Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon. Let us begin with GLONASS and its progress. Tell us about your visit to China.

Anatoly Perminov: Work on the GLONASS project is proceeding strictly according to schedule. We are focused on increasing the orbital group and on the ground-based consumer equipment. Of the 20 satellites in orbit, 18 are actively operating while two have malfunctions. We plan a cluster launch of three satellites in September and another three in December. And so, we should have 24 satellites in orbit by the end of the year.

Vladimir Putin: What is the problem with the malfunctioning satellites?

Anatoly Perminov: We are in the process of restoring them. One of the satellites is still on warranty maintenance and will be restored. As for the other one... We are trying to repair the malfunction.

Vladimir Putin: Can you do it?

Anatoly Perminov: We certainly can do it for one of the satellites, but the other one is a difficult case because it is obsolete and its warranty service period has long expired. As for replenishing the orbital group, 35 spacecraft have been launched across the world over the past six months, including 16 by Russia. Of that number, 19 spacecraft were launched for commercial, socio-economic and security objectives. This means that we still control the market. The United States orbited 12 spacecraft in six months, and the other countries from two to four each.

As for manned spacecraft, we are fully complying with our international commitments. Moreover, we have doubled the programme's intensity. In the past, we launched two manned craft and two cargo craft annually. This year, we have fulfilled the year-end programme in the first six months. We expect to launch four manned spacecraft and four cargo craft this year, as a six-man crew has been working on the International Space Station since May and the five participating countries are honouring their obligations. We also plan to launch a small research module to the ISS in November.

As for international cooperation, we are focussing on old projects, in particular Soyuz-CSG (Guiana Space Centre, or Centre Spatial Guyanais - CSG). As many as 200 Russians are working on a permanent basis at the CSG, where we are completing work on a mobile service tower. We have already dispatched four transfers. I think we will complete the bulk of work by October 30, as we agreed with the European Space Agency, and will start preparing for the delivery of our rocket launchers there. In early 2010 we will prepare for the first launch; it may be the second Galileo satellite. They intend to use our system. In July, we are to complete work at the Naro Space Centre in South Korea.

Now for our plans in Africa: We worked jointly with Rosoboronexport in Egypt on a project of Earth remote sensing in the E-Star system. You know about this as you initiated it. We have signed all requisite contracts. We will first launch one satellite, which may be followed by others. They are interested in the GLONASS system. We have drafted and signed a framework agreement on all aspects of space exploration with Nigeria. The contracts on creating a space-based communication system for Angola have been signed. They include the creation and production of space-based communication satellites, training of personnel in Russia, and ground-based infrastructure.

We have completed a cooperation programme with China. I have recently been there and can tell you that they have almost completed preparation for a three-year programme. We discussed not individual projects but whole areas of cooperation, such as the creation of a space system for the Shanghai Cooperation Organisation. As regards communication satellites, it has been decided to prepare the programme by October, when we will report at the SCO meeting on our proposals regarding the system.

The same is true about a Russian-Chinese programme of Earth remote sensing. It implies an exchange of data, as well as interaction. This year we will complete the Phobos-Grunt project. A Chinese satellite has been delivered to Russia and the whole system will soon be launched to Mars. The Chinese satellite will orbit Mars, while we will work on Phobos, one of Mars's two moons. After the station goes into orbit, it will land on the moon. We are working on this programme jointly with European partners and China. It is an international project 90% of which is ensured by Russia. It is a very important project, and the same goes for the Moon mission. Russia and China are active participants in the Moon Globe project.

These are the crucial elements of our plans. In addition, we are working to create electronic components for ground-based consumer equipment. Such equipment is very expensive in the West, and unfortunately, our equipment is not much cheaper. Therefore, we should join forces to create ground-based consumer equipment where it would be affordable. We could work jointly with the Chinese on the basis of the Russian GLONASS system.

Vladimir Putin: You should consider everything very thoroughly. If production in other countries is cheaper, it does not mean we must stop our plants. It means that we must learn to produce better and more affordable equipment.

Anatoly Perminov: Yes, and this is why we will do it in Russia. But if it transpires that joint production would be cheaper, we will submit our proposals to you. We will submit the programme for your approval in October.

Vladimir Putin: Good.