VLADIMIR PUTIN
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OF THE 2008-2012 PRIME MINISTER
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VLADIMIR PUTIN

Visits within Russia

1 october, 2009 22:35

Prime Minister Vladimir Putin met with visitors to the Public Reception Office of the United Russia Party Chairman

Transcript of Prime Minister Vladimir Putin's discussion with visitors at the public reception office.

Vladimir Putin: Good afternoon. What is your name?

Lyudmila Pallyus: My name is Lyudmila Pallyus. I've been retired for a long time. Mr Putin, there are plans to raise pensions. Many retired people, including myself, would like to know when the pensions will be raised and by how much.

Vladimir Putin: I have discussed this issue many times, and I can repeat this once again. Starting from December 1, 2009, the basic pension, which is 1,950 roubles at present, will be raised by an impressive 30% and will reach 2,562 roubles. Social pensions will match average nationwide subsistence minimum levels of retirees.

Starting from January 1, 2010, pensions will be raised by 46%, on the average, and the pension rights of Soviet-era employees will also be recalculated. Most likely, you had worked during the Soviet period.

All retirees will have their pensions raised by 10% and will receive an extra 1% for every year of their Soviet-era work record. Hopefully, this will be a substantial raise. At any rate, the people are bound to feel the difference.

Lyudmila Pallyus: Mr Putin, many people want to know about the origin of basic pensions. We used to get what we had earned: 132 roubles pensions. And then the situation changed all of a sudden ...

Vladimir Putin: They started calculating differently and passing various laws. Since the 1990s, all pensions were divided into basic pensions and the so-called insurance pensions.

Lyudmila Pallyus: Our pensions were divided into two parts.

Vladimir Putin: The problem was that, in my opinion, individual labour input was calculated in a way that was absolutely wrong. I think we will restore justice starting from January 1, 2010. The recalculation of pension rights of Soviet-era employees is called "valorisation."

Lyudmila Pallyus: Can I become a labour veteran? I have a 40-year work record, but I'm not a labour veteran.

Vladimir Putin: Yes, this can be done here. This should be done locally, in your region.

Lyudmila Pallyus: There are no government awards, and we are entitled to them. We, ordinary workers, did not receive them.

Vladimir Putin: This decision should also be made at regional level. Under the law, such issues are tackled by regions. It is possible to talk to the Governor. Regional legislatures and governors should draft additional criteria for listing specific individuals as labour veterans.

Lyudmila Pallyus: Thank you, everything is clear.

Vladimir Putin: Thank you. I wish you all the best.

What's your name?

Dmitry Kudryashov: My name is Dmitry Kudryashov. I am a fitness instructor.

Vladimir Putin: We have just been discussing fitness and sports.

Dmitry Kudryashov: That's why we've come here.

Yulia Yegorova: My name is Yulia Yegorova. I am a student at secondary school No. 1 in Yuryev-Polsky.

Vladimir Putin: Yuryev-Polsky?

Yulia Yegorova: Yes. It's a small town but there are three educational establishments. Consequently, there are a lot of young people living there. We have learned that the United Russia party headed by you is implementing a programme for the construction of health and sports centres.

Personally, I've been an athlete for many years.

Vladimir Putin: What sports do you do?

Yulia Yegorova: I play basketball. I like this sport very much. Our team has repeatedly won district competitions and even played in a regional basketball event once.

Vladimir Putin: Did you win?

Yulia Yegorova: Yes, we came back with a prize cup.

Vladimir Putin: Very good. Is this your coach?

Yulia Yegorova: Unfortunately, no.

Vladimir Putin: Why "unfortunately?"

Dmitry Kudryashov: Because I don't coach that age group. I coach older girls.

Vladimir Putin: Are you a successful coach?

Dmitry Kudryashov: Yes, pretty much.

Vladimir Putin: Do your athletes win prizes?

Dmitry Kudryashov: Yes, they certainly do.

Vladimir Putin: Which prizes have they won?

Dmitry Kudryashov: I work with several sports, including the pentathlon, also called the multiathlon, or all-round competitions for eligible GTO (Ready for Labour and Defence) badge-holders.

Vladimir Putin: I've heard about the GTO multiathlon, but as for the pentathlon...?

Dmitry Kudryashov: The pentathlon is a derivative of the former GTO multiathlon. We have winter and summer competitions. I also coach young basketball and volleyball players.

Vladimir Putin: Where do you recruit them?

Dmitry Kudryashov: They are mostly from our town. As we have two educational establishments, and I recruit local students and young people who come from other places round the country. They train for upcoming sports events.

Vladimir Putin: How many athletes do you coach?

Dmitry Kudryashov: There are 12 people, including pentathlon players, in my group, as well as basketball and volleyball teams.

Vladimir Putin: What's the grand total?

Dmitry Kudryashov: 10 boys in the basketball team and 12 in the volleyball team.

Vladimir Putin: What age group are they?

Dmitry Kudryashov: They are 16, 17 and 18.

Vladimir Putin: And what is the problem?

Yulia Yegorova: Although our town is small, I would like to note that a lot of the local people do sports. They have repeatedly won first place in regional sports events and even in world champions.

Vladimir Putin: Really?

Yulia Yegorova: In sambo.

Vladimir Putin: I see. That's a good reason to help you. What seems to be the problem?

Yulia Yegorova: Mr Putin, the problem is that our town lacks facilities where we could effectively train for such sports competitions.

Vladimir Putin: Yulia is beating around the bush. Do you need a fitness centre?

Dmitry Kudryashov: Yes, we need a fitness centre. We have already prepared the design and cost estimates. A site has been allocated, and utilities have been connected. However, the town, which has an extremely small budget, is unable to finance the construction on its own. This is why we are asking you to include us in United Russia's fitness centre construction programme.

Vladimir Putin: Naturally, we will do this, but on one condition, which is accepted by virtually all our partners. We do this on a parity basis with the region.

Dmitry Kudryashov: The Governor said he will support this in every way, and that he will use every means at his disposal to accomplish this objective. They will talk to businessmen and corporate managers. In effect, they are promising to help.

Vladimir Putin: Did you say it's Yuryev-Polsky?

Dmitry Kudryashov:  It is Moscow's younger brother, founded five years later in 1152 by Prince Yury Dolgoruky.

Vladimir Putin: Good. Let's make a deal. Boris Gryzlov is also here. I will talk to him right away. We will also talk to the Governor and we'll build you a very good fitness centre.

Dmitry Kudryashov:  Will you do this in the near future?

Vladimir Putin: Yes. It doesn't take very long - several months or, maybe, a year. This will happen quickly because you already have a construction site.

Dmitry Kudryashov: You see, our veterans have told me not to come back unless I accomplish this objective.

Vladimir Putin: You can go and tell the veterans about your achievements. The funding has been allocated. Everything will be done.

Yulia Yegorova: Mr Putin, I want to use this opportunity to present a DVD about our town to you. I hope you'll like it. And one more thing. On behalf of my team ...

Vladimir Putin: What's the population there?

Dmitry Kudryashov: The town has 20,000 people. Our agricultural district's entire population is 37,000.

Vladimir Putin: That's quite a lot.

Dmitry Kudryashov: There are many young people there, about 10,000, all in all.

Vladimir Putin: You should see to it that no one leaves.

Dmitry Kudryashov: Yes, they should stay.

Yulia Yegorova: Mr Putin, may I have your autograph, please?

Vladimir Putin: With pleasure. Where do I sign?

Voices: Thank you very much.

Vladimir Putin: Thank you. I wish you every success. I wish all the best to your boys and every success to your girl athletes.

Good evening.

Natalia Yershova: Mr Putin, I would like to ask for your assistance because of a great problem in agriculture.

Vladimir Putin: Our agriculture is now developing at such a breathtaking pace, like no other economic sector. And you are talking about a great problem.

Natalia Yershova: I'm happy to hear about this, Mr Putin. So it was until just recently.

Vladimir Putin: What happened?

Natalia Yershova: Everything was going really well at first when the agriculture development project was adopted in 2006, on your initiative. We took out subsidised loans and began modernising farms and building new facilities, and buying cutting-edge equipment abroad.

Vladimir Putin: But now it is time to repay the loans.

Natalia Yershova: Exactly, Mr Putin. We have to repay the loans now.

Vladimir Putin: And the prices are down...

Natalia Yershova: Yes. Our subsidies are being delayed, and the prices have gone down, and we don't know what to do now.

Vladimir Putin: Subsidies are being delayed?

Natalia Yershova: Yes, they are. They were delayed for four months in 2009, then started coming in regularly. We are afraid this might happen again in 2010.

Vladimir Putin: Are you receiving your subsidies now?

Natalia Yershova: Yes, thank you.

Vladimir Putin: What did you take out the loans for?

Natalia Yershova: Personally, I took out a loan for a project to build a farm for 1,200 cows - a dairy farm.

Vladimir Putin: That's big. What kind of equipment are you using?

Natalia Yershova: We ordered British equipment.

Vladimir Putin: Have you already built the facilities? Are they operational?

Natalia Yershova: We built an excellent brick farm building in six month. The cows are well kept. Productivity has nearly doubled, and energy costs have been reduced - everything is going well. The problem is that 2011 is not so far away, and that is the time when we have to pay off the whole loan. If the price policy remains the same, we'll go bankrupt.

Vladimir Putin: So you do dairy farming.

Natalia Yershova: Yes, we do, and breed pedigree cattle too.

Vladimir Putin: Very good. How many shareholders do you have?

Natalia Yershova: We don't have shareholders. We are a private collective farm employing 180 people left from the original 360 after building the new facilities and introducing new plant growing technologies. We didn't just fire people, though. Those who couldn't or didn't want to work decided to go of their own accord.

Vladimir Putin: How do you market your products?

Natalia Yershova: We sell the milk to a local holding company.

Vladimir Putin: What is their current price?

Natalia Yershova: They buy milk for an average of 11 roubles (per litre), while the production cost is 12 roubles.

Vladimir Putin: Up a little, right?

Natalia Yershova: By just 30 kopecks. This is cheap. It used to be 16 to 17 roubles when we began the construction.

Mr Putin, what's most upsetting is that the milk is so good. I wanted to bring you some to try, but they didn't let me take it up here.

Vladimir Putin: Pity. You should have brought some.

Natalia Yershova: I bet you've never tasted anything so good.

Vladimir Putin: I'm sure you're right. It's difficult to tell though, as you have obviously begrudged me a sip... I am joking, sorry.

You know, I have just discussed this problem with the Governor. He also brought up this issue. The problem also cropped up several times at the meeting with your colleagues. Let me tell you frankly - loans must be repaid. But we will certainly keep in mind the sector's problems and the companies which had taken out loans for development. We'll see what we can do to prevent them from going bankrupt. We'll try to prevent this situation from causing multiple bankruptcies.

For now, I can only answer your question in general. But you must know and you must have felt that we have paid a lot of attention to agriculture and animal farming in the past few years.

In 2002-2003, when I met with your colleagues - leaders of large agribusinesses - we agreed that the terms of animal farming development loans would be increased from two-three to eight years. We've done that. What is the term of your loan?

Natalia Yershova: Eight years.

Vladimir Putin: All the business leaders I met with assured me then that eight years gives you enough time to get the business running and repay the loan. We'll look at this issue again.

Natalia Yershova: I can assure you, Mr Putin, this is not enough. I don't know who said that it was.

Vladimir Putin: Heads of major efficient agribusinesses. I can tell you it was not one or two people, but a large gathering, representing essentially all of our largest animal farms.

Natalia Yershova: If the price is kept at 16 or 17 roubles, I should also say that eight years is enough. We were sure we could make loans and investments. Now, I am not sure if we can do so any longer.

We have drafted a letter on problems that only the federal government can deal with, and so it is your duty to help us.

Vladimir Samodurov, manager of the Lenin Farm, Yuryev-Polsky District: Seventy-two farm managers have signed it.

Vladimir Putin: Is your loan from Rosselkhozbank?

Natalia Yershova: One of them-for purchasing agricultural machinery.

Vladimir Samodurov: We mainly deal with two banks-Rosselkhozbank and Sberbank.

Vladimir Putin: They give out loans, don't they?

Voices: Yes, so we can afford to finish construction.

Vladimir Putin: We added 45 billion roubles to Rosselkhozbank's capital from the federal purse last year, and have given it another 25 billion this year. Agriculture now receives the most government support-more than any other branch of the national economy. We subsidised two-third of the interest rate on loans last year, and we are currently subsidising 80%. In fact, the state has become the farms' co-financer, and agriculture enjoys loans at low interest rates. If you do not think this is enough, we will re-examine the issue later. We will not put your problem aside, I promise.

Natalia Yershova: We do appreciate your promise.

Vladimir Putin: We will take stock of the problem. We will analyse it thoroughly. Your problem is nothing new. I have issued appropriate instructions already, and we will come back to it later.

Natalia Yershova: Can I ask another question?

Vladimir Putin: Certainly.

Vladimir Samodurov: We have decided to concentrate on two of the issues we find most pressing. We have listed all of these issues, but we only want to talk about two of them for now. The first one is the draft Trade Law, which you have submitted to the State Duma. It will be debated at its second reading, as we know. We think it is a good law-it calls for limitations on monopolies and deals with discrimination against agricultural producers. So far, so good.

However, the law omits the most important thing-it does not set thresholds for purchase prices. We think it should contain such a clause. Together with Deputy Irina Mirova, we have drafted an amendment on this issue, and we want to pass it on to you.

To put it simply, giant companies such as Wimm-Bill-Dann, Ehrmann and Unimilk-all members of the Russian Dairy Union-have been abusing their monopoly status for the last two years to reduce market prices and shift to free price formation.

They are almost out of control. We see it as even a greater problem than retail chains, which have a smaller impact on prices than the processing companies do.

Vladimir Putin: Let us call a spade a spade. Do you suspect them of colluding?

Vladimir Samodurov: We have a feeling that collusion is behind this, because prices are falling, no matter how many dairy factories farmers may have as partners.

Vladimir Putin: As you know, the dispute between farmers, processing companies and retailers has forced us to speed up the adoption of the Trade Law.

I think that, on the whole, the draft law offers an opportunity to balance farmers', processors' and retailers' interests.

If you do not think it suffices, I will make a relevant inquiry at the State Duma. A bias in favour of one of the interested parties is the only thing that should be avoided. I repeat-interests must be balanced, or in the final analysis, consumers will suffer. We should control price increases despite all that. It is especially necessary in industrial centres and other large cities, where all our mistakes affect retailers' end prices. So I will certainly consider this problem.

Let us come back to your first question. It is certainly an essential one. We will analyse it in detail, too. Money remains a problem whatever turn the matter might take. As I have said, we allocated 49 billion roubles to Rosselkhozbank last year, and have given it another 25 billion this year. It needs even greater support from the government in order to reschedule loans. The bank does not have any more money, so we have to rob other economic sectors of the support they are due. Be that as it may, we will certainly discuss the problem.

Natalia Yershova: Please do, Mr Putin.

Vladimir Samodurov: Now for our last question: the industry standards for dairy products that the Government recently approved hit farmers very hard.

Vladimir Putin: How so?

Vladimir Samodurov: Some of the new standards are even stricter than in the European Union. Not that we would not meet them-we can provide top quality milk with our equipment, but these standards give processing companies another loophole to undervalue our yields and lower the grade of our milk.

Vladimir Putin: I promise to take this into account.

Vladimir Samodurov: These are hard facts. We think the regions should be given greater rights of oversight, because Rospotrebnadzor [the central trade and sanitary inspection authority] cannot keep an eye on all the producers, and lacks the means to do so, for that matter, so farms are supervised by the processing companies. We farmers are playing a losing game.

Vladimir Putin: If the situation is really as you say, it is blatant malpractice. I fully agree with you here. The new standards have been adopted to protect dairy farmers' interests-not middlemen's. This concerns milk powder especially.

The standards we have adopted are sufficiently stringent to protect both producers and consumers. As you know, they concern the chemical and biological composition of milk, regulate radiation safety, and much else. But then, a relevant government system should be established to guarantee the implementation of the new standards. This system should be independent. It should by no means depend on processing companies-the purchasers of your milk. We will certainly pay attention to this issue.

As for regions' rights, we will think about them-but the standards should be uniform nationwide, or the Vladimir Region will set standards different from, let say, the neighbouring Nizhny Novgorod Region. How, then, could we compare your labour conditions and the quality of your commodities?

Vladimir Samodurov: Mr Putin, any dairy products containing milk powder qualify as milk beverages according to the new standards-but there are no such milk beverages anywhere. That's what the whole problem boils down to.

Natalia Yershova: At any rate, there are no milk beverages on sale yet-

Vladimir Samodurov: Though Russia imports huge amounts of milk powder.

Vladimir Putin: So there are no milk beverages on sale?

Natalia Yershova: None.

Vladimir Putin: This means that the innovation has not been implemented properly. We will see to it, that's settled.

Vladimir Samodurov: Thank you. Goodbye.

Vladimir Putin: I wish you luck.

Hello. Do you have just one question?

Alexei Stepanov: My name is Alexei Stepanov. I am a student at Vladimir State University. I study on contract. I wanted to apply for free tuition, but there were too many applicants, and I was turned down.

Vladimir Putin: Are you a first-year student?

Alexei Stepanov: Yes.

Vladimir Putin: What department are you in?

Alexei Stepanov: Information technologies. I need a student loan. When I applied to Sberbank of Russia, I learned the terms for taking out a loan-prohibitive terms, I should say. The interest rate was 13%. It was far more than my family could afford. As I see it, such a rate distorts the very nature of student loans-I think it is inadmissible. It makes tuition payments an insoluble problem. I have heard about a recent decision by the federal Government on the matter. I want to know what else is being done on this issue, and whether interest rates will be reduced.

Vladimir Putin: You see, the Government cannot directly control commercial banks' interest rates-but we have passed a relevant resolution. It was signed quite recently-on August 28, if I am not mistaken. The legislation sets standards for student loans.

Students at universities on a list compiled by the Science and Education Ministry are eligible for such loans at terms I shall now specify. Are you a Vladimir University student?

Alexei Stepanov: Yes.

Vladimir Putin: It won a contest last year to qualify as an innovative university, so it will surely be on the list this year-which means you are an eligible borrower.

The terms of a loan are as follows. First, the state subsidises three-forth of the Central Bank refinancing rate, which was set at 10% today or yesterday.

Next, you need not pay back the principal while you are studying and for another three months after graduation. Payments start only then-in affordable instalments on a progressive scale.

There is another privilege-student loans do not require mortgages or guarantees. So I find such loans attractive enough. True, the interest is high, but we subsidise three-forth of the Central Bank rate-which means you will pay not 13% but... Let me see. What is three-forth of 10? You are a student, I presume you have no problem with the math. It's 13 minus 7. That's the actual interest you will pay.

I repeat, you will start paying back the principal only three months after you graduate-and it will not be a lump sum but in regular instalments on a progressive scale. So I think you can manage the loan, after all. As a rule, such loans are made at Sberbank.

The Ministry authorised the procedure quite recently by a relevant Government resolution, so the legislation will come into force on December 1. Or this is the deadline, at any rate.

Alexei Stepanov: Which social groups of students will qualify?

Vladimir Putin: All.

Alexei Stepanov: Absolutely all?

Vladimir Putin: Yes, if-

Alexei Stepanov: So there are special qualifications, after all?

Vladimir Putin: None if your university is on the list the Science and Education Ministry is compiling. Vladimir University will be on it, I am sure, so you have a chance.

Zoya Nosulich: I have a similar question. I am a second-year student in the Department of Architecture. I am a paying student, and I want to switch over to free tuition-I cannot afford tuition fees because my father is retired and mother is partially disabled.

Vladimir Putin: I don't think this is impossible. First, you should be a good student.

Zoya Nosulich: Of course I am.

Vladimir Putin: I see. Second, you need openings for free tuition in your department. If there are openings in, let's say, the Department of Physics or Materials Engineering, you have no chance. But you certainly have an opportunity if you are a good student. Are you doing well?

Zoya Nosulich: Yes.

Vladimir Putin: I think the Rector will keep you in mind. He is one of the regional leaders of the United Russia party.

Zoya Nosulich: Thank you.

Vladimir Putin: This also concerns student loans. I will ask my party comrades to help you, especially because you deserve it. See if you find the terms acceptable. I, for my part, think they are very attractive. Good luck.

Hello. Good afternoon.

Vadim Mokhov: My name is Vadim Mokhov. I am a businessman from Kovrov.

Vladimir Putin: I hear you loud and clear, Mr Mokhov.

Vadim Mokhov: I own several businesses-in particular, one that provides services to municipal public baths.

Vladimir Putin: Baths, you say?

Vadim Mokhov: Yes. I have been leasing municipal property for ten years or so. I am responsible for bath maintenance. I have invested my own money in it.

Vladimir Putin: Posh, expensive baths?

Vadim Mokhov: No, ordinary baths.

Vladimir Putin: Ordinary municipal baths?

Vadim Mokhov: Yes. My long-term lease expired last October, so I applied to renew it in compliance with Federal Law No. 159, which had just come into force.

Vladimir Putin: So you want to renew the lease?

Vadim Mokhov: Yes.

Vladimir Putin: What is the problem?

Vadim Mokhov: I cannot do it.

Vladimir Putin: Why?

Vadim Mokhov: Municipal executives have refused to renew it. They are showering me with eviction notices, and they want the premises vacated.

Vladimir Putin: They are not complying with the law. On what grounds?

Vadim Mokhov: I don't know. They haven't explained it.

Vladimir Putin: So they are simply turning you out?

Vadim Mokhov: Yes. "Clear the premises!" - that's all they say.

Vladimir Putin: You live in Kovrov, if I am not mistaken?

Vadim Mokhov: Yes. The Government has made the correct decision to promote small and medium-sized business, but it is ignored in my town. It is an unfriendly town, as the result. The population exceeds 160,000. A majority of the town has had no hot water for the last three months-and it has only one public baths. That's how it is.

Vladimir Putin: Regrettably, yours is just one of the many instances of non-compliance with the law. Law enforcement bodies-the prosecutor's office, in particular-will handle your case by way of general supervision, I promise.

You have sufficient grounds for bringing a suit. That's my advice. But I think your appeal to a court of law will be fruitless unless you have proper legal support, so you should act in several areas. I think we will obtain a just verdict-at any rate, it will comply with the law adopted by the State Duma.

Vadim Mokhov: Mr Putin, I want to ask another question of concern to all businesspeople in the region.

Vladimir Putin: Please do.

Vadim Mokhov: It's about the simplified scheme of taxation-15% of income minus expenditures.

Vladimir Putin: Profit, not income, is taxable.

Vadim Mokhov: As everyone knows, the Government is carrying out anti-crisis measures-in particular, reducing taxes to 5% in compliance with Law No. 224, which you have passed and recommended that the regions adopt it. The Vladimir Region has not. I have the results of a survey with me.

Vladimir Putin: Too greedy to cut taxes, aren't they?

Vadim Mokhov: Yes. Forty-two of the Russian regions have passed relevant bylaws.

Vladimir Putin: You are well prepared for this conversation.

Vadim Mokhov: Another 20 regions are ready to pass similar bylaws.

Vladimir Putin: Would it be disadvantageous for you to shift to the simplified scheme, at 6% of gross income?

Vadim Mokhov: It would not. More than 70% of businesses in the Vladimir Region have shifted to it.

Vladimir Putin: 6%, right?

Vadim Mokhov: That's not the case.

Vladimir Putin: There are two simplified taxation options for small and medium-sized businesses-6% of revenues or 5-15% of profit. 6% is more than you can afford, I understand?

Vadim Mokhov: You're right. As the regional Department of Industry says, the budget will lose 200 million roubles if the bylaw is passed. But then, when the Government adopted the federal law, it must have made provisions to compensate for the loss. I don't think the Vladimir Region has anything to make up for the loss with.

Vladimir Putin: The federal government is supporting the Vladimir regional government, as you might know. It is regularly subsidised. On the whole, federal grants amount to 15% of the Vladimir Region's budget through subsidies and other allocations. Not that we have allocated direct subsidies to cover losses from reduced taxes-but the available support suffices for that, too. It is up to the regional administration to arrange its priorities. There is always the choice between immediate small revenues-if we are to believe that 200 million will be lost-and promoting business to expand the taxation base and eventually collect a billion roubles instead of 200 million from new businesses that will arise under the beneficial conditions.

We often say that regions should create conditions friendly to small and medium business, especially during the current crisis, because small and medium businesses are prompt and flexible in responding to changes. They can create new jobs and increase local and regional budget revenues.

Judging by what is written here, the economic authorities of the Vladimir Region deem it better to pressure small and medium business, and squeeze as much as possible out of it.

I think they are wrong. It would be much wiser to promote small and medium business, and extend its basis. Final revenues will make far more than 200 million roubles.

Vadim Mokhov: You're right.

Vladimir Putin: The Vladimir Governor is here. I will talk to him. But then, decision making is up to the regional administration. The administration is taking into account objective factors, to which there are no objections.

But if you have vision and take a long-term view, I think those will be beneficial in the final analysis because putting up with small revenue cuts now leads to larger revenues in the future. Take the Lipetsk Region with its 5% tax rate, or the Kemerovo Region, also with a 5% tax rate. Who would say Kemerovo, a coal mining area, has smaller problems than Vladimir? The situation is getting better, but they were having difficulties at the beginning and in the middle of this year. I know it-I have visited those regions. Everything was cut there-employment, sales, and municipal and regional budget revenues, but they have cut taxes to a minimum, to 5%. We will try to influence your regional administration, too. Okay?

Vadim Mokhov: Thank you, Mr Putin.

Vladimir Putin: As for the renewal of the lease on the baths, I will do my part. You should not back down, either. File a suit tomorrow.

Vadim Mokhov: I will. Thank you. Goodbye.

Vladimir Putin: Goodbye.

Good afternoon.

Valentina Yezhkova: This is Valentina Yezhkova.

Vladimir Putin: Good afternoon, Ms Yezhkova.

Valentina Yezhkova: I live in the village of Sushchevo. My father fought in World War II from beginning to end, and earned several awards. He was a non-commissioned officer with the engineers. He died on June 2, 1990, at the age of 84. I thought I would have help with paying for his tombstone but village authorities said: "He died the wrong day. He is not entitled to anything." I wrote to authorities at all levels, up to the highest. Look how many answers from the Government I have! They all said the same thing: "He died on the wrong day." Yes, he died five days before the Law On Servicemen's Status came into force-but do mere five days matter?

I heard a boy ask the same question when you talked to the people through a live television broadcast. "It is a sacred cause. We will help," you said to him, so I dared write you a letter.

Vladimir Putin: I see.

Valentina Yezhkova: What was wrong about the father's death?

Vladimir Putin: "Wrong death, right death"-I think you are exaggerating, Ms Yezhkova.

Valentina Yezhkova: No! That was the way it was.

Vladimir Putin: It was impossible.

Valentina Yezhkova: Anyway, that was what they wrote. Here are the letters.

Vladimir Putin: You see, the Law On Servicemen's Status was passed in 1993. As it stipulates, the state reimbursement for funeral and other expenses starts only on the day the Declaration On the State Sovereignty of Russia was adopted. So they are technically right. We can only regret that the law is not perfect. It has set time limits that we must adhere to.

Valentina Yezhkova: But you said-

Vladimir Putin: You are quite right. I do not remember what I said then, but I am sure you have got it right, and I repeat again that there are moral values side by side with legal formalities. So this is no subject for long-winded talks. We will just do our duty.

Valentina Yezhkova: There are many forgotten veterans like my father.

Vladimir Putin: Not all of their relatives make appeals, and not all have as little money as you have. But let us not discuss it here-there is nothing to discuss. What you need is help, and we will help. Agreed?

Valentina Yezhkova: Thank you.

Vladimir Putin: We will do so under the auspices of a public organisation-the United Russia party.

Valentina Yezhkova: When Father came back from the front, he had to rebuild our collective farm from the ruins.

Vladimir Putin: I see. His generation had a hard life, I know.

Valentina Yezhkova: He was a ploughman.

Vladimir Putin: Did he die in 1990?

Valentina Yezhkova: Yes, when privatisation was just starting. Everyone was too busy to help with an old man's funeral. We appealed to the local party, too-father was a party member.

Vladimir Putin: You mean the Communist Party?

Valentina Yezhkova: Yes. Mother died soon after him.

Vladimir Putin: You have firsthand experience. You know how things were at that time.

Valentina Yezhkova: Of course I do.

Vladimir Putin: We will remedy this injustice.

Valentina Yezhkova: Thank you.

Vladimir Putin: Goodbye.

Oksana Safonova: Good afternoon.

Vladimir Putin: Good afternoon.

Oksana Safonova: My name is Oksana Safonova. I live in a small village in the Kovrov District. Please help me to obtain a separate flat. I am sharing a two-room flat with my grandmother and mother, both of whom are disabled, and my sister.

Vladimir Putin: What's the name of your village?

Oksana Safonova: Novoselskoye, which is part of Pervomaisky Township, Kovrov District. We are all living together. I have a six-year-old daughter. I cannot afford to buy a flat-I have a low salary and pay for university tuition. We get no help from the child's father. My mother and grandmother receive small pensions. I will never be able to afford to buy a flat. A new flat with government support is my only hope. My daughter and I were put on the waiting list last year.

There is a kindergarten that was never finished in my village. It is being renovated into an apartment house through the Public Housing programme. There is one accommodation there-but I am afraid it is not for me.

Vladimir Putin: You are sharing a flat with your daughter-and who else is there?

Oksana Safonova: My sister, my disabled grandmother, and my partially disabled mother.

Vladimir Putin: So there are five of you?

Oksana Safonova: Yes.

Vladimir Putin: All in two rooms?

Oksana Safonova: Yes.

Vladimir Putin: Ms Safonova, I think you know that, much to our regret, the acting legislation does not provide public housing for single parents. I am sure, however, that we must do everything we can for persons who are bringing up children on their own-mothers and fathers alike. People who have taken on the difficult but rewarding duty of raising children deserve assistance.

I have just discussed this issue with the Vladimir Governor. Sizeable allocations were made to the Vladimir Region from the Housing Fund of the federal budget two years ago, last year, and this year as well. So the region can afford to resume construction of public housing, which you have mentioned.

You have a partially disabled mother and a young child, so we will do everything to settle your problem before the year ends.

I hope you will tell me the good news before New Year or at the beginning of 2010, at the latest.

Oksana Safonova: Thank you. That's very encouraging.

Vladimir Putin: Good luck.