Transcript of the start of the meeting:

Vladimir Putin: Good afternoon, Mr Kovalev. What is the situation in your region?

Oleg Kovalev: Mr Putin, it is no secret that we have problems. Other parts of Russia have them, too. However, the situation in the labour market has stabilised somewhat. I am not sure it will be a lasting improvement, but unemployment has not increased for 20 days. The unemployed presently make up 2% of the workforce.

Another problem has appeared, however-30% of the employed are working part-time. The number of temporary and public works jobs has increased. Public works are mainly in road construction and urban development. There are many seasonal jobs in the countryside, which has the best situation in the region, employment-wise.

The Ryazan Instrument-Making Factory and some other industrial companies are sponsoring the Sarai District. They are sending workers to farms for help in summer, when the agricultural industry is usually short of hands. These are well-trained workers who can operate farm machines, so they are a real help.

The countryside is better-off than other parts of the region. Preparation for spring sowing was better than last year. Fertilisers and fuel have been purchased 30% cheaper than last year.

All farms have sufficient turnover and investment loans, so it all depends on weather now. Spring sowing went off smoothly enough, and we are hoping for a decent harvest, though it will probably be smaller than last year.

Vladimir Putin: Are there back wages?

Oleg Kovalev: Yes, 1.7% of the total labour compensation fund. Wage arrears regularly grow, and subside just as regularly. The prosecution and an ad hoc commission lead by me are monitoring the situation closely.

We have two relevant subcommissions consisting of members of the regional administration and other officials, who go to problem-laden localities for firsthand information, and make all-around analyses on the spot. When they come, let' say, to a closing company, they take note of the newly unemployed's family, what extra incomes they have, what welfare is necessary, and what vacancies to offer.

There are 12,600 unemployed in the region, and 7,300 vacancies. Here, personnel retraining and migrations are the big problems. We are doing what we can to fill in those vacancies and thereby improve employment.

Vladimir Putin: What about social welfare?

Oleg Kovalev: We are funding all available projects. The Ryazan Region is on relevant federal programmes. We are building a perinatal medical centre, and will build another three interurban maternity wards.

Vladimir Putin: What is the construction deadline?

Oleg Kovalev: The end of the year.

Vladimir Putin: How many patients will the centre be able to treat?

Oleg Kovalev: 150. The centre has a maternity ward and a ward for premature and other problem babies.

We are on the federal cardiology programme now due to a special Government resolution-high time, too! Heart conditions are the leading cause of illness in our region.

There will be a regional cardiology centre plus three interurban heart wards. The regional budget earmarks allocations for thorough repair and equipment of the premises, and special ambulances. Federal allocations go toward the purchase of machinery and tools for diagnosing, high-tech surgery, etc.

Vladimir Putin: Good.