Transcript of the beginning of the meeting:

Igor Sechin: Mr Putin, I can report on the progress in the restoration of the power supply in the Republic of South Ossetia. As of 2 p.m. on August 13, high voltage power line of 110 kW "Severny Portal Dzhava" powered from Russia and the substation of 110 kW in Dzhava are in working order.

One of the 110 kW transformers of the substation in Tskhinval, three main supply switches of 35 kW each, as well as a 10 km section of the 38 km high voltage power line Tskhinval-Dzhava are damaged.

Also severely damaged are 500 meters of Dzhava-Kvaisa line, 30 of 30 km of Tskhinval-Znaur lines, 8 of 12 km of Tskhinval-Vanat lines, 12 of 18 km of Vanat-Kekhvi lines. About 120 km of distribution mains, power lines of 6-10 kW and 180 transforming substations are also damaged.

Vladimir Putin: When and how will it be restored?

Igor Sechin: Following your instructions a joint commission consisting of representatives of Interregional Distributive Net Company of Northern Caucasus, a territorial subdivision of Rostechnadzor (Federal Service for Supervision of Environment, Technology and Nuclear Management) and Ministry for Civil Defence, Emergencies and Disaster Relief is now working in South Ossetia. The work is coordinated by the Deputy Minister of Energy, Vyacheslav Sinyugin.

First of all, it is necessary to restore the power supply in Tskhinval. The rescue work is initiated by your order, so we organized the restoration works on the Dzhava-Tskhinval power line of 110 kW feeding substation Tskhinval and the substation Tskhinval itself.

In the short run the substation is going to work temporarily on one transformer. Simultaneously with the recovery work restoration of the whole distribution mains in Tskhinval will be started. We have estimated the need for equipment, forces and facilities necessary for carrying out the recovery work.

Vladimir Putin: How much time will it approximately take?

Igor Sechin: Mr Putin, temporary schemes will be implemented in the nearest future. We can say the work is going without a hitch. For example, the substation in Kvaisa has already been put into operation after damage removal. I don't want to sound too optimistic but we think that temporary schemes will be implemented in the nearest future.

After we clarify the situation on location all the necessary capital works will be done.

Implementation of these plans will be adjusted after the situation in South Ossetia is normalized, when a careful study of the conflict consequences will be held on location.

Vladimir Putin: Now could you brief me please on our energy sector and preparation for the winter. As you remember, we said that after all the measures concerning the reform of the RAO Unified Energy System of Russia we need to keep preparation for this winter under control, taking into consideration what has happened to the system in the whole. What is being done?

Igor Sechin: Pursuant to the instruction you gave at the meeting on electric power industry, we have set up management bodies, a market board, and have completed the transfer of the whole system of electric-power industry under supervision of the Ministry of Energy. We meet with participants on a weekly basis. Critical regions have been defined. There are eight of them in the country. We met with their representatives the day before. We have removed anxiety regarding fuel reserves. We are confident that the fuel reserves will be delivered in time. There is one problem left that I hope to solve today or tomorrow - the delivery of fuel oil to Kamchatka.

Vladimir Putin: We have talked about increasing responsibility for solving these tasks, particularly bearing in mind that many companies generating power supply have been given into private ownership.

Igor Sechin: Of course, Mr Putin. We are performing this work as well. We will report on it. We believe that probably on Monday, in time for the next Presidium meeting, we will make the decision signed by all departments on setting up a headquarters to report on the situation. And we will do all the works on autumn-winter heating season in time. The same regards enhanced responsibility for putting new capacities into operation...

Vladimir Putin: All capacities must function without a hitch, all fuel reserves must be available in the necessary volume and in time, as scheduled.

Igor Sechin: Mr Putin, after all measures implemented we are confident that the fuel would be reserved in accordance with the norms.

Vladimir Putin: Make sure of it.

Igor Sechin: Yes, Mr Putin.

Vladimir Putin: It is the middle of August now, and the cold season starts at the end of September in some regions of the country.

Igor Sechin: Mr Putin, we have some concerns only about Kamchatka. Its Governor is in Moscow now. We carried out work yesterday, we are doing it today. We agreed with two companies, Rosneft and Gazpromneft on providing the necessary volume of fuel oil for the autumn-winter peak in Kamchatka. Today the railroad and sea transporters are optimizing all tariffs and expenditures on the delivery of this fuel. I hope we will report to you on the final decision on Kamchatka tomorrow.

Vladimir Putin: All right.