VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Working Day

5 october, 2009 15:00

Prime Minister Vladimir Putin chaired a conference call on electric facilities’ and housing and utilities companies’ preparation for the 2009-2010 heating season

Prime Minister Vladimir Putin chaired a conference call on electric facilities’ and housing and utilities companies’ preparation for the 2009-2010 heating season
"According to company reports, preparations are proceeding smoothly and on schedule. The heating season is in fact already on in many regions. Territorial energy systems and most housing and utilities companies have completed their preparations on time: they have finished the required repairs and formed the necessary backups."
Vladimir Putin
At a conference call on electric facilities’ and housing and utilities companies’ preparation for the 2009-2010 heating season

Vladimir Putin's introductory speech:

Good afternoon, colleagues,

We will discuss the progress of major electric facilities' and housing and utilities companies' preparation for the coming winter on this conference call.

According to company reports, preparations are proceeding smoothly and on schedule. The heating season is in fact already on in many regions. Territorial energy systems and most housing and utilities companies have completed their preparations on time: they have finished the required repairs and formed the necessary backups. Power plant stocks of coal and fuel oil exceed the required levels by 37% and 29%, respectively.

Naturally, it goes without saying that we cannot rely exclusively on general figures. Even minor breakdowns in this vital industry can have grave consequences; therefore, it is our responsibility to make every effort to prevent them.

Therefore, I am asking all of you to focus on the situation in the regions, which are still behind in their preparations. Today we will hear reports from the heads of several Russian regions explaining their lagging effort. We'll also hear from the heads of those regions which have successfully completed their preparations.

I am also asking all the agencies concerned to monitor the local situation closely. This especially concerns such issues as supplying heat and electricity to residential buildings and to important social services - hospitals, schools and kindergartens.

I am also instructing Rostekhnadzor to conduct additional inspections at heat and power plants to see if they are ready for the seasonal surge.

Siberian regions must certainly be given special attention, with due consideration of the problems arising from the breakdown of the Sayano-Shushenskaya hydroelectric dam.

Prompt measures taken immediately after the accident helped prevent disruptions in power supplies to local consumers; however seven Siberian regions are running an energy deficit as a result, and this circumstance needs to be taken into consideration when making plans for the winter.

The Government has already issued instructions aimed at restoring the energy balance in the affected regions. I would like to emphasise yet again that what we need to do is not just compensate for the current energy deficit, but ensure a sufficient reserve capacity in case of unexpected weather phenomena or other reasons for load peaks.

Now let me make three more important points.

First, we should prevent an increase in overdue debt for the resources supplied by the utilities. These debts currently exceed 158 billion roubles, including 10 billion roubles owned by government financed services and agencies.

I am now asking regional and municipal heads or representatives to make sure that their regions or cities do not accumulate more arrears. Please pay attention to the point I am making now. I am asking you to make every effort to ensure timely payments and debt clearance.

Second, the Housing and Utilities Reform Fund is currently implementing a programme of capital repairs in residential buildings. Let me remind you that the Fund has by now spent nearly 112 billion roubles for this purpose. The total investment under the programme, including the money provided by regional governments, is close to 152 billion. This is a lot of money. It has been spent to overhaul more than 80,000 buildings and improve the living conditions of 10 million Russians.

However, with winter so close, I have to ask regional governors to remember that most of this work needs to be completed before cold weather sets in.

Last, we need to continue a consistent reform and modernisation of the housing and utilities sector. This will help cut costs and upgrade technology, thus improving the system's reliability and efficiency. This is the only way to improve living conditions.

Let me cite one example: the Housing and Utilities Reform Fund's programme I mentioned has helped decrease heating losses in residential buildings by one-third.

Now, let's get down to business.

* * *

Vladimir Putin: Our colleagues in Kamchatka, Tyumen, Kemerovo, Dagestan, Volgograd, Komi, Ufa and Khakassia are taking part in today's discussion via a video link. I would like to greet everyone once again and give the floor to all our colleagues in turn.

But before they start, I would like to draw your attention to one issue. It is understandable when problems arise - unfortunately, they arise very often - in regions such as Kamchatka, Tuva and the Amur Region, which have difficulties with energy supply. Energy problems are really acute there. But when it comes to the regions that have energy resources and produce energy themselves, such problems appear unnatural.

Why is everything fine in Kemerovo, a region which is governed by Mr Tuleyev? Mr Rakhimov in Bashkiria has no problems either. Why is there a mess in Komi, the Sakhalin Region and the Volgograd Region, which are governed by Mr Torlopov, Mr Khoroshavin and Mr Maksyuta, respectively? There are oil refineries and big companies in these regions, and there is coal as well.

Let's discuss it in a business-like and constructive manner. I would like Alexei Kuzmitsky, the Governor of the Kamchatka Territory, to take the floor.

Alexei Kuzmitsky: Good afternoon, Mr Prime Minister, participants in the meeting. The repair jobs to prepare the utility and energy facilities of the Kamchatka Territory for the 2009-2010 heating season are being carried out in accordance with the approved plans and regulations valid in the Kamchatka Territory. You can see them on slide 1.

Slide 2 shows the readiness of the housing stock, boiler houses, central heating stations, heat networks, and other facilities in the Kamchatka Territory for the autumn-winter period. 92% of the housing stock is ready so far. Work is being carried out, readiness certificates are issued daily, and these are in fact minor jobs.

Now to boiler houses: One boiler house is currently operating with a reserve boiler employed, and repairs are being carried out. This boiler house has been launched; it will be commissioned in five to seven days.

100% of central heating stations and 95% of raw water collection points have been commissioned. Reserve equipment is being repaired at one water collection point, but it functions in the normal operation mode.

The heating season started in the Kamchatka Territory on October 2. 78% of the total of 959 million roubles stipulated by the production plan of energy supplying companies has been paid out so far. The works have been implemented almost in full. There are arrears in paying for some works, but they will be settled shortly.

As for Federal Law No. 185 On the Progress in Assisting the Housing and Utilities Reform, it's the first time this year that the Kamchatka Territory has met all the requirements of the Fund. Seven municipal entities participate in the programme for the capital repair of housing. We received 98 million roubles from the Fund and in August embarked on the major site development plan, envisioned by this programme.

For the purpose of eliminating a possible emergency, there has been created a stock reserve of materials and equipment, estimated at 33 million roubles, at the critical infrastructure facilities. It's the first time the Kamchatka Territory has created a stock reserve of materials, estimated at 250 million roubles. Of that, 99 million roubles has been spent on purchasing reserve energy sources and equipment.

As usual, two centres function in the Kamchatka Territory, one that deals with the preparations for the autumn-winter period and the other to ensure energy supply.

Now, about repair jobs at energy facilities. All the works have been completed, although there is a 7% delay in preparing 2.3 kilometres of transmission lines, but these are only reserve lines.

The most challenging area is fuel procurement. Last year Deputy Prime Minister Igor Sechin set a task to introduce a new system, a new approach to fuel supplies to the Kamchatka Territory. We are phasing in a comprehensive centralised fuel supply system. We have switched to centralised fuel oil supplies, which has brought good results. This year we are going to partially apply this method to diesel supplies, completely switching to it next year.

This has resulted in a considerable decline in coal prices. For example, on the eastern coast of Karyakia, it costs some 5,600 roubles per metric ton, to be precise between 5,300 and 5,800. As for the western coast, this year coal was supplied at 6,500-10,500 roubles per metric ton, compared to 6,900-11,800 roubles last year, which is a considerable decrease. Winter petrol fuel has been supplied at last year's prices; however, the supply quality is now much better. Therefore, the operating principles we are introducing have proved effective.

Coal had been supplied in full by the beginning of the heating season. Several municipal entities in the Koryak Area have already received coal for the next heating season. So, coal supplies stand at 105.5%. As for oil fuel, it's 102%. There are delays in diesel fuel supplies, but this issue will be resolved: A tanker is setting out from Vladivostok today.

10,500 metric tons need to be supplied for housing and utilities. This work will have been completed by October 25. Municipal entities have certain diesel fuel reserves, which allows for starting the heating season without delays.

8,800 tons of fuel will have been supplied to UES Far East companies by late October. I would like to emphasise that oil fuel and coal have been delivered earlier than last year.

However, we are purchasing fuel practically entirely with borrowed money. Our oil fuel, coal and diesel fuel debt totals 950 million roubles, of which about 690 million roubles worth of loans is overdue.

Energy suppliers lack cash reserves to accumulate fuel and supply it earlier than planned, but we are working on this issue. We have been in touch with the Ministry of Finance seeking a budget loan and debt relief.

Last year, the fuel debt amounted to 1.5 billion roubles. This year we'll try our best to tackle this issue successfully.

That is all. Thank you.

Vladimir Putin: The information available to us confirms what you have said. We can see that you have been actively preparing for the heating season. Nevertheless, I would like to draw your attention to the fact that only 85% of the housing stock is ready for the winter. Only 85%! This means that the repair work has not been carried out in full, and the heating season has already started. Furthermore, only 60% of funds have been allocated. I would like you to explain this. 

Alexei Kuzmitsky: Mr Putin, currently, 92% of the housing is ready for winter. The data that you cited was as of September 20. We have also allocated 78% of the funds provided for under the programme. But the work has been completed. As I have already mentioned, we do have some liabilities, and in the near future we will pay off the debts to the contractors that carried out the repair work.     

We are doing better this year than last year. There are some objective difficulties that we are facing, but we have already improved our indicators quite significantly. And weather conditions should allow us to finish preparing all our housing stock for winter by the end of October. 

Vladimir Putin: I understand. Essentially, what you are saying is that you have substantially improved the situation in the course of preparing for this meeting, and things are better now than they were two to three weeks ago. Correct?

Alexei Kuzmitsky: That is correct. We are currently 92% ready. The completion documents indicate some minor shortcomings, but those do not affect a building's overall preparedness for winter. These are insignificant shortcomings.    

Vladimir Putin: That's good.

Alexei Kuzmitsky: Over the next two to three weeks we will completely rectify the situation.

Vladimir Putin: Very good. Please make sure that minor shortcomings do not lead to major or serious setbacks. Winters in Kamchatka are very harsh, as you know, and every small detail counts.

I would also like to point out that financial discipline must be enforced. It is true that thanks to your efforts, as well as the efforts of the appropriate agencies and companies that work with Kamchatka, the required amount of energy resources has been successfully delivered. You mentioned the tanker earlier. As far as I know, one tanker is being unloaded currently, and the second one should already be on its way. Indeed, we will manage to complete everything in time. Nevertheless, I would like to draw your attention to financial discipline. Please, keep this in mind.

Mr Aliyev, please. Dagestan.

Mukhu Aliyev (President of the Republic of Dagestan): Mr Putin, the heating season in Dagestan starts on November 15. The slides present the situation as of October 1. Over the past several days, some progress has been made. Without giving any figures here, I would like to say that by November 1, preparation will be completed throughout the republic.  

We agree with what has been said here. The most serious problems that we are currently facing are related to utility debts. We are working to eliminate them.

At present, we have no debts from current accounts. But there are debts from last year. We have had them partially restructured, both for electric power and gas. As far as electricity is concerned, the most problematic city is Makhachkala. Mr Said Amirov (Mayor of Makhachkala) is present here.  

Here too, debts from current account have been paid off, and the agreement we have signed with the energy producers is being partially implemented. The indicators are much better than last year and at the beginning of this year. Still, the agreement has not been fully implemented. They were supposed to pay 66 million roubles (33 million per month in August and September), on top of the current payments. Today's debt is approximately 40 million roubles.

In other areas, there are no serious problems with regard to winter preparations that should cause concern. This also relates to preparing housing stock for winter. The work is proceeding on schedule. We have received the funds for the capital repair of housing and have transferred them in full to the Housing Owners Associations (TSZ) and managing companies. The work is under way and will be completed by the end of the year.

Vladimir Putin: Good, thank you. Indeed, based on our information, heating supply networks are 90% ready, and housing stock is approximately 90% ready overall; coal reserves are at 100%. Indeed, things look good.

You have mentioned the issues related to payments or non-payments, liabilities, etc. I would like to say the following in this regard.

Is Mr Amirov here? Yes, I see you...

Said Amirov: I am here.

Vladimir Putin: You are the Mayor of Makhachkala, and an experienced leader who has governed this city for a long time. I would like to say the following to you: People in Dagestan are not very well to do and their lives are quite difficult, but the utilities collection rate in Makhachkala is 90%. Nevertheless­ the power producers are not paid in time. So we have the eternal question: "where is the money?"  

I understand that we have reached agreements, that is to say, you have reached agreements with appropriate companies for paying off your debts. Please make sure that these agreements are duly fulfilled and the repayment rate is increased. Everything must be paid off.

Funds that you collect from the consumers must be transferred appropriately. I hope that this will indeed be the case.

Vladimir Putin: Let's talk about Volgograd. Mr Maksyuta (Nikolai Maksyuta, Governor of the Volgograd Region), please, take the floor.

Nikolai Maksyuta: Good afternoon, Mr Putin, colleagues. In Volgograd, the heating season starts on October 15. As of October 1, the percentage of work that has been completed was 96.5%. Now it's 98%. I think we will finish all preparations by October 10.

Ninety-seven percent of heating systems are ready. The region will be ready for the heating season by October 12 or October 15. By the way, we reduced the number of marginally efficient boiler stations from 1,300 to 295.

We have sufficient reserves of fuel oil for emergencies.

Speaking of housing repairs. Seventy-five percent (1.206 billion roubles) of repair works are to be paid for. We will make this payment by the end of October.

Last year, there were some pipe ruptures in Volgograd. We did all the repair work and allocated 55 million roubles for diagnostic equipment. I believe that no mistakes will be made this year.

As for now, we have launched heating systems in the northern districts: Yelan, Olkhovka, and Uryupinsk. In some other districts, the heating season has started at schools and hospitals.

Like Dagestan, we have a problem. We collected only 97% of utility payments. Our debt to energy companies for gas, heat and electricity is an enormous 3 billion roubles.

We agreed with the Volgograd Mayor to start an investment project. In cooperation with several companies, we will start a project to restructure the debt and settle it before the end of this year. By November 1, the city council will present a project intended to settle our debt to energy companies.

This was our only problem. I do not think we will have any other troubles during the heating season. All will be well.

Vladimir Putin: Mr Maksyuta, I hope you are right that there will be no trouble in the region. I hope that you and the leadership of the region's municipal bodies will do your best to provide heating for people. Conditions for doing so are good.

Speaking of debts. Kamchatka's debt is 3.2 billion - this is a giant sum for the territory if we take into consideration their budget. Your debt is not enormous. You simply need to do everything in a timely manner.

I see that you have funded repair works at only 85%, or even at 75%. You should pay attention to that. Utility companies naturally do not want to work for free. You have to start setting priorities.  

In our country preparing for winter is one of the top priorities. Please pay attention to that.

Nikolai Maksyuta: We will.

Vladimir Putin: Now, the Komi Republic. Mr Torlopov, take the floor, please. 

Vladimir Torlopov: Mr Putin, the general outlook in the republic is as follows. One hundred percent of boiler stations are ready, as are heating and water supply networks. We have replaced more decrepit heating and water supply networks than was planned. We have enough reserves of coal, wood, fuel oil, and fuel for emergencies.  

Actually, we have one serious problem: Debts. State-financed organisations do not owe anything to energy companies. Instead, the trouble is caused by consumers, especially in Vorkuta and Inta, two northern mining towns, who did not pay utility fees. And now the managing companies have no money to pay the energy companies.

According to an agreement with the TGK-9 company, we restructured debt worth 1.5 billion roubles. Now our debt is 3.1 billion. The municipalities have assumed the financial obligations of Vorkuta and Inta.  

We have settled 50% of the debt. We have reached an agreement with TGK-9 that we will repay 700 million roubles by the end of this year and the rest by 2010.

Secondly, TGK-9 now collects fees by itself and will adopt its own measures to settle the remaining debt.

I also want to report that we will implement a project jointly with TGK-9 aimed at modernising and developing the critical infrastructure facilities in Vorkuta. A Presidential Commission recently decided to implement the project.

I am sure that the situation in the republic will improve. The Republic of Komi is ready for winter.

I have finished my report.

Vladimir Putin: Mr Torlopov, I know that much has been done to prepare for the winter. You know like no one else what the Republic of Komi is like in winter. Abnormally low temperatures have already been observed there. Indeed almost everything has been finished.

You are a very experienced leader, and you are familiar with the condition of Russian housing and utilities in general, as regards to both the resource base and funding. Why suffocate this sector even more? In your region, charges for repairs to the electrical grid are the lowest.

I understand that the supervision of this issue is hardly your direct responsibility, but there must be oversight at the municipal level. I would like to ask you, the head of the republic, to find out which municipal authorities need assistance. You mentioned large communities, but maybe smaller communities also need help. The Government does back regions, including Komi. If there is a shortage of anything, let us know in time. But paying for 56% of repair and preventive works is not enough. This is what I would like to draw your attention to, Mr Torlopov.

Now I would like Mr Aman Tuleyev to take the floor.

Aman Tuleyev, the Governor of the Kemerovo Region: Mr Prime Minister, the heating season in Kuzbass started without any setbacks, on September 13, as was planned. Honestly, it would have been disgraceful if we hadn't prepared for the winter. I would like to thank the Government and you personally once again: We have already received 8 billion roubles to carry out major repairs on housing, as well as to demolish dilapidated and unsafe housing. It's the first time in the 67 years of its history that Kuzbass received such a large sum. 1,100 flats have already been repaired and 210 barracks torn down.

As you remember, in March you visited the city of Novokuznetsk and toured a horrible district that consisting of 34 barracks. Your directive has been fulfilled: All the 184 families have been relocated from this district - from those "dungeons", barracks - to a new district.

We have renovated 20 boiler stations and constructed four boiler stations. But what deserves your attention is two boiler stations, specifically in the towns of Prokofyevsk and Leninsk-Kuznetsk. A local mine is heated by these boiler stations, which use the methane from this mine. You are aware of our problem: We are short of gas, which is supplied to boiler stations to heat housing. Next year, we plan to convert another eight boiler stations to methane. The 15 boiler houses that emitted too many fumes and gases have been closed.

This year two turbines began operation, and the renovation of two substations is almost finished. Mr Prime Minister, we understand our responsibility following the accident at the Sayano-Shushenskaya Hydroelectric Power Plant, but in our estimation, coal and heat production must be increased. For this purpose, we expect to mine an extra 6 million metric tons of coal in Kuzbass this year. This objective will be fulfilled. But it requires bringing 10,000 gondolas to Kuzbass daily, and shipping 8,000 gondolas of black coal.

In September all government agencies pulled it off, as you put it - did their work with the precision of a Swiss watch. We only have this month left to complete all our work, because in November it will start snowing, which will prevent us from shipping such large volumes of coal. If 8,000 gondolas are shipped daily in October, Kuzbass will complete the task of shipping coal.

As for problems and concerns, the load on heating stations is going to increase, which will not allow us to carry out the repairs and increase capacity. And we have a four-year backlog for major repairs this year, specifically for repairs of surface heating facilities.

In my opinion, the Ministry of Energy must work out a clear-cut plan to specify which heating stations need to be renovated after the winter to avoid power losses and to make up for these three or four years of delay. We must propose a schedule and submit for approval.

As for energy-saving, we have set an objective of reducing emissions by 15% and drawing up plans for companies that might receive less energy in exceptional circumstances.

I would like to draw your attention to one more issue. We have a persistent problem: Transmission lines and pylons are being stolen. We have prevented two thefts of this kind. I had to set up special brigades for this purpose, but this is not enough because thousands of kilometres of transmission lines need to be guarded and the regional government alone is unable to deal with this issue. I would like to request that the Federal Grid Company come to an agreement with the Ministry of the Interior and the Chief Directorate of the Interior. We will also ask Cossack units to assist. Heaven forbid that another pylon should collapse. We understand what that can lead to.

One more thing: we issue certificates, which I believe is a good practice, but there are companies - even in Kuzbass - that didn't receive these certificates last year. But even if you didn't get a certificate, if you are the owner you must bear some sort of financial, disciplinary, or other type of responsibility.

Mr Prime Minister, thank you for the tangible assistance for major repairs, especially for demolishing barracks. I can assure you preparation for the winter is going according to schedule. Thank you.

Vladimir Putin: Mr Tuleyev, all the people who lived in the dilapidated housing that we visited in Novokuznetsk have been relocated to new flats, correct?

Aman Tuleyev: Mr Prime Minister, I would like to express my sincere gratitude to you once again. Those families have already moved into a new district, which you also visited, by the way. This new district is superb. Construction will begin on nine new blocks of flats on the site of the old district; and water, heating and electricity pipes have already been supplied to the area.

Vladimir Putin: I would like to congratulate the families who have moved into new homes, and I wish them all the best.

Aman Tuleyev: Thank you.

Vladimir Putin: As for the railway, as you know, there is a Government Commission, which includes the Ministry of Transport, Russian Railways and the Ministry of Energy. I will give it an extra push to ensure that we have the necessary railway vehicles for comprehensive coal transportation.

Aman Tuleyev: Thank you.

Vladimir Putin: My notes say that the Kemerovo Region is almost done with its preparations. It is one of Russia's leading regions in this respect, but this is not a state award commission meeting, and we know that there are quite a lot of problems in the region. I would like you to continue working without slacking.

Now, I would like to ask to speak Mr Murtaza Rakhimov, the President of the Republic of Bashkiria. 

Murtaza Rakhimov: Good afternoon, Mr Putin. On the whole, Bashkortostan is ready for winter. We have no major problems. We draft plans and start our work as early as April, and we insist on harsh discipline in such matters. All preparations are over now.

I would like to express my support for Mr Tuleyev. I will not say how much we have done to pull down dilapidated houses and resettle their residents. The Federal Law On the Progress in Assisting the Housing and Utilities Reform has been of great help. Much has been done, and it would be good if the law stayed in force next year. I think we can settle all problems with its help.

The republic is prospering. I think we will have nice New Year celebrations. Everyone has been talking about the crisis, but I think the countryside, at least, should be immune to crises. Good workers should make a good living at any time. On the whole, the situation is stable. That is all I wanted to say.

Vladimir Putin: Thank you. The information here is similar.

Murtaza Rakhimov: Just take care please that Bashkirs are not left out of the equation when the situation is summarised.

Vladimir Putin: I mean I have obtained similar information about the Kemerovo Region and Bashkortostan. I only want to add that the republic also has many problems, as you are certainly aware.

You say the crisis has not affected the countryside. We should do everything we can to minimise its impact on the republic's industry as well. I know the Bashkir leaders are doing everything the situation requires. I hope that we will work together as before, and survive at a time that is hard on the global economy, Russia and Bashkortostan alike. I hope we will have no big failures.

But winter is winter, and Bashkir winter is rather harsh, as we know. So please pay attention to municipal matters-everything must work properly in cities and towns.

Thank you. Tyumen Governor Vladimir Yakushev has the floor.

Vladimir Yakushev: Mr Putin, ladies and gentlemen,

I will start with the Tyumen Region's preparations for the autumn and winter heating season. Slide No. 2 shows the normative basis we proceed from every year, and consolidated budget funding of relevant municipal preparations.

Slide No. 3 presents this year's winter preparations. Residential buildings with a total floor space of 30 million square metres are ready for seasonal heating.

There is also information about boilers, heating networks, electricity, gas supply, etc. Practically everything necessary has been done.

Slide No. 4 deals with setting standards for the fuel stock, which is an essential job during preparations for winter. The region has more than enough-188% of the standard 45 day stock of coal, and 178% of 30 day oil stock.

Slide No. 5 illustrates accounts, an issue Mr Putin has paid major attention to at this meeting. It is essential for stable performance of the entire municipal economy.

Despite growing fuel prices, the Tyumen Region's overdue payments on fuel and electricity debts at the start of September were 10.1 million roubles less than in 2008. The debt shrank by another 20.7% in September to make 22 million roubles.

We are continuing to work on this and I think we will be able to resolve all the problems in this area so that the debts are repaid in full.

Slide No. 6 shows the results of our work.

The Tyumen Region's readiness for autumn and winter 2009/10 was certified on September 1, and heating started on September 14-24 in all municipal entities without exception.

I can say with confidence, Mr Putin, that we will cope with this task. We have no bad problems in this field. You are right, however, when you say we should continue working without slacking. We are Siberians, and we must be ready to face any adversity and calamity.

Thank you.

Vladimir Putin: Thank you, Mr Yakushev. I have no questions for you about preparations for the winter. Everything is really in a very good state.

Mr Yakushev, could we go back to the energy balance slide again? Look at the situation in 2003: natural gas accounted for 78% of entire fuel consumed, coal 18%, and oil 4%. What do we have this year? Coal consumption has fallen to 6%, oil to token 0.23%, and other fuels to 0.07% against previous 12%, while natural gas makes 92.98%.

The structure of fuel consumption has not improved, Mr Yakushev. It should be better balanced in the regions and the entire country.

This problem is not for regions alone to decide. We will talk about it again, at a different time. We should think about the national energy balance-in the whole of Russia and its particular parts.

Konstantin Tsitsin has the floor now. The leaders of Bashkortostan and the Kemerovo Region have spoken about the work of the housing and utilities sector in their regions.

Konstantin Tsitsin (General Director of the Fund for Reforming Housing and Public Utilities): Thank you, Mr Putin. 81 out of the total 83 Russian regions are involved in the Fund's programmes involving building repairs.

You were absolutely right when you pointed out that major allocations have been made for this. I also want to stress that last year and this year we urged the regions to finish preparations for autumn and winter by October 1, wherever possible. This concerns mainly façade and roof repairs, and in-house works.

At present, 12 regions are having problems with these preparations and the application of funds. 85% of house repairs for the heating season are over.

The delay is due to many reasons-mainly it is because not all the regions have applied in time. You have posed us targets to meet by December 1. I hope all regions will meet the deadline. We have talked to regional authorities about energy efficiency-advanced our own ideas, and analysed theirs.

Mr Putin, all-round repairs of residential blocks can save up to 49% of thermal energy. I think we will pose this problem as the pivotal next year because capital repairs presently concern only 15% of all buildings undergoing maintenance.

I understand Mr Tuleyev's concern because 16 regions have taken all the money they can obtain at the Fund. So we are working on this problem. We are drafting amendments to Federal Law No. 185 from the point of future preferences for the regions who have received allocations, coped with all their programmes and reported to us about the works. I hope these and other regions will have extra allocations. Thank you.

Vladimir Putin: Thank you, Mr Tsitsin.

I would like to stress again that programmes of the Fund for Reforming Housing and Public Utilities will continue next year, with Fund allocations to make approximately 65 billion roubles. Am I right, Mr Tsitsin? This sum plus regional contributions will make about 80 billion, I hope.

We will see what else can be done. At any rate, we will go on with new housing for the residents of dilapidated and wrecking houses, and with building maintenance.

I would like to finish this meeting by saying that, on the whole, Russia has successfully coped with autumn and winter heating preparations. Some regions have done it in full and ahead of schedule, while others need to do more. This has nothing to do with emergency efforts. However, some things remain to be done, as we have seen today.

The federal centre will render necessary assistance as before, and join hands with power grids and major energy companies. I rely on regional governors and city mayors to pay due attention to those matters. Russia is a northern country, and it is our duty to do everything possible for the people to feel comfortable during the cold season.

Thank you. I wish you every success.