Vladimir Putin: Good evening. What's new?

Sergei Shmatko: Mr Putin, I would like to report on implementing your instructions to replenish electric power utilities with fuel for the upcoming autumn and winter season.

Currently, the work is proceeding on schedule and in accordance with the norms we have established for the key date of October 1. Let me remind you that these norms are obligatory for generating companies.

I would like to note that we established the norms considering the average temperatures of 2005 and 2006, despite meteorologists' forecasts for the upcoming winter to have temperatures slightly higher than average. We also took into account the estimates of a 5% growth in energy consumption as compared with the previous year.

Overall, all energy plants have performed their obligation concerning fuel oil supplies. However, there is a problem with coal supplies, which I will report on later.

We are actively working with Gazprom to coordinate the balance forecast for the upcoming winter. We are not expecting any problems or inconsistencies with gas supplies; moreover, while establishing the norms for fuel oil we considered Gazprom's requests for additional fuel supplies for stations running on gas.

About 13 energy companies have not fulfilled our requirements on fuel and coal supplies. This has resulted from insufficient supplies of railway vehicles, which was revealed by our monitoring checks and requests to local administrations, regional offices and energy supply companies. There is coal in mines but it cannot be moved due to this year's abrupt rise in cargo turnover caused by increased coal exports, which led to longer transport corridors thus creating a railway vehicles deficit. Currently, the Russian Energy Ministry, Russian Railways and Transport Ministry are working with coal supply companies and energy utilities on monthly agreements for unconditional provision of railway vehicles for power plants' needs, as well as creating sufficient coal supplies.

Vladimir Putin: Well, when will the work be completed? The winter will have come before you have all those documents made and signed.

Sergei Shmatko: Mr Putin, the work is going forward at the moment. We are aiming to eliminate all the deficits by October 1, though we have a deadline for normative standards on November 15. I would like to request that you give a corresponding order.

Overall, the work is going well, with ten-day schedules planned. We have completed almost 90% of the work planned for the first ten days of September, the work I have told you about. Considering that this work is newly scheduled, I expect we will complete it by October 1.

Vladimir Putin: Good. Thank you.