At the plant, Prime Minister Putin was given a demonstration of the berthing process of submarines and was also shown the construction area for non-military ships.

In particular, on the building slipways Mr Putin saw the Bars large nuclear submarine, Project No. 971. The funding for the project was suspended in 1996. The Prime Minister also saw the overhaul of the Varshavyanka diesel-propelled submarine, Project No. 877.

During his tour of the plant, Mr Putin talked to the shop floor personnel.

Vladimir Putin: Good afternoon.

Your company is not in a very good position - you have incurred considerable debts. Banks even make direct debits of all your allocations from the Defence Ministry.

It's a shame because the company is good - it is one of the largest in the Russian Far East, with an excellent potential. Now I will have firsthand knowledge of your situation. The director knows the plant very well in spite of being appointed only quite recently. He says the situation is inexcusable.

We will look into your problems now. The company certainly needs civil contracts alongside military ones, at a reasonable ratio. We are looking into the matter with the military. We will see what urgent measures can be taken for the company, and work accordingly with the banks. Relevant decisions will be certainly made quite soon. It is also evident that the company will generate profits on Defence Ministry contracts.

As far as I understand, you had large wage arrears in the previous six months. But the money has now arrived, as I have been told. Have you received your back wages?

Voice: A greater part of them. Some payments are yet to come.

Vladimir Putin: The wages for the month of April, you mean? The money has come up to March inclusive, if I am not mistaken.

Nikolai Povzyk, director general of the Amur Shipbuilding Plant: Yes, until March inclusively. Thus, we believe we will pay the rest of back wages next week. Later on, we will get what we have earned in time, as I say to everyone. The staff supports me, and I am grateful to them.

Voice: We need contracts to make money, and military contracts are preferable.

Voice: Have you visited Shop Floor No. 19? You must have seen a submarine hull standing there idle. Something should be done about it. We have the hull, the stacks and equipment-but the project has been frozen without funding.

Vladimir Putin: You do not simply require the funding-you must also know who needs this submarine, and what for.

Alexander Astrakhantsev (ship machine fitter - 4th category): We know! It's for our navy!

Vladimir Putin: The navy should specify it.

Alexander Astrakhantsev: Has the navy not spoken about it?

Vladimir Putin: Not yet.

Alexander Astrakhantsev: How is this the case? After all, the company and its personnel vitally depend on military contracts.

Vladimir Putin: I understand, but what we need is vision. We should make plans not for two, three or even five years but for 25 years, or even longer. To get the plant going again, to make it viable and efficient, we must first of all see what can be done about its 36 billion-rouble debt. The plant owes 13.9 billion of this to Sberbank alone-this is quite a sum, is it not?

Alexander Astrakhantsev: Please help us.

Vladimir Putin: Next comes a problem of no smaller-and possibly even greater-importance. We should see what might be done about property holders who have proved inefficient over the previous years.

Last but not least, you need certainty with contracts. Your clients include the Defence Ministry and civil companies in Russia and abroad. You have several transnational contracts, as far as I know. So the company has indeed a good potential. We have gathered here to see what can be done. What we need is delving into all your problems as deep as we can.

Alexander Astrakhantsev: Is there no way to make the plant government property? We are a joint stock company but we would be all right, I am sure, if you took us under your wing. It is all the workers' dream. This is not only my own opinion. I talk to my workmates, and know that many want to see the plant a state military-industrial company. We would cope with all our problems under your personal sponsorship.

Vladimir Putin: What's your name?

Alexander Astrakhantsev: Alexander Astrakhantsev.

Vladimir Putin: What do you do?

Alexander Astrakhantsev: I am a ship machine fitter. I work on these contracts.

Vladimir Putin: Alexander, I invite you to the meeting; there, please make your views heard. Is this all right?

Alexander Astrakhantsev: Thank you.

Vladimir Putin: I am serious, I am not joking on this matter.

Voice: Can I ask you a question about municipal affairs?

Vladimir Putin: Yes, of course.

Question: We had a direct Moscow-Komsomolsk train service. Why have they cancelled it? This is very inconvenient.

Vladimir Putin: This is not a municipal but a transport issue - your question should be addressed to Russian Railways.

Voice: It is high time to make ourselves clear. People from the Russian Far East want to travel to Moscow without any changes. It was a good arrangement. Many are hard put without it, especially senior citizens.

Vladimir Putin: We will see what can be done about it. When did they cancel the service?

Voice: Long ago-two years or so.