Transcript of the meeting:

Vladimir Putin: How are you, Mr Fyodorov?

Igor Fyodorov: Thank you, Mr Putin. I have been the governor of the Nenets Autonomous Area for nearly three years. I have something to report.

Vladimir Putin: Go ahead.

Igor Fyodorov: Mr Putin, the executive and legislative regional authorities' successful work, the consolidated elite of the region, and the effective collaboration with municipal units have helped to balance the situation and even facilitate the gradual development of the region despite the crisis and the post-crisis difficulties.

Vladimir Putin: Gradual development. So, what is the expected growth of the gross regional product this year?

Igor Fyodorov: The GRP is actually falling. But there is nothing to hide and I am even proud of this because Nenets is an oil and gas region and its economy is 98% dependent on oil and gas.

Vladimir Putin: I know.

Igor Fyodorov: The GRP’s falling is due to decreased production by a number of our oil and gas enterprises and Naryanmarneftegaz, first and foremost. It is serious because exploration failures and higher expectations during drilling led to a near-50% decrease in Naryanmarneftegaz's production. And we have seen a natural decline among several other enterprises involved in active production. This is true. But we expect an increase in production volumes, including the LUKoil group's – in particular, for the new Trebs and Titov oil fields.

Vladimir Putin: So, what do you think the GRP will be this year?

Igor Fyodorov: I think it will to be 136 billion [roubles]. It is a significant figure, Mr Putin. We expect 136 billion [roubles] and our region ranks first in terms of GRP per capita in the country.

Vladimir Putin: How has this changed compared to last year?

Igor Fyodorov: It is growing.

Vladimir Putin: What is the growth rate?

Igor Fyodorov: Mr Putin, I will have to confirm the figure as I do not want to lie to you. It is not right to lie to the prime minister.

Vladimir Putin: It is not right to lie to anyone. But you have worked in this post for three years now and you are here to report. You should have had the data with you. You should check afterwards.

How about social issues? How about healthcare programmes, education and preschool education programmes?

Igor Fyodorov: Mr Putin, the priority of our regional policy is social support for citizens and implementing national projects. New kindergartens and schools are under construction. Every year both new kindergartens and schools open. I would like to report that our oil producers and mineral developers are indeed very serious people – public people, I would say – who help us to make these projects possible. For normal life, a village needs a kindergarten and a school, a local club. This is when people start respecting us. I should tell you, Mr Putin, that our oil producers – every Russian brand has a branch in Nenets – they all work very well. And they help us.

Vladimir Putin: I hope that they are not greedy.

Igor Fyodorov: No, they are not. If the officials are generous, it will be repaid a hundredfold. Roneft and Gazprom are each building a kindergarten. To say nothing about what has already been done.

Vladimir Putin: What is the size of the budget?

Igor Fyodorov: We hold the largest resources in Russia. I understand that the population is low. The budget figures are also very good. Both the regional budget and the total funds are quite good.

Vladimir Putin: Are there any problems?

Igor Fyodorov: Mr Putin, within the past year we have held a number of significant events. One of them is an international oil and gas conference that covered quite serious issues in the oil and gas industry. Eight foreign participants attended the conference. We have held a meeting of the Marine Board, of which I am a member. By a resolution signed by you, I was included in the Marine Board and I have been an active member of this government body. We held an onsite meeting of the Security Council chaired by Mr Patrushev (Nikolai Patrushev – Secretary of the Security Council). We also held a meeting of the Presidium of the State Council on Housing and Public Amenities.

There are problems. I would like to report on some of them and receive your support and the support of the government. Historically, the region is rather complicated. It has a controversial history. We could have solved many problems before, but they have not been solved, unfortunately. We try to develop infrastructure and energy and energy-saving technology. And there are results that we can demonstrate. With the support of United Russia, we have developed the Clean Water programme and we do what we can to make this programme work because water means health. There is housing as well – a regional programme that will continue until 2022. The first stage will be complete by 2015. We have identified funding sources and a whole residential area is now under construction. We are not embarrassed now when people come and ask – we can say that this or that rundown house will be demolished at a certain date.

Vladimir Putin: Is the housing expensive? How much does a square metre cost?

Igor Fyodorov: The housing is rather expensive. The primary market offers a square metre for 57,000 roubles. It costs 60,000 roubles in the secondary market. Social programmes and mortgage schemes have resulted in secondary market prices getting more expensive than primary market prices.

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

Igor Fyodorov: It is 48,000 roubles. It is a really decent salary. Mr Putin, a doctor at a district hospital earns 80,000 roubles [per month].

Vladimir Putin: An average doctor?

Igor Fyodorov: Yes. Clearly, this is a combined salary, but it is 80,000 roubles. An ambulance doctor earns 110,000 roubles. It is an achievement that we can be proud of.

Vladimir Putin: But life is rather expensive there.

Igor Fyodorov: Very expensive, Mr Putin. Because for those living on the island there is virtually no communication with the continent.

Vladimir Putin: What is the proportion of rundown houses?

Igor Fyodorov: The proportion of rundown houses is around 12%. These are houses that have been there since Soviet times.

Vladimir Putin: Barracks?

Igor Fyodorov: People get offended when we call them barracks. But frankly speaking, they are barracks and they must be razed to the ground. The only option is to build new houses.

Vladimir Putin: Of course. And those who want to move to other areas must be helped.

Igor Fyodorov: Yes. There is a federal centre that provides such assistance. But, Mr Putin, there is gas in Naryan-Mar. And if people had comfortable living conditions and comfortable housing they would not wish to leave. The demographic figures there are one of the best in the north-west. And it is natural demography.

Vladimir Putin: Are you experiencing population growth?

Igor Fyodorov: Yes.