VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon,
Let us discuss the social and economic situation in your territory. What have you accomplished last year, and how is everything this year?
Vyacheslav Shport: Last year was very challenging due to the downturn. We had some major problems at our defence companies, unemployment had been increasing since the beginning of the year and unpaid wages grew, reaching 700 million roubles in April.
The situation improved after a series of meetings, especially after you intervened in the situation and a decision was made. This helped us stabilise the situation. We managed to reduce unpaid wages threefold by the end of the year. Defence companies, including shipbuilders and aircraft manufacturers, had paid all the wages they owed by the end of the year.
We also managed to get unemployment under control.
Unemployment peaked at 4.2%, but it currently stands at 3.8%. There are 17,500 job vacancies for 30,000 unemployed people.
Vladimir Putin: So it decreased, didn't it?
Vyacheslav Shport: Yes, it did. Last year we created a solid foundation for this year. And the year has gotten off to a good start, with the economy on the rise.
We expect that GRP will grow by 7% this year due to an increase in industrial production. The measures that have been adopted are expected to increase defence companies' output by 60%, which will raise budget revenues, allowing us to break out of the negative trend from last year.
Despite the downturn, agriculture, including milk production, also grew last year.
We also handled more freight this year. The investment in the railway has already paid dividends, for example the Kuznetsov Pass project, which you discussed at a recent videoconference. A total of four billion roubles were allocated for the reconstruction of the BAM [Baikal Amur Mainline] railway line last year.
Vladimir Putin: As far as I understand, this project is critical to the region.
Vyacheslav Shport: Another important project is the port of Vanino, in the Sovetskaya Gavan area. Investors say that its cargo capacity will reach 100 million metric tons by 2020, which is why the project has already been started. We have already received good results there, including increased budget revenues.
Four large timber-processing projects are underway in our territory. Last year timber exports fell sharply while timber processing soared. The protectionist duties are no longer needed, and may even have a negative effect on the industry. Timber producers have realised that to move from selling raw timber to producing timber products with a high added value result in different customers, revenues and a workforce with completely different qualifications. This is why timber processing is on the rise.
There are also several promising projects in mining and the metal industry, including in gold mining and gold processing. A large factory is currently under construction.
SUEK [Siberian Coal Energy Company] constructed a large bulk terminal in the port of Vanino that can handle 12.5 million metric tons of coal. This is also having an effect. The railroad is required for this project in particular.
Although the budget for 2010 will run a deficit due to the effects of the recession, we will build on the accomplishments of last year in the social situation. Last year we managed to increase the amount of new housing by 20%.
Vladimir Putin: What are your plans for this year?
Vyacheslav Shport: We are planning to build 1,000 flats through the social support programme, 300 of them for young families. We will allocate 290 to 300 million roubles from the budget to support mortgage lending. A lot of people have taken advantage of mortgages. We will continue this programme into this year.
Vladimir Putin: Good.
