Transcript of the beginning of the meeting:

Vladimir Putin: Mr Stepashin, a new year has begun. So, it is reasonable to speak about the Audit Chamber’s plans for 2011. This is especially relevant given that you have just been re-elected chairman of the chamber.

Sergei Stepashin: I would like to point out that we have significantly adjusted our plans in line with what you mentioned at a recent government meeting. I’m referring to the programme to improve the efficiency of budget spending. One of our most important measures in this respect is – I have prepared a short note on it and will show it to you later – the replacement of the state procurement system by a system of state contracts. As you know, the United States and most European countries use this system. We are doing this following your direct instruction. We have been working on this issue together with the Ministry of Economic Development and the Federal Antimonopoly Service for more than a year. This wasn’t optional for us, we’ve been doing this through the analysis of our oversight measures. This is why, Mr Putin, I would like to request that you support our initiative. We are ready to join the task force headed by Igor Shuvalov to devise anti-crisis measures to bolster Russia’s economic development. I believe that our initiative will help save a significant amount of money. You may know that the United States saves $60 billion per year purchasing weapons and military equipment via a contract system. I’m convinced that we will be able to save a comparable amount.

Another important issue is the three-year privatisation plan. You remember the instruction related to privatisation that you have issued…

Vladimir Putin: An instruction on the privatisation of certain facilities and enterprises…

Sergei Stepashin: Yes, after reading our report on this issue you understood that urgent measures were needed because the consequences could be very serious. Of course, the situation is different today. There are the laws, the privatisation programme, the corresponding ministries and government bodies and a government policy. However, the privatisation is expected to yield 1 trillion roubles over three years. And you know that a number of strategic facilities will be privatised. This is totally reasonable in the current conditions. We have included this all in our plans, including the three-year plan. I have drafted a letter I will submit to you so that the government is involved in this work, too. I believe that we all pursue a common goal. I have already discussed this issue with Mr Shuvalov. This issue involves certain risks and the assets need to be evaluated properly. Russia is still just recovering from the crisis, and we certainly do not want our property to be bought up cheap through anti-crisis liquidity. Certain issues particular to the regions need to be taken into account. Well, you’re well aware of this area.

Unfortunately, this week was marred by a tragic event. We plan to analyse the use of the substantive funds the government sets aside for security and counter-terrorism measures. I’m confident that you will agree that this is an important issue. This will not be mere politicking. We will analyse the sore spots and unresolved issues. This is why you have probably noticed that many of the Audit Chamber’s plans for 2011 coincide with those of the government. Naturally, our plans include major events, such as the APEC summit, the Kazan World Student Games, the Sochi Olympics and the 2018 FIFA World Cup, which Russia should win. Moreover, you personally have done a lot for Russia to win the bids to host these events. These events are on our agenda all the time, just as the efficiency of budget spending on the development of the economic potential of the republics of the North Caucasus – I recall that you recently held a serious meeting on this issue. As you know, we are monitoring this issue on a regular basis. We will soon examine Kabardino-Balkaria, and then, in spring, the Chechen Republic. So, we will look into the work of ministries and the authorities of the republic. These issues are all in our plans for 2011.

Vladimir Putin: Overall, the government puts special value on and gives special attention to work with the regions and support for regional budgets. You know how much money we set aside for these purposes. Naturally, we need to monitor how efficiently these funds are spent in the North Caucasus and other federal districts.

Sergei Stepashin: In Russia’s Far East…

Vladimir Putin: Yes. I’m looking forward to cooperating closely with you.

Sergei Stepashin: Certainly, we will work together as we always have.

Vladimir Putin: Thank you.