Transcript of the beginning of the meeting:

Vladimir Putin: Good evening. How are things?

Sergei Morozov: Mr Putin, first let me thank you for coming to the Ulyanovsk Region after a short break. I would like to report on executing the orders for several projects you gave me in 2006, 2007 and 2008 in the city of Sochi. Particularly, I am talking about the project of a bridge crossing the Volga River.

Vladimir Putin: As I understand, the work is under way.

Sergei Morozov: Yes, thank God. Due to your assistance, for the past three years we have managed to construct in the region more than we accomplished for the past 16 years. Besides, at the International Transport Forum in Sochi in May, the region received additional 3 billion roubles ($127.7 million) necessary to accomplish your order this year and finally link the Volga River's banks in November.

Vladimir Putin: The project is to be completed in its entirety next November. Will you succeed?

Sergei Morozov: I suppose we will, since we do not have any alternative, especially with the assistance you provided to us. I only ask you to support us and give the opportunity to collaborate with the Ministry of Transport.
As I previously reported, the river crossing bridge is a unique facility. Here's what still remains to be construct [shows the map].

Vladimir Putin: Over 13 kilometres.

Sergei Morozov: Exactly. We are perfectly aware that the bridge construction will only solve the city problem, not the large-scale issues, and we realise what you meant by charging us with the task to elaborate a brand new strategy for developing Russia's transport infrastructure.

I met with Russian Transport Minister Igor Levitin to speak on the issue. At a Transport Ministry board meeting, he confirmed that it would really be easier to built a new federal highway from Moscow to Yekaterinburg running across Ulyanovsk and the republics of Mordovia and Tatarstan than to renew the M5 route, especially considering the fact that the new highway will be 90 kilometres shorter, thus reducing labour costs imposed on our industrial and business companies.

Vladimir Putin: Possibly, launching a separate project might be reasonable, with the Transport Ministry calculating all expenses?

Sergei Morozov: In this regard, I want to request, if you could, to give us the opportunity to work on it. With the transport strategy currently being developed, we might manage the project in time.

Vladimir Putin: Do you mean the project of the new highway?

Sergei Morozov: Yes, this exclusive project. We already have an excellent route linking the Ulyanovsk Region with Moscow and running across the Republic of Mordovia and the Ryazan Region. The project will not require much finance and will be considerably cheaper than the current route.
The next thing I would like to report on is natural gas supplies to the Ulyanovsk Region. For the past three years, we have managed to do a lot in this respect thanks to your assistance, with only one district left to be provided with gas. We are close to the complete gasification of local cities and towns, with gas being supplied to over 20,000 local private houses and apartments. However, there is a small issue to be solved - to execute your order and complete the full gasification of the region's areas by 2012, an additional 7,500 kilometres of pipelines need to be constructed.

Vladimir Putin: You mean 7,500 kilometres?

Sergei Morozov: Exactly.

Vladimir Putin: Within the region?

Sergei Morozov: Correct.

Vladimir Putin: Low pressure?

Sergei Morozov: Yes. In September or October, I will meet Alexei Miller [CEO of Gazprom] to report that we are implementing the synchronisation programme in its full effect. We need financing to remain the same to complete everything in full up to 2012.

Vladimir Putin: Are the low-pressure pipeline systems financed?

Sergei Morozov: Yes, according to the mutual programme of synchronisation, with 50% financed by Gazprom and 50% financed from the region's budget. We allocate the money and provide guarantees, with the construction of the new pipelines being launched.
This is relevant to the region as we are starting to construct five local glass factories, which aims to satisfy up to 40% of Russia's total demands for glass, including medical, bottle and dishware glass.

Vladimir Putin: This requires additional energy resources.

Sergei Morozov: Yes, and we need natural gas, since at present we are at the stage of starting all initial construction activities. If we fail to complete them in time, this will turn into a big issue.

Vladimir Putin: It is important to coordinate everything beforehand.

Sergei Morozov: We did, and we received support. I appreciate both yours and the President's [Dmitry Medvedev] help, as this year a decision has been taken to construct a new gas pipeline stretching from Syzran to Ulyanovsk, which would mean 90 kilometres across the Samara Region.

Your order has been executed - Gazprom is starting to renovate the operating gas pipeline stretching from Binaradka, outside the city of Tolyatti in the Samara Region, to Ulyanovsk; the project is due in 2010. If possible, could you recommend to Mr Miller...

Vladimir Putin: We'll see.
How are you handling the unemployment issue? This was one of the most urgent problems in the region several years ago.

Sergei Morozov: Previously, I reported you on very high unemployment rates in the region in 2002, 2004 and 2005. Today, due to the work we have been implementing under the Russian Government's control, it currently stands at 1.16%, which is among the lowest unemployment rates in Russia, including the Volga Federal District.

In the first six months of this year, we accomplished the task of creating over 5,000 new jobs. I have reported to you at the meeting on the urgent need for workforce for the region's aviation industry, plus another 300 people are required to work at a car assembling plant to implement several projects.

There are also a number of other appealing projects that we will report to you on in the nearest time. Those include a regional-type industrial zone created in the region, with budget finances allocated to build infrastructure. Currently, several plants are being constructed in the area. Naturally, all this imposes certain obligations to construct more housing, as you have mentioned.

Vladimir Putin: What is the status of the region's housing sector? What about hazardous housing?

Sergei Morozov: Yes, we have serious problems in this regard. The residents in about 20,000 hazardous and ramshackle residential houses need to be resettled.

Vladimir Putin: How many families does that imply?

Sergei Morozov: Practically the same number. Unfortunately, this issue is urgent not only for the city of Ulyanovsk but for the region's rural areas as well. Sadly, we have done nothing to solve the problems for a long period of time, including activities to register hazardous and ramshackle houses.

Vladimir Putin: Is the Ulyanovsk Region part of the federal programme of housing modernisation and resettlement?

Sergei Morozov: Yes, the region has entered the programme. Plus, we developed a similar programme in 2007 and coordinated it with the Ministry of Economic Development. This year, we received the first tranche and the first request for restoring houses in hazardous and ramshackle condition.

Vladimir Putin: I understand that you have developed your own regional programme and coordinated it?

Sergei Morozov: Yes, we did, including the coordination with the Development of Housing and Utilities Sector Fund. This year we received over 400 million rubbles ($17 million) from the federal budget, adding 200 million roubles from the regional budget, with the additional money from the houses' residents. Overall, the finances reach 700 million roubles ($30 million).

Vladimir Putin: How many families are resettling this year?

Sergei Morozov: We plan to resettle residents in about 40 residential houses.

Vladimir Putin: How many families does that imply?

Sergei Morozov: Over 100 families.

Vladimir Putin: And how many people need resettling?

Sergei Morozov: If we are talking about houses in hazardous and ramshackle condition, I estimate it at 18,000-20,000 people.

Vladimir Putin: This sounds a very low figure; that will not do.

Sergei Morozov: Yes, Mr Putin, and we are aware of it. We planned to make another request to the Development of Housing and Utilities Sector Fund, but, sadly, we have quite a large amount of work concerning local fuel-oil boiler houses left, since some municipal enterprises have failed to do their work properly and now they in debt for fuel oil. Finally, we decided not to make this request to avoid pulling off the planned schedule of preparations for the heating season as we realise how thoroughly you follow these preparation activities.

Vladimir Putin: As I understand, you lack sufficient finances?

Sergei Morozov: We did need additional finances, so we allocated another 150 million roubles ($6.4 million) for purchasing fuel oil for the region up to January next year.

Vladimir Putin: Still, the region will have to increase the finance supply in the next few years.

Sergei Morozov: Mr Putin, the 2009 regional budget will reach about 35 billion roubles ($1.5 billion), which is almost four times more than in 2005, the year when I took the gubernatorial office and the budget accounted to only 9 billion roubles ($383 million). I hope this issue with development will be settled.

Vladimir Putin: So, as I understand you are planning to increase financing to resettle people living in hazardous housing?

Sergei Morozov: Yes, we intend to allocate about 2 billion roubles ($85 million) for restoration of old and hazardous housing and resettling residents.