Russian Prime Minister Vladimir Putin met with the Governor of the Arkhangelsk Region Ilya Mikhalchuk
Transcript of the first part of the discussion between Vladimir Putin and Ilya Mikhalchuk:
Vladimir Putin: Good afternoon, it will soon be three months since you took office. How is the work going? How do you assess the current state of affairs? What problems do you see, and how do you assess the economy that you have taken charge of?
Ilya Mikhalchuk: First of all, I would like to thank you for the trust that you have expressed in me. As for the economy, I think it is normal. The potential is very high. The problems that exist today are not intractable. What is needed is a concerted effort. I am referring to social stability, business and government. I see that the problems and the tasks that you set before sending me here are regarded as priorities and are being addressed. In the economy, I think the most important challenge - and we need your support with this - is the building of a deep-water port. There are both strategic prerequisites and a need for this, and it will certainly be useful for the region's economy. Then there is the realignment of the railway, the building of the Belkomur branch from Perm to Arkhangelsk that will shorten the distance to Murmansk by 400 km. And of course, it is very important - and here we need financing not from the government but from the FSK - to complete the power grid to ensure a steady power supply to the cities, the districts and defense-related industries. The third issue, still concerning the economy, is one I would like to have your support on. Zinc deposits have been found on Novaya Zemlya. There is some of the necessary infrastructure on Novaya Zemlya, but that infrastructure will need to be developed in connection with the development of the Shtokman. It would enable Russia to fulfill its needs for that valuable metal because existing fields meet only 60-70% of Russia's demand. These are the three main tasks that I see.
Of course, preparing for the winter is a problem.
Vladimir Putin: You mean fuel oil.
Mikhalchuk: Yes, fuel oil. But I believe that this problem will be solved in the process of negotiations and further work.
Regarding social issues, I would like to draw your attention to the Solovetsky Islands. This is our Mecca, our history, and the efforts under the federal targeted programme Northern Culture and the regional budget are not enough to preserve these islands. I would like it to be separated out as a Federal Targeted Programme. Another problem: I need your support in the creation of the State Northern University. We have four universities at present: the Maritime University, the Technical University, Sevmash VTUZ, and the Medical University. We have 54,000 students and a strong body of scientists and teachers... We could make new breakthroughs in Russian science if we brought all this potential together in a single Federal State Northern University.
And of course, in connection with the 300th jubilee of Mikhail Lomonosov, which will be marked in 2011, I would like you, Vladimir Vladimirovich, to be the head of the Organizing Committee for the jubilee. We are doing all we can, and the name of the great Russian scientist, the first Russian Academician, will yet bring more glory to Russia.
Vladimir Putin: All right. We have just visited the Sevmash enterprise. It is a unique enterprise not only in the Arkhangelsk Region, but in the whole country.
I have talked with the workers. The average wage is 17,000 roubles. It is not much, considering the nature of your region and the strategic character of the enterprise. But we understand that the level of wages depends above all on the performance of the enterprise itself. It has to be admitted that previously its work could hardly be recognized as effective, either from the economic or the financial points of view. You already know this. You have been dealing with these matters lately.
We recently made additional decisions to support the enterprise. It needs support. That was obvious. It has 26,000 workers in a city of 90,000 people. That speaks volumes. It shows that the city depends on this business. The enterprise is also very important for the country's defense industry and for the Navy.
Let me remind you of the decisions that were made. First, we have practically reduced and restructured the enterprise's debts to the state social fund.
Second, we have opened a credit line of 6 billion roubles, in which the state will subsidize interest payments. In other words, the state will pay part of the interest.
Third, we have agreed to an increase in the price of large-size products that the plant produces, especially relative to defense.
And fourth, the state has increased its defense order with this enterprise.
I very much hope that all these measures and also some other measures that may look less significant, but are nevertheless important, will change the financial and economic status of the enterprise. If necessary, we are ready to consider additional measures, which would make a difference to the level of wages.
I would like the regional authorities to pay due attention to the city and to the enterprise.
Mikhalchuk: We will do it, Vladimir Vladimirovich.
I would like to say that these serious and far reaching measures provide a new perspective for the enterprise. Our people know this and management knows this. We will do all we can to raise wages to a deserving level and to address social issues such as housing and to ensure the normal work of the social infrastructure.
I think the enterprise has a future not only as the heart of a city, but also of a region. The fact that you have paid serious attention to it and taken such drastic measures shows that the enterprise will live as a symbol of Russia's defense capability, as an enterprise that has everything it needs to fulfill the tasks that you have set.
