Transcript of the beginning of the meeting:

Vladimir Putin: Mr Berg, how did your region do last year, and what plans do you have for this year? I know you have problems, especially in agriculture, which was badly hit by the summer drought. You received federal aid and also paid out regional grants. What harvest do you expect this year, and what is the situation in industry and housing construction?

Yury Berg: Our region enjoys socio-economic stability. Last year’s economic growth exceeded 102%. Industrial output increased 6.4%, mining output 8%, and electricity production 17%.

As for agriculture and the figures we discussed in the car, our agro-industrial complex received grants of 6.6 billion roubles – 2.9 billion of this from the regional budget, and the other 3.7 billion from the federal budget. As we said, it was the greatest help our agriculture had ever received. We are preparing for spring sowing now. The seed stock is under my personal supervision. Not only do we provide farmers with 88% of seeds, but our goal is to monitor every farm for seed stock inventory – both the amount and quality. If we do not verify this, some farmers could say they don’t have enough seeds even after they receive our allocation. There are a few greedy people, unfortunately, who might claim additional stock.

Naturally, we monitor the cost of our aid. First of all, it was our duty to provide sufficient fodder, fuel and seeds. The situation was stable at the beginning of this winter though we have some problems with feed grain. I have a request to you in this connection.

Vladimir Putin: Good. What is the situation in housing construction?

Yury Berg: Regrettably, we have not met our targets.

Vladimir Putin: How much are you lagging behind?

Yury Berg: By 21%. We intend to set this year’s target above 700,000 square metres. As for unemployment, it is the smallest in the Volga Federal District, 1.3%.

Vladimir Putin: I know. It’s good. What is the average wage?

Yury Berg: About 14,000 [roubles a month]. I am more uneasy about earnings in agriculture than in industry.

Vladimir Putin: What is it in industry?

Yury Berg: 14,000-15,000, while in agriculture it is only 6,000 or 7,000 roubles.

Vladimir Putin: How can you have an average of 14,000 if people make only 6,000 or 7,000 in agriculture?

Yury Berg: I mean not the regional average but separate for agriculture and industry. I am doing what I can to increase wages and level off the inequality.

I visited Mr Savchenko (Belgorod Region Governor Yevgeny Savchenko) in the Belgorod Region with my people. We’ve been to six agrarian districts and several pig farms.

Vladimir Putin: Did you see how they worked?

Yury Berg: Yes, and talked to people.

Vladimir Putin: You were impressed, weren’t you?

Yury Berg: Yes. On our way back, I said to my people on the plane: “Why, we live in the same country, which has the same laws everywhere. Why shouldn’t we do as well as they do?”

Vladimir Putin: The situation is quite different. We will return to it later. Now, let us talk about healthcare modernisation. The ministry has analysed the programme you submitted. What, do you think, matters most in this programme?

Yury Berg: I can say this without hesitation. We have received grants up to 5 billion roubles; 25% of this goes to children’s healthcare.

Vladimir Putin: You mean for hospitals, clinics or something else?

Yury Berg: We are planning major repairs on the regional children’s hospital. We make it a point that the money reaches every children’s unit. And we follow the government’s and the president’s order to spend 25% on children’s healthcare.

Vladimir Putin: So it’s a quarter of the 5 billion.

Yury Berg: Yes, about 1.6 billion.

Vladimir Putin: 1.6 billion roubles for children’s healthcare. That’s good.