Transcript of the beginning of the meeting:

Vladimir Putin: Mr Trutnev, last year a great deal of work was done to prepare the necessary legal framework and to reach goals set at the beginning of the year. We adopted a water strategy and a climate doctrine, which are important landmarks for us showing how we are to modify the economy in line with climate change.

We received an IAEA delegation for the first time ever to check on the safety status of Russian nuclear facilities. The delegation also rated the work of Russian authorities on implementing the principles set by international organizations. I am pleased to say that the IAEA delegation, which, and I would like to highlight that, has come to Russia for the first time ever, confirmed full compliance with Russian and international standards.

In addition, in 2005, we made a decision to replenish our mineral resource base. In the early and mid-90's there was a lot of talk that we were depleting the reserves that had been explored by the preceding generations, with production exceeding exploration. In 2009, we registered significant changes in the situation. Our reserves reached the level of 1990 despite the high rate of production. In 2009 alone, we produced 490 million tons of oil, while reserves of 620 million tons were explored, which is a significant achievement. I hope the agency will keep up the pace in 2010.

We still have a lot of work to do. One of our goals is to improve the efficiency of Rostekhnadzor, as there has been a lot of feedback from market players and the business community. Could you please tell me about your plans for 2010?

Yuri Trutnev: Thank you, Mr Putin. In 2009, following your instructions, we developed around 80 legislative acts to regulate Rostekhnadzor activity at various levels and remove excessive bureaucratic barriers, unnecessary licenses and permits, while increasing responsibility of all those entities that maintain high-risk facilities. We have drawn up regulations on mining, construction and industrial safety. We have prepared the framework for Russian industrial safety until 2015, which is more important than all the work done over the previous four years. Meanwhile, in 2010 we have to revise 107 old regulations developed by the old Gostekhnadzor. We need to look at the principles of improving safety of industrial facilities and removing unnecessary bureaucratic hindrances.

Vladimir Putin: I already mentioned that a great deal of work has been done to replenish our mineral resource base. Our oil reserves reached the level of 1990. How are you planning to continue this work in 2010?
Yury Trutnev: Mr Putin, we believe that the performance of oil companies, geologists and solid mineral experts has been effective in the past four years. During this period we managed to maintain expanded reproduction rates for all minerals which are critical for the economy's sustained development, including oil, gas, gold, silver, iron ores and copper. We are planning to preserve expanded reproduction rates in all the main areas in 2010.

Vladimir Putin: Which group saw the highest growth? Was it platinoids?

Yury Trutnev: Yes, the highest growth was in platinoids, which is mainly explained by the effect of the new technology. Not many platinoid deposits were discovered, but I would like to highlight new major oil fields, for example the strategic Sevastyanovo field with over 150 million metric tons of oil. New technology is also applied in gold mining and platinoid production, which makes precious mineral extraction more effective.

Vladimir Putin: Mr Trutnev, I have signed the resolution you drafted to regulate the work of federal executive bodies in the preservation and use of fauna. In essence, it regulates the policies of hunting organisations and various forestry agencies. How are you going to implement this government resolution?

Yury Trutnev: I would like to thank you for entrusting me with this work. Over four million Russians hunt, and this industry has always been very important. At the same time, the effectiveness of hunting administration leaves much to be desired. Poaching has become more common, and protection authorities are not adequate. In addition, hunting has always been accompanied by reproduction. Proper management of specially protected natural sites, which the Ministry of Natural Resources is in charge of, will allow for both shooting game and reproducing populations to sustain the development of hunting in Russia.

Vladimir Putin: Good. My last question relates to the preparations for the 2014 Olympics. There has been much debate and doubt about them. As far as I can see, on the whole these issues have been resolved. Are there currently any problems that we need to pay special attention to in order to meet environmental requirements?

Yury Trutnev: Mr Putin, we implement all your instructions. We are trying our best to resolve all problems in the run-up to the Olympics and to set new environmental standards. We have introduced green standards at Olympic facilities and are carrying out a voluntary certification programme. We also use modern technologies/ As for several problematic facilities, all issues have been settled, and currently there is nothing that would require your consideration. All builders caught up and met schedules, and sites are receiving necessary expert evaluation. I cannot recall any issues that deserve your attention.

Vladimir Putin: My final question concerns Baikal and the pulp and paper mill. Given that it has resumed operation, it is necessary to monitor what's happening there more thoroughly. The mill has been there for a long time, since the late 1960s. When I visited Baikal in summer, scientists reported that no environmental change has been detected in the decades that the mill has been in operation. Nevertheless, we must monitor the situation constantly to have a clear vision of what is happening there.

Yury Trutnev: Mr Putin, I have met with Oleg Deripaska, who said that they hadn't managed to complete technology installation in time, but guaranteed to finish it within three years. This technology will secure against discharges in Baikal, and this issue will be closed.

Vladimir Putin: We must monitor this issue.