Transcript of the beginning of the meeting:
Vladimir Putin: Mr Sechin, yesterday at a meeting on the preparations for the spring sowing campaign I asked you to meet with our main energy and oil companies to discuss the price of lubricants. You were present, you heard this and you heard the concerns voiced by our agricultural producers.
What are the results?
Igor Sechin: Mr Putin, in accordance with your directive at yesterday's meeting, I can report that we continued our discussion on discounted supplies of lubricants today in the Government, with the ministries of Agriculture, Economic Development and Energy, the Federal Antimonopoly Service, as well the heads of regional governments, agricultural producers' associations and the oil companies.
The oil companies contended that criticism from the agriculture-producing regions on the current price parameters was more vehement than the situation warranted. Things are not as dramatic as they were made out to be yesterday.
In addition, all the major Russian oil companies have supported your proposal - setting the wholesale price formulated on December 31, 2009, as the base price for petroleum products for agricultural producers.
Vladimir Putin: In other words, not even for January, but for December?
Igor Sechin: The governors were asking you to set the January price as the base price.
As per your request, the oil companies agreed to additional discounts and deemed it possible to accept the December 31, 2009 price as the base price. And this price would be discounted another 10%, as defined in Government Resolution No. 129, dated March 5, 2010.
This formula will be applied for six months to fully provide for the spring sowing season. It is assumed that the necessary conditions for implementing this formula are a guarantee of distribution in the amounts necessary for agricultural producers and payment, as well as prohibiting the resale of discounted fuel on the open market. Assuming your approval, we ask you to direct the Agriculture and Economic Development ministries to confirm a list of agricultural producers that are entitled to discounted supplies.
Vladimir Putin: I think that one of the criteria must be, without exception, the criterion of the presence of acreage to be planted and processed and agricultural products for which we are making the discount and certainly the prohibition of any resale of fuel procured at a discount under the preferential conditions.
I want to thank both you, Mr Sechin, and the heads of our leading oil companies for such a timely reaction to this directive and the requests of our agricultural producers.
This is a very important matter indeed. The spring sowing campaign is a nationwide endeavour, and I am happy that our oil companies have approached it in precisely this manner.
For our part, as in previous times, we will do everything to create normal and positive economic conditions for the strengthening of the oil industry and will support its export potential.