Transcript of the beginning of the meeting:

Vladimir Putin: Mr Artamonov, in the first quarter of the year, industrial production in the Kaluga Region rose by a respectable 17% compared to the same period last year. Housing construction is up more than 14%. More housing has been commissioned than during the past year. On the whole, things are getting better, although you still have a problem with unpaid wages. These debts are being brought down, but they are still there. Volkswagen and Volvo have assembly plants in your region, and there are plans to start producing other world famous brands. What can you say about the current status of the automobile industry? What additional support and attention does the industry need from the government? A number of facilities are being built using federal money, for instance, the commercial court. What can you say on this point? Please, go ahead.

Anatoly Artamonov: Mr Putin, on the whole things are getting better after the crisis last year. We have managed to do rather well owing to the things you just mentioned. Over the past few years, we have built up an adequate amount of new production capacity and created an adequate number of new jobs. In addition to the projects you just mentioned, we will open a Peugeot-Citroen assembly plant together with Mitsubishi on April 23.

Vladimir Putin: A joint venture?

Anatoly Artamonov: Yes. This year we will do assembly and next year we will launch full-cycle production, like at the Volkswagen plant you visited.

We are diversifying our economy. In our region, we have passed a law to create a pharmaceutical complex. We have already built one large plant. Another two will be built. This will be a new sector in the economy of the Kaluga Region.

A number of new enterprises producing farm equipment and food products, as well as enterprises in the construction industry, will be opening.

Vladimir Putin: There haven't been any changes in your plans to launch the Peugeot-Citroen-Mitsubishi assembly plant?

Anatoly Artamonov: No. We were also worried about that. We were afraid that the investors might start wavering last year, but thank God, everything went as we had agreed on. We will open the factory according to plan.

As for the construction of facilities using federal funds, we are monitoring the situation. We are monitoring this construction, despite the fact that the relevant federal departments are also monitoring it. All these facilities will be built on time. We recommend that our construction materials be used, as they are much cheaper than imported ones. Our construction companies work for less than, say, those in Moscow.

We are planning to build a fast neutron nuclear power plant in Obninsk.

Vladimir Putin: This city will have a number of facilities.

Anatoly Artamonov: Indeed, it has a number of facilities. We are always trying to support the city's brand. It is the first science city in Russia - you signed a decree awarding the city this high status.

We are trying to build industrial facilities around Obninsk in order to facilitate scientific research. We have to charge taxes because science cannot develop without funding from the budget. Besides, not everyone works in scientific research. Some family members are scientists, while others work at a modern plant. This is not bad at all.

On the subject of fast neutrons, Obninsk has the Chemical Energy Institute, which is the pioneer in this field. This is why we would appreciate it if nuclear power plants were built in the city. The programme of the Rosatom State Atomic Energy Corporation calls for the construction of two plants - one for research and one for commercial purposes. This would provide serious support for research for many years to come.

I'd also like to thank you for your decision to build a radiological centre in Obninsk. It has the necessary R&D base. The centre employs 72 doctors of science.

Vladimir Putin: This was a natural decision given the experience that you have.

What will you do about unpaid wages?

Anatoly Artamonov: They amount to 22 million roubles, but we have no wage arrears in the public sector.

Vladimir Putin: I know that, but in the private sector unpaid wages were 37 million roubles. Is this right?

Anatoly Artamonov: Now they are 22 million roubles. Companies on the verge of bankruptcy were not paying wages. This is only natural. Now they are being replaced with new companies. We will need three months - six at most - to bring this debt down the zero, as it was before.

Vladimir Putin: Okay. What about the labour market?

Anatoly Artamonov: Mr Putin, the unemployment rate is below 1.5%. We believe this is a normal figure. Unemployment has not gone up in our region. To be honest, the increase in unemployment benefits has encouraged many to register as unemployed, even though they hadn't considered it necessary before. The number of jobs that we are offering considerably exceeds the number of job seekers.

Vladimir Putin: Good.