Transcript of the meeting's beginning: 

Vladimir Putin: Mr President, friends, colleagues,

I would like to congratulate you on your holiday, the first anniversary of Russia's recognition of the independence of South Ossetia. This is also a memorable date for us, and a major event in the history of South Ossetian and Abkhasian peoples.

You have done much since then, although we know that the force of inertia is strong, especially socially and economically. Much more is still to be done, and you may even have to start from scratch [in some areas] for people to see positive changes in their lives. In fact, this is why we have met today, to discuss the results of the past year and also, and probably above all, to outline plans for the near future now that there is peace and tranquillity in your republic and security guarantees have been created for South Ossetia.

We are happy to welcome you here.

Eduard Kokoity: Thank you, Mr Putin. Celebrating the first anniversary of recognition of South Ossetia's independence is one more unique chance to express our gratitude to Russia for its assistance and support.

Time flies, but our people will always remember what Russia and you, Mr Putin, have done for our small nation. Current and future generations will never forget what you, Mr Putin, and President Dmitry Medvedev have done for them, that it was your decisions that saved our people from extermination. I think that your names will be written in gold in the history of the Ossetian people.

Much has been done to restore the Republic of South Ossetia. Many facilities are being built with Russia's assistance. Many social projects will be commissioned even now while we celebrate this holiday.

However, I would also like to say today that I know it was a very difficult decision for Russia. The President of Abkhazia and I know about the events that preceded it, when Russia and you personally, Mr Putin, did everything possible to settle the Georgian-Ossetian and the Georgian-Abkhazian conflicts peacefully, when everything possible was done to preserve the territorial integrity of Georgia. However, the aggressive and even schizoid actions of the current Georgian authorities resulted in a big tragedy for all people.

It is thanks to Russia that today we can plan our life not from war to war but in conditions of peace, which everyone in Ossetia has noticed. It is thanks to Russia's assistance and support that we can do so.

Thank you for this.

Vladimir Putin: We are happy that South Ossetia is growing stronger as a sovereign state. You have held parliamentary elections while at the same time strengthening democratic institutes. Today we are to sign an intergovernmental agreement on socio-economic development and an agreement on the maintenance of law and order. These are additional instruments that will not only provide the basis for bilateral cooperation but will also help create the groundwork for South Ossetia's development.

In my view, these are very important events and we will discuss them in greater detail today.