Mr Ivanov said, in part, that the Russian Government has planned to grant allocations in the region of 20 billion roubles from the federal budget for the modernisation of municipal transport in 2009. These funds are to be provided on conditions of "equal co-financing" by regions of the Russian Federation.

The Deputy Prime Minister also said that the Government was "drafting a programme for renewing the pool of vehicles used by the regions and cities of Russia to carry passengers, means of medical assistance, and the police."

According to Mr Ivanov, the Government will take measures to attract investment in the automobile and municipal electric transport sector. Within the current economic situation, "there is a considerable possibility of making substantial progress in solving one of Russia's two recurrent problems," he said.

Mr Ivanov is confident that by focusing attention on the modernisation of roads and transport in specific cities and towns, "we will not only boost their economic development, but will also create additional jobs."