Transcript of the beginning of the meeting:

Vladimir Putin: Let us take stock of the social and economic situation in your republic. I visited it recently, and we discussed current affairs and future projects. How do things look now?

Vyacheslav Shtyrov: The year is coming to a close. We are doing better than we thought we would, thanks to both the national anti-crisis plan and the anti-crisis measures specifically tailored to Sakha (Yakutia) - in particular those that were discussed at the Mirny conference.

Vladimir Putin: So you are better off than you had expected.

Vyacheslav Shtyrov: Right. We thought industrial output would shrink by 15% against last year's. Now we see that it will shrink by a mere 8% to 9%, and this is mainly due to our leading industries - coal and diamond mining, which have been the most affected by the crisis.

As for other sectors of the economy ...

Vladimir Putin: I am sorry to interrupt you, but let us get back to coal and diamond mining. Are the measures we drafted to support diamond mining working?

Vyacheslav Shtyrov: They are working - mining output has stabilised, to an extent, and sales have resumed.

Of the 46,000 workers employed in the diamond industry, 12,000 were on forced leave. Now, 6,000 have resumed normal work, and another 6,000 are working part-time. All parts of the company are active.

Vladimir Putin: How much has the company made?

Vyacheslav Shtyrov: Roughly 30 billion roubles on gems sold to the government.

Vladimir Putin: And this money has kept the company afloat during the crisis and helped it regain stability.

Vyacheslav Shtyrov: Yes. More than that, the mining companies are not making do with keeping up their previous level; work has begun at the Mir mine, which opened quite recently. You have visited it.

Vladimir Putin: I have.

Vyacheslav Shtyrov: We are opening another diamond mine in the middle of December - the Aikhal diamond mine, which is located 500 km north of Mirny. Now, we will be able to stabilise mining and retain our niche in the market.

As for the Mechel coal company, it has issued all the bonds you ordered, and has been operating at the same average level as last year since October.

The construction of a railway and the Elga coal mining complex, in Yakutia's extreme southeast, has resumed. The project is essential for the entire country, especially the Far East.

Our two leading companies have regained a firm footing, and the prospects for next year look good.

As for other industries, oil production has increased significantly since the opening of the East Siberia-Pacific Ocean pipeline. The Talakan oilfield was opened last year, and the Alinskoye this year. We expect oil production to be three times what it was last year.

Investment has grown by 15% since last year in comparable prices, in part due to the opening of two diamond mines and the Alinskoye oilfield.

The coal mine that began operations near Neryungri is of especial importance because this city, Yakutia's principal coal mining centre, is stricken by economic depression. The East Siberia-Pacific Ocean oil pipeline will open by the yearend.

Vladimir Putin: Will its first batch be transported by tanker?

Vyacheslav Shtyrov: A test batch has been dispatched by rail now, and we expect another for a tanker at the port of Kozmino.

As for other sectors of the economy, farming is holding steady despite all the problems, and we even expect an increase in agricultural production as compared to last year. This is essential, because farmers make up 30% of Yakutia's entire population, and farming makes up a considerable part of the gross regional project.

Vladimir Putin: Are their any unpaid wages?

Vyacheslav Shtyrov: Yes, especially in companies that rely on seasonal work. Some suppliers, for instance, are still in debt to the river transport even after the end of the year's navigation.

The Sakha Government is doing what it can, and we hope the debts will not increase.

Vladimir Putin: Debts should be paid. Are their any in the budget?

Vyacheslav Shtyrov: None. As for unemployment, it has grown, somewhat, since last year. The highest rate was registered during the peak of the crisis, in April and May. The current unemployment rate is at 2.9%, as compared to 2.7% during the most prosperous years. But the situation has stabilised, and unemployment will not grow anymore.

Vladimir Putin: Okay.