Transcript of the beginning of the meeting:

Vladimir Putin: Mr Dmitriyev, we made an addition to the Memorandum on Vnesheconombank's financial operation in late 2008. Before that, supporting the farming sector was not one of the state corporation's priorities. Now there are a lot of interesting agricultural projects in the bank's loan portfolio. Suffice it to mention poultry meat production in Shakhty in the Rostov Region, and in the Orenburg Region. The first project is worth around 100 million euros, the other 30 million dollars.

Another project, to build a dairy, will be implemented in Ramenskoye in the Moscow Region. A sugar beet processing plant will be built in the Tambov Region. There is also a good project in Omsk.

The bank's farming loan portfolio totals 60 billion roubles.

I would like to discuss the progress on the projects in more detail now. What do you think of their prospects? What do you think the results will be?

Viktor Zubkov: Mr Putin, we have indeed studied many priority farming and food production projects. The commission on agricultural development approved them last year. You have mentioned some of them here. Now I would like to talk in more detail about two projects of special importance for supplying Russians with quality foods.

Three years ago, a cutting-edge turkey meat processing facility was built in Shakhty. This kind of meat is in great demand in Russia, because of its high nutritional value, as well as insufficient supply on the market. Therefore, a project was designed and approved by the commission, and Vnesheconombank agreed to finance the project to increase the plant's capacity from 20,000 to 30,000 metric tons a year.

In addition, a decision was made to develop the plant into an integrated full cycle facility, including egg production, turkey husbandry and meat processing. Before that, they had to import the eggs. It is a very lucrative project. I think it will put a tangible amount of high-quality products on the market.

Vladimir Putin: Are regional Governments cooperating? Have they agreed to co-finance the projects?

Viktor Zubkov: Yes, they have. The other project I would like to focus on is the sugar beet plant in Tambov. The region is a major producer of sugar beet, so the commission considered building a processing plant there. Vnesheconombank, in effect, decided to begin the construction this year. The local Government is actively supporting and co-financing the project.

We believe it will greatly benefit the region and Russia as a whole. It will be a cutting-edge facility, rolling out 9,000 tons of products daily, replacing imported sugar on the market and thus significantly reducing costs. It is a very good project and a lucrative investment. The facility will supply the domestic market with products that are in high demand.

Vladimir Putin: We have recently decided to boost the value of Vnesheconombank by granting it a subordinated long-term loan. I'd like to know how the bank is working with the real economy. Let's talk about agriculture today.

Vladimir Dmitriyev: Vnesheconombank's portfolio of projects linked with the agro-industrial sector is worth about 60 billion roubles. All of them have been approved by the commission headed by Viktor Zubkov. To my knowledge, we have 866 billion roubles worth of approved investment, which will be granted by major national state and commercial banks.

As for Vnesheconombank, it goes without saying that we are going to expand our work with the agro-industrial complex, all the more so since in the end of the last year, the memorandum on fiscal policy has made agriculture one of our priorities.

Mr Zubkov mentioned turkey production projects in the Rostov Region. Broilers are being raised in the Orenburg Region. You have quite rightly asked about participation of local Governments in co-financing these projects. Both have received the status of national projects, which means that interest rates are subsidised, and the construction of infrastructure (heating, electricity, water supply and roads) is funded from the local budgets.

I'd like to emphasise that in money lending and investing, Vnesheconombank has been paying special attention to the introduction of modern technologies in agriculture. In this context, I'd like to mention a project with a price tag of more than $200 million, which is being carried out by Titan-Agro in the Omsk Region. This project is aimed at building a bio-chemical cluster. It will be closed cycle non-waste production. One of its finished products will be bio-fuel. This project is based on cutting-edge technologies. The company is not starting its work from scratch. It has already implemented a similar project in Kazakhstan, which was supported by its leaders. In effect, it is carrying multiple projects based on the introduction of the latest technologies in the agro-industrial complex.

Vladimir Putin: Mr Zubkov, Vnesheconombank is far from being a leader in dealing with agriculture, although the memo makes this a priority. Nevertheless, several years ago we established a specialised bank. Other banks are also taking part in this work. We are in the middle of February now and spring sowing is very close. Some regions are about to start it. We must analyse in the near future how well we have prepared for sowing, both literally and financially. I'd like to ask you to compile a comprehensive report on this issue as soon as possible.

Viktor Zubkov: Mr Putin, I can tell you about the leading bank, Rosselkhozbank. Its value was raised last year, and this year the Government contributed another 45 billion roubles to its equity capital. Since the start of the year, the bank has already loaned our real economy, I mean agriculture, 58 billion roubles, which are being spent to purchase mineral fertiliser, diesel fuel, seeds and other things. We keep this work under control.

You have instructed us to hold a special Government meeting in early March on preparations for spring sowing. We have been actively discussing preparations for sowing with ministries and departments, including the purchase of mineral fertiliser and fuels and lubricants. In the latter case, we have talked about prices as well as the amounts. I think that these questions will be discussed in detail at the Government meeting, and this year spring sowing will be carried out in time. This will be an earnest of a good harvest.

Vladimir Putin: Let's discuss all these issues at the Government meeting in early March.