Transcript of the beginning of the meeting:

Vladimir Putin: How are you? How is the republic doing?

Mintimer Shaimiyev: We have worked for a year in the midst of a global crisis. I believe the main result of our efforts is that we have made it through the crisis with smaller social detriment. I expected it to be worse. If we continue increasing production, we will overcome the downturn faster. We registered some growth in the last month. In August, оur economy shrank by 9%, and in the preceding months, the first five or six months of this year, the decline reached 14%-15%.

By the end of the year regional GDP and industrial production will probably shrink by 8% to 9%.

It appears that the crisis is punishment for our good performance, because we really had been developing very quickly - we borrowed lots of money, took out loans, and launched new lines of production. At the same time, I'm optimistic about the future. I think we will have a good market because our main industries are competitive. This is a good sign. Unemployment has been reduced.

Vladimir Putin: It has been reduced in the country in general. But we should bear in mind the role of seasonal factors. Unemployment always goes down in July and August. Therefore, we should not relax our guard, and we should watch the labour market in September and October closely.

Mintimer Shaimiyev: We should not relax our guard on any account. Why am I so confident? The plan suggested by the federal Government is working. We have already spent 1.3 billion roubles on public works. Now we have received another billion-rouble tranche, and we are seeing results. Take KAMAZ alone: out of 31,000 employees, we have employed 17,000 from this plant in public works, because the plant's operation has been interrupted. At the same time, this period could be used for streamlining production. Equipment should be moved from some plants to others, and so on...

Two thirds of KAMAZ employees are employed. They receive wages, and they receive 4,330 roubles for public works. Obviously, there is a moral aspect to this, but nevertheless...

Vladimir Putin: They have support.

Mintimer Shaimiyev: Yes, they do.

Vladimir Putin: What about the construction industry? As for automobile production, I now the situation well, and will discuss it again with colleagues, but what about construction?

Mintimer Shaimiyev: The situation is different. Several years ago, you strongly recommended that we develop oil processing and petrochemistry. We have just inspected the construction аt the Nizhnekamsk petrochemical complex. Oil industry eхеcutives took out loans worth 200 billion roubles for the project. This provides for the construction of a railway, a stub track, and a gas pipeline. This is with federal money and has already been done. Today, we spend 100 million roubles per day. Last month, we put to use three billion roubles.

In other words, construction of this kind of a project is proceeding during a crisis without lagging behind. I don't even have any requests to make today. Тhe project is being funded, and global companies are supplying us with equipment.

Vladimir Putin: Have you taken any photographs, construction updates, from helicopters?

Mintimer Shaimiyev: Yes, we have. We have already spent 70 billion roubles. The first stage will be launched next year. We will gradually reach the objective yоu set to reduce dependence on sulphur-bearing crude.

In effect, we will produce sulphur-free oil in two years at most. This means three dollars per barrel. This problem can be solved, and work on it is in full swing.

Vladimir Putin: I have some pleasant news for you. Yesterday I decided to give you an additional four billion roubles for the preparations for the Student Games.

Mintimer Shaimiyev: We are working on that. Maybe you will find the time to look at what we have done. We have dоne a beautiful job. That's the only wаy to describe it.

Vladimir Putin: We'll see.

Mintimer Shaimiyev: There are no delays at any facilities. We are working without any intermediaries! I think everything will gо smoothly. We have had some difficulties with the access rоаd and the interchanges. We worked quite successfully as the summer was dry.

As for interchanges, one item of expenditure is missing there. Maybe, we could use the allocated funds for this year...

Vladimir Putin: Let's see.