Transcript of the beginning of the meeting:

Vladimir Putin: Mr Shchegolev, please begin.

Igor Shchegolev: We have agreed to monitor the outlook for mass media in the context of the economic difficulties.

With reason it is said that journalists are the first to fall into the economic crisis and the last to get out of it. Figuratively speaking, the journalists are the first to notice the effects of the crisis and monitor the disappearance of its last symptoms. But we witness that the economic deterioration hits the media economy directly.

First of all, the media industry is affected by advertising market shrinkage, which went down by 20-34% for the various media categories. It appears that the market will continue to deflate. Some viewers, readers and listeners will be glad to see many commercials gone-but to journalists, it means major economic difficulties, and many media outlets are groping for ways to overcome those hardships.

Vladimir Putin: Advertisers-including key well-established ones-should not use the situation to improve their position in their relations with the media, mainly electronic media. This matters most. Many of them have certain privileges, which they will lose in the future if they leave the market now.

Igor Shchegolev: Very good, that will be the way we will arrange our dialogue with them. But certain economic measures are also necessary. Some advertisers find media outlets on their own, give up on expensive products and streamline their expenses. More and more press outlets confine themselves on to the Internet, reduce their periodicity and the number of pages. It relates to, first of all, major state-owned outlets that produce socially significant information. We are seeking ways to support them. In particular, this concerns the Russian Television and Radio Broadcasting Net (RTRS), through which our major television channels and radio stations are transmitted, and which largely guarantees unity of the Russian information environment.

We have agreed on material support for RTRS with prospects for a subsidised loan. We have addressed the Government with the relevant initiative, and we will ask you for support on the issue.

Vladimir Putin: What part of interest does the subsidy envisage?

Igor Shchegolev: Two thirds of the refinancing rate. As for the press, we have frozen subscription tariffs for a year, and we intend to do the same next year.

Vladimir Putin: Good. In any event, we must guarantee a normal technical state of the entire system, including communication satellites.

Igor Shchegolev: We are also working towards that. We have announced a competition for satellites to be launched the soonest. Their construction will start as early as next year. We should, first of all, maintain a full schedule for the Russian space industry; that is the goal we have set. But in that, the industry needs access to the latest technology.

Vladimir Putin: Good.