Transcript of the beginning of the meeting:

Vladimir Putin: As part of the programmes aimed at supporting the national economy, in this case export-oriented industries in the real sector, I signed an executive order today offering grants for subsidised interest rates on loans issued in the period between 2005 and 2012. This amounts to five billion roubles for industrial facilities and a further two billion roubles for small and medium-sized businesses. The programme has been under way for several years. How effective has it been, in your opinion? How do you propose we use the resources allocated under the executive order signed today?

Viktor Khristenko: On June 6 it will be five years since you signed the document that launched this programme supporting exporters of high-tech products. It has to be said that this measure has filled a real need and proven to be quite effective.

Over the last five years more than 200 major companies and production facilities in Russia have benefited from it. In fact this measure - about 23.8 billion roubles in subsidies over five years - has supported the export of 1,430 billion roubles worth of high-tech products.

This measure, perhaps unlike any others, was essentially not an anti-crisis measure, but one intended to support the development of Russian industry and help it gain a foothold in external markets.

However, if you look at the structure of those companies that have availed themselves of government assistance, they are mainly aircraft producers. They are number one. Number two are companies that produce weapons, military equipment and aircraft engines, as well as the aerospace industry.

Interestingly, this structure has been changing over the years as the government has introduced the long-term development programmes. As soon as some certainty appeared in certain industries' growth, businesses started responding to these signals, producing goods for export and applying for these subsidies.

This was how we got new pharmaceutical companies, woodworking companies and metalworking companies involved - the industries with the highest value-added products that have applied for subsidies. In that sense, this is a very effective, much-needed and transparent form of support, one that should be incorporated into a new series of measures to boost overall exports. Instructions to the effect have been issued, and today a number of agencies - our agency in conjunction with the Ministry of Economic Development and the Finance Ministry - are finishing up work on a package of measures to boost overall exports and reinvent the whole system in the Russian Federation.

In addition to these time-tested solutions, new structures will be introduced, such as the Russian Agency for Insurance of Export Loans and Investments. Measures will be developed to strengthen financial and banking institutions that support exports, which will contribute to plans to diversify the Russian economy and increase exports of manufactured goods and high-tech products.

This year four-fifths of the $400 billion worth of exports are commodities. And that other 20% that represents manufacturing and technology undoubtedly needs special support measures.

Speaking about the new series of measures, one very good example is the pilot project to build the Superjet 100: a new regional jet that is a ground-breaking new product for the global market. Such products can never break into new markets without special promotional measures. Here the tools included in this series of measures, including of course the Insurance Agency, will prove their effectiveness. This also regards pilot projects such as the Superjet 100.

Five billion roubles will be allocated this year in addition to the three billion that have already been allocated. Those three billion have reached their recipients and the five billion roubles already know their addressees: production facilities that build planes, engines and helicopters, the aerospace industry and so on. All these funds will be fully distributed within two months.

What are the new elements in this executive order? Two billion roubles for small and medium-sized businesses to support their exports. This is something that you discussed at the meeting with representatives of small and medium-sized businesses. We are proposing a simpler procedure for these businesses to take advantage of this service. We will submit this procedure to the government within a month.

Vladimir Putin: Does this also affect high-tech companies?

Viktor Khristenko: Yes, this also affects industrial companies.

Vladimir Putin: Now for a question from a very different field: the automotive industry. We launched a scrappage programme for old cars at the beginning of this year. And here I would like to stress that we need to continue to improve the components of this programme that provide services directly to ordinary people, because, unfortunately, they are still too bureaucratic. However, on the whole the programme is working and has had a highly positive impact on the automotive industry. How much of the money set aside in the budget this year has already been used?

Viktor Khristenko: There are three key indicators by which we can keep track of the implementation of this programme.

The first is the 200,000 certificates that are the foundation for the transactions that allow car owners to give up an old car in exchange for a new car they have ordered.

Of this 200,000, 175,000 certificates have already been secured.

We have seen a steady trend lately of 2,500 certificates claimed every day, and if that trend persists all 200,000 certificates will be claimed by Russia Day, or if things slow down for some reason, by the end of the month at the latest.

The second indicator is the number of cars that have actually been purchased. This number is less than the first figure, and as of today we have sold about 65,000 cars using these certificates. The lag between the surrender of the old car for disposal and the acquisition of a new car is about two and a half months.

As a rule, this depends on the make and model, as well as the customisation and the options. It takes about two and a half months for the order to be placed and the car to be made. After the transaction has been finalised, the dealers come to us for subsidies. That is the third indicator, as it were. The certificates will stop being issued in June.

We estimate that new cars will be delivered for all the certificates in approximately September. That means that in October we will have used the entire sum of 10 billion roubles set aside to subsidise car sales.

Vladimir Putin: In other words, you think that the money set aside in this year's budget will last until October?

Viktor Khristenko: The funds to pay the dealers will last until October. But it will be impossible to withdraw money from the programme after June.

Vladimir Putin: That means that the quotas will be used up in June?

Viktor Khristenko: All the quotas will have been used up in June.

Vladimir Putin: OK.