Transcript of the beginning of the meeting:

Vladimir Putin: We have recently discussed a development programme for south Russia and individual southern regions. Ingushetia has many economic and social problems, but the biggest challenge is unemployment, which we have been trying to address for several years. What have you achieved last year and what are your plans for 2011? Which projects are the most important for the republic?

Yunus-Bek Yevkurov: To begin with, we have analysed the mistakes we made in 2009 to avoid repeating them. As a result, in 2010 we achieved growth, even though a minor one, in all economic spheres. Our development rate and industrial production index have grown, although modestly, not as much as we wanted, but they have grown nevertheless. You have criticised us for failing to ensure industrial growth; I can tell you now that our industries have grown by 10% and some even by 20%. The only decline we have registered was in mining, but it was due above all to a review of the structure of mine management. We have closed some mines and revoked the licences of several others.

Vladimir Putin: Why? Is it because they are idling?

Yunus-Bek Yevkurov: No, they violated the law and disposed of their output without registering it.

Our agricultural output has grown, excluding grain production, which has been affected by last summer's drought.

Vladimir Putin: Do your farms receive subsidies?

Yunus-Bek Yevkurov: Yes, they do. They have received subsidies this year, although not as much as we wanted, but at least they get something. Thank you.

Our livestock breeding farms, especially privately owned ones, have also reported growth. I have recently been to Karachayevo-Circassia and the Stavropol Territory, visiting mostly cattle breeding, meat and dairy farms.

Vladimir Putin: Do you expect the number of cattle to decrease this year?

Yunus-Bek Yevkurov: No, we don't. Moreover, we plan to increase it, and the privately owned farms have already reported growth.

Vladimir Putin: As you know, we have decided to provide additional assistance to those farms that maintain or increase the number of cattle. The total size of such assistance is 5 billion roubles, which we will distribute among farms.

Yunus-Bek Yevkurov: Yes, the Agriculture Ministry has informed us about this. Ingushetia has not been included in that programme this year, but we hope to be able to join it next year.

Vladimir Putin: Why haven't you been included in the programme?

Yunus-Bek Yevkurov: The number of cattle...

Vladimir Putin: We may reconsider the decision for Ingushetia. If your farms really maintain and even increase the number of cattle, I think they should receive assistance. Yes, this is exactly what we will do. Just submit an application to me.

Yunus-Bek Yevkurov: I will, thank you. As for investment, in 2010 we attracted more private investment and in larger amounts than previously. In March we will start building a hotel and a garment factory with money provided by local private investors.

We have increased residential construction by over 400% compared to 2009, but mostly because of mudslides. We have quickly built a residential development for the people whose homes were destroyed in mudslides, and individual construction is proceeding at a good pace in the private sector.

Retail trade and services have grown, in particular, services have increased by 3% compared to 2009.

Our biggest problem now is the number of jobless. Our target was to cut unemployment by 15% to 20%, but we did not reach it. Our figures show a decrease by 4.9%, which is also a good result. We have now pinpointed the problems, although the reasons for many of them are still not entirely clear. On the other hand, we have increased the collection of taxes by 25.4% in 2010, which is a positive result.

Vladimir Putin: This is good, of course, but...

Yunus-Bek Yevkurov: We have analysed the situation. For example, filling stations claim to have only one employee per station, which cannot be true. We will take this into account.

Vladimir Putin: Besides, people receive salaries under the table.

Yunus-Bek Yevkurov: Yes, many people have jobs but are not registered as employed.

Vladimir Putin: You should explain to them that those who receive wages under the table will have problems in the future, especially with their pensions.

Yunus-Bek Yevkurov: We are doing this now. Salaries in the republic have grown by 111%, which is good, and monetary incomes, by 114%. The number of self-employed business people has grown 50% in the republic.

As I have said, the decline in the production of our crop-growing farms was due to last summer's drought. Apart from the problems we have discussed, we also have complaints about the federal targeted programmes, in particular those on the socio-economic development of Ingushetia. Much of that was due to inadequate preparations on our part. At present, we are still lacking planning documentation and estimates on one project to be implemented in 2011. The paperwork for all other projects will be ready by the end of February. Most of our planned projects are being examined by a government commission. We will not repeat the mistakes we made last year.

Vladimir Putin: Have the loans granted to your farms and agribusinesses been extended?

Yunus-Bek Yevkurov: Yes, they have.

Vladimir Putin: Have you received grain from the intervention fund?

Yunus-Bek Yevkurov: No, we have not requested grain for winter sowing.

Vladimir Putin: Why not?

Yunus-Bek Yevkurov: We have enough locally grown grain.

Vladimir Putin: Good.