Transcript of the beginning of the meeting:

Vladimir Putin: Mr Ivanov, we have discussed innovative ways of modernising the economy in great detail. President Medvedev also spoke on this issue profusely and convincingly during his State of Nation Address.

Energy conservation is one of our priorities. I asked you to draft an action plan to address this issue. You are welcome to speak.

Sergei Ivanov: Mr Prime Minister, about a month ago you charged me with drawing up a plan for the Government, including all the ministries and agencies, to improve energy conservation and energy efficiency policies.

By the way, during that time the long-awaited law on energy efficiency took effect, after being approved by the State Duma and signed by the President. Your directive has now been also fulfilled. Today a Government executive order and this plan (passing the document to Prime Minister Putin) were finalised.

Almost all ministries and agencies took part in preparing this plan. The Ministry of Energy and the Ministry of Industry played the most important roles, of course, and the Ministry of Economic Development prepared the final version. The plan mentions practically every ministry and agency.

In addition, two state corporations, specifically Vnesheconombank and Rusnano, participated in preparing this plan, which includes 91 paragraphs. Of course I am not going to list them all. The plan is divided into ten sections, which I would like to enumerate and briefly describe, if you don't mind.

Vladimir Putin: Please.

Sergei Ivanov: The first section deals with providing consumers with gauges and encouraging them to conserve electricity and resources in general, as well as to pay for these services on time.

The second set of measures is aimed at increasing the energy efficiency of businesses that provide goods and services. The Russian market for goods and services is quite large. Unfortunately, one has to admit that energy efficiency and energy conservation are not taken into account in this market.

The third section is one of the most important ones. It contains measures to improve energy efficiency for our population, including in utilities and housing construction. All new buildings must be commissioned according to new heat, water and electric power conservation standards.

The fourth section relates to us, the Government. We need to start with ourselves, as a Russian saying goes. Actual steps must be taken in the public sector. According to this plan, every ministry and agency is to draw up and submit to the Ministry of Economic Development their plans to increase energy efficiency and to reduce energy consumption costs.

More to the point, tough regulations will be enacted that will allow the Ministry of Finance to allocate 3% less to each ministry every year to pay for energy costs. The programme will be in effect for five years, and ministries will receive 3% less each year. This will allow us to exercise tough control by allotting funds for maintaining ministries and agencies.

In addition, there are a number of energy efficiency measures planned for particular industries. This is the largest section of the plan.

Let's take transport for instance: Russian Railways is one of the country's largest energy consumers. And metallurgy: you know how much energy aluminium production alone consumes.

Specific measures are stipulated for every industry, and liabilities and timelines are also specified in each paragraph.

In addition, the plan takes into account the financial aspect. We plan to fund energy conservation projects through Vnesheconombank, which I mentioned, and development institutions. This plan naturally requires certain funds.

We are planning to spend some of the allotted funds on investment programmes, reorganisation programmes and technology programmes for energy efficiency projects.

Another important aspect is media coverage. It is necessary to explain the essence of the plan to people and consumers. This is not a classified plan, and it will be published soon.

By the way, we consulted with the Presidential Commission on Modernisation working group while developing this plan. And we discussed a draft of the plan at a meeting of the Government Commission on High Technologies and Innovations, which I chair.

Vladimir Putin: I see. So this is a result of teamwork?

Sergei Ivanov: Exactly. The draft of the executive order has been prepared and approved by all parties concerned. I would like to show it to you if you don't mind.

Vladimir Putin: All right, I will have a look at it.