Transcript of the beginning of the meeting:

Vladimir Putin: Good afternoon. I see that you have brought a lot of papers with you. What is the current outlook in the region?

Yury Neyolov: The situation is stable, Mr Putin. And I think it a good idea that you invite governors to conferences. I attended two of your conferences, in Kislovodsk and in Igarka. After Kislovodsk, we optimized our budget and cleared our debt to the government and all payables. The region ranks fourth in terms of cutting costs. That is, we have fulfilled all of your requirements.

We have generally successfully executed the sixth-month budget, and I believe we will be able to meet all of our obligations to people by the end of this year. I would also like to appreciate the effort made by the Gazprom management who fulfilled their obligations at such a difficult time.

Vladimir Putin: Have there been lay-offs?

Yury Neyolov: You know that we had to halt production, because the demand for natural gas dropped. However, no one was fired. We kept people busy with technology. We have been making good of all the commitments under the agreement. The situation is stable. I think everything is going to be all right.

The City Duma will be elected on October 11, and the regional parliamentary elections will follow shortly. We are handling everything in accordance with the usual procedure.

Vladimir Putin: I would like to hear about the region's taxable base for 2009 and the following years, with account of the decisions made.

Yury Neyolov: The situation is well in hand. The only problem is, our profit tax revenues have naturally shrunk, from 18% in the first half of 2008 to 12% (by one third). Overall, we cut our budget by 20%, but the rest is stable. Individual income tax and property tax inflows have grown by a small margin, compensating for the shortfall. Oil tax is not one of our major concerns, our priority is the gas industry, and we have an agreement with gas producers. I have already said I appreciate how they are sticking to it.

Vladimir Putin: You mean that you have managed to balance your budget despite the shortfall?

Yury Neyolov: Yes. And one more thing. [Finance Minister Alexei] Kudrin cited ten items which should bring over 100 billion rouble revenue for all regions. Thank you for giving this instruction. As for the refined products excise tax, if we don't take into account the seasonal possibility for cheaper transportation, we have a deficit. And these are the former donor regions. If we consider this possibility now, there will be balance, and stability will be preserved. Thank you again for giving this instruction. We have a working group for it. We have drawn up relevant documents and submitted them.

Vladimir Putin: I have looked around to see that the region is developing steadily and the city of Salekhard is in a good state. New facilities are being built.

Yury Neyolov: Let me thank you again, on behalf of residents of Russia's north, for the "northern pension" decision, and for how quickly you responded.

Vladimir Putin: As you know, we have been discussing this issue for a long time. It was even harder to make this decision today, in the current situation of economic downturn. But people had been waiting for it for a long time. It was the right decision.