Vladimir Putin: Good afternoon, Mr Zhilkin. How are you? How are the preparations for the celebration (of Astrakhan's 450th anniversary)?

Alexander Zhilin: The preparations are well under way. With the scope of work being very significant, we are counting not the days left but the number of work shifts. With your support, through a special decision of the Government, a total of 11 billion roubles ($468.1 million) were allocated to solve the region's major problems. Those include above all dilapidated housing, Astrakhan underflooding and the state of inner water canals. In 2007 and this year, we have managed to attract a huge amount of additional investments - 100 billion roubles ($4.3 billion). However, the local construction industry proved unprepared for this amount of work.

In 2007, there was a 40% growth in housing construction. This year, with another four new factories to be launched, I expect the industry's growth to reach 60%. I think this year - at least, up to its end - about 5,000 families will get new housing. We have two years left to completely solve this issue.

Vladimir Putin: Do you mean the dilapidated housing issue?

Alexander Zhilin: Exactly. Currently, work is being done on major projects, including three medical clinics under construction. These are a cardiovascular clinic, a regional surgical and diagnostics centre, with its construction to be finished in several days, and another medical clinic, which has been completed under our agreement with Gazprom. Overall, the three centres will comprise a total of 24 differently oriented branches of federal medical centres. This project will help put into practice the decisions of the Government you spoke about, namely providing high-tech healthcare for the people.

Other projects include the construction of a theatre - a monumental building of remarkable architecture and interior design, with a total area of 31,000 square metres. I hope the project will be completed on time, since we have no other option. The full reconstruction of the city's sports complex, five theatres and the circus will be finished around September. We have also planned the complete overhaul of 16 major roads and eight bridges, including the major one linking the rivers that meet within the city of Astrakhan. Implementation of these projects will make it possible to solve the task you set during your last year's visit - namely, to find an area for launching a recreation and tourist complex.

We have defined the area, the best location for such a complex, and are currently finishing the construction of the road. By attracting investments, it is possible to create a wonderful resort here and further develop it later on.

Russia's large companies such as Gazprom, LUKoil and others based in Moscow, St. Petersburg, Kazan, Kazakhstan and Turkmenistan are actively participating in construction works in the region. In the run-up to Astrakhan's 450th anniversary, Gazprom is building the 17th embankment, the biggest project. The site, expensive and well-designed, will be finished in September.

The airport runway is finished, with its extension to be completed by the end of this year. The projects being implemented also include the reconstruction of the airport, railway terminal and bus station, as well as dozens of hotels under construction.

In the first six months of this year, the region has shown a stable increase in the rates of production volumes, which account for 6%, excluding the fuel and energy sector which posted a 0.9% decline for technological reasons. But overall, the remaining industries have shown a 6% growth, while the gross regional product revealed an 8% growth.

According to the strategy of Astrakhan Region's development, which you have considered and which was approved by the Government in 2006, the region's growth will feature ten major directions. In the past three years, we have managed to double the gross regional product and to increase more than two-fold tax revenues to the regional budget.

Speaking of national projects, there has been considerable progress in the region's agriculture sector. With our traditional emphasis on fruit and vegetable cultivation, we are planning to gradually replace imported foods with domestically produced ones.

In particular, we have launched three projects. One of them involves building a tomato-paste manufacturing plant with the capacity of 100,000 tons per year. With the current tomato-paste imports standing at 250,000 metric tons, the plant to be built within the next 1.5 years will fill up to 50% of relevant imports.

We are also completing a project of building greenhouses with the use of a Dutch technology with a total area of 150 hectares that will enable us to grow vegetables and berries all year round. We expect that at least 25%-30% of the relevant market will be replaced with domestic products.

Vladimir Putin: When did we develop the city reconstruction plan?

Alexander Zhilin: You provided assistance in 2005, and the Government Programme was adopted in May 2006, with major activities having started in December 2006. Currently we are completing the work.

Vladimir Putin: I remember that there were a lot of people, and among the city residents as well, who were skeptical and kept saying that finishing such projects on time was just not possible or realistic. I will definitely come to visit you and see everything for myself. I hope that during the next 2-2.5 years all major works will be completed and as a result people's living conditions will be considerably improves, and we will have another health resort in the south of the country for the people from all over Russia to enjoy. Both federal and municipal authorities will show to the people that we can successfully implement the plans we make to develop the country and its regions.

Alexander Zhilin: People already see the results and they believe us; they are not skeptical any longer.