Vladimir Putin: Good evening, Mr Alekperov.

Vagit Alekperov: Good evening, Mr Putin, you remember we held a meeting in Severodvinsk. Our company has taken up unique new oil fields. We have boosted oil production, and now we make as much as 7,000 tons daily. This might be a good sign showing that Russia's oil industry is developing dynamically.

We have built unique facilities and terminals in Kaliningrad; the St. Petersburg Krylov Research Institute designed the project. The newest technology has been applied at the plant in Kaliningrad.

Vladimir Putin: What technology do you mean?

Vagit Alekperov: Different technologies. A sleet proof foundation, which allows us to load tankers whatever the weather. We have had three 7000-ton tankers built - no country in the world has such large tankers. In the most northern latitudes we tested Russian technologies and launched a terminal. We have already loaded and shipped ten tankers. Everything works fine.

Vladimir Putin: Where is it?

Vagit Alekperov: In Varandeya. The thing is oil freezes at 22 degrees below zero, and sometimes it's as cold as 60 degrees below zero there. But we warm the pipe, and the entire chain works. There is no equivalent system in the world. The project has been completed. We built the infrastructure, the housing and various social facilities for the builders. We've been doing the same in Naryan-Mar.

Vladimir Putin: What's the cost of the project?

Vagit Alekperov: The project cost 130 billion roubles ($5.29 billion, or €3.59 billion); and the ROI will amount to 13%, taking into account all the benefits.

Vladimir Putin: How much oil do your produce now?

Vagit Alekperov: This year - 94 million tons of oil and 16 billion cubic meters of associated gas.

Vladimir Putin: Not bad.

Vagit Alekperov: We have good contracts with Gazprom. I think we have various opportunities to work together. If you remember, we concluded a five-year agreement. We are selling at the heel.

Vladimir Putin: You mean they are ready to buy at the heel?

Vagit Alekperov: Yes, they are. The price is disputed sometimes, but that issue is discussed and coordinated every year. I think all opportunities have the right to exist. Today the quotas we have got from Gazprom allow us to draw plans for the development of new oil fields.

Vladimir Putin: As far as I know, you've also been doing well abroad.

Vagit Alekperov: Yes. I'd like to say we have purchased a plant in Italy.

Vladimir Putin: In Sicily?

Vagit Alekperov: Yes, in Sicily. I suppose it's a good investment because the plant deals with Russian oil only.

Vladimir Putin: So, you'll supply it with oil?

Vagit Alekperov: Yes, we will. It's important that we have built up a whole chain that allows Russian oil to be pumped to the Russian plant. Our retail network, in the Balkans in particular, has been successfully integrated in this system. So, now we can guarantee uninterrupted oil supplies - from the territory of the Russian Federation and from our new plant in Sicily.

Vladimir Putin: How much money has been invested in it?

Vagit Alekperov: We bought a 50% stake, to be more precise 49.9%. The plant is managed 50/50. It cost us 1.3 billion Euros plus 8 million tons of refined oil.

Vladimir Putin: So, it gives you a chance to develop the European market from the inside.

Vagit Alekperov: Yes. And I have a request to you. In October we are likely to have completed the coordination of all procedures at Italian and EU anti-monopoly committees. If you have a similar agenda, please, bring up this question too.

Vladimir Putin: All right.