Prime Minister Vladimir Putin held a working meeting with the Governor of Lipetsk Region Oleg Korolev
Transcript of the beginning of the meeting:
Vladimir Putin: What is the current outlook in your region?
Oleg Korolev: Mr Putin, speaking openly, I can say that the social and political situation in the region is good. One of the reasons for this is what you have done by signing the law on special economic zones three years ago.
I would like to report to you, Mr Putin. Three years is not a long time for the economy. But during the past three years 4.5 billion roubles have been invested in building the entire infrastructure.
Already 8 billion roubles of investments has been used. More than 1,500 jobs have been created. Today we collect half a billion in taxes in spite of all the benefits. What is interesting is that the declared amount of investments, that is more than 50 billion roubles, cannot be revised. Considering that the project of special economic zones has turned out to be so successful and investor interest so high, we suggest that the zone be expanded.
We are working on that with the federal agency. We encounter no obstacles, but I stress that investor interest in Russia is not diminishing; investments continue flowing as the status of special economic zones and the advantages under the law you signed three years ago are obvious for all. It is a very successful project.
Incidentally, for this reason, we have kept unemployment down to 1.4%. I think it will be down to 0.8% by the end of August.
Vladimir Putin: Did it go up since the beginning of the year?
Oleg Korolev: The trend is that it was 1.6% and now it is 1.4%. It has gone down.
Vladimir Putin: A downward trend.
Oleg Korolev: Interestingly, in June we had a 5% growth of output in industry, agriculture, small business and construction. June was a good month. So, the outlook on the whole is good.
Vladimir Putin: What is the situation in the social sphere - healthcare, education? How are you preparing for the new school year?
Оleg Korolev: I am confident we have all the prerequisites for a good start to the new school year. Considering that we get substantial assistance on healthcare, the federal programmes and the national projects, our region, among others, has made good progress in terms of technology, human and material resources. The social sphere is normal.
I would especially like to thank the Russian Government because, in spite of the current conditions, we continue to receive assistance. Of the 4.5 billion roubles invested in the infrastructure in the special economic zone, 80% is federal money.
Vladimir Putin: You are an experienced man. This is a good time to think about how we will go through the winter. How is the infrastructure repair work going?
Oleg Korolev: There is nothing to interrupt it. I can tell you frankly, I had not expected that the federal centre would disburse 1.5 billion for moving residents out of dilapidated and unsafe housing. Honestly, I had not expected it. It was this year, while we got several billions last year. This year, in spite of anything, we are improving the housing conditions for as many people as that sum permits.
So, for the heating season, looking at everything connected with power, [energy supply company] TGK-4 and Mikhail Prokhorov personally have fulfilled all the preparation programmes. A new thermal power plant has been launched in Yelets. A new line is being built from the Yugo-Zapadnaya plant to TETs-2 plant.
We do not expect much strain; we are facing winter confidently. We are starting to bring the harvest in. We have all necessary credit resources, fuel and lubricants. Because we started to produce more, we are short of elevator capacity, but we will have enough in three years' time.
In the Soviet times we produced 1 million tonnes of grain on average, now we easily produce 2.5 million. We will easily build the needed elevator capacity.
Vladimir Putin: Early in the year I issued a directive to support the chemical industry, those who produce fertiliser. They committed themselves to keep to a fixed schedule in their work with agriculture. Does it make a difference to your region?
Оleg Korolev: All your directives are being fulfilled on the price of fertiliser, fuel and lubricants. The price of fuel is below market value, in accordance with your directive.
We have fine crop, good wheat is ripening. We have already started the harvest, we are harvesting rapeseed.
The first biofuel production plant in Russia has been built thanks to government support. So far it produces vegetable oil, but if necessary catalysts can be added so it will produce biofuel. It becomes almost 2.4 times cheaper. But we are not doing this just yet. We produce rapeseed oil. The programme you have introduced to provide rural areas with fertiliser and fuel is enough for now.
Vladimir Putin: Do you have wage arrears?
Oleg Korolev: The wage situation is as follows: the arrears as of July 17 stood at 17 million. It is a small sum compared with other regions, but it is enough to make us take additional measures. The arrears have built up mainly in some inefficient rural enterprises. We are already assisting them; the arrears will be paid up.
There are no arrears in the public sector, in the main industrial sectors and at Novolipetsk Steel. All five blast furnaces are running at full capacity.
Vladimir Putin: Are there signs of greater buoyancy?
Оleg Korolev: Yes, there are signs of this.
