Transcript of the beginning of the meeting:

Vladimir Putin: Mr Kovalyov, of course, we are going to discuss the region’s socio-economic situation in general. But first let me ask a natural question for early September: In what way have you made teachers and students happy? How has the academic year started out?

Oleg Kovalyov: Mr Putin, the academic year began normally, all schools were commissioned, and all of them were prepared to varying degrees. We have some very old and dilapidated schools – they are poor, but nonetheless quite clean and tidy, let's say.

This year, we have accomplished a great deal with regard to pre-school institutions. We have already provided an additional 1,800 places for children, and plan to commission 3,200 by late 2011. Our priority is three-year-old children. Generally, two-year-old children account for 30-40% in the region ... People are forced to wait as a result of shortages. As a rule, 30% of them require a place in day-care children’s centres. When children are three years old, their mothers have to resume work, and unless their kids are taken care of, they could lose their jobs. We are therefore prioritising this issue. We will resolve the issue of three-year-old and two-year-old children almost entirely in 2012, by the beginning of 2013. As far as younger children are concerned, these issues can be addressed during our routine work.

Next. We have completely streamlined the education system, including the system of pre-school institutions and the secondary education system in terms of teachers’ remuneration. Starting on September 1, teachers will receive a 30% increase in their salaries as a result of improvements. Teachers in some schools will consequently receive wages that are on par with the average regional levels. These additional payments are less substantial in a number of schools, primarily those with fewer students.

Vladimir Putin: How much did the salaries that do not match the average levels grow by?

Oleg Kovalyov: Salaries were raised by 30% or even a bit more everywhere. But salaries at full-sized schools were increased by an additional 17%.

Vladimir Putin: I see, but nevertheless, please see to it that all school employees receive salaries that are on the same level as the average for your region. This objective should be accomplished gradually.

Oleg Kovalyov: Mr Putin, we will now take a look around following all these raises … We have raised salaries in the education and cultural sectors, as well as in the area of physical fitness and sports. We will now look around to see what occupations in particular we have missed, and we will facilitate the relevant salary increases under a targeted project starting in January 2012.

Vladimir Putin: In this regard, I would like to ask you about pre-school institutions. You said you have expanded their network, but employees there still receive rather modest salaries.

Oleg Kovalyov: Starting on September 1, we have also raised salaries at pre-school institutions. We connected this with a 30% raise for teachers, including those at pre-school institutions. Moreover, for medical personnel working at schools in the education system, we have raised salaries by 50%.

Secondly, during your visit, we discussed salary increases in the healthcare sector. I've brought a reference note with me, so I can mention the following statistics today. The average salary in the healthcare sector is 14,186 roubles, and the average for the region is 15,300 roubles. Doctors receive more, with an average salary of about 14,300 roubles. Mid-level medical personnel are paid somewhat less. So there have been increases. In 2012, we will reach the average regional levels of 16,200 roubles, through the introduction of medical-economic standards. However, salaries have been multiplied several times at such powerful centres as the perinatal centre, the cardiology centre and the cancer-treatment centre. Their doctors receive 28,000 roubles, and mid-level personnel are paid 16,000-17,000 roubles. I think these are worthy salaries, people are happy to work there and they feel confident.

Vladimir Putin: Mr Kovalyov, two questions that have attracted my attention. First, the volume of regional housing construction has dwindled a bit this year as compared to 2010. What is the situation like there? What can be done to rectify it?

Oleg Kovalyov: Yes, the housing construction sector is lagging behind. The situation … We are unable to improve the situation at the moment, because there is very little groundwork, and it is hard to generate sales. We are currently working on ways to stimulate sales. We have examined a number of measures, including regional budgetary support for particular categories of citizens, such as young specialists. This will provide us with a 20% sales increase. We believe this is normal, and the sales are growing. I hope we will reach the 2008 sales volumes by late 2011. This issue concerns me a lot. We are currently preparing to hold two tenders in 2012 for the comprehensive construction of some residential areas that will be built on regional and municipal land plots.

Vladimir Putin: In other words, you are aware of the problem, and you are thinking about ways to solve it.

Oleg Kovalyov: Yes, that's right.

Vladimir Putin: And second. We have had impressive grain harvests nationwide. I see that your region has harvested a little less grain than in 2010.

Oleg Kovalyov: Yes, I have met with Viktor Zubkov to discuss this issue with him. Unfortunately, Ryazan … Usually, the Ryazan Region is ranked among the five leading regions in terms of grain harvests and grain volumes. But this year we suffered another drought. Rains fell almost everywhere, but they bypassed Ryazan for some reason … It was frustrating to see those good, clean fields with weak grain crops. As a result, we will harvest only a million tonnes of grain. I believe our norm is 1.5 million tonnes, which is how much we should harvest in a good year. This is why I have asked Mr Zubkov … In general, the farmers are not panicking, but somewhat nervous. We have harvested a substantial amount of corn, beetroot, sunflower, and so on. There will be a rather good potato harvest as well. But as regards grain harvests, they are unimpressive. We will post a substantial increase in milk yield levels. For these reasons, I will ask the Minister of Agriculture to meet with me, so that we can discuss specific regional and federal measures to support our farmers, because they have also taken out loans and should repay them, and so forth. This discussion should enable us to be well-prepared for 2012.

Vladimir Putin: This is a strange anomaly, isn’t it?

Oleg Kovalyov: Yes, this is an anomaly. Mr Putin … I wonder how the region didn’t catch fire this year! There were some fires, but we put them out in due time. New, modern equipment helped us, as did additional reinforcements. We responded promptly to fire outbreaks.

Vladimir Putin: All right, then let’s see how we can help your farmers so that they will finally be able to overcome these problems.

Oleg Kovalyov: Yes. We don’t want to be regarded as spongers… We simply want to help them out. We haven't been very lucky for the past two years.

Vladimir Putin: Okay, good.