Prime Minister Vladimir Putin met with Stavropol Governor Valery Gayevsky
Transcript of the beginning of the meeting:
Vladimir Putin: Good afternoon, Mr Gayevsky. What can you say about the outlook in the region?
Valery Gayevsky: The situation is stable and calm. The economy is crisis-proof-largely thanks to the federal anti-crisis programme you have approved, and we adopted for the region. I have been heading the anti-crisis headquarters on your advice.
We had two problems at the start of the year, when the crisis reached its peak. Housing construction fell by 15%, and industrial output by 13%. However, the latest statistics are reassuring. Housing construction had grown by 3% by May 1, and industrial output for March and April by 8% against the same months of 2008. Other industries are also showing higher parameters than last year.
Our HQ is monitoring 50 large and medium-size industrial companies. Almost half of them had problems at the beginning of the year. They were working part-time or suspended production. At present, there are only three problem companies. One of them, Starpri, is at a standstill, and two have a short week. We feel firm ground under our feet. Permanent investment is especially hopeful-it is 32% higher than in the first four months of last year. So, you see, investment has grown by a third.
Mr Vagit Alekperov [LUKoil CEO] presented the plans to build a new plant in Budennovsk for North Caspian natural gas processing. The project is worth $5 billion, which is twice annual regional investment.
Vladimir Putin: I remember discussing this project during my visit to Astrakhan.
Valery Gayevsky: We liked the project tremendously.
Italy's ENEL started the construction of two power units at the Nevinnomyssk state district power plant at the end of 2008, when the crisis was at its peak, on a project worth half a billion euros. So, you see, our investments are growing while almost all other parts of Russia are in recession.
Vladimir Putin: What is the situation in agriculture?
Valery Gayevsky: There haven't been any problems. First, spring sowing is over. Winter cereals, our basic crops, have come through the cold season unscathed. Losses amounted to just 2%, and we have made another sowing on the vacated plots. What is even more important, we have disposed of last year's harvest efficiently. Do you remember my visit last November? You helped us a great deal back then by increasing the government grain purchasing quota by almost a million tonnes. Farmers sold that million tonnes to the state. Meanwhile, free market prices rose. All told, the region sold 3.5 million tonnes of grain, including exports.
Harvesting will start toward the end of June. We have bought the necessary amount of fuel on reasonable fixed prices thanks to a decision you made at the start of the year. We have enough fertiliser, and farm machines are ready, more or less. So grain trade has been going well, crisis or no crisis.
As for resorts, one of our basic economic resources, the number of visitors has fallen by just 2-3%. But I think we are going to be able to win over tourists who used to go to other resorts, especially because their hotels do not offer enough luxury suites.
We have an interesting idea for hotel construction in the free recreation zone. So, this economic branch is also more or less safe, though it has some systemic problems.
Mr Putin, I want to make a request to you as head of the Commission for Regional Policies. Could you please organize a meeting of the Commission in one of the towns of the Caucasian Mineral Springs to discuss the problem of Russian health resorts. The Stavropol Territory has 120 holiday hotels. They belong to 33 holders-mostly government institutions: federal ministries and agencies, and major monopolies. They are not very efficient owners.
I have talked with Mr Dmitry Kozak just now. He agrees with me that the problem demands systemic solution and resorts should be privatised. I am sure private owners will be better managers.
Sochi has a similar problem. It should be included on the agenda of the Commission for Regional Policies. We will be extremely grateful if you do so.
Vladimir Putin: All right, we will see.
