Extract from the transcript of Vladimir Putin's meeting with Igor Levitin:

Igor Levitin: Mr Putin, in accordance with your executive order, the Ministry of Transport has started working out the Strategy for Transportation Development up to 2030, with the programme of transportation development from 2010 to 2015 being its first stage. We have taken account of all instructions you gave in your State of the Nation Address. The Strategy has been coordinated with the long-term programme of social and economic development. It has been considered at a meeting of the Government, and we've just been through with the recommendations made for this programme.

Vladimir Putin: How much money has been planned for the project in total? A trillion and a half?

Igor Levitin: 13 trillion roubles ($529.53 billion, or €358.23 billion), including private investments.

Vladimir Putin: And what about federal funds?

Igor Levitin: 40% of financing comes from the federal budget. We've scheduled a programme presentation for the 2nd transportation forum in Sochi, on May 20.

Vladimir Putin: Do you mean that the 13 trillion is allocated for the programme through 2015?

Igor Levitin: From 2010 to 2015. The programme embraces railways, an airfield network, and motorways. It is unique because it consists of separate projects coordinated with the Ministry of Regional Development and the Economics Ministry. It takes into account the industry's demand for transport, and modernization of assets. We focus on the use of modern vehicles based on the latest technology, and in particular, modern ships complying with all corresponding international standards. You mentioned it at a meeting you chaired in St Petersburg.

With the Programme of Railways Development through 2030 in mind, we proposed a series of basic projects which are subject to consideration.

At the transportation forum, we're going to make presentations of the regions, which will later be considered and coordinated. By 2010 all the projects to be launched should get the endorsement of the Rosexpertiza auditors.

Vladimir Putin: What about the relations between railways officials and their energy counterparts?

Igor Levitin: The transition of RAO UES to market prices increases the costs Russian Railways has to bear - railways are one of the major energy consumers.

In this connection, we have taken into consideration this surge when setting the tariffs from 2009 to 2011, which the Government has considered. Unfortunately, Russian Railways will not have sufficient funds to develop the infrastructure. Aware of this situation, the Government has approved the proposal we made in cooperation with the Ministry of Economic Development to introduce an investment factor in railways tariffs. In real terms, it amounts to some 1 trillion roubles ($40.73 billion, or €27.56 billion) from 2010 to 2015. It's a development programme.

Vladimir Putin: Are those our own funds?

Igor Levitin: Yes, and you can see it in this slide. It will allow us to launch another 3,000 kilometers of railway track.

Vladimir Putin: So that the consumers, the passengers would not bear the costs?

Igor Levitin: Exactly. Passenger traffic won't be affected.

Vladimir Putin: You mean the railway tariffs won't go up?

Igor Levitin: No, they won't. The investment component will concern only freight haulage. There is something new here too. The investment component of the project envisages affiliating private businesses to railways. Today this is expensive because the terms of affiliating that are offered to private companies are too burdensome for them. We have also taken this into account and have taken the strain off businesses in this area.

Vladimir Putin: What about the relations between railways officials and their energy counterparts when it comes to property issues, in particular power grid ownership?

Igor Levitin: The Transport Ministry has made a proposal to the Government. We suggest leaving the power networks owned by Russian Railways with the company. But it's necessary to provide for an effective working order, whereby RAO UES would be able to use the power networks belonging to Russian Railways for federal purposes as part of federal power grid. The Government should establish the corresponding working order.

We drafted several amendments to the relevant law. They were introduced to the State Duma and adopted in the first reading.

Vladimir Putin: You should accomplish all necessary proceedings in the Duma.

Igor Levitin: We want neither the Russian Railways nor RAO UES to suffer: the former built this infrastructure at its own expense, and the latter should be given the right to use it as a single power grid operator.

Vladimir Putin: As for the development of a network of motorways in Russia, I mean the thing we planned, extra funds we allocated for the Moscow-Don motorway, etc. How are things going there?

Igor Levitin: The funds allocated have been split into three parts. Their realization is proceeding in accordance with the instructions you gave to the Government.

We have started with this year's allocations in May.

Vladimir Putin: Remember we spoke about creating a system that would enable to maintain the roads in a good state, rather than merely allocate extra money for the construction of new roads.

Igor Levitin: In accordance with your instruction the following decision has been taken: We have worked out a standard defining how much money every road repair operation requires; and we have coordinated the matter with the Finance Ministry. Now we know how much each operation costs, the maintenance and repair of each kilometer of federal roads. Starting from 2011, we'll finance repair works basing on this standard. Now we finance just 30% of the standard.

Vladimir Putin: All right. And my last question - the dredging and maintaining river facilities in the right order.

Igor Levitin: It's a very important matter. Thank you for maintaining the internal waterways. Unfortunately, today only 50% is navigable out of the 100,000 km of inner waterways in the European part of Russia.

Unfortunately, a lot of hydrotechnical facilities have been over-loaded. Starting from 2010, dredging will be financed by 100%.

We want to put to use all Russian waterways in the European part by 2015.

There are two barriers there. One is Nizhny Novgorod in the Gorodets area, where the Volga is only two metres deep. It's a major obstacle. The other is the Volga-Baltic Waterway, a hydro-system that needs to be put in order.

This is a target for 2010-2015. By that time we'll have a resolution regarding the new waterway between the Caspian and the Black Sea - you have instructed us to work on this jointly with our Kazakh colleagues.

If our proposal on building the second part of the Volga-Don Waterway is supported, we will be able to engage the construction companies which will have finished the Sochi facilities by 2014. So the companies could work on the new project - the waterways from the Caspian to the Black Sea.

Vladimir Putin: Well, we need to consider it separately, and make necessary calculations. As for dredging and maintaining river facilities in the right order, these are all current matters. I'd like you to pay special attention to them. Thank you.