Vladimir Yakunin: Mr Putin, allow me by tradition to report on the fulfilment of the instructions I received in June. At that time you called my attention to the fact that the railways might be blamed for failing to deliver fuel for winter on time. I remember the instruction clearly.
Vladimir Putin: Still people are complaining. This time, about coal deliveries.
Vladimir Yakunin: I report: today, as far as coal supplies for housing and municipal services are concerned, the real figures look like this: for the needs of the power industry the railways shipped 26.5% more coal than in 2007, for iron and steel, 5.7% more, and for housing and communal services, 23.9% more than last year.
Vladimir Putin: It may be more than last year, but it is not enough for this year. We should bear in mind today's realities.
Vladimir Yakunin: I report: yesterday I had a telephone conference with all regional representatives. The phone-conference included the heads of regional housing and utility facilities and the federal power industry. No one complained about a coal shortage. The Energy and Transport Ministries confirmed that. They also took part in the conference.
Vladimir Putin: I met just recently with the power minister and he told me the problems were still outstanding. It was literally two days ago.
Vladimir Yakunin: According to yesterday's figures, the problems are solved. You know, I am very particular about what I report.
Vladimir Putin: Please have the figures rechecked and report back with the power minister.
Vladimir Yakunin: Very well, Mr Putin.
On October 1, the company will be celebrating its fifth anniversary, or five years since its foundation as Russian Railways (RZD). Naturally, we are preparing to mark it by summing up what we have done. The results achieved in the past suggest that we have followed your advice and spared passengers and the economy from shouldering the costs of the reform. We have convincing proof of that.
In the past period - allow me to pass you a slide (passing the slide) - the transport component of the price of goods shown here has dropped between 40% and 60%. These are objective figures, impartial statistics. They apply to coking coal, iron and steel, fuel, and power coal.
Regarding passenger traffic, this year we carried 1.6% more passengers than last year. But we are having rolling stock difficulties and the situation is not changing quickly. I remember your words that we should pay more attention to outside markets. Today we are working with the Czech Republic and China. The work calls for certification, but that is not our responsibility, although we have made proposals to that effect.
Vladimir Putin: You have brought up an important subject. The issue of certification needs discussing and I agree with your specialists that we should proceed from the requirements of today, but not at the expense of quality. Some countries are still sending us a high percent of defective goods. This should be borne in mind, and quality control must be enforced.
Vladimir Yakunin: You are absolutely right, Mr Putin. This is our point of view, too. Since our industry, unfortunately, has not yet shown much initiative, we have contacted the iron and steel plants in north-eastern China and are keeping a large group of inspectors there to monitor the production of large-sized castings, which are the central and limiting factor in coach fabrication. Naturally, they experience problems. Nevertheless our partners take our requirements into account and there is reason to believe that very soon Russia will be purchasing some quantities of goods for testing.
Vladimir Putin: They sell their goods both in the European and North American markets. If we are to buy them, their quality must be guaranteed.
Vladimir Yakunin: We will bear this in mind, and make it our starting point.
Now to the passenger carriages. These problems stem from causes other than an increase in ridership - the capacity is there. As mentioned, last year we registered growth in all sectors - both in commuter service and on long-distance routes. It may not have been as noticeable as with Aeroflot, but taken globally the figures are large, because our railways carried more than 1.5 billion passengers. And the average percent of carriage occupancy was 75.3%, a good indicator.
Nevertheless, we are still criticised for the poor quality of our coaches, and justly. Our inventory of carriages is out of date. We have in fact only one coach-building plant. I cannot say that this business has responded to market requirements. We are currently negotiating with a number of overseas firms, such as Bombardier, Ariston, and Siemens. I want to mention that at the end of this year Siemens will supply its first train that we called the "Peregrine," which, as you know, is the fastest-flying eagle in Russia. Its first tentative name was "Velaro Rus."
On behalf of all railwaymen, I would like to invite you, Mr Putin, to attend the presentation of this first high speed train in December. If you consider it convenient, so will the German company, because these are all real things.
With Alstom (a French company) we are discussing another high speed train service.
Vladimir Putin: When did you conclude the contract?
Vladimir Yakunin: A year ago. New rolling stock will start running early next year. It is fundamentally different from the one we are used to.
We are also extending the geographical range of our international passenger service. This year we have put on an additional through coach to Paris. Credit for the decision must go to a French lady living in Paris. She is so fond of Russia that she became our representative in France. She persuaded the French Railways to take that step.
Such efforts make life easier for those who cannot fly. We are trying to give them more comfort.
Now may I take up Sochi, Mr Putin?
Vladimir Putin: Before we go over to Sochi, I would like to know how you agreed with the government to compensate for missing revenue created by student travel breaks.
Vladimir Yakunin: If briefly, out of the company's funds.
Vladimir Putin: And what about the dividends which the company planned to keep and hand over to the state?
Vladimir Yakunin: This is a matter for the government to decide. Neither the company board nor its management have the authority to decide. So bearing in mind your instruction, which was absolutely right ...
Vladimir Putin: Oh no, it is not so. Deputy Prime Minister Alexander Zhukov, who acts for the state, and the board can handle it perfectly well. He is empowered to do so.
Vladimir Yakunin: Mr Putin, I can only thank you for your attention to this question, because it is a must-do item.
Vladimir Putin: How much? A billion and a half?
Vladimir Yakunin: Close to two billion.
Vladimir Putin: Just do it please, tell him that things stand exactly this way.
Vladimir Yakunin: Very well, Mr Putin, I will. Thank you.