Transcript of the beginning of the meeting:

Vladimir Putin: Two questions for you, Mr Levitin. First, how is the operation to raise the Bulgaria going? Second, I asked you to prepare proposals to improve the regulatory framework for transport so as to minimise the risk to passenger. Let's begin with the first question.

Igor Levitin: Mr Putin, the raising operation was completed yesterday. The boat is now in the shipyard's waters. Yesterday, we also found the bodies of eight more passengers. As of today, of the 201 passengers on the boat, 79 were rescued and 122 bodies were recovered. Of these 122, 114 were found during the operation to recover bodies. Five out of eight bodies recovered yesterday and two recovered today have been identified. Three more are now being identified. The boat will be hauled to the shipyard, where the causes of the shipwreck will be investigated.

Your instruction to issue the necessary papers to bereaved families so that they can receive their compensation was carried out in full for 114 victims. We have transferred 134 million roubles from the federal budget to Tatarstan. Also, as promised, Tatarstan has paid 300,000 roubles to bereaved families for each lost family member regardless of their place of residence.

Regarding the implementation of your instructions, we have analysed the regulatory framework and would like to obtain your support with regard to the following proposals. These proposals have been agreed with inland waterways carrier associations and the Transport Workers Union over the past few days. They include mandatory insurance covering inland waterway operations. We believe that adoption by the State Duma of a law on transport insurance will be very helpful.

Vladimir Putin: How do you think that would help?

Igor Levitin: We believe that this will provide an aspiring carrier with the opportunity to insure its means of transport before engaging in this business, so that carriers become liable for paying compensations to bereaved families in the amount of 2 million roubles in case of fatal accidents. Currently, it is the government's responsibility. We believe that insurance will make carriers responsible not only for their operations but also for the safety of the means of transports they are using.

Vladimir Putin: What's the idea? If a carrier insures its means of transport for such a sizable amount, the insurer will monitor the condition of the means of transport, so as not to have to pay the insurance money ultimately? Is that what you have in mind?

Igor Levitin: Yes, that's the point. To insure operations performed by carriers in case of fatal accidents.

Vladimir Putin: Good, that won't hurt, but that's not enough. What else?

Igor Levitin: We have another proposal. There is Federal Law No. 294, On Protecting the Rights of Corporation and Sole Proprietors during the Exercise of State Supervision (Oversight) and Municipal Supervision. Under this law, supervisory agencies may inspect businesses once every three years. A prosecutor office's warrant must be issued before conducting a surprise inspection. We would like to have different arrangements whereby transport supervisory agencies could conduct such inspections any time at any port or airport.

Vladimir Putin: Let's introduce a notification requirement instead of a warrant. We will need the State Duma to pass this law in September. Please make sure everything is in place so that the Duma can pass it in September.

Igor Levitin: I will. We have developed a proposal to introduce state port control at Russian river ports.

Vladimir Putin: Do we have it at sea ports?

Igor Levitin: Yes, we have established such controls at sea ports over the last few years. The issue here is that almost all river ports are privately owned, and we have grounds to believe that the state port control that is not available at sea ports has proved its validity: almost all ships that are serviced at a particular port will be controlled using such a state port inspectorate. We don't need federal budget funds to do so. We will redistribute funds within the industry. We believe that such control facilities should be available at all ports.

Vladimir Putin: What will they do specifically?

Igor Levitin: They will inspect boats before they leave port to ensure compliance with safety rules and regulations.

Vladimir Putin: Port owners don't ask private companies to do that now?

Igor Levitin: No, port owners sign an agreement with ship owners and deal exclusively with servicing vessels, their equipment, boarding procedures, etc.

Vladimir Putin: In fact, there's no technical oversight whatsoever?

Igor Levitin: The technical oversight that we have today is not enough to handle all passenger boats. We are now talking about passenger boats only.

Vladimir Putin: You said that the first law will deal with technical oversight. What will this one do?

Igor Levitin: Under the law, we need the port control facility to be located in a port that a boat is leaving. We don't have our employees in all ports. We have many river ports...

Vladimir Putin: Which law needs to be changed to do so?

Igor Levitin: We need to amend the Inland Waterway Transport Code.

Vladimir Putin: Good.

Igor Levitin: Next, we believe that handing over ownership of moorage walls to regional governments will also help improve controls. They are now operated by the Federal Agency for State Property Management through its territorial branches and funded from the federal budget. We believe that lease arrangements can improve the safety of navigation and the technical condition of such moorage walls, most of which need attention.

Vladimir Putin: How is transferring ownership from federal to regional government going to help?

Igor Levitin: It's about control.

Vladimir Putin: In other words, you are saying that federal agencies can't cope with the task?

Igor Levitin: They aren't doing enough, because it's being done by territorial branches of the Federal Agency for State Property Management. This property is leased out for 49 years and there's no proper oversight over its use.

Vladimir Putin: Maybe they just need to amend lease agreements. How is transferring property to regional governments going to help? You think that regional agencies are closer and will provide better oversight?

Igor Levitin: The thing is that port management authorities are registered in the regions. And they believe that their oversight...

Vladimir Putin: What about supervising agencies in Moscow?

Igor Levitin: The supervising agencies are in Moscow, while companies are registered in the regions. The Interior Ministry and other agencies perform control in the regions, too.

Vladimir Putin: Good.

Igor Levitin: The proposals we are asking you to support will be agreed with all federal executive bodies in August. We would like the Duma to pass them in September or October.

Vladimir Putin: Good. Agreed.