Transcript of the beginning of the meeting:

Vladimir Putin: Mr Shport, how are you finishing this year?

Vyacheslav Shport: The economy has been growing stably this year. Initiatives in such major fields as defence and metallurgical production have yielded positive results, as has the conclusion of several loan agreements with VEB, in line with your instruction. Industrial production has been on the rise this year, with 28.2% growth, which is a good indicator. The regional budget grew by 24%. Thanks to this, we managed to address a lot of problems this year. For instance, we have made a decision to increase the wages of budget-dependent employees. Now we can do it. We are completing a number of facilities whose construction was suspended last year due to the downturn. The enterprises’ profits have doubled, which spelled additional revenue for the budget.

In terms of unemployment, today the official unemployment rate stands at 3%, and we had 3.8% at the beginning of the year. The wage arrears have been reduced by 72.2% in comparison with January, and stand at 85 million roubles. Last year wage arrears peaked at 700 million.

Vladimir Putin: And what was the unemployment rate at the downturn’s high point?

Vyacheslav Shport: At the peak of the crisis it was 4.2%, now we have 3%. Last year we received 350 million roubles from the federal budget, and this year we invested 247 million of our own funds into the labour market to ease the pressure. These measures of state support, along with our own initiatives, have brought good results. We will end this year with good rates, and we will fulfill all our budget and social obligations, including capital investment commitments.

Vladimir Putin: What about social issues apart from the labour market? I mean healthcare, education…

Vyacheslav Shport: We have developed a healthcare programme. Now we have submitted it for approval to the Ministry of Healthcare and Social Development.

Vladimir Putin: How much money do you request there?

Vyacheslav Shport: We request a large sum – about 8 billion.

Vladimir Putin: 8 billion… How much of your own funds do you spend on healthcare each year?

Vyacheslav Shport: 9 billion this year.

Vladimir Putin: And you want to get almost the same amount from the federal budget…

Vyacheslav Shport: We have built it into the regional programme after calculations… The figure will be modified, I believe.

Vladimir Putin: Do you understand what I am hinting at?

Vyacheslav Shport: Of course. We will increase our co-financing.

Vladimir Putin: The federal programme supports your programme rather than replaces it. And you want to double your financial volume at the expense of the federal budget.

Vyacheslav Shport: But we propose a 50/50 financial scheme.

Vladimir Putin: The correlation must be different – otherwise, we will not have enough money for all of the regions.

Vyacheslav Shport: For instance, we stipulate construction of the Positron Emission Tomography Centre in the programme for next year. We will get 400 million roubles from the federal budget to buy the equipment, and we will invest about 900 million of our own money.

Vladimir Putin: Fine. How does the recently established medical centre work?

Vyacheslav Shport: The Cardiovascular Surgery Centre is working at full capacity – we already launched it, and it has been making operations since October 1. We have received almost 200 quotas. As of today, the quotas, except for 7 persons, have been used up. Those specialists who came here are working very well. Their opinion of the equipment has been very good as well. It is a very good and modern facility that was in great demand, and it will work for the benefit of the whole region.

Vladimir Putin: And they render high-quality services, don’t they?

Vyacheslav Shport: Yes. It was designed to conduct 5,000 operations a year, and the demand of the Far Eastern Federal District is about 17,000-18,000. Thus, it is in high demand today, although it cannot satisfy the need. About 736 doctors ought to work there, and nowadays there are about 500. We increase that number as the quotas come. We experience no problems today. I have already told you that we provided housing to those specialists who come to work here.

Vladimir Putin: Yes, you are doing a great job…

Vyacheslav Shport: They are working – everybody is satisfied. It is a good thing, Mr Putin, and thank you very much for your support, for the persistence which you have demonstrated…

Vladimir Putin: And I would like to thank you for addressing the issue of providing housing, getting people settled, and creating the most favourable working environment for them. Otherwise, you would not get such specialists.