Transcript of the meeting:

Vladimir Putin: Good afternoon, I would like to start today's meeting on a pleasant note: today is Elvira Nabiullina's birthday. Happy birthday!

Ms Nabiullina, I have just signed a resolution increasing federal support for small and medium-sized businesses by 7.5 billion roubles.

We will distribute these funds to regional governments, and I would like you to describe briefly how this programme works and how these funds will be used.

Elvira Nabiullina: The decision to allocate additional resources to increase the capitalisation of regional guarantee funds is something small businesses really needed.

We are not only providing additional support to small businesses, but also strengthening regional guarantee funds, a targeted support measure that has turned out to be especially important during the crisis. This will allow small and medium-sized businesses to have more access to credit.

As a matter of fact, when businesses lack the collateral to apply for a loan, the state will share the risks with banks, and thus assist in providing credit to small businesses.

In the last three years, 67 regional guarantee funds have been set up in Russia, 34 of them in 2009. These funds' total assets currently stand at nine billion roubles, including financial resources from regional governments, which co-finance these funds.

A total of three billion roubles have been allocated for these funds this year.

Vladimir Putin: As far as I know, it is closer to 3.9 billion roubles.

Elvira Nabiullina: Correct, 3.9 billion - that is over three billion. Coupled with regional funds' resources, that makes some nine billion roubles. This has allowed us and the banks to issue loans worth eleven billion roubles. These funds are being used by businesses.

We estimate that this additional support will allow us to maintaining the current amount of credit extended to small and medium-sized companies at 100 billion roubles, including through the funds' revolving credit programmes.

One hundred and seventy six commercial banks are currently involved in this programme, including large banks such as Sberbank and the Russian Agricultural Bank, as well as regional banks that interact with small and medium-sized businesses directly, which is very important.

As soon as this resolution is adopted, we will hold a meeting with representatives of regional governments and small businesses to determine how these funds will be distributed among the regions. They will be allotted shortly.

Vladimir Putin: You raised this issue a while ago, and I would like to give you the signed resolution as a birthday present. Now a few words about special economic zones. You have just met with leaders of the regional governments where these zones are located.

Elvira Nabiullina: I met with regional representatives to discuss new approaches for managing special economic zones and the outlook for their development. The meeting was attended by governors, the heads of the 26 regions in which these zones are located, and the heads of the regions where we plan to establish special economic zones.

It must be noted that such zones are an effective tool for attracting investment and creating new, high-tech production facilities.

We also discussed the amendments to the legislation that are being drafted in the State Duma. Regional representatives brought up a vitally important issue, specifically to allow companies based in innovation zones to manufacture products developed in these zones, that is science and technology products.

This proposal was supported. It was also suggested that we lower the minimum threshold for investment in technology innovation zones from ten to three million euros.

As far as port zones are concerned, which we are going to create, there was a proposal to expand the list of businesses allowed to operate there to boost these zones' effectiveness. These were the most important issues discussed at the meeting.

In addition to establishing these zones through tenders, the government law envisions establishing such zones without competition in extraordinary cases, by decision of the Government. For example, we are discussing the possibility of establishing a special economic zone in Tolyatti in the Samara Region, as well as in other regions.

In our opinion, at the second stage it would be prudent to support the initiative of regional governments and grant them more powers and responsibilities in establishing such zones, while using criteria and requirements prescribed by the federal government.

In many regions, for example in Kaluga, industrial parks that manufacture a wider variety of goods have been set up, although these areas are not referred to as special economic zones. Leaders of these regions asked for support for their initiatives to set up such industrial parks within the framework of the special economic zone programme.

Also, we touched on issues of maximizing the effectiveness of management systems, including the issue of which powers the federal government should retain and which powers, such as construction licensing, should be devolved to regional governments. Devolution of some powers would help reduce the time necessary to process applications.

Next week we will hold a meeting with residents of technology innovation zones, since attracting investors and residents is certainly our top priority. These zones are a tool that allows us to meet the demands of investors and residents, thus increasing effectiveness of investment.

Vladimir Putin: Good. A resolution was signed allocating an extra 4.3 billion roubles to RusHydro to accelerate the construction of a coast spillway at the Sayano-Shushenskaya Hydroelectric Power Plant. Mr Kudrin, you are welcome to speak on this issue.

Alexei Kudrin: Mr Prime Minister, in light of the recommendations of the task force charged with addressing disaster relief issues at the Sayano-Shushenskaya Hydroelectric Power Plant, and taking into account measures to ensure a stable supply of energy in Siberia while speeding up the construction of a coast spillway at the Sayano-Shushenskaya Hydroelectric Power Plant, a suggestion was made that RusHydro allocate financial resources for the construction of the spillway, and that additional funds come from the federal budget.

The cost of this coast spillway will reach 13, 238 million roubles, including the 8,908 million roubles that will be provided by RusHydro. The larger share of these funds will be allotted this year so that construction can continue.

The remaining 4,300 million roubles will be allocated next year. These expenses will be taken into account while issuing RusHydro shares. On June 1, 2010, the first penstock replacing the hydroelectric power station's blocked penstocks will be put into operation.

Following your directives, corresponding measures have been planned, and efforts to implement them are under way. The number of workers employed at the construction site will be increased from 600 to 1,400.

To be continued...