Transcript of the beginning of the meeting:  

Alexei Chernyshev: First of all, I would like to report to you that we are ready to provide assistance in connection with the events in South Ossetia. If needed, we can accommodate refugees. We can also arrange jobs. Salaries, food supplies - we have prepared it all.

We held emergency meetings, people support the country's authorities, the President and your actions, especially your prompt arrival in Vladikavkaz. At the same time people are indignant by the actions of the Georgian leaders.

Vladimir Putin: Thank you very much for such a response. First of all, it is certainly necessary to help the children. As for finding work and other things - here we need to concentrate on other things: helping people to return home. I met them, and many of our colleagues were there as well: people are keen to return to their homes. So, if we talk about assistance, it should be used to help them repair their homes, rebuild nurseries, schools, and other such social buildings. This is the way you should be thinking.

Alexei Chernyshev: Foodstuffs, building materials, cement, metal - we have prepared everything...

Vladimir Putin: We also need to provide medical help to those who need it, and probably to accommodate children.

Alexei Chernyshev: We can do this.

As for our regional development, I would like to report that over the last few years the region has dynamically developed.

Industry is growing by about 9-10% per year. Last year growth reached 10.5%, in the first half of this year, 9.3%. It is very important that all sectors demonstrate positive growth.

You have been in our region twice and you are aware: we have 6 million hectares of agricultural land - this is a major region. And 42% of the population lives in rural areas. We certainly pay significant attention to agriculture. Now the harvesting period is underway and the crop is at around the same level as last year. The total crop is over 3 million tons, more than 1.5 tons for the population. We are an exporting region. We support the livestock sector as well, we have quite good growth in this area.

Mr Putin, the most important thing is that now we have a rapidly developing construction sector, primarily in residential housing. The growth in the first half of 2008 was 30% more than last year. As for construction in rural areas, we have a special rural housing programme - we grant beneficial commodity credits for construction and last year 1,300 houses were built under this programme and 1,500 this year.

Early this year I called on all different types of companies to increase wages. My proposal received support, wages have increased by 17%-20%. Wages in June were 12,900 roubles. It is a little less than the average wage in Russia, but growth is 17%-19%. And more importantly, real wages are also increasing by about 17%.

Vladimir Putin: What about preparations for the new academic year?

Alexei Chernyshev: I think that by September 1 all our schools will undoubtedly be ready for the new school year. We now have a good programme of providing hot meals for schoolchildren. In the regional centre we have already carried out a pilot in 20 schools. About 100 million roubles were assigned for this. School meals for children will be well organised; 340 million roubles will be assigned from the region's budget for this. We will provide hot meals in all schools in cities and villages, providing 70% of funds from the regional budget.

Vladimir Putin: Are you building new schools?

Alexei Chernyshev: Yes, we are building new schools as well. The most important aim is, of course, to renovate the old schools. On August 27 we shall have a meeting and Minister Andrei Fursenko has promised to attend.

Vladimir Putin: What is the average salary in the region?

Alexei Chernyshev: The average salary is 12,900 roubles.

Vladimir Putin: And what about teachers?

Alexei Chernyshev: The average salary for teachers is 7,400 roubles.

Vladimir Putin: It is too little.

Alexei Chernyshev: Yes, it is. We will increase salaries by 16% from September 1 and again from December 1, taking into account the 30% increase in the wage fund.

Vladimir Putin: Will the wage increase come from the regional budget?

Alexei Chernyshev: Yes, certainly, it will come out of our own budget. Teachers' wages will increase by 60% over the year.

Vladimir Putin: That's good. When does the heating season begin in the region?

Alexei Chernyshev: It begins from November 1, but we shall be ready by October 1.

Vladimir Putin: And what are your main generating supplies?

Alexei Chernyshev: In this respect we have extra supplies in the Orsk Region; we also sell electricity from the Iriklinskaya thermal power station, a heating plant in Orsk and from two more stations in Orenburg. Everything is in order in this area.

Vladimir Putin: You need to monitor that everything at these stations is fully ready for the heating season, so that standby fuel reserves are available and everything is in the right condition.

Alexei Chernyshev: Yes, we shall look out for that. Mr Putin, it's also very important that this year we will finish the installation of gas services for the Severoorsk Region. This is an enormous region spread over thousands of kilometers. For the past eight years since 2000, we have opened about 1,000 kilometers of gas pipelines every year.

Vladimir Putin: First of all you need to provide gas to homes.

Alexei Chernyshev: Yes, to homes as well.

Vladimir Putin: And you should also ensure that the gas pipeline is protected and not left somewhere in the suburbs.

Alexei Chernyshev: Well, Gazprom is also monitoring this. We are continuing to work with Kazakhstan, it's a joint venture.

Vladimir Putin: Investments are needed for this project.

Alexei Chernyshev: Yes.

Vladimir Putin: Investments are required so that raw materials are used for the development. My colleagues agree.

Alexei Chernyshev: Yes, this is the most important thing.