Transcript of the beginning of the meeting:

Vladimir Putin: Mr Mamsurov, above all, we have met today to discuss the socio-economic development of North Ossetia – Alaniya, but we should also remember the tragedy in South Ossetia that occurred three years ago. We should remember the victims, the sacrifice of the heroes who repelled the external aggression. Russia has provided its assessment of those events, and made its relevant decisions, and I am not going to return to them now. However, I do have a few questions about the revival of South Ossetia. They are not just your neighbours, they are your brothers in the true sense of the word. How are you developing relations with the region, in particular when it comes to cross-border economic relations, and the development of small and medium businesses? What else should North Ossetia, and all of Russia, do to support South Ossetia?

Taimuraz Mamsurov: Indeed, this day we recall the events of three years ago. I think that the wave of public concern about the reconstruction of South Ossetia has subsided, in part thanks to our efforts. South Ossetia was severely damaged; there were no sewage or water supply systems left intact. The reconstruction of these systems took some time, and it even seemed at first glance that nothing was being done. But this is not the case, a great deal has been done. You said it right, these are our brothers, we speak the same language, we profess the same religion, we are relatives. For our part, the first thing we did, at their request, was send over a large group of specialists, starting with people who took some government posts so that they could respond effectively to what Russia has been doing for the republic. We did that. We sent many [top-level] specialists and even more mid-level specialists. They are rebuilding the South Ossetian economy.

As for border cooperation, it has become much simpler and much safer, and the situation continues to improve. This is almost a natural commodity exchange. South Ossetians grow a variety of agricultural products, but they had no market for them. They do now. The federal ministries, especially the ministries of education and healthcare, have promptly responded to South Ossetia’s requests, and have made agreements, so that South Ossetians can now study at the best Russian universities and receive medical assistance in Russia.

Vladimir Putin: What about the North Ossetian educational establishments?

Taimuraz Mamsurov: We have a standing quota… 

Vladimir Putin:  …for South Ossetia…

Taimuraz Mamsurov: We enrol as many South Ossetians as they apply for, and this number automatically becomes the quota. 

Vladimir Putin: So, your work in this area is going well? 

Taimuraz Mamsurov: Yes, we have no problems in this area. As for the decisions of the Russian authorities to minimise border and customs barriers, this has allowed us to implement our plans without facing these obstacles.

In my view, the political situation in South Ossetia is stable, even though they are preparing for presidential elections. I think the republic is moving in the right direction.  

Vladimir Putin: Let’s talk about current issues in North Ossetia – Alaniya. I am primarily concerned with the state of the economy, and your assessment of it. Let’s also talk about problems in education and healthcare, about the modernisation of your medical sector, your plans regarding general education, and also salary increases in both sectors.

Taimuraz Mamsurov: According to official data for the fist six months of this year, on the whole, we have correctly planned our economic and financial activities for the year. The mid-year results show that we are moving in the right direction. I won’t overwhelm you with figures, but I'd like to say that our gross regional product is 105,100 roubles per capita, which is higher than average for the North Caucasus Federal District. The per capita income is more than 14,000 roubles, and the nominal monthly wage has grown 11.8%. 

Vladimir Putin: Are there any delays in payment? 

Taimuraz Mamsurov: No, there aren't. This wage growth is among the highest in the area. The average monthly wage in the republic is more than 12,000 roubles. We have 8,800 unemployed, which is 45% less than last year. This is the pace at which we are working…

Vladimir Putin: Has the situation on the labour market improved? 

Taimuraz Mamsurov: Yes, there are real improvements. We are implementing a package of measures, which you are aware of.

Vladimir Putin: How much money have you received for healthcare modernisation?

Taimuraz Mamsurov: We have received 1.7 billion roubles. The application procedure was very complicated, but we managed. There was very strict control… We are afraid of making a mistake, because with this kind of money, any mistake on our part will not be seen as a simple error. This is why we are working according to a strict schedule. We have launched these procedures today in two stages, and have published the relevant information on the state acquisitions website for the whole country, so that everyone can see how much is available to us. We are working with the team of Ms Golikova (Tatyana Golikova, Russia’s Minister of Healthcare and Social Development) to review the informational part of the concept…

Vladimir Putin: Don’t forget about rural medicine. 

Taimuraz Mamsurov:  Of course not. We are working to improve outpatient clinics and to make medical services available to everyone… We plan to complete medical check-ups within one and a half to two years in order to have a comprehensive picture of public health in the republic.

Vladimir Putin: What about schools? 

Taimuraz Mamsurov: We have overcome nearly all of the difficult problems concerned with what Fursenko’s ministry (Andrei Fursenko, Russia’s Minister of Education and Science) demanded of us. In fact, we have practically overcome the problematic condition of schools in rural areas, in which children of different ages had to be combined into single classes… As for teachers’ salaries, starting on September 1, we will raise them from 10,000 roubles a month to 12,000 roubles, the average for our economy. Budget allocations for this purpose have been approved at 108 million roubles, and we will begin starting on September 1.

Vladimir Putin: Do you have enough funds? 

Taimuraz Mamsurov: Yes, we do. We have so much money because we have justified these figures.

Vladimir Putin: Excellent. And one more question, involving housing construction. What is the situation in the construction sector? 

Taimuraz Mamsurov: The pace of construction has been growing. People are leaving their villages and moving to cities… I demand, sometimes harshly perhaps, that they return to their villages, to the abandoned homes of their families…  

Vladimir Putin: The development of the construction sector is a good sign.