Transcript of the beginning of the meeting:

Vladimir Putin: When I visited you while you were in the hospital, we discussed the republic's development. I would like to congratulate you on your recovery and return to work. Now you have studied the situation on location, and have returned to the current issues. Let's discuss how we are going to resolve today's problems, while keeping in mind long-term objectives.

Yunus-Bek Yevkurov: Essentially, I dealt with the situation before coming back to the republic. I knew what was going on. I analysed the situation and made a list of priorities.

The primary goal is to stabilize the situation in the republic. Today we are carrying out, in cooperation with the Federal Interior Ministry and the Federal Security Service, a number of measures with this in mind. Adequate measures have been taken to ensure security on the first days of September, when children returned to school. Yesterday, everything went well.

It goes without saying that we are receiving reports about threats, and are working to eliminate them.

Russian Interior Ministry officers posted to Ingushetia are doing a lot to help our police officers. At present, they are planning to review the performance of all republican police departments, including all high-ranking officers. Naturally enough, the primary focus will be on crime squads, policemen and field investigators, including traffic police, because most crimes take place on the roads. We are working to resolve these problems.

Obviously, we are also focusing on social and economic issues. We have held several meetings and listened to officials' reports in all areas. We have also heard a report on what was accomplished in the second quarter.

Needless to say, we are facing some problems, but our record for this year is better than for the relevant period of the past year. Some ministries have done a good job, whereas others were waiting for two months for someone to push them, as I see it. But we corrected this, too.

Unfortunately, some officials have tried to get their hands on the budget. The Prosecutor's Office has launched criminal proceedings on three cases. Five cases have been brought to the Prosecutor's Office, to its new team. I understand that this is not much, but nevertheless it is a good start, and it required courage. I think we will be able to redress the situation in this respect.

Now the main issue is the federal targeted programme. A draft was to be submitted for your signature this week. It is very important for us to have the draft signed and the programme endorsed in the next two weeks, because in that case 1.5 billion roubles will be distributed next year, something we spoke with you about, and this year we will receive money for design specifications and estimates.

If we receive the money for design specifications and estimates next year, we will spend half a year formulating them, and will not have the time to spend the 1.5 billion roubles. And now we could formulate them during three months, and already in February or March start building these facilities, and start spending these 1.5 billion roubles.

It goes without saying that the Prigorodny District аnd refugees in general are important issues. I have reported to you on this problem. We are making good progress in this area, and are cooperating with the leaders of the North Caucasian regions. In other words, we are working not only with the federal Government, but also at the regional level, with due respect for local customs and traditions.

Mr Putin, I would like to emphasize once again that we will resettle these refugees. Chechens will go to the Chechen Republic, as we have agreed with the Chechen President, and Ingush refugees will go to the Prigorodny District. In this way, we will substantially ease tensions in the region. We will weaken the influence of international organizations, which are staying there on the pretext of helping the refugees. And refugees will see for themselves that this is an entirely new approach to solving their problems.

You and the Finance Minister, with whom we have just spoken, have agreed to pay compensations to all refugees, and this is a major incentive. People are calling us all the time to say how pleased they are.

There was one more aspect regarding the federal targeted programme. I am referring to 29 billion, and funding Interior Ministry facilities. If we fund their construction with money from the programme, we will not be able to create jobs. Dmitry Kozak and the Ministry of Regional Development have decided to meet us halfway on this issue. If this sum is spent on Interior Ministry buildings, everything will remain the same. If we build facilities for the GUVD (Main Department of Internal Affairs), ROVD (Regional Department of Internal Affairs), or the Interior Ministry, we will not improve the social and economic situation.

These Interior Ministry facilities were made part of the programme when 70 billion roubles were requested, not just a mere 29 billion roubles, as is the case now, to say nothing of 1.5 billion roubles every year. We were met halfway, but if they approach you with this request, I would like to ask you to refuse them.

Vladimir Putin: Okay. I understand you think that these funds should be spent on more important priorities.

Yunus-Bek Yevkurov: Let the Interior Ministry pay for the construction of related facilities from its own budget. Let them cope with this on their own.

Vladimir Putin: Okay. Let's do it that way. We will only have to look once again at the list of priority facilities that you want funded.

Yunus-Bek Yevkurov: All departments have already held consultations. We agree on everything. Our priority for the next year is to create jobs with these 1.5 billion roubles. I mean jobs, rather than just the development of infrastructure, because this will help stabilize the situation.

Vladimir Putin: Sure. Okay.