Transcript of the beginning of the meeting:

Vladimir Putin: Mr Khloponin, you are in charge of North Caucasus, a very special region for which we have recently adopted a development strategy. My first question is what progress has been made on the programmes we adopted? Is there anything that causes concern? What do you think should receive more attention? Second, I believe it is high time to convene a meeting of the Commission for the Development of the North Caucasus. What issues do you think need to be raised there?

Alexander Khloponin: Thank you, Mr Prime Minister. Per your directive, in November we adopted the development strategy for the North Caucasian Federal District up to 2025 and a plan for its implementation in 2011 and 2012. This plan contains a set of 89 measures, 71 of which are to be carried out in 2011 and 18 in 2012.

In the first quarter, we implemented 12 measures, developing a draft for the government resolution on the provision of 50 billion roubles in state guarantees (it has already been submitted to the Government Executive Office); a draft presidential decree on founding the North Caucasian Federal University; federal ministries' proposals for future industrial parks in the region, through which we plan to bolster its light industry, construction, and the petrochemical sector; and a set of initiatives to attract private investment in mining and oil production on the shelf of the Caspian Sea.

In addition, we have launched the Development Corporation of the North Caucasus Federal District, an affiliate of Vnesheconombank with 500 million roubles in authorised capital. They have already adopted plans for some 30 projects, and drafts for another five projects worth 62 billion roubles in total will be submitted to the Supervisory Board in the near future. There is a proposal to increase the corporation's capital by seven billion roubles, subsequently allocating them for the five projects I have just mentioned. Therefore, the corporation will provide seven billion out of 62 billion, while the rest of the funding is expected to be drawn from the private investors with whom the corporation will implement these projects. In addition to this, we have prepared all the necessary documents and set up six special economic and tourist zones as part of the programme for the development of tourism in the North Caucasus.

Vladimir Putin: Yes, I've seen that already. They are mainly located in mountainous areas, aren't they?

Alexander Khloponin: That's right, these are alpine ski resorts. We have set up a management company for the North Caucasus resorts together with Sberbank and Vnesheconombank, which provided five billion roubles in its authorised capital. This money will be used to draw up a development strategy for the North Caucasus resorts. Over the next two years, it will receive another 60 billion roubles to develop local infrastructure, including roads, utilities, power networks, and so on.

As for the meeting of the government commission, we are expecting you to hold it in the near future. First and foremost, we will need to review the progress made on the implementation of your directive for drafting a federal programme for the development of the North Caucasian Federal District. This programme was drafted by all federal ministries and agencies. We are working hard to launch it on schedule, and I would like to ask you to review the progress at the commission's meeting.

Vladimir Putin: When will you be able to submit it to the Government?

Alexander Khloponin: I think it could be submitted in June already, but first of all it needs to be discussed at a meeting of the commission in May.

Vladimir Putin: Good. So you think that at its next meeting the commission should focus on the draft of the state programme?

Alexander Khloponin: Yes, because we need to launch this programme in 2012.

Vladimir Putin: All right. But I think we should also look at pending projects, which we can and will launch in the near future, without delay. We can't wait any longer, standing still. It's good that there is this programme, but if we just draw up plans all the time, when will we get any work done? We need to start actual efforts immediately.

Alexander Khloponin: We are not standing still. We have prepared plans for 30 projects through this programme, which can already be implemented this year. All the plans are completely ready and have been secured by government guarantees. We will report back to you at the meeting of the commission.

Vladimir Putin: Good.