Transcript of the beginning of the meeting:

Vladimir Putin: Mr Vakhrukov, what did the region achieve in the first quarter?

Sergei Vakhrukov: A positive trend was maintained, as you are well aware. I believe that if we maintain such a pace, by 2012 we will reach the rates that we had shortly before the economic downturn. We may even outrun them. Moreover, we see that many enterprises have reached their pre-crisis volumes and we see them developing actively. We are helping enterprises.

The projects that they have been implementing with your help show us that modernisation is in full swing and new products will appear on the market. I would like to highlight Avtodizel. You have visited the plant several times and supported the project we’ve been implementing there. I would like to invite you to attend the plant’s commissioning in autumn. A new modern plant, which is self-operative by almost 85%, will be built in Yaroslavl for the first time in the past 50 years. I have recently visited and examined the plant. The production lines are being assembled. This will be a competently managed plant that will manufacture 40,000 diesel cars. We will increase its capacity to 80,000. This will be the basis of our mechanical engineering.

Vladimir Putin: That’s good.

Sergei Vakhrukov: You have also visited Komatsu. Its management decided to build haul trucks in Yaroslavl, and we will start producing them this year. Thus, there will be a lot of work in the mechanical engineering complex.

You know Saturn. Its Superjet performed a flight. Engines will be in demand. I recently held a meeting – and some 33 engines are being prepared. I think everything will be fine there as well.

We have been actively developing the power engineering cluster at Saturn. The stations that are produced there (which include cogeneration stations) have been used in the Yaroslavl region. The 52 MW station is located in Tutayev. The 26 MW stations will be constructed in Rostov the Great and Pereslavl-Zalessky. This is next-generation power engineering and both cheap electricity and heat will be provided. Thus, we are making good progress.

Pharmaceutics is also a new field you have supported. We will launch a new enterprise corresponding to Good Manufacturing Practice (GPM) standards in September. This will be a very good, modern enterprise.

I have also visited Nycomed’s roofed platform. Progress has been good. Five more projects are being implemented. I believe this cluster will be comprehensive, as these enterprises started to cover practical medicine.

We concluded an agreement with the large Swiss company Novartis. They are actively cooperating with us in implementing treatment standards for cardiovascular diseases, covering fields from primary to highly specialized  medical care. We have them involved in pharmaceuticals production. We are also cooperating with them in practical medicine. I consider this field to be even more important than just pharmaceuticals production. And this also positively affects staff training, as enterprises invest their money in this sphere.

This is a new sector. As you know, mechanical engineering suffered a major blow during the crisis. We have been diversifying the economy quite actively in this respect. Mechanical engineering enterprises started increasing wages gradually and the wages in this sector have grown more than in others. The average wage at is 19,000 roubles. I think they will fulfil all their social obligations.

Vladimir Putin: We have been rendering aid to a number of projects, which are very important for the people, such as the hydroelectric complex, roads and embankments in Yaroslavl. What’s the situation in these fields?

Sergei Vakhrukov: No problems there. We have checked the hydroelectric complex, inspected the sluices and conducted a full examination before the navigation season. We are ready for navigation. By the way, we had no problems in overcoming the floods. The embankment is one of the best on the Volga. Coast-protecting works are being conducted in Rybinsk, as a hydroelectric power station operates there. The shores are being washed away. So, this works must be done there. I would like to express gratitude to the government, which helps us in this field. The sluice and its gateway have been repaired. There is still a lot of work to be done, but the region is covered by the federal programme. That’s why we are sure that everything is going to be fine. Navigation on the Volga river is in full swing. So, all of this will be in demand. 

Vladimir Putin: What about roads?

Sergei Vakhrukov: There we encounter serious problems.

Vladmir Putin: What’s the situation in Kholmogory?

Sergei Vakhrukov: The situation is under control. Progress has been made. I met with Igor Levitin to discuss additional repairs to several sections of the road.

The sections passing through the Moscow region and the Vladimir region to the border with the Yaroslavl region have already been reviewed. This is a very good road. Almost 80 kilometres of main road pass through the Yaroslavl region. It is a normal section with a demarcation strip. The Pereyaslavl section, which is about 40-kilometres long, is the only section that remains to be dealt with.

We are transferring the roundabout in Pereyaslavl to the federal government. The resolution is being agreed upon. And we will deal with the road passing through the city itself. The transport will circle around this beautiful historical city. And we managed to repair this section and to make it safer for the city, so one can get from Yaroslavl to Moscow very quickly. There will be a section that will be prepared as a concession road. There will be a free main road and a paid motorway -- very good in perspective -- that will allow for fast traffic and enable transit transport to go round Yaroslavl and all other historical cities.

Vladimir Putin: Have you agreed on the plan to modernise healthcare? 

Sergei Vakhrukov: Yes, we have agreed and approved everything and are ready to implement the plan. The primary facilities have been finalised. The total volume almost stands at 6.1 billion roubles. More than 3 billion roubles were allocated by the government. The rest of the funds are ours. We are co-financing the project and the amount is quite large.

Everything is clear with the implementation of standards for increasing employee wages at medical institutions -- for physicians, highly specialised doctors and paramedical personnel. We will conduct capital repairs of more than 20 facilities. We have received everything necessary to implement informatisation and to purchase equipment. We have developed every single aspect of the programme.

I met with the medical community and we discussed everything and agreed that we will meet once every three months, or maybe more frequently, to discuss the progress made in implementing programmes, as feedback is important. Employees at medical institutions must feel that something is being done. We will certainly communicate with the population. It is important for us to know that they feel changes that are taking in primary and tertiary care.

We have summed up the results of a number of federal programmes in which we took part. These programmes provide for traumatology (the mortality rate dropped by 12.1% in one year), cardiovascular disease death rates also fell by over 7%. These are the results of programmes in which we are participating.

We are finishing work connected with perinatal centre. Licensing is in full swing. Equipment has already been installed. We will launch the centre in May, as I promised.

This is a very good centre -- better than those in many neighbouring regions. I think we will propose making the centre interregional over time, as the centre offers very good conditions. It has an area of 40,000 square metres, and the building itself is beautiful. In fact, it’s ready. The equipment has been installed  and all primary issues have been solved. The doctors have already come to work.

Vladimir Putin: The centre has almost 200 beds, doesn’t it?

Sergei Vakhrukov: Some 180 beds, allowing for almost 4,000 or 5,000 births a month. We will be able to invite our neighbours, in particular Kostroma and Ivanovo residents.

Vladimir Putin: I see the building has a very modern design.

Sergei Vakhrukov: And the equipment is modern as well.