, we will support projects like the Baikal Harbour, Turquoise Katun and Altay Valley recreation zones, which will be able to accommodate hundreds of thousands of tourists per year. Certainly, development of tourism infrastructure should not be limited to these centres. Development of the sports and recreation industry should be done everywhere it makes sense and everywhere the prospects are good.

The cost of the infrastructure for the Turquoise Katun project in the Altai Territory is 11.4 billion roubles, of which three billion roubles will be allocated by the federal government in 2010. I believe those who know what this is understand that this is big money.

This investment will certainly move this project forward and contribute to the development of Altai in general. At least I hope this is the case. There is no room for interruptions in projects with this much funding. This project alone will employ up to 500 people.

The cost of the infrastructure for the Altai Valley project in the Republic of Altai is estimated at 7.5 billion roubles. Over one billion roubles will be allocated from the federal budget for this project in 2010. In addition, 2.2 billion roubles will be provided for several infrastructure projects in the Republic of Buryatia in 2010.

It is gratifying that three more residents were registered in this zone recently. As I mentioned, an additional 3.4 billion in investments are planned. Five billion roubles have been invested so far, with 224 jobs created. Construction is planned to finish up in 2013.

All regions must have a common tourism development strategy. There is no need to invest in duplicate roads, power stations and substations. It would be better for regions to coordinate various projects and develop common transport and energy plans. Saved money could go toward environmental and infrastructure projects, including the construction of hotels, as well as support for businesses.

* * *

A series of directives and the Siberia Development Strategy will be formulated within a month, and they will incorporate ideas raised at today's meeting. Also, we'll prepare a list of projects for the next two years that require government approval. The regions of the Siberian Federal District will need to adopt the same plans.

However, while developing this strategy for the future, we must not forget about the day-to-day problems of ordinary people. We can talk about future prospects, but we must not neglect the problems people face today.

The recession affected population of Siberia greatly, reducing real incomes by 6.7% in 2009. Incidentally, in spite of the economic downturn, last year real incomes rose in Russia in general, not counting inflation. Even though inflation was at a record low last year, population real incomes increased in Russia on average. However, they fell in Siberia. Unemployment also went up by 216,000 people. Unpaid wages reached 884 million roubles, which is quite a lot.

In the face of such problems, you cannot retreat. You must take them on one by one and deal with them. We cannot just sit by like passive observers waiting for the global economic trends to change by themselves.

As long as we are experiencing economic difficulties and the situation is unstable, we have no right to wind down our anti-crisis programme. We must continue to carry on with the programme at every level of government to ensure the welfare of the people, maintain living standards, and support industries and businesses that are going through hard times.

United Russia has always been guided by the day-to-day needs of ordinary people, using its power to make their lives better, and we will never abandon these principles, not even in the face of a global recession.

We index social benefits and render support to the unemployed. A total of 363,000 people are benefiting from employment programmes in Siberia alone, with 5.3 billion roubles allocated for this purpose. We will continue these programmes in 2010. Since the economic situation and production are improving, we can provide a bit less funding than in 2009. Still, the funding will be significant - 4.6 billion roubles from the federal budget.

We've overhauled the pension system to improve the living standards of the elderly. As you know, in April pensions were indexed at 6.3%. The average retirement pension now stands at 8,180 roubles. Total pensions and other social benefits for veterans of the Great Patriotic War rose to 23,000 roubles.

We will provide 166 billion roubles for the indexation of pensions in 2010 despite continuing economic difficulties.

In addition, I've recently signed a resolution to allocate 34 billion roubles to provide veterans with housing, and we'll try our best to resolve the housing problems of our elderly.

* * *

Ladies and gentlemen,

There are a lot of our supporters in this hall, including MPs, mayors and regional administration officials. How ordinary people view United Russia depends largely on your performance. I would like you to bear this in mind and to act responsibly.

Our plans must not be buried under bureaucratic delays, indifference, bribery and a lack of discipline. United Russia must participate actively in eliminating all sorts of barriers preventing people from working normally.

New laws and regulations alone are not enough, although they are certainly very important. Nothing can be done without them. However, our main objective is to get executive bodies to address the actual problems of ordinary people and businesses. This is the common aim of the federal government and regional authorities, including in Siberia.

Modernisation is the only way to deal with the negative effects of the recession. We must improve the system of social services and promote high technology in the economy to improve the lives of ordinary people. We must also create favourable conditions for businesses, in particular new high-tech businesses.

I am confident that our focus on this region and the efforts of the government, businesses and ordinary people will pay dividends. We will build a strong and prosperous Siberia together.

Thank you for your attention.

 * * *

Prime Minister Vladimir Putin answers conference delegates' questions:

 

Coordination procedures in the construction industry

As they used to say in the good old days, all tasks charted by the Communist Party will be fulfilled, no matter what. There should not be any doubts. However, the problems you've just mentioned really do exist. We have been actively discussing them for several years. The first problem concerns various bureaucratic procedures linked with construction permits. But you have not said everything. Apart from construction permits, it is necessary to obtain documents on commissioning these completed buildings. This is a separate problem that has been dragging on for up to six months in some regions. I also know this. You, too, are probably aware of this.

You must have noticed that the government has been working to de-bureaucratise the adoption of the relevant decisions inside some economic sectors, including the construction industry. The situation in the construction industry is absolutely outrageous. I can tell you that specific deadlines for obtaining the required permits for national construction organisations vary from region to region. In some regions, this deadline is 30 days, while in others it may be as long as 300 days and even one and a half years. Incidentally, this is true of some developed and advanced regions.

For this purpose, we have adopted a number of measures to standardise the decision-making process, including those with the use of information technology and the internet. At the same time, I would like to draw your attention and to thank you for raising this issue, which concerns all our colleagues present in this hall without exception. The resolution of such issues, including construction industry issues, is the direct prerogative of regional governments. True, much has to be streamlined at the federal level. We will do this, and we are already doing this. However, it is up to regional governments to implement these decisions. The Prosecutor-General's Office is presently conducting an investigation at our request. Certainly, we will analyse the results of this investigation and will send the relevant documents to the regions. But I would like the deputies of all levels and regional leaders who are directly linked with United Russia or are its members to prioritise this issue. All this can and must be streamlined because otherwise the construction sector will not develop effectively. This is the first aspect.

 

Land plots

Land plots and authorisation procedures linked with their allocation are the second aspect. This sphere, which has also been entangled in red tape, is, unfortunately, an extremely corrupt and crime-ridden sphere.

All the required decisions have already been passed at the federal level. But I would like to state with all responsibility that a considerable part of municipal entities and regions continue to invent additional barriers, so as to force individuals and businesspeople to spend money on overcoming these hurdles. I am also asking you to pay particular attention to this aspect. Perhaps the deputy corps is called on to play a decisive role here. This is because the deputies are not burdened by any previous administrative decisions, with which the regional or municipal authorities may be linked. I mean purely bureaucratic and administrative decisions, not in the criminal sense, of course. We must insist that such barriers be removed.

All these procedures will be accomplished in line with the one-stop shop principle, through the Federal Service for State Registration (Rosreestr). Everything is being standardised and organised into one agency. We advise doing the same at regional level.

 

Credit resources and loans

And now a few words about credit resources and loans. As you have said, this issue is extremely exasperating. This is not the right way to manage the economy. I would like to draw the attention of all our colleagues that the Central Bank's current refinancing rate is 8.25%, an all-time low. As I see it, the failure of commercial banks to react adequately is a separate subject linked with considerable post-crisis risks. The other side of the coin is that we have allocated substantial resources for the support of the banking sector. Naturally, we have every right to expect that commercial banks will react far more promptly to the Central Bank's policy. A year ago, your refinancing rate was over 20%. And now you are saying it's 17%. This is also too high, considering that the Central Bank has an 8.25% refinancing rate. It is very strange for a regional bank to have such a high rate. The Central Bank should pay attention to this. However, we cannot take administrative action in order to force them to reduce such rates. All we can do is subsidise specific project rates. Judging by the overall financial and economic trends, commercial bank rates will inevitably come down as the Central Bank maintains a low refinancing rate. There is no alternative because they would otherwise lose their clients.

 

The development of the transport infrastructure

As I have already said, the development of the transport infrastructure is a highly important aspect of overall regional development. We discussed light aviation Monday evening. Naturally, we have to think it over, if you believe that the resolution of issues linked with this sector's development is also entangled in red tape.

I can say straight away that such decisions must be de-bureaucratised. However, you and I realise that any de-bureaucratisation should not impair safety issues.

One of our most famous cosmonauts, who is present in this hall, knows all about aviation and space safety. Unfortunately, this is linked with bureaucratic procedures, which, of course, should be minimised.

As far as high-speed trains are concerned, we have discussed this issue with the CEO of Russian Railways. I have asked the company to look at ways to expand high-speed train traffic in European Russia and Siberia.

This programme is quite feasible and is in high demand in Siberia, especially if we take a look at the transport infrastructure in the central sector. The distance between Novosibirsk and Krasnoyarsk is 600 km, and between Novosibirsk and Omsk it is just over 300 km. This is a great opportunity for high-speed train traffic because their passengers travel in armchairs, rather than sleeping compartments. Passengers cannot sit for 12-15 hours because it is uncomfortable and because experts consider this inappropriate. However, these distances are perfect for high-speed trains.

Technically speaking, Russian Railways is drafting these proposals and will soon submit them, although this will require considerable outlays. However, it is possible to start implementing this project here. In particular, this concerns routes linking Krasnoyarsk, with its population of almost one million, with other Siberian megalopolises - Novosibirsk and Omsk.

 

Energy

There are several major setbacks regarding our electrical power industry. First, there's worn-out electrical distribution networks. Every industry has its problems of course, but power engineers report that transmission lines have exhausted an appalling 70% of their capacity. Electrical distribution networks are essential for the development of the economy and must be upgraded and expanded. The economy will collapse without them, just like a substation collapsed near Moscow a few years ago. It rotted from the inside and collapsed.
We need a new approach to make investment as effective as possible. We should encourage businesses to invest more in the electrical power industry, including the construction of new power generating units and electrical networks.

 

Utility prices

Why do utility rates surge abruptly? We've pointed out the need to raise utilities prices gradually in order to ease the burden for consumers in various sectors of the economy, in particular in agriculture. But our requests sometimes seem to fall on deaf ears. In the regions, some act as if they've never heard of our decisions.

The federal government sent a clear message that those who have failed to implement our decision in time and refuse to do so this year won't receive anything from the Housing and Utilities Reform Fund. Unless they abandon the principle of cross-subsidising in 2010, they won't receive anything from the Housing and Utilities Reform Fund in 2011. Those who haven't done so and refused to implement these decisions to make the transition easier for common people and the economy, though they could do it all in one go. And utilities prices skyrocketed overnight, of course.

I cannot rule out that they are motivated by self-interest and are corrupted. They just wanted to give their affiliated companies a chance to make some easy money. However, in most cases this is explained by a devil-may-care attitude and inability to make timely and responsible decisions. It's very convenient to shrug off responsibility and let others do your job.

I want everyone here to understand that a good policy requires a clear understanding of the laws of economics and an ability to explain them to ordinary people. I can tell you that people will support your policy if it is open, transparent and clear to everyone.
People will understand and support you if you make clear why it's necessary to make a particular decision without delay and what a failure to do so would mean. Unfortunately, this approach is not used by many. It's easier to promise people the moon, and keep utilities prices down a couple years, and then jack prices up all at once. It's a very irresponsible approach.

The situation is certainly far better in the regions where they act more responsibly. Utilities prices rose by 10% to 14% in Siberia on average, to my knowledge.

They grew by 7% in Novosibirsk, increasing by 10% for agriculture. That's higher than the average for the reason, but still it's only 10%, not 25% or 30%.

It is necessary to phase out cross-subsidising in the economy. We'll probably have to revoke our decision to deny access to the resources of the Housing and Utilities Fund to those who refused to relinquish the practice of cross-subsidising in the past years. We'll enact this decision in a milder manner. But those who acted improperly will not avoid sanctions. I want a list of regions and municipalities where these issues were settled later than was needed, or inappropriately. This is the first point I'd like to make.

 

Support for agriculture

The government has pursued a well-thought-out policy for years, and we can see the fruits of our labours now. I'm sure it's no news to anyone that industrial production fell last year, with GDP declining as well because of the global financial and economic downturn. Industrial production fell by 13%, as far as I remember.

However, there was no decline in agriculture, which actually performed well last year. The increase was not very high, but the key thing is that we managed to avoid a decline. Meanwhile, the defence industry and the rocket and space industry rose by 13% and 17% respectively.

Agriculture didn't show such high growth rates, but, I repeat, there was no decline. It's quite an accomplishment during the downturn, and it's something to be proud of. This was made possible in part due to our efforts. We allocated 45 billion roubles to Russian Agricultural Bank and another 25 billion roubles to Rosagroleasing [the State Agro-Industrial Leasing Company]. We also subsidise up to 80% of the Central Bank's refinance rate for short-term loans, as well as the purchases of fuel, seeds and fertiliser. We subsidise almost everything!

In addition, we've improved the system of taxation, accelerated the processing of documents and eased the tax burden on agriculture. It's a comprehensive programme, intended to support one of the backbones of the Russian economy, which employs 40 million people in this country.

This year we are planning to allocate the same amount, 110 billion roubles, for agriculture. We'll certainly continue this policy.

 

Overcoming the downturn

I would like us to start with the actual state of affairs and understand the conditions we still have to work with: the downturn is not over yet.

GDP fell in 2009, and despite growing oil prices, budget revenues will diminish this year. Oil prices are creeping up, but I don't know how long that will last. So far they've been going up, thank God. Given that the economy has been in decline, budget revenues will drop somewhat as well. And we must keep that in mind. I'd like the State Duma members present here today, all the members of our party in the State Duma and the members of regional legislatures to bear it in mind.

We'll certainly come out of downturn; we're already coming out of it, but our policy must be very prudent. We cannot spend more than we earn, otherwise we'll stall the economy, frustrating its macroeconomic indices.

We must act carefully so as not to disrupt the programmes underway. It'll require more funds since we'll have to make up for the budget deficit using the reserves we accumulated in the government reserve funds, including the National Welfare Fund and the Reserve Fund...

We can afford it and even minimise possible losses, due to our effective economic policy over the past years. Moreover, we'll even increase our social commitments to our people, while sticking to all the commitments we adopted earlier. I should note here that other governments have had to cut pensions, salaries and social benefits.

Countries with developed market economies and infrastructure - the latter is especially important - have found themselves in a predicament. I'm sure you've heard about the developments in Greece, Spain and Portugal, not to mention Iceland. Although it's not a EU member, Iceland is a developed economy. Nevertheless, it's gone bankrupt. The situation in the Baltic States - Latvia, Estonia and Lithuania - is also very difficult.

We certainly should not gloat at their misfortune. We should support our partners no matter what political disagreements we have had in the past. They are our neighbours, and the condition of our economy partly depends on their success.

 

Development of Sochi

We have several big projects in works. Sochi, which was mentioned here today, is not just an Olympic project; it's a programme for the development of southern Russia. Billions of dollars will be invested in its infrastructure.

Sochi is a well-known resort, but it has no proper sewage system yet! You call that a resort? Every winter transmission lines break down in the mountains, because heavy snow downs wires and they collapse. Every winter there is a blackout in the region.
There are no good roads there yet. We've built a bypass road only recently. We'll build a sewage system soon. We laid a gas pipeline, and built a power station in the region. There are a few substations there. We built a new railway, a new port and a new airport. People will be able to use all of this for years.

Sports infrastructure is quite costly, although it cannot be compared with the cost of overall infrastructure.
But we also must act intelligently here. Some of the facilities will be dismantled later and then transported to other places with a similar climate to be assembled there again. Therefore, people in different regions will be able to use the same facilities. Some countries haven't been that wise on this issue, for example Greece, whose stadiums now stand idle. We have taken into account their experience and will not repeat their mistakes.

Also, we'll host the APEC summit in Vladivostok, and are planning to build a whole town there. This won't be done just for a one-time conference; we'll construct a university building there. Nothing of this kind has ever been done in the Far East. We'll develop the oceanography centre for the Academy of Sciences, and a new tourist complex there.
We must act rationally and consistently. When we finish the Sochi project, we'll see whether we'll be able to invest more in other social projects of this kind. We'll soon start investing in Trans-Baikal Territory.
In addition to Trans-Baikal Territory, we need to select a good location for the national team's big mid-altitude training centres. We lost sport centres there, which were important for big sports.

 

Support for student construction brigades

You mentioned that United Russia and the government support this initiative. I'll discuss this with the agencies and ministries concerned, including the Ministry of Education. It's good that Mr Gryzlov and other our colleagues from United Russia are present here today.

Please articulate your proposal again, if you want any additional decisions to be made on this issue.

Good. Let's take it into account and see what else can be done to support student construction brigades. I have no doubt it's necessary to restore this system. I fully agree with you.

 

Cooperation between science, education and industry

Cooperation between science, education, industrial production and the economy is closer here and in Siberia as a whole than in any other region of the Russian Federation. Obviously, this is an example that deserves support, and we will do that. We will support this in every way, develop it and spread it to other regions.

Not all regions have managed to achieve this. In fact, in most cases the situation is the opposite - science exists in its own world, the economy exists in its own world and higher education exists in its own world. We must bring them all together. Here they have done it. In general, this is a unique place.

Of course, this is also thanks to how everything is concentrated here. We must pay tribute to our predecessors. The development plan for the Siberian Research Centre was well thought-out. Modernisation of production facilities and the establishment of institutions of higher education were carried out successfully. This is of vast importance for the country's economy and defence capabilities.

I am sure that many people already know about this. Our colleague has just cited examples regarding silicon, which is very closely linked with nanotechnology. These things are not just promising - without them the country will not be able to exist, because they are absolutely necessary for our economy and defence capabilities.

Here is a simple example. Many know about missile early warning systems. They are basically a huge aircraft, let say an Ilyushin IL-76 cargo plane, filled with equipment. The technology that we have just brought up makes it possible to replace that aircraft with a machine the size of a fly. This is where the future is.

The countries that master and introduce this technology will be competitive. They will develop, and at least ensure their own existence. They will be in the lead. Those that fail to do so will gradually decline, to say the least. By this I do not mean the more adverse consequences of our lack of competitiveness. So we will necessarily give top priority to sectors you have mentioned now.

Supporting culture

Obviously, the work of the people in the arts should not be measured in economic terms. The role of culture is different.

Culture should support the moral foundations of our society. This is no less important than resolving economic issues, even in those high-tech spheres that we have discussed today.

Sometimes it seems that our culture is boundless, like our natural riches. But if we ignore it, we will face problems that unsettle and even terrify us. I'm referring to increased crime, including juvenile delinquency, drug addiction and alcoholism, that is, nihilism in the worst sense of this word. Eventually this will destroy society and the state as such.

Of course, it seems at first sight that culture costs nothing, that it is in its own world, given by God, by nature, and that it will always exist. Such attitudes have always existed but it is good that there are people who pay attention to this, who alert us that these attitudes are wrong.

There is little support for culture at the federal level as well, but we will increase our efforts to support culture. In 2008 and 2009 we drafted an entire programme to support regional centres, something we have not done before. The programme provides for the construction of new facilities and the renovation of the old ones. Yet, ultimately this should not be the job of the federal government.

I'd like to address regional leaders at this point. At the federal level we must bear our part of the burden. We are to blame for not paying enough attention to this problem. But you are not doing much at the regional level, either. Paying more attention to culture must become a national goal.

In this context, the role of United Russia deputies is very important here. In this case, you cannot issue an order from Moscow as to where to build a cultural centre or a theatre.

We are helping a number of regions, providing funding for many regions. But we cannot fund everything from the federal centre and build every village cultural society with federal money. This is simply wrong.

However, to pay more attention to the problems of culture all levels of government, primarily the deputies, must accept this goal.


Problems in the circus

This is a truly pressing issue, and I understand why. We have very many people who are fond of the circus, of this form of art. We have good traditions. We must settle the circus's property issue and other business problems once and for all.

We are willing to do this. If you think it makes sense, let me issue additional instructions to the Ministry of Culture to revisit these problems. We must find solutions to these issues, including disputable issues, that would primarily satisfy those who work and want to work productively in this area.

 

Work with personnel

This is indeed a serious issue. You are right. We do not have a proper system of personnel advancement. We may blame the previous communist regime for its many drawbacks as much as we like, but they had a good system for personnel. Their work was purposeful. There was a lot of red tape and many drawbacks, but people from all over the country, from all regions, were given an opportunity to build a career. Yes, maybe there were shortcomings, such as quotas for women, collective farmers and workers, but it was still a system, and now we have none. We must build one. Our party leaders are here and will listen to this. I have talked about this with President Dmitry Medvedev many times. As I'm sure you know, there is a presidential reserve. We will unite everything. There is some progress but not enough. We need a system of advancement, and we must involve the younger generation. I fully agree.

 

Protecting the interests of healthcare workers

With regard to the protection of healthcare workers: their interests are protected professionally, persistently and occasionally even aggressively by the industry's trade union. Trust me, this is indeed the case. They are very persistent, to say the least.

This does not mean, however, that there is no room for a professional association, which would be based on principles other than those of trade unions, and would be intended for different purposes and to pursue different goals (I did not even know that such an organisation did not exist). If you think that such an association is necessary, it can certainly be established. I believe this would be useful for the development of the very civil society that you have mentioned. This is absolutely correct.

Of course, I understand that officials at various levels are also not entirely pleased with this situation, as it will create additional headaches for them. But I believe it should be very useful for the country as a whole, because it would provide an additional forum for formulating professional opinion in this area, which is very important and affects every citizen of the country.

We will certainly consider this. It can be discussed within the framework of the United Russia party. This was the first issue I wanted to address.

 

Independent organisations

The second is the law on independent organisations that you mentioned. Why do you think it must be adopted as soon as possible? What do you expect from this law, and what do you think it will result in? And would it not lead, for example, to an increase of the percentage of services the public would have to pay for?

I know the opinions of the supporters and opponents of the draft law, but I would like to hear your opinion as a doctor. Do you think there is any danger in this law? And what results are healthcare workers expecting from the adoption the law?

Response: The major upside of the law is that it would give independence.

Vladimir Putin: Could you elaborate on that? What do you mean by independence?

Response: Independence in making decisions for the development of medical institutions.

Vladimir Putin: So, you believe the law will not result in medical institutions diverting resources from providing free services to the public, correct? Instead, it will allow medical institutions to be more responsive to people's needs, more flexible in spending financial resources, and give them a greater role in determining strategic areas for funding and making personnel decisions. Is this correct?

Response: Exactly.

Vladimir Putin: What about the potential danger of an increase in the percentage of paid services at the expense of free services?

Response: This problem should be addressed through the state guarantee programme, which needs to be reformed.

Vladimir Putin: We need a clear, comprehensive list of free healthcare services that will be guaranteed to every citizen. And we must ensure unconditional compliance with the list. This way, we will be able to bring out into the open the enormous amount of money citizens are forced to spend under the table.

Let's agree as follows: we will accelerate the work on this draft law, but we need to ensure that it is implemented smoothly, in such a way as to avoid any sudden shocks. It should be a gentle transition. And we will not force institutions to adopt the new rules, but instead give them the option of doing so.

 

On the prices for drugs

We must create a mechanism to protect people's interests and bring home to them the list of free services. We must monitor effectively the taken decisions.

We have adopted the decision to reduce the growth of prices for drugs, in particular, to fix the price of the producers and the market value added, approved by the region.

The inspection organised under my order from April 1 to April 3-4 showed that our decision is effective, as a whole. Prices for drugs do not grow in the country as a whole. Moreover, prices for drugs fell a bit in some regions (which is especially unusual if we consider the fact that prices and tariffs usually grow after any decision is taken).

Nevertheless, the inspection showed that this decision is being implemented rather poorly. Violations are everywhere. All pharmacies should have the lists of drugs and their end prices on the walls.

But the majority of pharmacies in the country still do not have this list. Some of them do have it, but it is usually placed somewhere on the ceiling - this is done just for inspectors and not for the people who buy drugs in this pharmacy.
In some cases prices for the drugs on the list are many times higher than the prices listed for these drugs. Still - many more times higher! In many cases pharmacies even avoid registering drugs to escape the listed prices, because once these drugs are registered, they get on the list. And while these drugs are not registered, no one will punish the pharmacies for overprices.
This is, of course, just the beginning of the work. But we (I mean the heads of the regions) will have to pay close attention to this work and how the taken decisions are being implemented. We should try to make these decisions work. By the way, I may show you blunders in some Novosibirsk pharmacies.

We should pay attention to some regions regarding the number of violations and the number of drugs involved in these violations in these regions. These are the Moscow Region, Jewish Autonomous Region, Chelyabinsk Region and Stavropol.
I invite the heads of these regions in Moscow for the Government Presidium next Monday. We will discuss the situation in these regions and the measures to be taken there and in the whole Russia to keep down drug prices.

Of course, we should do it accurately, without pushing the business community. These pharmacies, at least some of them, do not make a lot of money, we understand this. Still, all pharmacies will have to implement our decisions.
On the "School" TV series regarding the coverage of events

I admit that I have not seen it, so I cannot say anything good or bad about it. But I heard a lot of opinions on it. I think this is just a commercial project implemented to increase the TV channel's rating. Most probably.

Such acute, urgent things are always eye-catching. This is a usual thing for all spheres of life, unfortunately. We can deal with them only if we implement the projects that our young colleague has just indicated. This should be an integrated approach.
I have got a classical example of this situation. A colleague governor told me once how he went to take part in the opening ceremony for a bridge. The bridge was under construction for 10 years, this was a really important infrastructural project for the region. Interesting, big and useful for people. He called his friend, the editor-in-chief of a newspaper and told him, "Send reporters to highlight this event. The bridge has been under construction for ten years, and people have been waiting for it." But no one came. He called his friend again and said, "Why didn't you send a reporter?" "Why should have I?" he answered. "If this bridge were on fire, you wouldn't have to call me, as we all would rush there. Well, they built it.... well done then."

We should make people understand what is most important in the improvement of the country and the society judging not just by ratings that contain indirect advertising. This cannot be done directly, unfortunately. This requires our cooperation. This is a part of the general culture for those who make such products. And we should work on this together.

 

Transport security and deployment of appropriate equipment

You have raised a very important issue - the issue of providing security against the existing terrorist threat in our country and abroad. This is especially important for our country, as it has been the target of terrorist attacks for many years. We are all adults here; some are older than others. We understand that we must live with this threat and fight it, and under no circumstances we can give up. But, of course, we must do everything possible to ensure maximum safety for our citizens.

You must be aware that a presidential decree has been adopted on this issue. The government was very actively involved in preparing this document. What I want to draw your attention to is the following: I will certainly examine the designs you mentioned, but as of yet there is no equipment in Russia or anywhere else in the world that can detect RDX or plastic-based explosives. There are gas analysers that can detect other types of explosives. In fact, we have been using this sort of equipment in airports and other transport facilities. Last year we seized over 50 tonnes of explosives and more than 1,000 tonnes of flammable liquids at various airports throughout Russia.

So the work to enhance security goes on, and we have adopted comprehensive measures toward this end. We can detect gas emissions, but there are no devices yet that can detect RDX. The best device is a dog's nose, which works fairly well. These are specially trained dogs. They do work very well, but are only effective for half an hour, after which they need to be alternated. If the device that you are proposing can solve the problem of RDX detection, it will definitely be utilised. There is no doubt about that. We will take a look at it. However, the intelligence services have yet to report on the existence of such designs and proposals.

 

School problems

This is the second time the issues having to do with schools are being raised here. Yesterday, we met to discuss problems in higher education, but without a doubt the educational, humanistic, and character-building foundations are laid in primary and secondary school. This is a well-known formula. I will not list all the problems our schools are facing, as there are too many of them. We keep them under control. We would be grateful for any initiatives and proposals that could be implemented nationwide or at a regional level. Thank you very much.

* * *

Vladimir Putin's closing address:

In conclusion, I'd like to say a few words that are not directly related to the problems we have discussed and debated here today.

This is what I want to say. When people round the country speak about Siberia, a single fundamental notion inevitably crops up: the notion of the Siberian character. And when we speak about the Siberian character, we mean not only courage, hardiness, purposefulness, and ability to achieve positive results in difficult conditions. We also mean the feeling of fellowship, uprightness and honesty of Siberian people.

I can tell you from personal experience that this is all true, although there are some nuances. But in general this is how we see Siberians. I don't know why this is so, possibly because the conquest of Siberia was a difficult exploit and life here is rigorous. In such an environment, people depend on each other, which promotes the development of certain moral values and other qualities. And this special character is passed from generation to generation.

I am confident that with this Siberian character, which is a huge resource, I would even say one of the most important resources in Russia, we will achieve all our goals and fulfil all the tasks we have formulated today.

Thank you.