Transcript of the beginning of the meeting:

Vladimir Putin: Mr Chubais, your company works in a variety of areas, including energy-saving technology, materials science and, of course, the defence industry. But I understand that you are now actively preparing for the new academic year. What have you come up with?

Anatoly Chubais: Yes, there is indeed this element to it. I’ve brought along an example to show you. As I said earlier, we are currently involved with a new type of electronics, which is fundamentally different from the conventional type, which is based on silicon. (Indicates the computer in his hands) This one, by contrast, is plastic.

Vladimir Putin: Is this what you showed me when I visited?

Anatoly Chubais: Yes. Continuing our work on that project, we realised that this technological product – a silicon-free computer – could have practical applications in public education. This computer, developed specifically for school students, is the project that we are currently working on. We’ve downloaded an entire set of textbooks on every subject in the school curriculum, through the 6^th grade. These textbooks have been adapted for the computer, complete with hyperlinks. And with the support of the Education Ministry, we will be testing a thousand of these computers in several regions across the country starting on September 1.

I’m currently holding in my hands an entire set of textbooks required by a pupil in one grade. In general, electronic paper already exists, we are not the first to come up with it.

Vladimir Putin: Look, I’ve pressed the right button.

Anatoly Chubais: What have you found?

Vladimir Putin: “Pancakes turned out flatter and fatter with our Mardi Gras batter.”

Anatoly Chubais: This seems to be an excerpt from a literature textbook. That’s it, exactly. So, you see, all these “pancakes” and all the other textbooks fit into one tiny computer. The important thing is that…

Vladimir Putin: About how much will it cost?

Anatoly Chubais: That’s an important question. We're assuming a starting price right now of 12,000 roubles. If the experiment is a success (it will take a year to complete, after which the Education Ministry will assess whether it is workable), we’ll start mass-production. The ambitious construction project of an electronics plant we’ve just launched in Zelenograd, involving more than $700 million in capital investments, will lead the way for the production of these computers nationwide. And with mass production, we’ll be able to bring the price down while also developing some other innovative products.

This autumn, we’ll be simultaneously testing this new computer in schools, building a plant in Zelenograd and creating a research centre on the grounds of the Moscow Electronics Institute, also based in Zelenograd. The research centre will further develop and promote the silicon-free computer hardware technology. We don’t think it should be limited to textbooks, though. Plastic electronics can have a whole number of other applications. But this primary use could pave the way.

Vladimir Putin: Sure.

Anatoly Chubais: Importantly, this technology minimises the risk of injuries. It’s not at all heavy, and has no glass shield on its screen. The screen is flexible. So, even if schoolchildren use it as a weapon in a fight, this computer will cause no injury to the person hit, because it’s light and soft. And it’s electronic paper, so it’s not backlit, as is the case with an ordinary PC. It’s founded on a wholly different principle. So the light we can see here is reflected light. In addition, our computer fully meets schools’ sanitary requirements.

Vladimir Putin: So it will cost much less once it is mass produced, right?

Anatoly Chubais: Of course.

Vladimir Putin: And what about energy-saving technology?

Anatoly Chubais: We’re now running several related projects in a number of areas. I’ve brought along an item developed as part of one such project. This is Russia’s first LED bulb with a standard E27cap, so it can replace the old generation of bulbs without any additional adaptation.

We’re to present it on September 2, and the first pilot batch will hit the shop shelves in Moscow and St Petersburg in early September. Its main asset is low power consumption (83% less than that of the regular bulb).

The bulb you are holding is equivalent to 60 watts in light intensity and to 12 watts in power consumption.

One other key asset is its longevity: 50,000 hours, with a three-year warranty guaranteeing free replacement within the first three years of operation. None of our Western competitors, like Philips or Osram, provide such a warranty so far. Nor do any of the electronics producers in China or elsewhere in the East.

Initially, this product will cost quite a lot. Osram now sells that kind of bulb at a price of 1,200-1,300 roubles. We’ll offer ours at just under 1,000 roubles (we’re talking about the pilot batch). And if the market shows an interest, we’ll start serial production and will be able to bring the price down. In two years’ time the price could fall by a factor of 4 or 5, we reckon.

Vladimir Putin: That’s a substantial reduction.

Anatoly Chubais: Yes. We plan to cut it down to 250 roubles by 2014 or even by 2013, provided that the product is mass-produced and there is demand.

Vladimir Putin: Mr Chubais, are there any issues you’d like to raise today?

Anatoly Chubais: We’ve got some other achievements which I’d like to outline here. You’ve visited a display at the MAKS air show and there you’ve seen one of our recent achievements we deem important and pride ourselves on.

As you know only too well, the basic problem in the aircraft industry is a lack of materials, both for commercial and military carriers. Yesterday we struck a deal with Mr Pogosyan (Mikhail Pogosyan, President of the United Aircraft Corporation),  Mr Kablov (Evgeny Kablov, Director General of the All-Russian Scientific Research Institute of Aviation Materials) and Mr Melamed (Leonid Melamed, Director General of the Komposit Holding Company). Which means we’ve proved to our aircraft manufacturers that we can produce nanocomposite materials that meet the requirements for both military and commercial aircraft. The first samples will be used in the frontline aviation fleet. And then, hopefully, we’ll have our innovative materials used in new Sukhoi Superjet models and in the MS-21.

Vladimir Putin: Great. Are they compatible with titanium?

Anatoly Chubais: Yes, they are compatible with titanium and, importantly, they are now on their way to certification, which is a complex and lengthy procedure, consistent with the rigorous aviation regulations. But to be able to get to this point, we’ve spent more than two years preparing every stage of the technological chain in association with Pogosyan and other partners. And now customers are ready to start using our materials in their products.

Vladimir Putin: Excellent.