Transcript of the beginning of the meeting:

Vladimir Putin: Mr Shantsev, as I can see, a timeframe showing the construction schedule of housing for people who lost their homes due to the wildfires is hanging on the wall in your office. I can see you are making marks on it. Web cameras also enable me to see what's going on. Work is proceeding rather intensively. You and I should probably go there and assess the situation personally. What do you think about the work?

Valery Shantsev: We are not falling behind schedule. Construction is to be completed by October 20-29. In all, we are building 720 new homes. One hundred and fourteen people have received compensation in line with their wishes. Most of the homes, 404, are being built in Verkhnyaya Vereya, a place we visited the next day. That's the town with the most difficult situation.

Vladimir Putin: We went there virtually the next morning.

Valery Shantsev: Yes. We now have prefabricated and half-assembled homes and laid foundations there. Every construction site has already been cleared, and all mains completed. As I have mentioned, there has never been any centralised water or gas supply there.

Vladimir Putin: I remember.

Valery Shantsev: We have already built nine kilometres of a trunk gas pipeline and a water line.

Vladimir Putin: Although you said it would be hard, you have managed to do this.

Valery Shantsev: Fear notwithstanding, we've got to do the work. We have assessed the entire infrastructure. We are building a new school and a new daycare centre for 50 children there and are re-equipping a cultural centre.

Vladimir Putin: You and I will visit and assess the developments. Do you think everything is proceeding as planned?

Valery Shantsev: So far, so good. There are no on-site problems so far. The workers and all materials are available. About 2,000 people are working three shifts a day because tough deadlines have to be met. To be honest, we have never built so much housing so quickly.

Vladimir Putin: I know.

Valery Shantsev: That's why we are now working intensively. A disaster has happened. Consequently, we must build top-quality housing in extreme conditions.

Vladimir Putin: Are you falling behind schedule?

Valery Shantsev: Not yet.

Vladimir Putin: Mr Shantsev, what do you think about the overall regional economic situation?

Valery Shantsev: I have informed you about the six-month economic performance. The situation remains stable and unchanged. The regional economy hinges on the processing sector. We have posted 16% growth rates in the past eight months over 2009. I'm happy to tell you that corporate profits have doubled over 2009, as there were lower profits last year, which led to a shortfall in tax proceeds. Consolidated-budget proceeds are two percent up on the same period of 2008. The year 2009 does not count because 2008 was our best year, as we had collected 106 billion roubles' worth of tax proceeds. I started out with 34 billion roubles in 2005. The situation has now improved on 2008 and the pre-crisis period. Our business contacts have indicated though that fourth-quarter growth will slacken somewhat. However, eight-ten percent growth will be posted.

Speaking of agriculture, the 2010 harvest is much smaller than last year's.

Vladimir Putin: I've seen the statistics. What about the social sector, healthcare and education? What problems do you face?

Valery Shantsev: Naturally, facilities and equipment need substantial improvement. We are now building over 300 facilities annually and have opened three new schools on September 1. We opened outpatient clinics and hospitals, continue to build a perinatal centre and have overhauled the entire obstetrics sector.

Vladimir Putin: As we have agreed, a development programme is required. We are willing to allocate additional resources under this programme.

Valery Shantsev: We have submitted the programme, due to be approved in October. We will start working on it after that.

Vladimir Putin: What about housing construction?

Valery Shantsev: We have built more housing this year compared to the same period in 2009. Last year, we built more than in 2008. In effect, the pace of housing construction is being expedited. Housing starts are up 100% over 2005. Moreover, the proportions in the types of construction have changed. Previously, we built apartment blocks in a ratio of 20% low-rise to 80% high-rise. Most housing construction was primarily sited in Nizhny Novgorod, Arzamas and Dzerzhinsk. The break-down for the January-August 2010 period shows we are building at a ratio of 60% low-rise to 40% high-rise. Currently, we have ongoing construction projects in district centres and worker towns. Naturally, much depends on territory development and the relevant infrastructure. Construction-site sales are good in those areas where we manage to commission roads, gas pipelines, water supply systems and power-transmission lines ahead of schedule. No mortgages or anything else are required.

Vladimir Putin: This positive practice will justify itself.

Valery Shantsev: We need additional federal funding for infrastructure projects in order to expedite the pace of our work. Then, the people themselves will build everything, and high growth rates will be posted.