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Prime Minister Vladimir Putin met with President of the Republic of Buryatia Vyacheslav Nagovitsyn

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Transcript of the beginning of the meeting:

Vladimir Putin: What is the outlook in the republic?

Vyacheslav Nagovitsyn: Things appear to be normal. We have exceeded last year's production output volume by 0.4%.

Vladimir Putin: What industries have contributed to this growth?

Vyacheslav Nagovitsyn: Our leading industries, including aircraft building and bridge construction. Vladimir Yakunin's company, the Locomotive and Railway Carriage Works, is working at a stable rate. Our pulp and paper mill maintains its production output volume as well. There was a slight decrease in cement production in the first quarter, but following a meeting we held, the construction industry recovered and finished the quarter in surplus. I should add that the industry has been increasingly boosting production. We have a clear vision of the results the construction industry is likely to show by the end of this year. We have received an order from the Defence Ministry; we are going to provide 600 apartments for people that now live in unsafe and dilapidated houses. We have acquired the sites where new housing will be built; we know where and what to build, and how many apartments will be built.

Vladimir Putin: How much money was allotted for the resettlement from dangerous houses this year?

Vyacheslav Nagovitsyn: 600 million roubles for unsafe and dilapidated housing; almost the same sum was allocated for housing overhaul. All in all, it is over a billion roubles, and we can see that builders will be faring well this year.

As for unemployment, the situation is also quite stable. Paradoxically, the average unemployment level is falling, but when we calculated it in our republic, we saw that it has increased by about a half. We analysed the reasons for this growth and determined that it is those who have worked less than two years that account for the rise. However, it is a positive factor as well. We have at least figured them out and are starting to work with them.

We have developed a targeted programme. Let me extend my thanks to you for the funds that were allocated for it. Retraining is now underway; over 2,000 people are involved in it.

Vladimir Putin: Did the Government approve this programme?

Vyacheslav Nagovitsyn: Yes, we have already received funds and are working at full pace.

Vladimir Putin: How much did you receive?

Vyacheslav Nagovitsyn: 500 million roubles from the federal budget, plus our funds, which makes a total of 600 million roubles this year. We have never acquired such substantial funds before. You know, some 9,000 people were registered as unemployed; these are the people who applied for a job but did not qualify. Now is just the right time for retraining. The job supply will counterbalance the demand in the labour market.

Vladimir Putin: What about wages?

Vyacheslav Nagovitsyn: Wages have been rising. Even in the first quarter the average wage reached about 14,500 roubles, which is almost the average Russian level. The main point is that companies now understand that the future may be even more challenging; therefore they are upgrading their facilities and boosting performance, which allows them to increase wages. The nominal wage with us is higher than inflation, which is why the state of affairs in the social sphere is considerably stable and sound. In addition, we have launched the Business-Start programme, which has proved quite productive.