Transcript of the beginning of the meeting:

Dmitry Medvedev: Mr Zerenkov, you are a fairly young governor, and I wish you every success in this crucially important region, with its many challenges. What have you done since you took office? What social and economic issues are you tackling? What problems do you have and what is developing well?

Valery Zerenkov: The territory is developing sustainably. Investment has grown by 30%, which amounts to 13 billion roubles.

Dmitry Medvedev: Since last year?

Valery Zerenkov: That’s right. Construction has grown by 10.3% and housing construction by 30%.

Dmitry Medvedev: Are you building more one-family homes or apartment blocks?

Valery Zerenkov: Blocks, for the most part, but we make it a point to build smaller houses than before. Unemployment has decreased by 60%. It’s 1.6% now against 2% in May.

Dmitry Medvedev: Are these percentages?

Valery Zerenkov: Yes. I think these are hopeful figures. The main indicator is wages: the monthly average has gone up from 15,900 roubles to 16,514. We have many interesting investment projects. Nevinnomyssky Azot is Russia’s only company to produce melamine. It’s mostly used in the lumber industry but it has a wide range of other applications and is in great demand. Sandwich panels, manufactured in Nevinnomyssk, are very popular in small low-cost house construction.

Nevinnomyssk is a rapidly developing town, and Budyonnovsk is doing well, too.

I would like to say a few words about agriculture. Harvest has begun in 14 districts. We were afraid the yields will not be very large after the frost and drought (our region is in the east), but we are harvesting two tonnes per hectare of hard-shell wheat. Some districts – Trunovsky and Alexandrovsky – are doing even better, with four or five tonnes.

Dmitry Medvedev: However, am I right in thinking that the prospects are worse than last year due to the poor weather conditions?

Valery Zerenkov: Yes. We expect a total yield about 30% below last year’s. We will harvest about 500,000 tonnes without considering corn and legumes.

Dmitry Medvedev: Still, you should do your best. Last year we had a very good harvest while the year before was disastrous, so the average is acceptable. However, we should increase our export potential.

I looked down during our helicopter trip just now, and I admired the crops.

Valery Zerenkov: The fields look very good.

Dmitry Medvedev: They do, they are green and well-tended. I also saw big new cattle farms.

Valery Zerenkov: Cattle and pig farms.

Dmitry Medvedev: Dairy herds, aren’t they?

Valery Zerenkov: Yes.

Dmitry Medvedev: This is very important. Agriculture is essential because your region has an excellent climate and soil for agriculture, but you should develop not only farming. I hope you will focus on investing in industry as well.

Valery Zerenkov: Absolutely.

Dmitry Medvedev: Another issue that is equally important and which we will return to later today and tomorrow is the development of tourism because this region attracts a great many holidaymakers from Russia and abroad. Infrastructure has tremendous importance. You have adequate facilities in some places – I saw them from the helicopter – but there are some neglected areas, too. It is essential to attract investment in this industry.

Valery Zerenkov: Yes, it needs investment and attention.

Dmitry Medvedev: Personnel training, too, however unnecessary it may appear in the tourism business.

Valery Zerenkov: It’s a very big job.

Dmitry Medvedev: It is. Not all people in this and the neighbouring regions are ready to take it up professionally, so you need special colleges to train professionals.

Valery Zerenkov: Thank you. The Stavropol Agricultural University has a tourism and hotel management department.

Dmitry Medvedev: Universities usually train managers while we need people who can build and design, so we need secondary vocational schools and colleges for this industry. But it all concerns the future, so we’ll discuss it later. All right?

Valery Zerenkov: Thank you very much.

Dmitry Medvedev: Thank you.