Transcript of the beginning of the meeting: 

Vladimir Putin: How are things going with the federal target programme Development of the Nuclear Energy Industry in 2007-2010 and up to 2015?

Sergei Kiriyenko: The programme you approved, Mr Putin, is running on schedule. I can report that our primary indicator - generation of electricity - is up 5% over the previous year and up 2% above the long-term programme goal. There is no doubt that we will fulfil the programme this year.

Our key index is the installed capacity utilisation rate showing the efficiency of the nuclear plant. Compared with last year, it has grown 4% over and above the programme. Uranium production is up 10% this year, and taxes up 36%, that is to say, even despite inflation we are well ahead of target figures. Our exports have surged 27% already despite many obstacles.

Now, as stipulated in the long-term programme, on August 27 the Transport Ministry transferred the authority for all nuclear-powered ice-breakers to us. They are currently all on line and performing well. You instructed us to adopt our last federal target programme around new nuclear technologies. This has been drafted and is at present at the Economy Ministry, and by November 1 it will be submitted to the Government.

Also under your instruction, we updated our proposal for a Nuclear University. A presidential decree has been issued and we are fulfilling it. Next week you will be travelling to Zheleznogorsk and we will show you Russia's first polysilicon production facility there - a related innovatory technology. You have given us a goal to make the nuclear industry a powerhouse of development. And we are now researching ways to make our high technologies available in related fields. During your trip to Krasnoyarsk you will be shown a cluster of solar [battery] silicon.

We are now drafting a joint programme with the Health Ministry on nuclear medicine. We produce a great amount of isotopes, enough to sustain practically the whole world, but we use them as stock material only. Our medicine must be cost-effective.

Mr Putin, concerning our business abroad; in September, we started work at the Belene nuclear plant site and construction is going well. A tender was also completed in Turkey. We think the bid from Atomstroyexport is the most effective and expect a decision by the Turkish Government soon. With hand on heart, we should win the tender. In Ukraine, a tendering commission met two days ago to select a contract for the completion of the No. 3 and No. 4 power units at the Khmelnitsky nuclear plant. The commission found the Russian bid was the best. Now we are waiting for the Ukrainian cabinet's go-ahead.

In summary, I can tell you, Mr Putin, that the approved programme for the year will be fulfilled.

Vladimir Putin: Good. Now as far as work at Belene in Bulgaria is concerned. I had a conversation with the Prime Minister [Sergei Stanishev], and he said there were some questions regarding the schedule. I hope they will be resolved soon.

Sergei Kiriyenko: May I report, Mr Putin? The problem is the Bulgarian side has taken too much time in committing investors and there are now delays in financing. Last week, Mr Sobyanin and I went to Bulgaria, met with the Prime Minister, and worked out all the details.

Vladimir Putin: Were all the details agreed upon?

Sergei Kiriyenko: Everything is finalised. According to schedule, the first concrete will be poured in March, but Bulgaria promised to open financing before the end of October. This means they have two weeks left, we have their promises. If they start financing, we will be on schedule.

Vladimir Putin: I talked with the Turkish Prime Minister and their attitude to our proposals is favourable. Let us wait for the results.

And one more remark about the nuclear ice-breaker fleet. You know that we need to estimate its condition and outline the prospects for its future. I am referring, of course, to our plans to develop the Northern Sea Route.

Sergei Kiriyenko: Mr Putin, we are now drafting this plan of action, we have taken over the nuclear ice-breaker fleet, and are aware of its present state. Our main conclusion is that it can fulfil the task set before it. But unless we commission new nuclear ice-breakers, our opportunities in the Arctic will begin to decrease after 2015. So the key task under the programme for the development of the transport infrastructure is this: as early as 2009 we must have blueprints ready for a new generation ice-breaker, and have the necessary funds to start building it. Now it is essential that we understand what programme we need for the next 10 to 15 years to calculate the required number. Preliminary estimates show we need to construct three to four new generation ice-breakers in the next few years.

Vladimir Putin: Well, let us look beyond the planning horizon, 15 years ahead. We must know precisely what we will be doing then and the volume of work involved.

Sergei Kiriyenko: I understand the task, Mr Putin.