Transcript of the beginning of the meeting:

Vladimir Putin: Mr Yakushev, how would you assess this past year in your region?

Vladimir Yakushev: Mr Putin, the official statistics that I've seen show decent results, considering the pessimistic forecasts. Industrial output fell by just 6%.

Vladimir Putin: Some industries even increased output, haven't they?

Vladimir Yakushev: Yes, and it was a sizeable increase. Oil production, for instance, grew by an impressive 217% thanks to two oilfields that were opened in the Uvat group of deposits last year.

The situation in the engineering industry varied from company to company. As we've said many times before, the companies that upgraded their equipment and that have high-quality management fared rather well. They remained competitive and even brought in new clients.

Companies with run-down fixed assets and questionable management did not do so well, which is to be expected. Five or six companies at a recent meeting of the Tyumen Regional Machine-Builders Association aren't even working a full workweek - which isn't to say that they are on the verge of bankruptcy, but they certainly need support and some government intervention in certain aspects of their work. However, no one is talking bankruptcy or liquidation for now.

Vladimir Putin: So the anxiety from early 2009 is gone?

Vladimir Yakushev: Yes.

Vladimir Putin: But support is still needed?

Vladimir Yakushev: Yes, it is. We have decided to continue our regional anti-crisis programmes. We have the means to provide assistance to companies in 2010. For example, we will continue to subsidise interest on bank loans. However, everyone understands that we can't do more for the time being. There is agreement on this point.

We had a very serious conversation at the association meeting about the need for energy efficiency. We need to stop talking about it and start acting. Energy efficiency has tremendous potential.

When we discussed electricity rates and energy use, we reached the conclusion that we need to implement an energy efficiency programme jointly. Perhaps companies that aren't in the best financial condition can get things started. The energy-efficient equipment that we buy primarily from Austria and Germany could easily be manufactured in our region.

That was the impetus for our discussion. None of the industrial managers in attendance looked bored. They all understood what needs to be done and which direction we need to go in.

The lumber industry is a special case because ...

Vladimir Putin: ...it has more problems than other industries.

Vladimir Yakushev: Yes. Historically, our region has always had enough standing timber, and there are furniture manufacturers concentrated in the south of our region. But problems remain. We are looking forward to summer, when construction picks up and demand for the products increases. Furniture manufacturers also expect demand to increase in the spring or summer of this year.

Let's turn our attention to the neurosurgery centre. Mr Putin, this is a very important project. There are no facilities like this from Yekaterinburg all the way to Novosibirsk, and we desperately need one. We are now finishing work on the project, and we plan to open the centre quite soon. There are just a few minor details to settle. I don't see any major obstacles to the centre opening as early as April. It's not just Tyumen that will benefit from it either. The centre will also admit patients from other regions, for which it will receive federal funds.

Vladimir Putin: It's a federal high-tech centre?

Vladimir Yakushev: Yes.

Vladimir Putin: One of the centres we're setting up throughout Russia?

Vladimir Yakushev: Yes, because we've done a lot in the field of cardiology these past four years. Data on mortality shows that heart disease is currently the leading killer. High-quality heart treatment has raised life expectancy in the Tyumen Region by four years, from 66 to 70. We've made a lot of progress.

Vladimir Putin: In life expectancy.

Vladimir Yakushev: Yes. The neurosurgery centre will deal with the second leading cause of death - traffic accidents and other types of accidents. Our region has a great need for a neurosurgery centre, as do neighbouring regions. We will care for their patients, too.

Vladimir Putin: Good. Let's continue to discuss this and other matters.