Transcript of the beginning of the meeting:

Vladimir Putin: Have you gotten a feel for your new job?

Alexander Misharin: Yes, Mr Putin. I have started working. We are currently forming the government. Yesterday the regional Duma appointed and confirmed the head of the regional government. The cabinet is being formed.

The situation in the region is stable. Despite a 28% decrease in industrial production, we have managed to guarantee wages and salaries.

The federal funds allocated for support and to create jobs were very helpful.

Vladimir Putin: How much has your region received?

Alexander Misharin: We received 7.7 billion roubles under the programme to reform of the housing and utilities sector. More than 3,500 blocks of flats have undergone major renovations with this money.

Vladimir Putin: How many people live in these buildings?

Alexander Misharin: More than 460,000. This is very important.

Vladimir Putin: Of course.

Alexander Misharin: We have replaced over a thousand lifts, installed 2,500 metres and repaired facades and utility networks. In addition to that, almost 250 decrepit buildings were destroyed, which allowed us to decrease the amount of dilapidated housing by almost 30% and relocate 4,366 people. These are concrete results, and we would appreciate support for these efforts next year.

I know you have decided to extend the operation of the Housing and Utilities Fund to 2011. The Nizhny Tagil example shows the effectiveness of this programme.

Vladimir Putin: Do you have any unpaid wages?

Alexander Misharin: Today unpaid wages are less than 80 million roubles, as compared to more than 200 million before. By the end of the year this figure will be reduced to 10 to 15 million roubles at most. We haven't had any unpaid wage for two months except at two or three plants, including the Baranchinsk Electromechanical Plant, where we had to replace the owner and introduce external administration last week. Now the property belongs to VEB (Vnesheconombank). We have secured energy and electricity for the plant. Now it is operating. The plant employs more than a thousand people. Wages have been paid for two months, but the workers are still owed wages for three months. I think we will resolve the issue by the end of the year.

There are some other plants whose deplorable conditions are also due to ineffective management. Therefore, we will plan to continue these efforts.

Vladimir Putin: Is unemployment decreasing?

Alexander Misharin: Yes, it is. We will be able to reduce it to 4%, or perhaps a little more.

Vladimir Putin: This is less than the national average. What method of reckoning are you using? The one suggested by the International Labour Organisation (ILO)?

Alexander Misharin: No. We are using the number of registered unemployed persons.

Vladimir Putin: Well, than you have a little but more.

Alexander Misharin: Yes, we have a little more. We have had a little more joblessness every year.

We are also drafting a programme for war veterans - 586 veterans of the Great Patriotic War were registered prior to March 1. We have given out 211 flats, and the remaining flats will be ready in the first quarter of the next year.

Vladimir Putin: It is important to identify all of them as soon as possible.

Alexander Misharin: As of today, we have registered another 382 and are still working on this. I think we will complete this work in the first quarter. Regrettably, some people were late in getting registered, and they must do extra paperwork. We are calmly working to allocate flats to all those who are entitled to them. Next year, we will provide all of them with flats.

Vladimir Putin: Is the Defence Ministry buying or building anything in your region?

Alexander Misharin: The Defence Ministry is both buying and building. We have a project - the Akademichesky district in Yekaterinburg. Next year we will build 270,000 square metres of living space and 350,000 square metres of public buildings, including schools, kindergartens, and so on. Of this space, the Defence Ministry will buy 170,000 square metres. We have already signed a contract to this effect. I visited the district the day before yesterday. People are moving into the new apartments, and everything is fine. I hope you will visit this place one day. All in all there will be 9 million square metres of housing in this district. In fact, it will be a new city with a population of 300,000.

Vladimir Putin: What about the healthcare system?

Alexander Misharin: We have a major project connected with microsurgery. We are building a perinatal centre with federal money, which will be commissioned next year. We are taking part in the Ministry of Healthcare programme. Last year, we began producing insulin, and now the region is self-sufficient in it. We are currently thinking of exporting it to other regions. We recently met with the director of the insulin production plant and he asked us to help them with other things. We do not have enough funds to maintain rural hospitals at a proper level. Their equipment leaves much to be desired.

Vladimir Putin: Please, pay more attention to their condition. You didn't have enough time. Look into the condition of healthcare and education. Then report back when you are in Moscow.