Transcript of the beginning of the meeting:

Vladimir Putin: Mr Gaizer, I took a look at the report on your republic. The indicators are not bad; I’d even say they look pretty good.

Vyacheslav Gaizer: We are doing our best…

Vladimir Putin: I see the average salary is slightly above the national average at 27,500 roubles. There has been a steady rise of more than 20% in housing construction. This is good. Meanwhile, there are some minor pay arrears but we will discuss it. The rate at which public utilities rates are growing is half of the country’s average. That’s good, well done. Agriculture is performing well, particularly animal husbandry, as I see here.

What progress has been made in resettling the miners’ widows? The federal authorities set aside 116 million roubles, the Severstal Group and the regional budget…

Vyacheslav Gaizer: That’s right.

Vladimir Putin: But the lists still need to be finalised?

Vyacheslav Gaizer: Mr Putin, if I may, I would like to start by doing what the widows asked me to do. They submitted a written request to thank you for helping to resolve this old issue. As of this day, the commission has registered 132 families and 131 families have signed financial aid agreements to buy housing. One of the women has flatly refused all our proposals and now the commission has decided, with the woman’s approval, to open a bank account for her and transfer the money to that account in line with the regulations. But this will be a special bank account that she will only be able to use to buy housing as agreed previously and she can do that as soon as she makes up her mind.

Out of the 131 agreements, 96 have been registered with the registration authority; 85 agreements have been paid for and payment is being processed for further 15. The others are being registered according to Russian legislation. Our officials visit the widows and help them with registration if needed. Therefore, we believe that the organisational part of the work has been completed. All that is left to do is to complete the registration on time, transfer the money and help the widows move in. Some widows are already moving into their new homes. The necessary funds have been allocated from the regional budget. We are organising and rendering this assistance.

Vladimir Putin: Please report to me on the completion of this work.

Vyacheslav Gaizer: I will.

Vladimir Putin: Good, thank you.

We mentioned positive things in the republic’s life and the statistical data confirms this. What problems or issues would you like to raise with me?

Vyacheslav Gaizer: Mr Putin, if I may, there is indeed a series of issues that, if addressed, would bring about a leap forward in the socio-economic development of the republic and the neighbouring regions. First of all, I’m referring to the large-scale project to build the Belkomur railway line.

A year ago I reported to you on proposals related to the fact that it was impossible to fund the project in full from the Investment Fund. We suggested that the option of partial public-private partnership be considered. Having received your approval, we carried out the necessary work and this spring arrived at an agreed and balanced solution following consultations with all concerned ministries and government agencies, the Russian Railways and possible investors. The solution was that concession would be the most feasible and appropriate option to attract private capital to the project. We have begun discussing this option with all the relevant agencies. As of this day, we have signed an agreement with Vnesheconombank, which allows us to start the preliminary stage of the work in preparation for the announcement of a concession tender to finance the project.

We have also been working on this with probable investors using the concession experience from other projects. In this respect, Mr Putin, we have two requests in order to ensure a prompt implementation of the project. First, to facilitate a speedy adoption of the government executive order on the concession tender – provided it is agreed upon. This will allow us, together with Vnesheconombank, to carry out all the necessary design and preparation work this year and in 2012, and start the construction in 2013 if a positive decision is taken. In this case, the construction, including the northern and southern segments, will be completed by 2018. Second, please support our request to take a decision on Vnesheconombank’s financing of design documentation work from its existing programmes. The cost is currently estimated at up to 2 billion roubles until the point when the project documentation is issued.

Vladimir Putin: Let’s take a look at this.