Transcript of the beginning of the meeting:

Vladimir Putin: How are you getting accustomed to this new post?

Rashid Temrezov: We have formed the new government and outlined our basic priorities. We are starting to coordinate our work with the federal authorities. We still have many problems to address but we will manage them, hopefully.

Vladimir Putin: What do you think are the main problems?

Rashid Temrezov: The economy, mostly the agro-industrial sector, industrial production and the development of tourism. You know, you once issued an instruction to my predecessor and you were shown the Arkhyz project. Our main investor has continued to be involved despite the crisis. We have already approached the upper area. If everything goes well, we will hopefully commission the first 900 metre-long cableway this year.

Vladimir Putin: How much investment is expected for the entire project?

Rashid Temrezov: Investment will total about 60 million roubles.

Vladimir Putin: For how many years?

Rashid Temrezov: Until 2018.

Vladimir Putin: Have you stood by your healthcare project?

Rashid Temrezov: We signed the healthcare modernisation programme on April 29. It totalled 1.38 billion roubles, including federal and regional funds. This programme is very important for us since we plan to reconstruct 17 healthcare facilities. Funds were also set aside for repairs and the purchase of modern equipment.

Vladimir Putin: As agreed, I would also like to request that you actively work with the Ministry of Education and Science on the education modernisation programme.

Rashid Temrezov: We have established objectives in this area. And I believe we will start pursuing them.

Vladimir Putin: But please be active on this. We don’t have time to waste; it’s already May with the summer and vacations to follow. We need to work actively. Inspect all the facilities. The work is almost the same as what you did for healthcare.

Rashid Temrezov: Yes, that’s true.

Vladimir Putin: Despite certain budget restrictions we need to identify priorities, as we said today. You should already have your regional part of the programme ready. Understood? How did your region perform in the first quarter?

Rashid Temrezov: We haven’t taken stock yet, but it appears that there are positive trends in industrial production. You are aware of the project we are actively carrying out and the measures we have taken in auto manufacturing. We also have several major enterprises, including a mining and processing combined works, a cement plant and branch office of RusHydro, one of our largest taxpayers. This branch office has a serious investment project that entails the investment of 2.5 billion roubles this year alone. RusHydro also intends to invest almost 9 billion roubles in the second stage of the Zelenchuk hydroelectric and pumped storage power station.

Vladimir Putin: Good. How are the things going in the construction sector?

Rashid Temrezov: The growth rate in construction decreased in 2010 against 2009. Hopefully, we will manage to boost this growth – we have corresponding objectives and plans for this year.

Vladimir Putin: When do you expect to reach the pre-crisis level?

Rashid Temrezov: We will certainly reach it next year. We have about 100…

Vladimir Putin: So, you will reach the level of 2008?

Rashid Temrezov: The level of 2007. It would be more appropriate to make comparisons to the year 2007. Back then about 116,000 square metres of housing were commissioned. I believe that we will reach this level in 2012.

Vladimir Putin: Good.