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Prime Minister Vladimir Putin chaired a meeting of the Russian Government Presidium

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Transcript of the beginning of the meeting:

Vladimir Putin: Good Afternoon, ladies and gentlemen. As you know, recently we have been discussing each issue regarding the development of the defence industry - we are holding a whole series of meetings on these issues.

Around the beginning of 2006, we decided to establish a unified aviation-engineering corporation, and we immediately started working on the administration and funding for the so-called Fifth-Generation Fighter project.

A very important event occurred today - this aircraft took flight. When I visited the Far East, technicians at the plant showed me a version of this plane that was almost complete. There were no members of the press present at that time. The technicians promised that the plane would be in the air by the beginning of this year.

There is still much that needs to be done regarding both the aircraft's engine and weaponry. But the fact that the plane is in the air is already a great step forward in creating this system. I would like to congratulate and thank everyone who worked and continues to work on this programme for this significant step on the greater road ahead.

In 2013, the first of these planes should be delivered to our Armed Forces, and serial purchases should start in 2015. Mr Ivanov, do you have anything to add? How is the work going?

Sergei Ivanov: Mr Putin, this is indeed a milestone for both our aviation-engineering sector and the Sukhoi company, which designed and conceived this plane. It is truly one-of-a-kind - it combines the abilities of a fighter jet with an attack system capable of engaging land, sea and air targets in any conditions.

This plane is already equipped with fundamentally new avionics, integrating the functions of an automated pilot with an advanced radar system, including a position-radar station with an active phased antenna array.

This considerably eases the pressure on the pilot to and enables him to concentrate on achieving tactical objectives. The computer practically takes care of everything else.

Onboard equipment has been installed on the plane that is now in the air, and it is already able to communicate in real time with both ground control and planes of a similar class.

But as you rightfully said, there is indeed much work to be done - in particular, on the engine of this plane and its weapons systems, as well as preparing the Defence Ministry's proving ground in order to test this weapon.

At the same time, this plane has a number of innovative solutions, including those associated with the material sciences. Russian state corporations such as Rosnanotech and Rostekhnologii took part in building this plane, and they will naturally continue to work with United Aircraft Corporation on in.

As for future plans - indeed, the first so-called development batch should be delivered by 2013 to the Defence Ministry and the Air Force so that pilots can soon start flying this plane in Lipetsk. Аnd serial deliveries should start in 2015.

We will continue this work. The project will receive 100% of the necessary funding every year. I am personally monitoring this closely. This is one of the defence industry's priority projects .

Vladimir Putin: Mr Serdykov, what do the Defence Ministry's experts think about the progress of the work?

Anatoly Serdyukov: We believe it is unconditionally positive, and we hope that all deadlines for delivery of the set of planes will be met and that we will, of course, start to become familiar with it. It is truly a next-generation plane, and the military needs it very much.

Vladimir Putin: The first set of planes must be delivered to Lipetsk in 2013, in order for pilots to start learning and working with it.

Anatoly Serdyukov: Yes. They'll fly it and teach others to fly it.

Alexander Zhukov: Yes, Mr Putin. Today the Russian Tripartite Commission with trade unions and employers discussed three draft laws that would ratify three pivotal International Labour Organisation conventions.

These are the Convention on Holidays with Pay, the Workers' Representatives Convention, which concerns the rights of trade union organisations regarding private companies, and the Collective Bargaining Convention.

In fact, the Russian Tripartite Commission is an agency that allows collective bargaining between trade unions, employers and the government. Trade unions and employers support all three conventions and relevant legislation. We have a big job ahead of us. We still must ratify many more conventions, but these three are the most important of all. They will now be submitted to the State Duma for ratification.

Vladimir Putin: Good. When can we expect them to be ratified?

Alexander Zhukov: We will submit them to the government at its next meeting.

Vladimir Putin: The government? When will they reach the Duma then?

Alexander Zhukov: I think we will submit everything to the Duma within the month.

Vladimir Putin: Let's leave it at that. Ms Golikova, I have signed the Government Resolution on Financing Extra Measures to Reduce Industrial Injuries, which you prepared. Your comments, please.

Tatyana Golikova: Mr Putin, ladies and gentlemen,

The document you [Prime Minister Putin] signed assumes that the Health Ministry must come to an agreement with the Social Insurance Fund to prepare relevant regulations. These regulations have in fact already been prepared, and we have simply been waiting for the resolution to be signed.

The regulations will stipulate funding for a series of accident-prevention measures and treatment for employees in hazardous industries at sanatoria and spas.

The law allocates no more than 20% of injury insurance contributions for treatment at sanatoria. What will this allow? It will give Russian companies and, naturally, employees at these companies a chance to recharge their batteries and get the appropriate treatment.

We allocated 4.3 billion roubles for this last year, and 4.5 billion have been set aside for this year. The programme involves 20,000 companies. Thus, the 200-million-rouble increase-even if basic expenditures stay at last year's level-will allow the programme to be expanded to cover more companies and employees.

Vladimir Putin: Good. Let us now return to the first issue we discussed. I have asked that we prepare a meeting on aircraft building for the beginning of March. Mr Sobyanin, there we will discuss all the problems related to aircraft building and anti-aircraft defence.

Sergei Ivanov: We will also be able to discuss some secret matters in detail at that meeting.

Vladimir Putin: Then it's settled. Let us move on to the agenda of this meeting.

As you know, amendments to the law on technical regulation have recently been passed to speed up and simplify the decision-making process. In particular, the amended law allows some appropriate decision to be made at the ministerial level. We propose transferring relevant powers to the Ministry of Industry and Trade. I expect this arrangement to speed up the process of updating the regulatory framework for our industry.

The new rules will free manufacturers from unnecessary barriers, improve production and facilitate Russia's emergence in world markets.

To be sure, the basic purpose of the new regulations is to promote the modernisation of the entire national economy. I want to stress that the law's requirements for open and transparent development of technical regulations remain in place. We must provide the greatest possible guarantees for the interests of all involved-manufacturers and consumers alike.

Today we should also discuss the draft law allowing us to use a part of the National Wealth Fund-to be precise, to allocate 40 billion roubles from the fund to the Residential Mortgage Agency.

I want to remind you that we have planned to allocate an extra 250 billion roubles for the purpose this year. I call on you to make the necessary decisions regarding Vnesheconombank quickly, because the bank must raise 50 billion roubles from its own resources and another 160 billion to ensure the use of pension savings.

Experts think these allocations will allow commercial banks to reduce interest rates on mortgage to 10-11%, from the present-day rate of 14%. Please do this as quickly as possible. The year has started, and we must fulfil our New Year's promises.

I would also like to bring up the programme for establishing an electronic government.

We have already approved stringent deadlines for providing public services over the internet. To coordinate the job efficiently, there has been a proposal to set up an ad hoc government commission for applying information technology. The commission will combine federal, regional and municipal authorities' efforts.

Let me repeat, it is our obligation to achieve tangible results on the e-government project within the year. We must give the public simple and convenient online tools to spare them red tape and cumbersome bureaucratic barriers.

Let's get down to business.