Transcript:

Dmitry Medvedev: Colleagues, we have just visited Yuzhno-Kurilsk. This was one of our regular trips to Kunashir to get a hands-on feel for the conditions there. I have to admit that, although some problems remain – in fact there are a great deal of them – still, obvious changes have occurred since last time as a result of the government programmes, which we should certainly continue. We believe these programmes should be among the federal and regional governments’ priorities. We will continue financing them as planned; we are not planning to cut financing because it is necessary for the Sakhalin Region and for the Kuril Islands, of course.

It was gratifying to see that the first ever standard road was built in Yuzhno-Kurilsk even if it is just part of the planned road at this stage. I hope you will continue the project to provide proper access to several important locations such as the hospital and other public facilities. The port is also growing. It was nearing completion the last time we were here; now it is already operating. A marine passenger terminal with customs offices and border checkpoints appears ready to open. When will it open?

Remark: In October-November.

Dmitry Medvedev: October-November. So it is almost completed. On the whole, I saw a lot of new residential buildings, quite modern and comfortable.

We visited the hospital. As we agreed with (Deputy Prime Minister) Olga Golodets – we have shared our impressions – although this hospital isn’t exceptional, it still basically complies with our standards for this type of community hospital. We still need to add some equipment, to go through with the whole concept.

One of my strongest impressions is the church: the last time we were here there were certainly problems with it. Although it looked good, it was not built properly. I see that you are working on it now, and a stone church building will be ready by September, and a Sunday school too. Is the preschool open?

Remark: Yes it is.

Dmitry Medvedev: Fine. It took us some time to get a handle on the problems. Well, it’s good it is operating now. How many children does it serve?

Remark: 110.

Dmitry Medvedev: 110. What about schools?

Remark: We have no problem with schools.

Remark: We have invested heavily in this school to prepare the heating systems for the winter and to refurbish the building. The exterior walls have been renovated and paneled, and the roofing has been replaced. But, since the building is very old, built in 1976…

Dmitry Medvedev: Is it wood construction?

Remark: It is half wood actually. There is an old, wooden building and a new stone one. We need to make more capital investment in this. We will ask the governor, and now we are asking you for assistance, to renovate workshops and maybe build an indoor sports ground…

Dmitry Medvedev: How many children does this school serve?

Remark: 480 children.

Dmitry Medvedev: 480, so it’s actually quite large. Does it comply with sanitary and hygiene requirements?  Are the toilets and other facilities working properly?

Remark: Yes. The toilets were replaced and the flooring was replaced. We are constantly renovating or replacing things with our own money or with regional financing. We try to keep up with the regulations… We had a problem with fire safety standards, but we are working on this now, during the summer, while preparing for the next heating season.

Dmitry Medvedev: Good. Keep working. Mr Khoroshavin, please keep an eye on this. Ms Golodets will take care of the current situation, and Mr Ishayev, naturally, as the Minister for the Far East.

Employment is also an issue. The last time I was here, I visited a fish farm. This time, as I spoke with the owners, I understand that they are expanding and hiring more people. This is good. But the best part I think of what we discussed during the meeting in Yuzhno-Sakhalinsk is that the population of the Kurils has stopped declining. In fact there has been growth. This means confidence is growing in the Kurils’ future as a Russian territory, as an attractive destination for growth. We could consider more tourism projects and other service industries, which might interest Russian and foreign investors.

Alexander Khoroshavin: You know, Mr Medvedev, when Oleg Govorun and I were preparing for this meeting, for this trip, we looked through the results of the Kurils development programme. We analyzed them to decide which results to present to you. We looked at investment figures and found that the Kurils have been attracting a billion roubles in private investment annually.

Dmitry Medvedev: This is interesting.

Alexander Khoroshavin: You know, we also looked… To my great embarrassment, I knew the total investment volume…

Dmitry Medvedev: How much of it is under the entire Kurils development programme?

Viktor Ishayev: 27.

Alexander Khoroshavin: 27.

Dmitry Medvedev: 27.

Remark: The federal programme, 21.

Dmitry Medvedev: I see, 21. And the federal programme is planned until…

Remark: 2015.

Dmitry Medvedev: 2015. So if we see up to a billion roubles in private investment each year…

Remark: More than a billion.

Dmitry Medvedev: Even more than that. This means that the public-private partnership system is working. This is very gratifying.

Viktor Ishayev: I would like to add a few words, if I may. This is probably unique for the Far East – the local government fulfills its co-financing commitment at more than 100%. Even if there is a cash gap, they borrow, and contribute more than 100%.

Dmitry Medvedev: This means they view this programme as a priority. The federal government also views it as such, and this will not change – this is our clear stance. I would like everyone to be aware of this, in the Sakhalin Region and the Kurils alike, and anyone else who follows the process.

Finally, I would like to say a few words about sport: people should go in for sport everywhere – in Moscow and Kunashir. This is a universal issue, and they asked for my assistance in the development of fitness and sport on the islands. We will certainly do this; it will be part of a major party project.

Remark: Mr Medvedev, I would like to make a comment about sports. We have the only children’s football club on the Kurils which sends teams to regional events – no offence meant to other regions. We also have hockey and football teams…

Dmitry Medvedev: Where do you play hockey? I think I’ve seen a rink…

Viktor Ishayev: It was a fitness centre... I’m sorry Mr Medvedev, can I make another comment? Our programmes need to be filled with content. We have the 27 billion, including 21 billion contributed by the federal government. We have already spent 10.5 billion, but we still have the financing allocated for 2012, 2013, 2014 and 2015. Not all of this money has been earmarked for specific projects. Would you sit down with the governor and include these projects, so that the money won’t be used elsewhere? Would you please prioritize our projects for us?

Dmitry Medvedev: All right, Mr Ishayev, let’s prioritize. I would propose spending most of the programme funding on the development of production as well as on social and cultural facilities. As for sport, we could include this in the programme, but we’ll also see what we can do as part of our party work. I think this is a case where United Russia should try to enhance the island’s potential. Thank you, colleagues.