The meeting started with a review of up-to-the-minute issues. Prime Minister Vladimir Putin stressed the need to reduce congestion on the M10 highway in Moscow and ordered officials to take steps to resolve the issue and reduce travel times to Sheremetyevo Airport as soon as possible.

The government reviewed several draft federal laws, including environmental protection measures and safety regulations for pipelines, which would require streamlining requirements for pipeline construction and operation.

Officials at the meeting also discussed subventions to the Kirov and Samara Regions through the government's antirecessionary measures and considered resolutions to increase allowances for service members, salaries for public sector employees and scholarships for students.

They also touched on several issues pertaining to the Customs Union.

Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon, ladies and gentlemen,

Let's exchange up-to-the-minute information first, as we usually do. The State Duma passed the Law on the Basic Principles of Government Regulation in Trade, which we introduced several months ago. To make the law work effectively, we need to amend the Administrative Offences Code. Mr Zubkov, your comments, please.

Viktor Zubkov: Mr Prime Minister, I'd like to focus on the sixth point of today's agenda, the amendments to the Administrative Offences Code.

This new legislation is expected to increase the effectiveness of the Law On Trade. We discussed the need to introduce administrative penalties for offenders at meetings of the working group that monitors the implementation of the Law On Trade. We took into account the positions of each party involved, including manufacturing, processing and trading companies, as well as legislators and executive bodies. We wanted a well-coordinated, optimal solution, and we found it. This legislation takes into account the interests of all federal executive bodies involved: the State-Legal Directorate under the President of the Russian Federation, the State Duma and the Federation Council.

The key principle set forth in this legislation is mutual responsibility of producers and trading companies. This will encourage businesses to employ modern civilised practices and protect consumers' interests. Let me add that when I reported to you on the Law On Trade in May, you stressed the need to introduce the principle of mutual responsibility of producers and trading companies into this legislation.

The law envisions different fines for legal entities, individuals and officials. Fines are relatively high for legal entities, ranging between 300,000 roubles and one million roubles. For officials, the rates range from 10,000 up to 50,000 roubles. The legislation also provides for disqualifying officials who commit offences for up to three years.

It was also proposed to adjust fines to a company's turnover, but we decided that it's too early to introduce this measure. We agreed to use fixed rates when monitoring the implementation of trade regulations.

The Government Commission on Draft Laws approved this legislation, and I think it has a good chance of being passed in the first reading in the spring session. We have rallied support in the Federal Assembly on this issue. I believe that the legislation will be more effective if those who violate trade regulations are actually held responsible.

Vladimir Putin: We need to ensure that this issue is as widely known as possible. This legislation must be adopted and explained to the public.

Viktor Zubkov: Yes, we've launched a publicity campaign, which has had significant involvement from businesses...

Vladimir Putin: This issue should also be covered in the media.

Viktor Zubkov: All right, Mr Prime Minister.

Vladimir Putin: In 2010, we budgeted 2.5 billion roubles to subsidise airline traffic to and from several regions of the Far East and the Extreme North. How is this going?

Viktor Zubkov: Mr Prime Minister, tomorrow I'll be visiting Norilsk, the main transport hub of the Russian Arctic, to discuss the city's future. I will tour the Norilsk airport and the Dudinka seaport.

As far as the Norilsk airport, you have already mentioned that it is involved in the supplemental programme to subsidised passenger airline traffic that we launched last year for several cities in the Far East. Besides Norilsk, the capital of the Republic of Tuva, Kyzyl, joined this programme, since it is another city that is only accessible by air. A total of 12,000 passengers have already taken advantage of this programme in Norilsk. The targets of the programme are people under 23 and over 60 years of age. They can buy economy-class tickets at half price.

We launched this programme in 2009, during the recession, and allocated 1.2 billion roubles for it. Last year 154,000 people in the Far East took advantage of this opportunity, and this year we have already allotted another 2.5 billion roubles for the programme. Two more cities have joined, as I mentioned, and so we now subsidise 26 Russian airline routes. As of today, some 224,000 people in the Far East, Norilsk and Kyzyl have used this benefit. Of the 2.5 billion roubles budgeted for the summer period, which ends on October 31, 1.6 billion roubles were used to implement the ticket discount plan.

The Ministry of Transport expects some 330,000 Russians to take advantage of the programme this year. It has proved very effective and is being carried out successfully. A lot of people now have the opportunity to use airlines, which in turn has increased the mobility of the population. This programme has also been good for the economy, since all large Russian airlines involved have increased their domestic air passenger volume significantly. And so the programme serves the needs of both ordinary people and Russian airlines.

Vladimir Putin: Yes, this programme is effective and will be continued. But we will also have a problem if people can't reach Sheremetyevo Airport because of traffic jams.

I'd like you work with Moscow officials on this issue to improve the situation. People are complaining they just can't get to Sheremetyevo.

Sergei Ivanov: Yes, it takes about four or five hours to get to Sheremetyevo today.

Vladimir Putin: Please address this issue immediately with our colleagues in the Moscow government.

Sergei Ivanov: The Federal Antimonopoly Service is already dealing with it.

Vladimir Putin: I have signed a government resolution about the cash prizes for the winners of national physical fitness and sports awards. Each of them will receive 500,000 roubles. How will this work? Please.

Alexander Zhukov: Mr Prime Minister, we plan to give out the first awards this year. Each winner will receive half a million roubles. These awards will be given out in several categories, including best male athlete, best female athlete, best coach, best sports school and best Paralympics sports school. We'll also recognise the Russian regions that have contributed most significantly to the development of sports, veteran athletes who have worked in sports for many years and those who work to promote sports and physical fitness, such as journalists and printed and online media outlets. And we'll also choose the best sports venue.

Those are all the nominations. These awards will be distributed annually after a nationwide contest.

Vladimir Putin: Good, let's hope these awards will give an additional boost to physical fitness and sports.

To be continued...