Transcript of the beginning of the meeting between Vladimir Putin and Sergei Shmatko:

Vladimir Putin: Good afternoon, Mr. Shmatko. Any good news? How are you coping with your work? And what about your ministry's high-priority tasks?

Sergei Shmatko: Mr. Putin, I want to tell you that the Russian Energy Ministry has assumed all managerial functions needed to ensure the sustained operation of the national power industry and its long-term development since utility giant Unified Energy Systems (RAO UES) was reorganised completely on July 1.

We held a nationwide conference involving virtually all the top power industry managers and discussed preparations for the autumn-winter heating season that will be marked by peak loads. We told them that fuel reserves must match preset standards, and that scheduled repairs were essential.

Acting on your orders, the Energy Ministry has drafted a proposal stipulating the liability of power industry companies and their officials for failing to meet such requirements and will submit this document to the Russian Government for consideration.

We have also drafted a proposal in connection with your instruction to establish a government commission for the development of the power industry and a federal power-transmission safety centre. We will brief you on our operations during each month of the autumn-winter heating season.

The measures we have taken make us confident that the complete reorganisation of RAO UES will not negatively influence rank-and-file electricity consumers.

Vladimir Putin: We shall see. I hope very much that this does not happen.