VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Ms Matviyenko, today we toured two facilities. More, in fact. Let me say a few words about the first place we visited - the new facilities for the Applied Chemistry Russian research centre. The scientific institution itself is a topic for a separate discussion. It is one the country's largest research centres for the development of rocket fuel, perhaps even the leading centre.
Our job is not only to support the personnel, but also the institution itself, which is very important for the country, national defence, security and the entire economy.
And of course, it gives the city an opportunity for growth. Because this research centre is a unique facility. I very much hope that Bank VTB, the government of the Russian Federation which regularly finances these sorts of projects and the Applied Chemistry research centre itself can work together to see these plans through to fruition successfully. In addition, the relocation of the research centre from downtown St Petersburg will provide the city with new opportunities for growth. These are major development projects, I would even say, grandiose plans for St Petersburg. And the timeframe is not very long - 10 years, maybe seven...
Valentina Matviyenko: The institute's personnel are getting settled, the research institute has moved to a new location. Thank you very much for your support. In fact, this area has needed renovation for a long time, and the institute's previous obsolete facilities had already begun to infringe on the work there...
I would like to say that we have been working in tandem with Bank VTB to develop a joint plan for this project's implementation. The city administration has provided the necessary assistance. We have presented this project widely to the general public. There have been extensive discussions. The residents of St Petersburg were actively involved in them, helping to choose the proposals. We have held two international contests. And this project has enjoyed broad public support.
Vladimir Putin: Yes, and I would also like to thank you for supporting the second facility, the Power Machines Company, as well. They have already begun working on the land the city allocated to them. This also implies moving some environmentally hazardous production facilities out of central St Petersburg and creating new jobs. In addition, this facility is truly innovative. This is a step towards the priorities we set for the development of the Russian economy.
I believe we will soon work out all financing issues. Nevertheless, the amount of money involved is quite significant: over 12 billion roubles.
Valentina Matviyenko: Well, this is the real economy.
Vladimir Putin: Yes, this is the real economy. This is a step in the correct direction. We will continue this work. However, we will need some assistance from the city government.
Valentina Matviyenko: We are ready to provide all possible assistance. We have allotted land, and we are helping to work out the agreements. We have a very good relationship with Severstal. First of all, Mr Putin, manufacturing equipment for power stations is a core industry for the city, and, fortunately, it has remained competitive. The Power Machines Company, our new investor, has gotten very involved in this industry. Production is increasing. They are investing in R&D and developing new equipment for power plants, which is needed in domestic markets, because the country's power grid is in need of major renovation. These companies are competitive internationally as well, and so, of course, we will support them.
The first production facility built by Alexei Mordashov [chairman of the Severstal board of directors and general director of the Severstal Group] in St Petersburg is already one of the city's top five taxpayers. This means taxes for the budget and new jobs for the city residents.
Vladimir Putin: They finish all their orders on time, and are even slightly ahead of schedule in restoring the Sayano-Shushenskaya Hydroelectric Power Plant, which is very important.
Valentina Matviyenko: Yes. They are very responsible.
Vladimir Putin: Yes, they are responsible. The quality of their products is good, and I must say that I was particularly impressed by the conversation I had with the workers who are involved in carrying out this order. These people have a sense of their own accomplishments and are aware of their responsibility.
Valentina Matviyenko: Yes, the people have come back to life, Mr Putin. They are working responsibly.
Vladimir Putin: I was impressed when the workers said that in the near future clients would come, and they said "we will not let them down; we will do everything on time." This is what we have always called the working class of Leningrad and St Petersburg. These are people who deserve special attention and special respect.
Now let's discuss our current issues.
Valentina Matviyenko: Mr Putin, here's a brief account of our economic and social development. In literally just four months all sectors of our economy have come out of the recession. In four months, the index of industrial production has reached 104.7%. This is a very impressive growth. Locally produced goods sold elsewhere have reached 128.3% by volume. Car production has increased 220%. Ship repair and construction has increased by 170%. The scale of housing construction is also very important. We have built almost 900,000 square metres of housing. People's incomes are growing, both in real and nominal terms. And, naturally, this economic growth has led to a stable social situation.
I have reported to you that we had a very severe winter. I must say that our energy system was able to handle all the trials of winter, although we exceeded historic levels of power and heat consumption several times during this winter. But we did not have any blackouts or accidents. Our customers felt no discomfort due to lack of energy.
However, the severe winter did damage to housing. A monthly average's worth of snow fell in one day, and there were many leaks in roofs.
Vladimir Putin: Was this because you did not remove the snow?
Valentina Matviyenko: We removed the snow, but it was impossible to remove so much snow -- simply impossible. Never has anyone, anywhere, in any country had to remove so much snow.
Vladimir Putin: Did you hope that it would melt by itself?
Valentina Matviyenko: No, we didn't hope for that, Mr Putin. At any rate, we kept public transport open throughout, and no institutions were shut down, as in Europe. You remember that Europe was simply paralysed.
Vladimir Putin: Yes, that is true.
Valentina Matviyenko: Roofs leaked because of abrupt changes in temperature and higher-than-normal amounts of snow. That is why this year we allocated almost nine billion roubles for housing repairs. We have already started repairing roofs. All roofs will be fixed and leaks eliminated before the start of the heating season.
Vladimir Putin: Everything must be finished by autumn.
Valentina Matviyenko: Yes, we'll finish everything.
Also, quite a few snowploughs were used to remove snow from the streets in winter, and this is why roads are in poor condition. We budgeted eight billion roubles for road repairs, which was not easy, but we managed nonetheless. We have already started major road repairs.
Of course, people are dissatisfied, especially motorists. We've had traffic problems, difficulties with detours. But I have explained to St Petersburgers that they just have to endure it for three months. We'll use this time to bring the roads up to par.
Vladimir Putin: Real wages grew by 6% in March, correct?
Valentina Matviyenko: That's for real wages, after being adjusted for inflation.
Vladimir Putin: Yes, I see. But retail trade has barely increased.
Valentina Matviyenko: People are saving money.
Vladimir Putin: Yes, it'll take time...
Valentina Matviyenko: Yes, some time is needed for adaptation. There's some growth in consumer demand, although it's not very high.
St Petersburg residents have 600 billion roubles in their personal bank accounts, and this money could potentially be invested in housing or consumer services. Demand is unfreezing slowly.
So we'd like to ensure all roads are in proper condition by autumn.
Vladimir Putin: Yes, this must be done.
Valentina Matviyenko: Summer will be a difficult period. Roads will be clogged, there'll be traffic jams, but there's nothing we can do about it. It's impossible to set up effective detours because the streets are so narrow. But I think we'll cope. All roads will have been repaired by autumn.
I'd like to report to you on the progress in the implementation of your directive regarding the Central Naval Museum. You issued a directive to resolve this issue, because the Exchange building is dilapidated, and the premises of the museum are in awful condition. We have finished the renovation of Kryukov's Barracks.
Vladimir Putin: I know. I have two days to get to the museum. Let's go there as soon as it's relocated and opens.
Valentina Matviyenko: Right now we're transferring it in its entirety to the Ministry of Defence. Previously the museum had a total of 7,000 square metres, and the new building is 30,000 square metres.
Vladimir Putin: Well done!
Valentina Matviyenko: Yes. We have built an atrium and covered the inner courtyard.
Vladimir Putin (looking through documents): Is this the atrium?
Valentina Matviyenko: Yes, and its size now allows for large naval technology to be exhibited.
Vladimir Putin: The museum shares the same building with the Exchange?
Valentina Matviyenko: Yes, and it's the oldest museum in St Petersburg. The most important thing is that we managed to preserve the historic building. It was in dire condition, especially the interior and utilities.
Vladimir Putin: They haven't been repaired for about 40 years, correct?
Valentina Matviyenko: Not since 1973. But those repairs were cosmetic. This time we've carried out a comprehensive renovation of the building. You'll be able to compare the previous and the present state of the building. I think it'll take the Ministry of Defence at least six months to relocate the museum. There's no need to rush, and all the exhibits must be carefully transported and rearranged. It'll be the best naval museum in the world, I'm sure.
Vladimir Putin: And you used the funds that we gave you?
Valentina Matviyenko: Well, you gave less than was needed, and we had to contribute some from the municipal budget. When we visited the museum and went into the building, we saw the condition the building was in... It required over $3.6 million.
Vladimir Putin: The building was almost ruined, wasn't it?
Valentina Matviyenko: Absolutely. We had to allot $3.6 million. But the restoration company is very good. It treats the building with great care. It'll be a beautiful museum.
Vladimir Putin (looking through documents): And what's this?
Valentina Matviyenko: An assembly hall.
Vladimir Putin: For holding events?
Valentina Matviyenko: Yes, it'll be a modern, interactive museum. And they'll be able to exhibit technology and store archives there. In this regard, I have a request to you. I'd like the government to take a definite stand on the issue of status. This museum is federal property, federal monument. It's necessary to define who to transfer the Exchange to. This is very important. And then we can begin repairs.
Vladimir Putin: I need to consult with my colleagues.
