#18

http://premier.gov.ru

December 4, 2008

Conversation with Vladimir Putin

[complete transcript]

Prime Minister Vladimir Putin, the leader of the

United Russia party, answered questions directed

to his public reception officers or asked by

telephone, in the form of text messages and

through the website. The question and answer

session was broadcast live by Rossiya and Vesti

channels and the Mayak and Radio Russia stations.

 

Minutes of Prime Minister Vladimir Putin's Question and Answer Session

 

MARIA SITTEL: Good afternoon, I'm Maria Sittel.

 

Public reception offices of Prime Minister

Vladimir Putin, the leader of the United Russia

party, opened several months ago. In less than

six months, they have received hundreds of

thousands of letters from people around the country.

 

Those who work with these letters on a daily

basis are in this room today. We have also

invited the people who had personally brought

their letters to Vladimir Putin's public reception offices.

 

ERNEST MACKEVICIUS: Welcome to Moscow, to

Vladimir Putin's question and answer session. I'm

Ernest Mackevicius. With us is Prime Minister

Vladimir Putin, the leader of the United Russia party, live.

 

MARIA SITTEL: Each of you can address your

questions to Vladimir Putin. Telephone calls will

be forwarded here, to the information processing

centre. Our number - you can see it on your

screens - is 8-800-2004040. Calls are free. You

can send your text messages to number 0-40-40, or

ask your questions via www.moskva-putinu.ru.

 

During today's session, we will link up with some

of Vladimir Putin's public reception offices in

different parts of Russia. In this room, my

colleague Ernest Mackevicius and I will work

together with a group of assistants Anna Titova,

Pyotr Rovnov and Dmitry Sedov.

 

ERNEST MACKEVICIUS: Good afternoon, Mr Prime Minister.

 

VLADIMIR PUTIN: Good afternoon.

 

ERNEST MACKEVICIUS: You were appointed Prime

Minister over six months ago. How do you feel in

that office? And could you tell us about some of your achievements?

 

VLADIMIR PUTIN: It is not the office that

matters, but the responsibilities of a state

post. This job is not new to me. I chaired the

Government in 1999, and I maintained close ties

with the Government when I was President. This is

a very demanding job, especially in the current

situation. But I am happy I got this chance to

serve the people in this position.

 

ERNEST MACKEVICIUS: You have hinted when you

assumed the post that the foreign economic situation was different.

 

VLADIMIR PUTIN: Yes, of course. In fact, the

current events in the Russian economy are a

result of the global financial crisis. Nobody

needs to be told today - it is a fact - that the

crisis began in the United States, whose

financial and economic policy has resulted in the

crisis, which has spread to nearly all the

leading economies. It has also reached Russia, we

can feel it, but on the whole, our economic

results in 2008 are positive even despite the

negative effects of the global financial crisis.

 

Let me just remind you of the figures. The

economic growth target was above 7%, or more

precisely 7.5%. The annual growth rate will be

around 7%, possibly 6.8% or 6.9%. This is good.

 

What is particularly important for us is the

results of our efforts in the social sphere. The

increase in take-home wages will be approximately

12.6% and pensions slightly more than 12% - 25%

in nominal figures. Industrial production growth will be nearly 5% (4.8%).

 

As for agriculture, it posted record-high growth

over the past few years, 8.8%. We have gathered

in a record-large harvest, including over 100

million metric tons of grain, which is the highest in many years.

 

It is true that we have problems with inflation.

The target figure was slightly above 12%, but

annual inflation is likely to be 13%, because of

the global crisis and because the Central Bank

and the Finance Ministry had to inject a huge

amount of liquidity into the economy. It certainly spurred inflation.

 

But on the whole, I repeat, the annual results

will be good despite the global financial crisis.

 

ERNEST MACKEVICIUS: Mr Putin, will you have to

change plans for the future, and if so, to what extent?

 

VLADIMIR PUTIN: In principle, we have no

intention to change any plans, which is very

important. I am referring also to the investment

plans of Russia's largest companies, and the

planned reform of the housing and utilities

sector, healthcare and compulsory health

insurance, as well as the planned reform of education and the pension system.

 

In addition - I think we will discuss these

issues in detail later, since there are bound to

be questions - I want to say at the beginning of

this session that we will fulfil all our plans in

the social sphere, all decisions aimed at

increasing social payments and pensions.

 

Everyone knows that some countries which have

been hit by the crisis are planning to cut wages

and people's incomes. We will not do this in the

social sphere. On the contrary, we intend to

implement all our plans aimed at increasing allocations.

 

ERNEST MACKEVICIUS: The people's reaction in this

room speaks louder than words. Mr Putin, when we

were preparing for this session you selected the

most frequently asked questions, issues that are

of greatest concern to the people. And the

biggest question is, will we survive the crisis?

 

VLADIMIR PUTIN: To be honest, it is going to be a

difficult period in the global economy, including

Russia. And we must be prepared for it morally,

administratively, financially and even

politically. But as you know, Russia has survived

bigger troubles in over a thousand years of its history.

 

Not very long ago, in the early 1990s, we faced

the problem of territorial integrity, and

industrial and social disintegration.

 

Today the situation in the country is totally

different. We have a good chance of getting

through this difficult time - and I repeat, it

will be a difficult time - with minimal losses for the economy and the people.

 

ERNEST MACKEVICIUS: I want to remind you that you

can ask the Prime Minister questions over the

telephone, using text messages and also online.

The questions are forwarded to the information

centre where my colleague, Maria Sittel, is now

working. Masha, we are waiting for your information.

 

MARIA SITTEL: Yes, Ernest, the number of

telephone calls has peaked in the first few

minutes of our live broadcast. Text-message

users, which include senior citizens, are very

active, as can be seen by their serious and

socially oriented questions. Here are just a few

remarks highlighting various issues of interest to Russians.

 

"Mr Vladimir Putin, please save the Fatherland!

When will you close all gambling houses

nationwide? I want my husband to bring his money

home, not waste it at a casino," says a woman

from Dimitrograd in the Ulyanovsk Region.

 

Here is another remark, which sounds more like a

proposal: "I don't remember a single case when a

civil servant resigned voluntarily for bad work. Why is this so?"

 

Naturally, most remarks deal with the crisis, loans, mortgages and employment.

 

I am putting through a telephone call from

Bashkortostan. Hello, what's your name?

 

DMITRY SALNIKOV: Good afternoon, Mr Vladimir

Putin. This is Dmitry Salnikov from the village of Tirlyansky.

 

We would like to ask you this question. We are a

young and currently jobless family because our

company could be shut down anytime due to the

global crisis. Most locals are also unemployed

because they used to work for the metallurgical

sector. What are we supposed to do in this situation?

 

VLADIMIR PUTIN: I have mentioned these

difficulties from the very outset. To be frank,

we started our conversation with this.

 

Companies used to expand and hired the required

number of workers during the economic development

period and in conditions of soaring global demand

for some of our traditional products, including those in the metals industry.

 

I have already told the United Russia congress in

this same hall that worldwide metals consumption

plunged after the automotive industry curtailed

production. The main US, Japanese and European

consumers have decreased production by over 30%, 15% and 20%, respectively.

 

Russia has also cut exports. Our steel mills used

to export almost 50% of their products elsewhere.

Naturally, we cannot directly influence this objective problem.

 

At the same time, I am absolutely convinced that

the global market will change, and that this

country will need more metals and other

traditional products. Naturally, human resources,

especially skilled workers, will be in great demand.

 

But what can and must be done today?

 

As I have already said, we are raising

unemployment benefits for jobless people to 4,900

roubles ($175) per month. This is the first thing.

 

Moreover, I believe that private and public

authorities will have to draft an entire range of

measures in an effort to preserve jobs wherever

possible and to start implementing them in the

near future, I mean within the next few days. On

Tuesday, I discussed this problem with a large group of regional governors.

 

The relevant allocations must be used to finance

retraining courses for the workers of affected

businesses. We must provide additional regional

migration opportunities and redirect human

resources to regions requiring such resources. We

could pay relocation allowances to such people.

 

We must implement public works and infrastructure

construction projects. We have the required

funding for accomplishing this objective and have

also accumulated resources at the Road Fund,

transport monopoly Russian Railways and some other major companies.

 

We will implement this entire range of measures.

 

Also, I consider it necessary that employment

services accumulate the required funding for

reacting promptly to these most pressing problems.

 

ERNEST MACKEVICIUS: Mr Putin, you mentioned the

aid being rendered by the state to some other

areas of the economy. But as I looked through the

questions that arrived at our website, I see that

not everybody understands these measures. People

are under the impression that large banks mainly receive the money.

 

Here is one question on the subject: "Are the big

banks worth helping? The banks take money from

the state at 6% per annum, but lend at 25%,

including to small and medium-sized businesses.

Perhaps, it would be better to help the industry?"

 

And in general people want to know if the Reserve

Fund has enough cash to live through the crisis.

 

VLADIMIR PUTIN: First about the banks. Banks are

the circulation system of any economy. We should

remember the negative consequences of previous

years or the negative results of meltdowns in

previous years, for example in 1998, when the

whole banking system collapsed. We cannot, of

course, allow this to happen again, because

behind the banks are not only industrial

businesses, behind them are millions of savers -

the ordinary people of Russia, who want banking

institutions to function properly and have enough

cash to meet people's interests. This is why we

are channelling vast resources into the banking

sector. We have already reported this figure -

about 5 trillion roubles. The Central Bank is

allocating all kinds of resources. Long-term

resources are already on the way, as are

medium-term resources (although long-term

resources are in short supply, and we will

discuss that later) and short-term resources.

These resources are all available and are being

injected into the banking system.

 

Of course, we worked above all with banks that

would not squander state money, or rather your

money, citizens of Russia, the money contributed

by taxpayers. What are these banks? We call them

"system-forming" banks. These are banks with

state ownership: Sberbank, VTB (Vneshtorgbank),

and Gazprombank. Partly, it is VEB (bank for

foreign economic relations): but properly

speaking, it is a separate institution, one

through which we carry out a number of other

functions. But of course what we see now is that

these efforts to support only the banking sector

are not enough, because today's crisis is largely

unique. The global economy has not met with a crisis of this size before.

 

So today we decided to support the industry

directly through the banking system, and directly

through the banking sector. I will tell you now

what I mean by directly. To support the industry

we allocated 175 billion roubles. These are

long-term loans which must be directed to

production or service-based businesses. At the

same time, we will demand from the banks that

they report to us on three sectors to which they

are going to lend money. What are these sectors?

These are farming, the defence industry and small

and medium-sized businesses, as well as a long

list of enterprises which we recommend.

 

My starting point is that this might not be

enough. Currently, we are taking a close look at

how the banking system operates. Their problem

today is not that of liquidity, it is one of

trust - between the banks themselves and the

banks and the production and service-based

businesses. Of course, we will be insisting that

state money reaches the end user. But this too

might not be enough, and then we will need to use

other tools. What tools? For example, joining

directly the capital of large companies where the

state and the taxpayer will ultimately benefit;

capital of enterprises that are the core of the

Russian economy. We are not ruling out that such

tools could be applied on a wide scale.

 

As for the banking sector, this form of state

participation is already stipulated through the

Deposit Insurance Agency, which has been

allocated the necessary resources totalling 200

billion roubles and which has the right to join the capital of problem banks.

 

If necessary, we also consider it possible to

spread the practice to the industry in the near future.

 

ERNEST MACKEVICIUS: The second part of my question is about the Reserve Fund.

 

VLADIMIR PUTIN: When a TV viewer asks a question

about the Reserve Fund, he probably means all the

state reserves in general. Because we have the

Reserve Fund, the National Welfare Fund and the

gold and currency reserves of the Central Bank. I

won't dwell on how each of these funds works, but

I can say that, of course, we have these

reserves, and they are large. Russia has the

third biggest gold and currency reserves in the world.

 

In fact, I have just received updated information

from the Central Bank, and for the first time in

recent weeks we see a growth of the gold and

currency reserves of the Central Bank of the Russian Federation.

 

We have been saving these assets to use them in

case of crises in the world economy and, as a

consequence, in the Russian economy. That is what

we are doing. But we will do it carefully.

 

What does "carefully" mean?

 

We should have a clear idea of how much currency

flows into the country and because of the falling

world prices for our main commodities - energy,

oil, gas, petroleum products, metals, fertiliser

and some other products ¬- because of the falling

prices for all these goods in the world markets

and because we continue spending significant

amounts of currency on imports, the inflow and

outflow is regulated by instruments that are well

known in the economic and financial sphere, and we will use these instruments.

 

But we will not allow leaps in the economy and

sudden changes in the exchange rate of the

national currency. To secure the interests of

both the citizens and the economy we will, if

necessary - and we have done so before - we will

carefully use the gold and currency reserves and

the other funds at the Government's disposal. If

we pursue a balanced, meaningful and responsible

economic policy, these assets will be sufficient.

 

ERNEST MACKEVICIUS: Some people in the room would also like to ask a question.

 

Pyotr, I am addressing Pyotr Rovnov, give them a chance to ask a question.

 

PYOTR ROVNOV: Yes, Ernest. Who would like to ask

Vladimir Putin a question? Ask your question, and please introduce yourself.

 

ALEXEI LISHENIN: Alexei Lishenin, Volgograd. Good

afternoon, Mr Putin. On the eve of the New Year

holiday Russian people have two problems: where

to buy a Christmas tree and will Ukraine pay up for the gas we have supplied?

 

We can handle the first problem, but as for the

second one, I would like to hear your competent opinion. Thank you.

 

VLADIMIR PUTIN: As for the Christmas tree, I

think every family that wants to have one will be

able to buy it, a real or a synthetic one (people

use synthetic ones more and more often nowadays).

It creates a certain atmosphere in communities

and in homes. In general, it is a very joyful and

beautiful holiday. In spite of all the problems,

I think people will enjoy seeing the New Year in.

 

I would like to take this opportunity to wish all

of you a very happy New Year.

 

As regards Ukraine, we have a complex ongoing

dialogue. It is true that our Ukrainian partners

have outstanding debts, over $2.5 billion, which

is quite a big amount for Gazprom and for the country as a whole.

 

We are aware that the Ukrainian economy is having

even bigger problems than Russia: the

metallurgical industry there, as far as I know,

has dropped not by 50%, like here, but by 70%,

and that is very serious. Nevertheless,

commodities cannot be free, everyone has to pay for them.

 

Our partners tell us: keep the prices of the

current year. How can we leave the prices of the

current year if even today our Ukrainian partners

get our gas at almost half the price of what we

get from Europe. We have an understanding to work

towards market prices. We cannot sell liquid

commodities at half the price or provide them for

free; we need money ourselves, we have our own

social problems to solve. A friend of mine used

to say whenever I asked him a tricky question

like this, "Are you off your rocker?"

 

It's the same situation. Go to Germany, enter any

store and say: I want a Mercedes for free or at

half a price. Who would give it to you? Why

should we sell gas at half a price?

 

But of course we will treat each other as

partners. We are negotiating for a smooth

transition. In principle, we have agreed on price

formation and these are not just agreements of an administrative nature.

 

The whole point of our agreements with our

Ukrainian partners is that we pass on to market

pricing. The price of gas is linked to world oil

prices, and if the oil price goes up, the gas

price goes up to, if oil goes down, the gas price

goes down and we will then lose some of our

earnings. But that is fair, we do not control these prices.

 

We hope to be able to reach mutual understanding

with our partners, and we assume that we will not

have any problems with the transit of our energy

resources to the main consumers in Western

Europe. We had reached such agreements with

Ukraine in earlier years and I hope that they

will duly abide by these agreements.

 

But if our partners fail to honour these

agreements or, as it has happened in the past,

siphon off our resources from the transit

pipeline illegally, we will have to reduce the

feeding of gas. What else can we do? We have no other option.

 

We are going to brief our European partners on that in the near future.

 

ERNEST MACKEVICIUS: The directors are telling me

that our colleagues in other Russian cities are

already on line. But I see some raised hands in

the hall. So, Anna, let us have some questions from the studio.

 

ANNA TITOVA: The audience is ready to join in the

conversation. There are questions in the front row.

 

OLEG BELAN: Good afternoon, Mr Putin. Nenets

Autonomous Area. I am Oleg Belan and I am a deputy of the regional assembly.

 

Do you think our relations with the United States

will change after the election of Barack Obama as

President? Will they become more pragmatic and constructive? Thank you.

 

VLADIMIR PUTIN: The question should be directed

first and foremost to the new US Administration.

Usually, when there is a change of power in any

country, especially such a superpower as the

United States, such changes do take place. We

very much hope that the changes will be positive.

 

We see these positive signals. What are they?

Look at the meeting of NATO foreign ministers:

both Ukraine and Georgia have been denied a

Membership Action Plan. We already hear at the

level of experts, the people who are close to the

President elect and the people around him, his

aides, that there should be no hurry, that

relations with Russia should not be jeopardised.

We already hear that the practicability of

deploying the third position of missile defence

in Poland and a radar in the Czech Republic should be considered once again.

 

We hear that the relations with Russia should be

built with respect for our interests. If these

are not just words, and if they are translated

into practical policies, then of course we will

react in kind and our American partners will immediately feel it.

 

ERNEST MACKEVICIUS: Thank you, Mr Prime Minister.

We have a question from Severodvinsk, where my

colleague Dmitry Petrov is working now. Go ahead, Dmitry.

 

DMITRY PETROV: Good afternoon, Mr Prime Minister,

colleagues, Severodvinsk here. This is the

Zvezdochka plant, a leading defence enterprise

producing cutting-edge equipment for developing

offshore Arctic resources. But it specialises in

repairing submarines. This beauty here is the

Karelia strategic submarine. It has just been

repaired and will now be prepared for returning to combat duty.

 

We have here the plant's workers, engineers and

designers as well as sailors. All of them are

directly contributing to the country's defence

capability, and they have questions for Mr Putin.

 

PAVEL PERSHIN: My name is Pavel Pershin, I am an

engineer at the Zvezdochka plant. The

Government's attention is now focused on the

defence sector. We have almost no problems with

allocations or state contracts. We hope this

situation will persist despite the financial

crisis, but it will not solve the plant's other problems.

 

The main problem is the depreciation of fixed

assets. Government allocations to shipbuilding

are now mostly invested in research.

 

The second problem is personnel. In Soviet times,

people went to work in the north of the country

because the jobs paid well, but now I earn as

much as engineers working in central Russia.

 

My question is what will the Government do to

modernise defence enterprises and to reinstitute

full-scale salary increases for personnel working in northern regions?

 

Thank you.

 

VLADIMIR PUTIN: I know the Zvezdochka plant very

well; I have visited it more than once. In fact,

I even know the submarine I can see in the

background. I have been on board of that

submarine as President when I visited the

Northern Fleet; I even went to sea in it. My best regards to its crew.

 

As for the plant, I'm sure you definitely know

about its financial problems. We are dealing with

them, and we will not leave the plant to struggle

with them on its own. We have taken measures to

improve the financial situation, and we will continue to help the plant.

 

As for the salaries, they should largely and

primarily depend on the plant's economic

efficiency and work orders. This is why we plan

to place state contracts at the Zvezdochka plant

and also to help it to get other, civilian

contracts. As you know, the plant is already working on such contracts.

 

As for pay increases for working in rigorous

northern conditions, the system is still in

place. But since there are certain problems with

it, we have been looking at ways to improve it.

The same goes for the people who are planning to

move to other regions after retiring. I'm sure

people know about the problems I am talking

about, and we have been tackling these problems

regularly. We will continue to work on them.

 

As for the main question, I want to repeat that

we will send more contracts to Zvezdochka and

help to resolve its financial problems.

 

ERNEST MACKEVICIUS: I see people in this room

want to comment. Dmitry, let people ask their questions.

 

PYOTR ROVNOV: Many people have questions for Mr

Putin, but I think we should give the floor to

the man in the uniform. Please, introduce yourself.

 

ALBERT SLYUSAR: Lieutenant General Albert

Slyusar, from Ryazan, representing the

International Union of Veterans of the Airborne

Force, the Airmobile Force and the Special Operations Forces.

 

Mr Prime Minister, the army reform provides for

dismissing over 200,000 officers and liquidating

the institute of warrant officers. This makes

many of them wonder what they would do in the

future, if they would have housing and get jobs,

pensions, health and other insurance.

 

My second question is if the army reform will

have a negative effect on the country's defence capability.

 

Thank you.

 

VLADIMIR PUTIN: I expect the reforms that have

been planned and are being implemented in the

armed forces will certainly influence our defence

capability - for the better, by improving it. This is why we are doing it.

 

As for the dismissals you mentioned, we are not

planning mass layoffs. Moreover, only the

officers who are slated for retirement - the

first category - will be dismissed in 2009. The

second category includes officers conscripted for

two years after finishing military training at

civilian higher schools, whose conscription period is ending.

 

As for warrant officers, we will stop training

them, but those who wish to continue serving in

that rank will be able to do so. Those who wish

to fulfil the same duties as civilian personnel,

which implies higher pay, can make their choice.

I repeat, the warrant officers will not be

dismissed only because they hold this rank. Their fears are ungrounded.

 

If some officials go too far, if we expose

unplanned problems, we will react immediately. I have no doubt about this.

 

Now to the housing problem. In 2010 all officers

are to be provided with permanent housing, and

all servicemen will receive service housing in 2012.

 

Our speed in tackling this problem is high enough

to ensure that we reach these targets.

 

ERNEST MACKEVICIUS: Thank you, Mr Prime Minister.

 

I suggest that we keep the linkup to

Severodvinsk, but ask what questions have been

addressed to the information processing centre

where my colleague Maria Sittel is working.

 

Maria, what questions do TV viewers have for the Prime Minister?

 

MARIA SITTEL: They concern many issues, but I

suggest we keep to the military aspect for the moment.

 

Mr Prime Minister, a huge number of young mothers

and young people are sending text messages and

phoning to ask if it is true the Government plans

to extend the term of military service to 32 months instead of one year?

 

VLADIMIR PUTIN: Absolutely not; it is just an ungrounded rumour.

 

The decision has been taken to cut military

service to 12 months, and we are not going to

change it. I am referring to service by conscription, of course.

 

ERNEST MACKEVICIUS: I can see on the monitor that

there are not only civilians but also navy

officers in Severodvinsk. Let's give them a chance to ask their questions.

 

VLADIMIR PUTIN: Yes, let's.

 

DMITRY PETROV: Are any Navy servicemen ready?

 

Captain Third Class, please introduce yourself.

 

VADIM KOLENKO: I am Captain Third Class Vadim

Kolenko, combat-unit commander with the strategic missile submarine Karelia.

 

Mr Prime Minister,

 

In continuation of the Lieutenant General's

question, I would like to ask you to explain the

system for acquiring housing under the programme State Housing Certificates.

 

Many submarine crews are solving their problems

with the help of this programme. The concerned

parties have already raised the issue of bringing

housing certificates' value in conformity with

the market value of one square metre of housing.

 

I will be discharged in 2010 at retirement age.

So, my first question is: Will my comrades and I

be able to obtain housing in line with these certificates?

 

Second, how do you plan to provide housing to

military personnel serving in the Far North?

 

Thank you.

 

VLADIMIR PUTIN: Please forgive me if I am

mistaken on some details, but the statistics

will, nonetheless, be fairly accurate. In early

2008, one certificate cost 26,400 roubles. In the

first six months of 2008, we raised the value of

these certificates. Today, one certificate costs

about 28,500 roubles nationwide and nearly 34,800

roubles in Moscow and St Petersburg.

 

One square metre of housing costs an average of

28,000 roubles nationwide. Consequently, each

certificate has an adequate value. To be fair, it

should be noted that, although one certificate

costs 34,000 roubles in Moscow and St Petersburg,

local housing is worth about 42,000-44,000 roubles.

 

But every cloud has a silver lining. I proceed

from the premise that nationwide housing prices,

including those in Moscow and St Petersburg, will

go down. Consequently, these certificates will

make it possible to buy apartments even in sprawling megalopolises.

 

Naturally, this will be more difficult in Moscow

and St Petersburg because local housing costs

42,000-44,000, while the certificate is worth 34,000 roubles.

 

In addition, we are allocating another 21 billion

roubles for the Defence Ministry which will use

the funding to buy complete or nearly complete

apartments for military personnel on the market.

 

This means that the Defence Ministry will be able

to buy another 10,000 apartments for military

personnel. This is an impressive amount.

 

The St Petersburg municipal administration and we

have now agreed that the administration will

compensate the gap between 34,000-rouble

certificates and 42,000-rouble market prices (the

average price of one sq m for St Petersburg) at its own expense.

 

We would make considerable headway, if we manage

to reach a similar agreement with Moscow on this

score. I hope Mr Luzhkov can hear me.

 

I want to repeat once again that, on the whole,

we are convinced that we will solve the private-housing problem in 2010.

 

As to your question about the allocation of

housing for active military personnel, they will

receive service apartments. We plan to completely solve this problem by 2012.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin. Thank you, Severodvinsk.

 

Let's move on.

 

ANNA TITOVA: Excuse me, Ernest, but what about

mortgages? People are asking many questions on

this issue. Everyone is really concerned about

housing. Let's give the audience a chance to ask

one more question on the subject.

 

ERNEST MACKEVICIUS: Tell us your name, please.

 

NATALIA GOGOL: Hello.

 

My name is Natalia Gogol, I am an accountant from the Moscow Region.

 

I would like to tell you that banks have been

refusing to issue mortgage loans lately under

various pretexts. Some set prohibitive rates, and

it becomes virtually impossible, or at least not

easy, to take out a loan. Some banks insist that

customers clear any outstanding loans first. Will

the Government do something about this? What are we to do? Thank you.

 

VLADIMIR PUTIN: The rates are rising, I admit. It

is an effect of the global financial crisis, its

repercussions for the Russian economy. It is also

happening because the Central Bank is compelled

to raise its refinance rate in order to prevent

further outflow of capital from the country. I

won't go deep into economic theory here, there

have been a lot of proposals on how to mitigate

the negative effects on consumers, how to

encourage consumer demand and also housing construction.

 

As for the banks' demands of early clearance of

mortgage loans, it is basically a civil law

issue. If your loan agreement contains a

recapture clause stating that, if the collateral

value drops, the bank has the right to require

additional collateral amount, then the bank's

demand is formally legitimate. Usually banks ask

their clients to repay part of the principal

loan. However, banks really shouldn't be doing

this, because they end up with the same problem

as their borrowers: property as collateral. The

bank won't be able to liquidate an apartment easily now.

 

This is a separate issue we have already

discussed. Here is what we could do. I think the

Government could issue state guarantees to banks

through the Agency for Housing Mortgage Lending.

The banks could use these guarantees to solve

their financial problems rather than "terrorise"

their customers. I think it would be the best solution for all.

 

If there are more questions, I can talk about it in more detail later.

 

Go ahead, please.

 

ERNEST MACKEVICIUS: But there are many questions

about the same problem, Mr Putin: "I lost my job,

I cannot make my mortgage payments, please help me keep my home."

 

VLADIMIR PUTIN: Then let's discuss the problem

further. It is certainly a very sensitive issue.

I can understand people who find themselves in

this situation, one of life's major emergencies.

Persons losing their jobs, or their employers

shortening their hours or wages due to global

economic and financial turmoil - but one still

has to make regular mortgage payments. What is to

be done in such cases? Can the Government help? Yes it can and it must. How?

 

Here is what we propose. For those who lost their

jobs or whose pay was cut dramatically - I will

repeat that we plan to issue state guarantees

through the Agency for Housing Mortgage Lending.

The Agency can take over mortgage certificates on

condition that the bank revises the agreement

with the borrower. With these certificates, the

bank can even raise liquidity by applying to the Central Bank.

I think we should try to implement the proposals

I am formulating now as soon as possible, because

they will help those Russians who got in trouble,

and rehabilitate the banking system.

 

ERNEST MACKEVICIUS: Tell us your name, please.

 

NATALIA GOGOL: Hello.

 

My name is Natalia Gogol, I am an accountant from the Moscow Region.

 

I would like to tell you that banks have been

refusing to issue mortgage loans lately under

various pretexts. Some set prohibitive rates, and

it becomes virtually impossible, or at least not

easy, to take out a loan. Some banks insist that

customers clear any outstanding loans first. Will

the Government do something about this? What are we to do? Thank you.

 

VLADIMIR PUTIN: The rates are rising, I admit. It

is an effect of the global financial crisis, its

repercussions for the Russian economy. It is also

happening because the Central Bank is compelled

to raise its refinance rate in order to prevent

further outflow of capital from the country. I

won't go deep into economic theory here, there

have been a lot of proposals on how to mitigate

the negative effects on consumers, how to

encourage consumer demand and also housing construction.

 

As for the banks' demands of early clearance of

mortgage loans, it is basically a civil law

issue. If your loan agreement contains a

recapture clause stating that, if the collateral

value drops, the bank has the right to require

additional collateral amount, then the bank's

demand is formally legitimate. Usually banks ask

their clients to repay part of the principal

loan. However, banks really shouldn't be doing

this, because they end up with the same problem

as their borrowers: property as collateral. The

bank won't be able to liquidate an apartment easily now.

 

This is a separate issue we have already

discussed. Here is what we could do. I think the

Government could issue state guarantees to banks

through the Agency for Housing Mortgage Lending.

The banks could use these guarantees to solve

their financial problems rather than "terrorise"

their customers. I think it would be the best solution for all.

 

If there are more questions, I can talk about it in more detail later.

 

Go ahead, please.

 

ERNEST MACKEVICIUS: But there are many questions

about the same problem, Mr Putin: "I lost my job,

I cannot make my mortgage payments, please help me keep my home."

 

VLADIMIR PUTIN: Then let's discuss the problem

further. It is certainly a very sensitive issue.

I can understand people who find themselves in

this situation, one of life's major emergencies.

Persons losing their jobs, or their employers

shortening their hours or wages due to global

economic and financial turmoil - but one still

has to make regular mortgage payments. What is to

be done in such cases? Can the Government help? Yes it can and it must. How?

 

Here is what we propose. For those who lost their

jobs or whose pay was cut dramatically - I will

repeat that we plan to issue state guarantees

through the Agency for Housing Mortgage Lending.

The Agency can take over mortgage certificates on

condition that the bank revises the agreement

with the borrower. With these certificates, the

bank can even raise liquidity by applying to the Central Bank.

I think we should try to implement the proposals

I am formulating now as soon as possible, because

they will help those Russians who got in trouble,

and rehabilitate the banking system.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin. Now

let's take one more question from the audience.

Mr Rovnov, let it come from the left side.

 

PYOTR ROVNOV: Who wants to ask Mr Putin a question? Please introduce yourself.

 

VLADIMIR BELOUSOV: Good afternoon, Mr Putin. My

name is Vladimir Belousov and I am from the

National Society of Motorists, chairman of its Moscow regional organisation.

 

Motorists and, as I understand, all people

employed in industry, are asking the same

question: with world oil prices plummeting across

the board, will our fuel prices finally come down? Thank you.

 

VLADIMIR PUTIN: That's a very good question, and

people are, of course, right to ask it. Oil

prices on world markets have fallen by half or

even two-thirds, while inside the country there

has been an insignificant, if any, reduction in them. Why is that?

 

Mr Belousov, what is happening is this: even when

oil prices were high, we took most of oil

companies' windfall profits away from them and

into the budget - through export and customs

duties and taxes, as much as 80% and sometimes

even 90%. It was thanks to these revenues that we

formed most of the country's gold and hard

currency reserves, which today, as I said

earlier, are the third largest in the world -

$450 billion. They are our "safety cushion" and

allow us to make things easier during the crisis for millions of people.

 

What is happening today? Today we have slightly

reduced the tax burden on the oil and gas sector,

but it still remains quite high. Oil companies

are, of course, suffering losses and now that

world prices are down and taxes still high, they

are trying to make money at the expense of

domestic consumers. True, it is also in a way the

state's policy, and it can be discussed with deputies.

 

What is actually happening? At the expense of

people with large or even medium incomes, at the

expense of people who can afford to have a car

and buy petrol, we are withdrawing revenues into

the budget and distribute them among those badly

in need: the unemployed, the disabled, the

retired, and servicemen. But, of course, there

are limits and we should always seek the golden mean.

 

Oil companies today lose $68 per tonne of

exported oil. What is more, when we announced we

were reducing the mineral resource extraction tax

from December 1, they simply stopped shipments to

avoid having to pay extra into the budget. We

made them resume the shipments and replenished

the budget, while they honoured their promises to

consumers. But this means losses for them, of course.

 

 From January 1, 2009, we are planning a further

reduction in the resource extraction tax. In this

case, many companies will break even or be

slightly in the black, if we disregard their

current investment spending. But we will discuss

this topic separately. And we expect that our

next steps to lessen the tax burden will no doubt

bring down domestic prices inside Russia.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin. Now I

will again give the floor to Ms Sittel, to be

followed by a direct link-up with Khabarovsk. But

first Maria Sittel. Please, go ahead.

 

MARIA SITTEL: Work is in full swing; operators

are receiving phone calls real-time and are

processing text messages and e-mails from the

site. It is too early to give any comparative

statistics, see which region is the most active.

Most likely, we will be able to do it only after the air.

 

But what I can say with statistical accuracy: up

to this minute the information processing centre

has received 1,310,000 calls and 550,000 text

messages. Interestingly, despite being shorter,

some text messages are not second to phone calls

in terms of meaningfulness. Here is a short,

terse and emotional text message: "To Putin. From

Nadezhda Mukhanova, a pensioner, 68 years old. My

pension is 3,500 roubles, fire wood costs 10,000 roubles. How can I survive?"

 

VLADIMIR PUTIN: Of course metropolitan residents

and the majority of people in this country might

think such a problem is insignificant. But in

fact it is a serious problem for people living in

rural areas; I am well aware of it. It is not

simply a matter of pensions, although it is

obvious that pensions must be raised. Certainly,

if more questions of this kind are voiced today,

we will touch upon the outlook for the pension

system's development. Undoubtedly, pensions must be raised.

 

As for the fire wood Nadezhda Mukhanova asks

about, this problem is addressed in the framework

of the notorious Law No. 122 that states the

responsibility for timely fire wood supply to

rural areas be attached to local governments,

which in turn are to allot adequate funds to

municipal authorities. When purchases are made on

a centralised basis, by municipal authorities

proper, they sell fire wood at 10,000; and they

can actually make a bid of 20,000. But if money

is given directly to people, as a rule, they

manage to find other distributors whose prices are two or three times lower.

 

Unfortunately, I do not know where Nadezhda

Mukhanova lives; it is necessary to check what is

happening in the region, territory or republic

where this TV viewer lives. If we are able to

find out after the programme, I will try my best

to take the necessary steps. Of course, I hope

for local governments' support as well.

 

I would like to reiterate that this problem is

being addressed rather effectively. I know that

in some regions, for example, in the Tyumen

Region, there is no such problem anymore, which

means that it can be resolved effectively in other constituent entities too.

 

ERNEST MACKEVICIUS: If you don't mind it, I would

like to read a text message on foreign affairs:

"Europe withstands the world crisis better than

the US. Perhaps it makes sense to step up efforts

towards integration with Europe?"

 

VLADIMIR PUTIN: You know we pursue multi-vector

foreign and foreign economic policies. We

cooperate with Asia's actively developing

markets, with the countries of the Asia-Pacific

region; we interact both with Latin America, and

the US, which is one of our major trade and

economic partners; and I hope it will remain so in the future.

 

As to Europe, it is still our major partner. The

European Union accounts for over 50% of trade

turnover with Russia. As far as I remember, its

share reached 53%, or even more. Furthermore, we

do not simply trade with the European Union - in

the general economy, in its key areas, real

integration is taking place. One such area is certainly the energy industry.

 

I made this point already, and I can repeat it.

We admitted a number of European companies -

Finnish, Italian and German - to our energy

sector; they acquired the biggest blocks of

shares with our power companies, invested

literally billions of dollars and euros. We

invite such investments. We admitted them to

participate in the development of hydrocarbons - both oil and gas.

 

I have to do justice to our European partners.

For their part, they ventured the construction of

new routes for our energy resource supplies to

Europe. An excellent example is the constructing

of the North Stream gas pipeline and our plans

for the South Stream, as well as some other

projects. Europeans have also admitted us to

their energy transport system, namely the trunk

pipeline. These are very good examples of

integration in a crucial economic sphere: energy.

This cooperation will increase the transparency,

reliability and stability of both the Russian and

European economies. We will continue pursuing

this policy. Also, one can see obvious progress in politics.

 

Unfortunately, there is a lot of prejudice. Some

attitudes are taken from the past; there are a

lot of phobias, especially in the so-called New

Europe. But I think that those nations,

especially their governments, will eventually

come to realise that it is necessary to face the

future instead of clinging to the past.

 

ERNEST MACKEVICIUS: Thank you.

 

I suggest that we come back to the regions. It is

no secret that the most frequent questions people

send to our editorial office and to your public

reception offices have to do with the social

sphere, above all with healthcare. So, the staff

at your reception office in Khabarovsk went to a regional health centre.

 

Let us hear from Khabarovsk. Russia Channel's

Pavel Zarubin is at the health centre now.

 

PAVEL ZARUBIN: Hallo, Moscow. Good afternoon, Mr Putin.

 

Welcome to Khabarovsk, the capital of the Far

East, the city whose picture adorns the 5,000

rouble note and which has more than once been

named as the most comfortable city in Russia to live.

 

It also has perhaps one of the best perinatal

centres in the country, which is where we are at

the moment. A new building is to be opened here

tomorrow. The doctors here will use

state-of-the-art technology to bring babies to

life, even if they are in a critical condition.

 

Today the Centre's staff, patients and simply

people who live in Khabarovsk have all gathered

here. I think, let's get down to questions. So,

raise your hands if you want to ask a question.

 

Though it's a perinatal centre, the young man

there has raised his hand the highest. Introduce yourself, please.

 

STANISLAV KHARIZOV: Good afternoon. My name is

Stanislav Kharizov, and I'm a student. I am very

fond of my little sister, and I always worry

about her, and this leads me to my question.

 

Throughout the last year all my family including

myself had queued up for a very long time to get

her a place at a kindergarten, and we had to

confirm every month, standing in queues, that we

wanted my sister to go to that particular

kindergarten. I realised talking to the people in

these huge crowds that there are not enough

kindergartens in our city. However, passing by

the kindergarten where I went when I was a child,

I saw with regret that it had been turned into a hotel for the Chinese.

 

Mr Putin, I would like to ask a question. I

expect to have a family of my own at some time in

the future. How will this issue, this mess be dealt with in the future?

 

VLADIMIR PUTIN: I am sorry if that sector in

Khabarovsk is in a mess. But judging from the

fact that you are now at a top-level health

centre, there are also many positive things in Khabarovsk.

 

I know your Governor well. Viktor Ishayev is an

efficient and very experienced man, he knows

which link in the chain to pull first, as our

classics used to say, in order to pull the whole

chain. As for kindergartens, it is true that

there are not enough of them. Part of the reason is the growing birthrate.

 

I cannot help being glad at what is happening in

this sphere. In spite of many problems, the

Government's efforts are bringing results. The

birthrate this year has grown by about 7 percent,

the highest growth in the last 15 years. I won't

cite the absolute figures, but it is about 7 percent.

 

As for kindergartens, that is above all the

responsibility of the regions and cities. At the

federal level, we will do everything to encourage

that work, we will help the regions to do it, but

I would like to tell you that the shortage of

places at kindergartens all over Russia has

dropped by 30 percent in 2008 alone. That is a major step forward.

 

If the problem is not being solved as quickly as

it should be in the Khabarovsk Territory, I think

that Viktor Ishayev and the people who work with

him, his team, should pay more attention to this.

Let me repeat, if necessary, the Government, the

federal centre, is prepared to help.

 

ERNEST MACKEVICIUS: Khabarovsk, stay on the line,

I've seen some raised hands, and they are

probably questions about similar issues.

 

Dmitry, let us have another question for the Prime Minister.

 

DMITRY SEDOV: Yes, Ernest, we are ready to join

in the conversation. Who will ask a question?

Let's have a question from a woman. Please

introduce yourself and ask your question.

 

SVETLANA ROMANCHUK: Good afternoon, Mr Putin. My

name is Svetlana Romanchuk, and I am from the

city of Ivanovo. I am a doctor, a cardiologist.

 

My question is about Federal Law 122. We have

many problems with providing people who are

entitled to social benefits with costly

medicines. For example diabetics, cancer

patients, those on kidney dialysis, who have had

heart surgery in the first year after the

operation. I would like to ask you, as the leader

of the United Russia party, to instruct its

members in the State Duma to revise that law. In

our opinion, as it stands today, it calls for reworking.

 

VLADIMIR PUTIN: It is true that providing people

entitled to benefits with drugs is an acute

problem. While I admit it, I would remind you

that a massive effort was mounted to address it

in 2004 and since then progress has been fast.

Let's be honest, before that time subsidised

medicines were impossible to get because they did

not exist. Since then subsidies for medicines have increased seven-fold.

 

A further problem cropped up in 2007. How did it arise?

 

If you remember, we determined a social package

of benefits, which at the time were worth 450

roubles, and people were free to choose whether

to take the cash or the benefits. Those who did

not need expensive medicines, chose cash. Only

the people who really suffer from serious

diseases and need costly medicines have kept the

benefits. So, there was not enough money to

provide these people with all the medicines they needed.

 

If you remember, or if you know, we greatly

increased the funding, we identified a special

group of people suffering from grave diseases who

need medicines. That group, and it is not a large

group, 54,000 if I am not mistaken, has by and

large been provided with medicines. That group

includes people who need organ transplants, you

mentioned a kidney a moment ago.

 

Of course, it would be good to increase that

group at the expense of those who do not need

such costly treatment, but are nevertheless

included in the category of patients who need

costly drugs. The Government, United Russia or

any other parties cannot just wish this problem

away. It depends on the budget potential. Still,

we should look into it. We will think about it.

 

ERNEST MACKEVICIUS: Maria Sittel is signalling to

me that we've got questions about health. Is that right, Maria?

 

MARIA SITTEL: Yes, we started getting them a

while ago, as health insurance is one of the most painful issues.

 

Mr Putin, I am for increasing the birth rate and

a positive demographic situation in the country.

 

We have a question from the web site. Women

giving birth to a second child are entitled to

maternity capital, but a concerned mother is

pointing to a drawback in the law on maternity

capital, according to which a first-time mother

giving birth to twins or triplets is not entitled to the money.

 

This doesn't seem fair, because she still has two

or three children, doesn't she?

 

VLADIMIR PUTIN: Yes, this is true, but the point

at issue, as I said when answering the fist

question, is the size of the budget.

 

We decided that maternity capital would be

provided to the families and the mothers who give

birth to a second child. We may consider the

problem again, and try to make amendments to it,

but the deputies will first have to calculate how

fast our social obligations with grow, and if we will be able to meet them.

 

Somebody asked at the beginning of this session

if we would be able to meet our obligations in

conditions of the current crisis, and I replied

firmly that yes, we will be able to do so. The

question Maria has formulated calls for

additional resources and calculations. On the

other hand, we are trying to encourage the

families that have decided to have more children.

This brings me to the issue of mortgages, which

we've also received questions about. I believe

that the use of maternity capital in the amounts

planned to begin on January 1, 2010 may be moved

to early 2009 in view of the financial problems

in the world and in this country, so as to allow

the families and mothers to use this money to pay off their mortgages.

 

To be able to do so, we need to amend legislation

and the budget. I am going to issue a directive

to the Government today, and I'm confident that

the United Russia party and other parties in the State Duma will support it.

 

ERNEST MACKEVICIUS: Maria, you probably did not

hear but Mr Putin has asked you personally what

you have done to improve the demographic situation. I repeat this question.

 

MARIA SITTEL: I have a wonderful daughter, but I

promise to work on this problem some more in the future.

 

ERNEST MACKEVICIUS: Thank you.

 

Back to work. We have Khabarovsk on the line.

Pavel, do you have any more questions?

 

PAVEL ZARUBIN: Yes, Ernest, you probably saw many

raised hands here, many questions. Please, any more questions?

 

OKSANA KLIMOVA: Good afternoon, Mr Putin. My name

is Oksana Klimova. I'd like to express the pain

of many people who live in the Far East. We feel

detached from central Russia, since many families

cannot buy train or air tickets, because air

tickets cost around 30,000 roubles or even more.

My kid asked me if we could go to St Petersburg

for winter holidays, but I said No.

 

What will be done for the healthcare and

education professionals to help them afford such luxury?

 

Thank you.

 

VLADIMIR PUTIN: I agree that this is an acute

problem which badly needs a solution. It has many component parts.

 

First, it is the pool of our aircraft, and what I

mean is not so much their safety as their

economic efficiency, or rather economic inefficiency.

 

The planes made back in Soviet times consume too

much fuel, are not competitive, and hence are

loss-making. This prompts the following question:

Should we allow our air carriers to buy foreign

planes and in this way stop the revival of the

national aircraft industry, or must they continue

to use technically sound but inefficient Soviet-made aircraft?

 

I think the solution lies somewhere in-between,

as it often happens. We will allow airlines,

first, to buy such aircraft as our industry will

not produce and, second, to lease the aircraft

our industry plans to manufacture. We will lease

foreign-made aircraft and will return them as

soon as we start producing the aircraft of the

same quality, noise and fuel standards. So much for the first problem.

 

The second problem concerns refuelling centres.

As we have said before, we need to get rid of

monopolies on the market, which prevent airlines

from buying jet fuel at market, not inflated

prices. We will continue to address this problem persistently.

 

And finally, the third problem. To defuse the

situation - and what you have said here is

creating problems not only for the people but

also for the state, as it is easier to fly to

South Korea than to Moscow... This will not do,

because this is affecting the country's territorial integrity.

 

So, to deal with this problem we will subsidise

air travel beginning in 2009. As far as I know,

amendments have been made worth 2.5 billion

roubles for 2009 and 5 billion roubles for 2010.

I don't think this will be enough, but we'll see.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin, and thank you, Khabarovsk.

 

Indeed, this is a very serious problem, a painful

problem for our big country. Here is an example,

since you have touched on this issue. When

KrasAir went bankrupt in the Krasnoyarsk

Territory, Aeroflot started to make flights from

Norilsk to Krasnoyarsk. As a result prices have

grown several-fold, from 6,500 roubles to 18,000

and 32,000 roubles. And I am talking about an

economy class ticket within a single region.

 

VLADIMIR PUTIN: What can I say? You know that

some financial organisations, some banks took

deposits from clients offering them huge interest

rates, but then went bankrupt putting the people into a difficult situation.

 

I don't know how the company you mentioned

worked, but I will assume that low ticket prices

could be one of the reasons for their subsequent

financial problems. But this does not mean that

the company that has taken over their

responsibilities can raise prices endlessly. This

problem has many elements to it, and I have

mentioned the elements we need to address. But

the Antimonopoly Service must also monitor the

situation on the air transportation market.

 

ERNEST MACKEVICIUS: Thank you. We are back in

touch with the information processing centre and

Maria Sittel. Go ahead, Maria.

 

MARIA SITTEL: Thank you, Ernest. We have been on

the air for more than one hour already. It is

difficult to say which topic comes first and

which second - we have loans, housing, and health

services. Basically, all the issues we've been

discussing. We've received 1,333,000 telephone

calls and 560,000 text messages. Some of the

messages are as long as emails, because one

message can hold up to 400 characters, and you

can imagine how you need to press small buttons

on the phone 400 times to write your question. And we have such messages.

 

Here comes a telephone call. Sorry, we've lost

the connection here. Now let us try another line.

Perhaps we will be lucky there.

 

Hello, you are on the air. Omsk, can you hear us?

Good afternoon, introduce yourself and ask your question.

 

NINA SMIRNOVA: Good afternoon, Mr Putin. My name

is Nina Smirnova, I'm from Omsk and I'm retired.

 

I have this question for you. Of course, I

understand that our country is in a difficult

position because of the crisis. You know, in Omsk

we have very high utilities tariffs. And I would

like to ask you to postpone raising them until

the economy gets steady. Is that possible?

 

VLADIMIR PUTIN: I hope you can hear me, Ms

Smirnova. Of course, this is one of the problems,

and a very old one. We can postpone everything,

but it is not just a question of tariffs. Let me

try to explain my attitude to this problem.

 

Firstly, 80% of our networks are worn out. If the

system continues to be under-financed, it will

collapse entirely. Last year, utilities went up

by 15% to 17%. Next year they will be the

responsibility of the regions, but we will follow developments there closely.

 

Many things contribute to tariff growth. One of

them is a monopolised services market. We have

set up a fund for reforming the housing and

utilities totalling 240 billion roubles, a huge

amount, and we are not using the money elsewhere,

despite financial difficulties: the money has

been allocated and will be used for its stated

purpose. But we intend to give it only to the

regions that make their own moves to improve the

housing and utilities situation.

 

These moves can be of different kinds, and the regions know that.

 

The first is to abolish the monopoly so that the

"insider" organisations and companies at the

municipal level do not charge monopoly-high service tariffs and prices.

 

The second is to set up housing partnerships and

hand over blocks of flats and housing stock to them in good condition.

 

There also are some other factors. One of the

most serious ones is tariffs charged by the

so-called infrastructure monopolies - Gazprom and

the electric power companies. Just yesterday we

discussed them with Governors. Your concern is understandable.

 

These large companies look to these tariffs

because they are included in their investment

programmes and they pay for metals bought from

our metal companies, for building materials, etc.

That is to say, they serve to preserve jobs and

keep afloat whole sectors of the economy.

 

Nevertheless I can agree with you that we can

demand from the infrastructure monopolies that

they at least slow down the growth of utilities,

remembering that the price of materials they need

to purchase to implement their investment

programmes is also falling due to current

economic developments. We will try to keep their

effects on ordinary people as low as possible.

 

MARIA SITTEL: Mr Putin, among the text messages

and telephone calls received there are also many

personal letters. Perhaps, we can pass them to

you after the question-and-answer session.

 

But here is one message about the tiger cub you

received as a present on your birthday.

 

VLADIMIR PUTIN: The cub has been moved to a zoo,

where it feels good and receives good care from

specialists. The zoo is in the Krasnodar

Territory. Everyone who wants to, can see it there.

 

ERNEST MACKEVICIUS: I see.

 

Maria, I have this text message: "What will

happen to the rouble, and what is the best bank deposit currency?"

 

VLADIMIR PUTIN: As I have already said, national,

Central Bank, and Government gold and currency

reserves, Government reserves, the National

Welfare Fund, and the Reserve Fund allow us to

avoid sharp national currency rate fluctuations.

 

I proceed from the premise that we will not allow

this to happen. There will be no sharp

fluctuations in the rouble's exchange rate.

Naturally, the rouble's rate will be adjusted to

some extent in connection with global market

prices for our traditional products, namely,

fuel, energy and metals, as I already mentioned, and fertiliser.

 

I want to repeat once again that we receive the

bulk of foreign currency proceeds from such

exports, and that we must service substantial

imports still being received by our country. This is a natural outflow.

 

The influx and outflow must be balanced. Gold and

currency reserves, as well as national currency

rate fluctuations, largely facilitate this

process. I repeat, we will not make any abrupt moves.

 

Every person can choose any bank deposit

currency. Those going abroad often should convert

part of their deposits into foreign currency. As

you know, European and US economies are facing

major problems. National currency rates directly

depend on the state of the economy. For those who

live in Russia, buy goods and services in Russia,

rouble is a preferable currency. I repeat,

everyone is free to make this choice.

 

Incidentally, we have no intention of restricting

those liberal currency and money import-export

regulations that were introduced on July 1, 2007,

when the currency market was liberalised

completely. We do not plan to abolish such regulations.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin.

 

I think it's time we returned to regional

questions. I would like to say that when we were

preparing for today's live broadcast, we noted

that nearly one-third of all messages came from

rural dwellers. Most of them are offended that

Moscow does not pay enough attention to rural problems and forgets about them.

 

Our next live broadcast is from the Maisky state

farm in the Tatarstan Republic's Zelenodolsky

District. Our correspondent, Yevgeny Rozhkov, is working there.

 

Yevgeny, you have the floor.

 

YEVGENY ROZHKOV: Good afternoon, Ernest. Good afternoon, Mr Putin.

 

VLADIMIR PUTIN: Good afternoon.

 

YEVGENY ROZHKOV: Indeed, this is the Maisky

greenhouse farm in Osinovo village, Tatarstan. I

am surrounded by greenhouses that cover a huge

area of 50 hectares. The farm grows cucumbers,

tomatoes, and vegetables without any chemical additives.

 

As you can see, everyone here is wearing a white

gown or other uniforms. I want to assure: We did

not tell our workers to put on these clothes just

for the sake of this live broadcast.

 

We would not be allowed to work here without such

uniforms, because every greenhouse has its own

micro-climate and humidity levels. We even have

our own bees and bumblebees flying all over the

place. This is why we are here today.

 

We have a lot of questions to ask. They have told

me that local workers and people from other farms

and Tatarstan districts have come here. Let's hear their questions.

So, who wants to ask a question?

 

LYUSIANA ZAHVATOVA: Good afternoon, Mr Putin.

 

My name is Lyusana, and I am a greenhouse

agronomist. We grow environmentally friendly,

pure, and safe products, but are having trouble

selling our fresh vegetables at stores that are

often overflowing with imported products.

 

Because of this, many greenhouse farms curtail

production. Some of them stop working and are shut down.

 

How can we survive in such conditions? Maybe we

should introduce some tough product-import

standards, making it possible to buy the same

fresh and environmentally sound products. Mr

Putin, what do you think about this?

 

VLADIMIR PUTIN: Judging by your working

conditions, namely, the micro-climate and white

gowns, it appears that the situation at your

company is not very bad, and even good.

 

However, I don't know anything about your

company's economic performance. If you feel that

there are problems, then such problems really exist.

 

What are we doing in this sphere, and what are

our subsequent plans? First, we are trying to

limit red meat, namely, pork, beef, and even

poultry, imports. Surely, you know about this.

 

We cannot stop such imports or bring them down to

critical levels because, frankly speaking, our

agricultural sector is still unable to fully meet the demand of large cities.

 

We must heed the interests of agricultural

producers and consumers, especially those in

large cities, so that our actions in the

customs-tariffs sphere do not cause sharp and unjustified food price hikes.

 

As far as the plant-growing sector is concerned,

the Government regularly and annually introduces

additional seasonal restrictions precisely when

our agricultural producers are offering their products on the market.

 

Nevertheless, if you feel that, judging by your

company's economic performance, this is not

enough, I promise you that the Economic

Development Ministry and the Agriculture Ministry

- I'm sure the heads of the concerned departments

are watching our dialogue - will be ordered today

after our session to once again analyse the

situation with imported plant-growing sector

products and to submit the relevant proposals.

 

ERNEST MACKEVICIUS: Could Tatarstan stay on the

line, please? I think we have related questions

from Moscow. Dmitry, you have the floor.

 

DMITRY SEDOV: People in this part of the room

want to ask about agriculture. There is a lot of

interest here. I hope we will soon know exactly

what the people want to ask, for example, in this

row, I've seen raised hands there.

 

Please, introduce yourself.

 

NIKOLAI PUSTOVALOV: My name is Nikolai

Pustovalov, from the Penza Region, a farmer growing grain and sugar beet.

 

This year we have gathered a record large grain

harvest, at a prime cost of 3 roubles per

kilogram, but the market price is 2.70 roubles

now. Where is the 5.50 promised by the

Agriculture Ministry and subsidies for farmers?

 

VLADIMIR PUTIN: The promise is on the market. I

don't know why the promise has not reached you

yet, but I can tell you that we have allocated

over 30 billion roubles, I think it is 34 billion

roubles, to the Agriculture Ministry from the

budget for this purpose. We have purchased 2.5

million tonnes of grain at a price that is above

the market price, at 5,000 roubles, and at 6,000

roubles in the Urals and Siberia. I repeat, we

have purchased 2.5 million and the Ministry is

now buying 5,000 tonnes per week. We will keep up

the pace until we use up all of the allocations.

 

We have recently discussed the possibility of

allocating more funds. In principle, the budget

and the Finance Ministry are ready to do so. The

problem lies with the producers, who are now

asking more often that they be offered affordable

railway tariffs for exporting surplus grain.

 

I repeat once again that we are ready to invest

all of the more than 30 billion roubles to make

purchases on the domestic market, and we are even

prepared to increase that amount. The funds may

not have reached some farms yet, including yours,

but the system is working. I hope you will

contribute to the 500 kilograms to be sold weekly.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin. I repeat

that we have Tatarstan on the line, and can take

one more question from the Maisky farm.

 

YEVGENY ROZHKOV: Your question, please. Introduce yourself.

 

VLADIMIR APAGOV: Vladimir Apagov, a farmer. I

have been working on this farm for 18 years.

 

Good afternoon, Mr Putin.

 

We get a good harvest from our 715 hectares,

increasing quality and working standards, but our

profits are still falling because we are selling

grain below the prime cost. Our only salvation is

potato and vegetables, which we sell at prices

set 10-12 years ago, because nobody buys them at

other prices. But this year fertiliser and fuel

prices have doubled, increasing the price gap.

The main reason for this is the absence of clear

rules of the game at the state level, honest and

fair rules for agricultural producers, above all farmers.

 

So, my question is, will the state participate in

setting prices of agricultural products?

 

And I also have a request from the farmers. We

would like to ask for your personal help in

facilitating adopting programmes and regulations

to help individual farmers and small farms,

because the livings standards in rural areas depend on them.

 

Thank you.

 

VLADIMIR PUTIN: You are right; there is such a

problem, and it has existed for many years. I

mean the disparity of prices in the energy sector

and in agriculture. We have been trying, with

varying success, to solve this problem.

 

This is what we have done this year: we have

allocated an additional 10 billion roubles to

cover the price gap in the fuel sector. If

necessary - we have coordinated the issue with

the Agriculture Minister, who maintains contacts

with agricultural producers - we will analyse the

result and possibly increase allocations in the

first quarter of next year. We have also

allocated additional funds for fertilisers.

 

In general, it must be said that this year we

have nearly doubled allocations under different

agricultural assistance programmes. I'm sure you

know what we have done within the national

project of agricultural development, subsidising

interest rates and establishing different funds,

including regional ones, to support small farms.

 

Another measure is connected with the decision to

refinance 100% of interest rates for certain

types of investment projects in agriculture. And

we will look for other methods of assistance, we will certainly do.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin, and thanks you, Maisky.

 

Back to the telephone group and Maria Sittel.

Maria, what questions are the people asking?

 

MARIA SITTEL: The operators are working

selflessly, with tens of thousands of telephone

calls per second. Not every caller succeeds; the

telephone lines are so busy it seems to me I can feel the ringing vibrations.

 

As for the people who want to ask their

questions, some are extremely persistent. The

operators say one of them is now on the line.

Let's put him on the air. Hello, please introduce yourself.

 

OLEG YAKOVLEV: Good afternoon, Mr Putin. My name is Oleg Yakovlev, from Penza.

 

A terrible tragedy happened in South Ossetia in

August. Is it true you said you were going to hang Saakashvili by the balls?

 

VLADIMIR PUTIN: And why not? Seriously, you and I

know about the tragedy in another part of the

world, Iraq, where US troops were sent under the

far-fetched pretext of searching for weapons of

mass destruction. They have not found the

weapons, but hanged the head of state anyway,

although for different reasons, for exterminating

people in several Shiite villages.

 

The current leaders of Georgia have massacred

innocent civilians in South Ossetia, razing ten

Ossetian villages, as we know, and attacking our

peacekeepers, many of whom have died. Iraq had

not attacked the United States, but Georgia has

attacked our servicemen who were doing their duty

under international commitments. Many of them

died, and someone must answer for this.

 

Moreover, it was a crime not only against Russia

and its citizens and the Ossetian people, but

also against the Georgian people and Georgia. If

not for that aggression, Russia would have

continued to work towards a territorial reintegration of Georgia.

 

But the aggression showed that such efforts are

no longer possible and that we must take other

actions to preclude more bloodshed in the region.

 

In this connection, I think the Georgian people

themselves will make the decision regarding the

responsibility of their politicians whose actions

have had such painful and dramatic results.

 

ERNEST MACKEVICIUS: Mr Putin, we have a response

in that section of the hall where Anna Titova is working.

 

ANNA TITOVA: Ernest, we have here rescue workers

and specialists from the Disaster Medicine Centre

who worked in South Ossetia during the war.

Obviously, they have something to say. Let's give them the floor.

 

ERNEST MACKEVICIUS: Yes, please.

 

V LERY SHABANOV: I am Valery Shabanov from the

Zashchita Disaster Medicine Centre.

 

We were in South Ossetia when those events

happened. As we left, active efforts started to

restore the damaged hospital in Tskhinval.

 

To be frank, the people of Tskhinval consider

that hospital to be a litmus test of Russia's

ability to stay there till the end and to facilitate their self-determination.

 

Won't we have to go there once again on schedule

and provide medical assistance to ordinary Tshkinval residents.

 

Thank you.

 

VLADIMIR PUTIN: Speaking of Russian support, you

know that we have signed mutual assistance

treaties with South Ossetia and Abkhazia. This is

the best guarantee of the fact that Russia does not plan to leave this region.

 

Given the desire of these states' citizens, we

will be ready to provide any aid even at this

difficult time of the global financial crisis.

 

Our budget reserves sizeable allocations for

restoring South Ossetia. The funding has been

reserved in the budget and will be used for this purpose.

 

ERNEST MACKEVICIUS: The number of calls to the

studio has increased considerably. Maria, we are

waiting for information from your call centre.

 

MARIA SITTEL: Yes, let's try to promptly contact

our viewers. If I am not mistaken, we have

received a call from Nizhny Novgorod. Hello, can you hear us?

 

Hello!

 

OLGA MIKHAILOVNA: Yes, this is Nizhny Novgorod.

 

Good afternoon, Mr Putin. I am Olga Mikhailovna from Nizhny Novgorod.

 

Our Mayor Vadim Bulavinov has decided to shut

down local milk kitchens for children. Is this a

good birth-rate incentive? What are we to do? Please, help us.

 

VLADIMIR PUTIN: Frankly speaking, I don't know

why the Mayor of Nizhny Novgorod has decided to

shut down these milk kitchens. Although municipal

authorities have the right to make this decision, I think it was unjustified.

 

I believe people should react accordingly

because, under current legislation, the mayors of

municipal entities, including such cities as

Nizhny Novgorod, are elected through universal

suffrage by secret ballot. Such elections involve

the populations of their territories.

 

Municipal leaders would feel the people's

reaction during subsequent elections, unless they respond to their concerns.

 

Naturally, we will advise the Mayor of Nizhny

Novgorod, all other top municipal officials and

the regional Governor to support the people and

not to create additional problems for them without good reason.

 

They should not force people to buy baby food at

local stores. Although some might want people to

spend their money on this market, but they must

think about ways of supporting families with

children, rather than about the sales market for foreign producers.

 

MARIA SITTEL: Let's handle some more telephone

calls. We have received a call from Buryatia. What's your name?

 

DASHA VARFOLOMEYEVA: Good afternoon, my name is Dasha Varfolomeyeva.

 

VLADIMIR PUTIN: Hello, Dasha.

 

DASHA VARFOLOMEYEVA: Hello, Uncle Volodya. We'll

be celebrating the New Year soon. We live on our

grandmother's pension. There is no work in our

village. My sister and I are dreaming of new

dresses. May I ask you to give me a

Cinderella-style dress? You would be our "fairy

godmother" if you fulfill our wish.

 

Thank you.

 

VLADIMIR PUTIN: Dashenka, I heard you. And I

think that you and other children, not only in

Buryatia but all across the nation, must have a

wonderful time celebrating Happy New Year.

 

Grownups must do everything in order to fulfill their wishes.

 

As far as the dress and other New Years gifts are

concerned, this is a natural wish. Still I think

it would be better if you thought about what your

grandmother needs for New Year's Eve, rather than just about your own needs.

 

Let's see what we can do for you and your sister.

I invite you, your sister and grandmother to

celebrate New Year at a Christmas-tree party in

Moscow. When you come, we'll decide all about gifts.

 

ERNEST MACKEVICIUS: Maria, let's ask another

question from the information processing centre.

 

Maria, do you have any more questions?

 

MARIA SITTEL: Let's try and put this telephone call through.

 

If you can hear us, please tell us your name. Where are you from?

 

QUESTION: Good afternoon, this is Abakan in the Khakasia Republic.

 

Good afternoon, Mr Putin.

 

The State Duma has amended the Criminal Code and

has introduced tougher punishment for pedophiles.

Why haven't these amendments been adopted to

date? Do they have lobbyists there?

 

VLADIMIR PUTIN: What can I say? This is a grave

and terrible crime. Frankly speaking, we must

focus on the protection of children's health and lives.

 

If I am not mistaken, the Russian Criminal Code's

article 132 envisions punishment for rape and

sexual harassment. The article's part three deals

with aggravated crimes, regulates this sphere

with regard to minors and stipulates prison terms

of between eight and 15 years. On the whole, this article must be enforced.

 

I know that we can and must discuss tougher

penalties for such crimes which have increased

all over the world and in our country. We could

also increase minimum and maximum sentences.

 

State Duma Speaker, Boris Gryzlov, should be

sitting in this hall. I proceed from the premise

that State Duma deputies will think about your

question. We will work out decisions matching the

current threat during our dialogue with the public at large.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin. Now let

us allow guests in this studio to ask their

questions and then will go back to the regions. Mr Rovnov, go ahead, please.

 

PYOTR ROVNOV: Good, Mr Mackevicius. In our

section men have already asked questions. Now

let's give the floor to ladies. Judging by your

expressions, you have many questions for Mr Putin.

 

VALENTINA PIVNENKO: Good afternoon, Mr Putin. My

name is Valentina Pivnenko, I am from the

Republic of Karelia, head of the public reception

office of the United Russia party, and a State Duma deputy.

 

Today, at a time of global financial crisis,

which has also, unfortunately, affected Russia,

it is very important to support small business,

as has already been said. It seems to me more

attention should be paid to the taxation

authorities, which in these conditions must

fulfil not only a fiscal function, but also act

as advisers to help small-business leaders, who

are in effect an administrator, a production

engineer and a financier all rolled in to one, to

conduct their business the right way so that this

form of production ensures full employment in crisis conditions. Thank you.

 

VLADIMIR PUTIN: You are right, of course. Small

and mid-sized businesses are no doubt very

flexible forms of economic management and the

quickest to respond to changes in the labour

market, and in these conditions, complicated by

the global financial system, deserve the closest attention and support.

 

I will say that the Government is preparing a

series of moves, which are as follows: first, we

will substantially increase federal budget

support, raising it to 10.5 billion roubles;

then, additional funds will be allocated by

Vneshekonombank - 30 billion roubles; we will

also preserve all former types of support for small and mid-sized businesses.

 

We have taken a decision allowing the regions to

adopt a simplified procedure and to reduce

small-business taxes from 15% to 5%; regional

funds for support of small businesses and

micro-crediting funds that issue loans of between

200,000 roubles and one million roubles will

continue to operate. All these things taken

together - and if necessary, we are ready to

allocate additional resources - must, in our

view, have a substantive influence on the

development of small and medium-sized entrepreneurship.

 

Incidentally, as I have mentioned, even when a

bank grants big loans, we stipulate that a

certain part of the resources should be used to

support small and mid-sized businesses. There

have already been questions about support for

small and mid-sized entrepreneurship in rural

areas. I must say and repeat that we have

allocated considerable resources for the

additional capitalisation of Rosselkhozbank and

Agroleasing. The sums are measured in billions of

roubles. For Agroleasing, it is four billion, and

for Rosselkhozbank, tens of billions. They must

all be invested in agricultural entrepreneurship.

 

In the case of other system-forming banks, and in

general a system of banks that meet certain

requirements, of which there are over 120, these

resources will be allocated on condition that

they are channelled into support of small and

mid-sized entrepreneurship. The same kind of

programmes will be prepared in the Russian regions.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin.

 

We continue our contacts with the cities. We are

in touch with the studio "Conversation with

Vladimir Putin." It is your public reception office in Saratov.

 

This is our correspondent Maria Morgun in Saratov. Please, go ahead.

 

MARIA MORGUN: Saratov extends its greetings to

Moscow. Good afternoon, Mr Putin. Good afternoon, Mr Mackevicius.

 

I am at the United Russia public reception office

in one of the most beautiful cities of our

country. Saratov is an ancient city and sprawls

on the high right bank of the River Volga. It has

well developed agriculture and industry. Also,

Saratov is a large educational centre in the

Volga area. It educates specialists at more than

ten institutions of higher learning.

 

And yet its population is not very large, just

under a million. And each has his problems and

concerns, and for almost six months now they have

been able to come to the public reception office

here with their questions. We have counted that

the office receives more than 200 applications

daily and, of course, all of them are examined.

But today, the people of Saratov have a unique

chance to communicate directly with you, Mr

Putin. You can see a lot of people gathered here.

I will not take their time. We would rather go over to their questions.

 

So who wants to ask his or her question?

 

SERGEI: Good afternoon, my name is Sergei. I am a

student Saratov State University. I have a question to you, Mr Putin.

 

You are the Prime Minister and the leader of

United Russia. How do you manage to combine these

two top positions? Do you have enough time and

stamina for that? How does the work in these two

positions help you resolve vital national tasks?

 

VLADIMIR PUTIN: The Government's reliance on the

leading political force in parliament is standard

practice on a global scale, but this is not even

the point. The matter is that without such

support in parliament, the Government would be

unable to function as one, not to mention

function effectively. It is particularly

important now to make quick decisions, to react

without delay to the events which are taking

place in the world economy and world finances,

and hence, in this country as well.

 

To be honest, we are often late. If there were no

cooperation with parliament's political mainstay,

the situation would have been much worse. Now I

would like to recall the recent parliamentary

election campaign, and to thank the voters for

their choice because now we have created an

effective mechanism of responding to the events

taking place in this country and the rest of the world.

 

The formation of this mechanism is crucial, and

we will certainly try to use these opportunities

adequately, and in full measure.

 

As for the time, the party itself has already

established a pattern of performance. It has its

own mechanism which I think should be improved. I

have said this many times. This applies to the

party's administration and the membership drive

for competent people who are interested in the

development of the regions and the country as a

whole, including young people, people like you.

 

ERNEST MACKEVICIUS: Maria, we are waiting for your questions.

 

MARIA MORGUN: Moscow, please, allow one more

question from Saratov. Who wants to ask a

question? Please, introduce yourself first.

 

OLGA SAVELYEVA: Good afternoon, Mr Putin. My name is Olga Savelyeva.

 

I am a single mother. My daughter is 16. She

studies in the 11th grade, this is her final

year. I work at the radio-electronics plant, the

Kontakt plant with billions in sales. These days,

they have announced layoffs because of the

crisis. Out of its 4,000 workers, 1,500 will be

dismissed. I have worked as a production engineer

for more than 20 years, and my salary grew from

6,000 to 8,000 roubles, but now it is being

reduced. I am afraid I may lose my job.

 

Mr Putin, how will you deal with massive unemployment?

 

VLADIMIR PUTIN: I'm still hoping that we won't

have massive unemployment. Although looking at

the labour market, we can, of course, expect more

people to lose their jobs for some time. Now we

have about 1,700,000 registered unemployed, and

this number will be a little over two million.

 

It goes without saying that we should react

accordingly. I've already spoken about this. But

this is an important issue, and I will say it

again. We will earmark additional funds from the

federal budget to the Federal Employment Service,

I think from 10 billion to 50 billion roubles, to

enable it to react quickly, and operate in several directions.

 

First, it should use the labour market downturn

to prepare employees for the next cycle of

economic upsurge, for the advance of individual

industries of the world and national economy, to

invest with businessmen and regions in establishing retraining centers.

 

Second, it should help people get jobs in

neighbouring regions to facilitate labour migration.

 

Third, it should encourage major companies to

carry out their projects primarily in problem

regions. This applies to the construction of

infrastructure, roads and railways, and the building industry as a whole.

 

Finally, we have raised unemployment benefits

considerably, to 4,900 roubles. I've already said

that this is an extreme measure but I consider it

justified. This is a tangible sum, if we recall

that the pension is 4,500 roubles. I understand

that a person will receive this money for a

rather short amount of time, not for life. But

the regions and the Federal Employment Service

must tackle this problem without delay.

 

ERNEST MACKEVICIUS: Thank you, Saratov.

 

We are returning to Moscow, to the studio of the

question-and-answer session in order to listen to

the questions of the audience.

 

Who is ready to ask a question?

 

ANNA TITOVA: Some people are very active. They

have raised their hands many times, so let them have a go.

 

I see that you have a Certificate of Merit.

 

IRINA SOKOLOVA: Good afternoon, Mr Putin. My name

is Irina Sokolova. I head the party chairman's

public reception office in St Petersburg.

 

The results of the contest for the best public

reception offices in federal regions have been

summed up, and now the winners have received

certificates of merit from you as the party chairman.

 

On behalf of all winners of the contest, I would

like to express my heartfelt gratitude to you for

your support, and for appreciating our work. I

would also like to ask a question.

 

Could you please say what major tasks are you

setting for the party, regional party

organisations, and for public reception officers

for the next year in the context of the mounting financial crisis? Thank you.

 

VLADIMIR PUTIN: You know, I've already spoken

about this at the United Russia congress. Would you like to add something?

 

VLADIMIR DERBIN: Mr Putin, I would like to add a

few things on this subject. I'm Vladimir Derbin,

chairman of St Petersburg's and the Leningrad Region's trade unions.

 

I would also like to ask you a question on this

subject. What is your attitude as the Prime

Minister and the party's chairman to trade unions

in light of the crisis? This is important for

social stability, especially in the workforce. Thank you.

 

VLADIMIR PUTIN: I will start with the last part.

I think that the trade unions have started

carrying out a natural function in this country,

which is very important for them. I mean

defending the interests of working people. They

have stopped being some school of communism, or

something else. This is an entirely different

sphere of activities. They have stopped being a

political appendage of some party, but have begun

fulfilling an independent function. Responsible

conduct of trade unions is very important, very

much in demand. "A pike lives in the lake to keep all fish awake."

 

Trade unions should be very sensitive to what is

taking place in the labour market. You see how

many anxious questions have been asked here

today. But I proceed from the premise that trade

unions will not be involved in the nuts and bolts

of politics. I expect them to have responsible

professionals who formulate their demands based

on the real situation in the economy, and on

budget potential. Up to now we have found

mutually acceptable solutions in the interests of

the Russian people although our dialogue was not

easy. I hope we will be able to do this in the future, too.

 

In the same context, I consider it necessary to

set the tasks for United Russia, and for the

public reception offices. They were set up in

proper time. The goal was to put the party

agencies to the fore so that people would know

where they could go with their concerns, and to

prevent an attitude of dismissal. The goal was to

enable United Party agencies, including the

public reception offices to do all they could to

respond to arising problems in a timely manner;

to allow them to cooperate with the local or

regional authorities, and if need be, to contact

directly the government or party agencies in

Moscow and find solutions together.

 

Let me repeat that we have all opportunities for

that. All we have to do is decrease the attitude

of not caring, and to be responsive to the

problems of the man-in-the-street who faces difficult problems today.

 

Incidentally, despite a difficult dialogue with

the tripartite commission, we have managed to

find mutually acceptable solutions so far. I hope

that party agencies will facilitate this work.

 

ERNEST MACKEVICIUS: Thank you very much, Mr

Putin. Judging by what I see on the monitor

screens, the load on the information-processing

centre is not diminishing. How are you coping, Ms Sittel?

 

MARIA SITTEL: Yes, the load is tremendous, Mr

Mackevicius. No time for rest. I think we have

crossed an important psychological barrier: 2.2

million communications, including 1.5 million

telephone calls and just over 600,000 text

messages. The rest is from the Internet.

 

Despite the time difference, calls are coming in

from all corners of our country. Now let us choose this call on our line.

 

Good afternoon, introduce yourself. Is this Moscow?

 

YELIZAVETA KUZNETSOVA: Yes, this is Moscow. My

name is Yelizaveta Kuznetsova. Good afternoon, Mr Putin.

 

I find it strange that while many people are now

being laid off, you, as far as I know, have

recently approved new quotas for foreign

workforce. It also appears that our companies

dismiss their workers and hire guest workers who

are unskilled and may be paid less. But look at

Belarus, it does for itself without any guest

workers. Also, we are concerned about our national security.

 

Thank you, Mr Putin.

 

VLADIMIR PUTIN: Ms Kuznetsova, such a problem

exists, and it is due to the fact that our

country has practically no borders with CIS

countries, we have a visa-free regime, and it is

very simple to enter Russian territory. Even when

we clamp down certain restrictions, they are easily overlooked.

 

We have, for example, introduced a visa regime

with Georgia, and still the number of Georgians

who live and work in Russia is not decreasing.

They may enter Russia via Belarus, where they do

no meet with such restrictions.

 

The quotas you mentioned are set up at the

regional level, in the Russian regions, including

by the Moscow authorities, and sent up to federal

services. It is true, though, that their request

is now put together and totals, I think, over three million people.

 

The actual number of foreign nationals working in

Russia and living on its territory is much

larger. We estimate it at over 10 million. Of

course, both in the Russian regions and at the

government level, we must think about how to regulate these issues.

 

I won't digress too much now and spell out all

possible scenarios for our behaviour. In the

existing conditions, however, I believe you are

right in posing this question, although many

regional leaders and heads of businesses complain

that even when foreign workers are denied hire,

and despite cuts on the Russian labour market,

Russians still cannot be found to fill the jobs

vacated by foreigners. Our people do not agree to

do the work for which our businesses hire foreign workers.

 

Nevertheless, knowing the difficult situation on

the labour market, I believe you were right to

raise this issue. We have not yet approved these

quotas, in fact, they are barely formed, so I

believe it would be justified to cut these requests by at least 50%.

 

ERNEST MACKIEVICIUS: Ms Sittel, we are still

awaiting communications to the Prime Minister

that come in not only through telephone channels,

but also via the SMS service and the Internet.

 

MARIA SITTEL: A few seconds ago, I received the

following text message: "Mr Putin, stay strong,

we are with you." A pleasant remark.

 

A question from the website: "Since December 1,

public sector organisations have shifted to a new

system of work payment, and it now appears that

salaries of state-sector personnel depend on the

boss. Will it not occur that if the boss likes

you, your salary will be large, and if not, it will amount to peanuts?"

 

VLADIMIR PUTIN: This is a fair question. At the

same time, firstly, I want to remind you that the

Government, the trade unions, and the employers

have found the move to a new system of work

payment and abandonment of the tariff scale a

progressive step aimed at raising pay. On

December 1 - for starters, I will return to the

question of whether we will fulfil all our

commitments - we increased the wage and salary

bill for the federal sector by 30%. Despite all

crises, we fulfilled our promises.

 

Now, concerning the dependence of staff on the

boss: such dependence exists, but I do not think

it will be determined by the willingness of the

person at the top, because it is mutual

dependence: firstly, we formulated and approved

rules that determine the size of pay for basic

personnel and, secondly, made the salary of the

manager dependent on the average wages and

salaries of basic personnel, an important factor in the measures being taken.

 

We already have cases on record, and not single

cases, when business managers, after fixing their

personnel average wages, became aware that their

own personal incomes depended on this average

wage, and have more than once, in fact twice,

thrice, and some four times, applied to the

Government asking to upwardly adjust the pay of

their basic personnel. This has proved to be a

very serious mechanism, influencing both

increased pay and a fair assessment of an

individual's contribution to the common labour effort.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin. Now let

us listen to the audience again, which is getting increasingly active.

 

Mr Rovnov, do the guests in your section have any more questions?

 

PYOTR ROVNOV: Yes, of course, there are more than

enough of these, and I see many who are willing to ask them.

 

Please, introduce yourself.

 

VIKTOR GALYSHEV: I am Viktor Galyshev, from Krasnoyarsk.

 

Mr Putin, you must remember how we discussed the

problems of United Russia over a cup of tea in

Krasnoyarsk. Being young and energetic, you said

that you could still work more, and now you are

the party leader. What has changed since then?

 

VLADIMIR PUTIN: I have already said that party

leadership is an important factor, but it is far

more important that I, as Prime Minister and

leader of the party, have the possibility of

relying on the United Russia majority in the

State Duma. This enables me to implement

long-term decisions and promptly respond to

problems as they arise. That is the first point.

 

The second point is that the party itself is

changing. This does not happen as quickly as one

would like it, but we are still creating

mechanisms that make it possible, in today's

conditions, to more promptly react to processes,

including negative ones, in economic and social

affairs. I also refer to the establishment of

public reception offices in the Russian regions.

We will continue improving the work of this

public organisation, which, in my view, is

becoming increasingly significant, as well as

strengthening the country's multi-party system. I

believe party pluralism is an important element

of democratic institutions in present-day Russia.

 

PYOTR ROVNOV: Pardon my short question: what is

your occupation, given that you met with Mr Putin

over a cup of tea in Krasnoyarsk?

 

VIKTOR GALYSHEV: I am an industrial engineer. Mr

Putin and I have met more than once.

 

ERNEST MACKEVICIUS: Thank you; and thank you, Mr Putin.

 

We have the public reception office in Rostov on

the line, and my colleague, Igor Kozhevin. It's your turn, Igor.

 

IGOR KOZHEVIN: Good afternoon, Mr Putin, and good afternoon, Ernest.

 

More than 2,000 people have come to the public

reception office in Rostov which opened three

months ago. Today is Thursday, a reception day,

but it is different because of this session. The

form is different, but the essence has not

changed: people who have questions have come

here. I think we should give them the chance to ask their questions.

 

Let's decide who wants to speak. You were the

first, I think. Please, introduce yourself.

 

OLEG GORBUNOV: Good afternoon, Mr Putin, God be

with you and keep working to our benefit.

 

My name is Oleg Gorbunov and to the left of me is

my wife. We are both 70 and our combined length

of service is 90 years. Our pension is 9,000

roubles. Unfortunately, we have health problems

and also problems with high and growing tariffs

and the cost of medicine and food, including vitamins.

 

Here is my question. When will people in Russia

have sufficient pensions that will grow ahead of

inflation, not lag behind it? I think this question worries many pensioners.

 

And one more, small question: will the retirement age be raised?

 

Thank you.

 

VLADIMIR PUTIN: I agree that our pensions cannot

be described as sufficient. By the way, we have

been working and will continue working to raise pensions.

 

Second, pensions have been growing faster than

inflation. I agree that prices and tariffs are

growing too, but when I said pensions would grow

12% next year, I meant growth minus inflation. Of

course, our pensions are not sufficient, they are

small, but they are still growing faster than

inflation. We will try to keep up the pace.

 

We have several types of pensions. One is a

social pension granted to citizens who do not

have the required length of service, and the other is a labour pension.

 

The social pension should be increased to

pensioners' subsistence pay by the end of 2009.

 

The labour pension is slightly larger than the

pensioners' subsistence pay in absolute figures, but this is still not enough.

 

Therefore, we will take additional measures next

year to raise pensions. They will be raised three

times - the basic pension twice and the

non-funded pension once. If inflation grows too

fast, we will increase the non-funded pension

twice. On the whole, we plan to raise pensions by

approximately 34% next year, and this is not all.

 

The main thing is to ensure stable revenues for

the pension system for the long term, which is

why we plan to reform it. In 2010, we will

reassess the pension rights of those Russian

citizens who retired in the Soviet period. They

will get a 10% increase plus a 1% increase per each working year since 1991.

 

We will use different criterion to do so.

Yesterday I discussed the issue with the

ministries of healthcare and social development,

finance, and economic development. The increase

will be 1,700 roubles on average beginning in 2010.

 

We will continue working to strengthen the

accrual part of pensions. I know that there may

be questions, and I am prepared to answer them.

But this is long money, so don't be alarmed if

they do not produce the desired effect

immediately. This money is expected to start

working effectively in 15 or even 20 years. I am

sure that all of you know that the trend will

resume growth despite the global economic crisis

and problems in the Russian economy and this money will be used effectively.

 

In short, we will do our best, and I am confident

that we will ensure sufficient pensions for those

Russians who attain the retirement age in 2010.

We will ensure that their pensions will be

equivalent to 40% of the reference wage. This is

fully in keeping with global and European

standards as stipulated by the International Labour Organisation.

 

ERNEST MACKEVICIUS: Igor [Kozhevin], let's have

one more question from Rostov-on-Don.

 

IGOR KOZHEVIN: Of course. There are about 60

people in the United Russia's reception office,

and I think they have more questions.

 

ANATOLY SIMONOV: Good afternoon, Mr Putin. My

name is Anatoly Simonov, a lieutenant-colonel of

the Space Force reserve. I have a small business in high-tech.

 

It is indeed high-tech, I would even say space

technology, because we install space

communication stations and also deal with

information technologies and Linux-based software.

 

Taking into account everything that has been said

here today, I have a question. The Government

plans huge investment in social projects, but how

is it connected with the interests of small

businesses? Won't some officials, notably the tax

officials, be tempted to increase pressure, the

tax pressure, on small business by imposing fines

and other conceivable duties on them? We might

not survive under those conditions.

 

The trouble is that this may be a time of

historic import, when not only the state can help

small business now that personnel dismissals are

planned, but small businesses can also help the

state create new jobs, find employment for

retired servicemen, such as me, so that we harmonise our relations.

 

I'd like to hear your opinion on this issue.

 

VLADIMIR PUTIN: I don't think it is a coincidence

that the issue of small and medium-sized

businesses has surfaced for, I think, the third

time today. I fully agree with you that small and

medium-sized businesses can quickly and

efficiently react to events in the economy and

the labour market, and can quickly create jobs.

This is why we are working on a system of federal

and regional measures to support small and

medium-sized businesses. I will enumerate them now.

 

First, the regions may reduce taxes to 5% from 15%.

 

Second, we will continue to co-finance and help

the regions maintain their funds. I am referring

to the microfinancing of SME support funds which

have been created and whose capitalisation will be increased.

 

We will allocate additional funds from the

federal budget, 10.5 billion roubles, and we will

provide money through Vnesheconombank - 30

billion roubles, an incredible sum in the past.

 

I must say that I see no reasons for your

concerns regarding the tax services. On the

contrary, I expect the tax services and the

regional authorities which can influence SMEs to

do their best to support small and medium-sized businesses.

 

The task now is to ensure access to the premises

used by small and medium-sized business,

liberalise such access, prolong lease contracts,

and ensure access to electricity and heat

systems, and the like. As for what you said, the

work of small and medium-sized business in high

technologies will enjoy special support from the state.

 

If we take into account the measures we plan to

ensure stability of the pension system, small

businesses will not feel any increase in the tax

burden under any development scenario. We will

work for this and with this goal in mind.

 

ERNEST MACKEVICIUS: Thank you, Rostov. Thank you, Igor.

 

Let us now switch to the Moscow studio - or the

people who have come here will feel ignored.

 

ANNA TITOVA: The front rows have long been silent. Please let them speak.

 

LARISA TARASYUK: Good afternoon, Mr Putin. I am

Larisa Tarasyuk from Shchelkovo in the Moscow Region.

 

My daughter is finishing school next year, and

will have to pass the Unified State Examination,

around which opinions are still clashing. The

10th and 11th grades put an emphasis on tedious

cramming for tests, at the expense of oral speech

and ratiocination. This is alarming. Why are we

giving up our fine educational traditions so easily?

 

VLADIMIR PUTIN: I know what worries experts,

graduates, and their parents. The Unified State

Examination has its pros and cons, and I don't

want to join either its critics or supporters.

 

On the whole, the arrangement works and reduces

corruption in enrolment for higher education.

Statistics prove that point - the number of

students at the best Russian universities from

remote parts of the country has grown by 10%.

 

I think you are right to say that we should not

give up previous achievements by selecting the

most brilliant applicants to the best universities.

 

However, there are some ways of such selection

now - enrolment through school competitions,

contests, and the like. This system is viable, and we shall promote it.

 

PYOTR ROVNOV: Ernest, the young man next to me

has come from Yakutia. He has a burning question

to ask, as far as I know. Shall we give him the floor?

 

ERNEST MACKEVICIUS: Yes. Please introduce yourself.

 

ANDREI MARTYNOV: I am Andrei Martynov from the

Coordination Council of Young Scientists and

Specialists of the Republic of Sakha (Yakutia). It is a public organisation.

 

Mr Putin, I want to ask you about interethnic

relations in Russia. A gang of skinheads brutally

murdered my fellow countryman, prominent chess

player Sergei Nikolayev, in Moscow. The crime

widely resounded in Yakutia and far outside it,

yet the sentence was rather lenient. Is there a

chance for toughening the laws on such crimes?

Should we Russians feel harassed and hunted down

when we come to Moscow, the capital of our country?

 

How, do you think, can extremism be prevented? Thank you.

 

VLADIMIR PUTIN: I have spoken often on this

issue. Now I shall say what I think of it once again.

 

Russia has become a great power solely through

its tolerance toward the ethnic entities that

populate it. Russia will remain a great power if

every ethnic entity, however small, feels at home

in it. The stupid people who violate this

principle thinking that they stand up for ethnic

Russians' interests really are doing them irreparable damage.

 

Only one response is possible here. It is much

more important to make punishment inevitable than

to toughen it. I strongly rely on our community

for an explicit expression of intolerance to such

outrages. Our law enforcement system will be

effective and bring criminals to justice in time.

The Moscow City Court is hearing one such case today, as far as I know.

 

ERNEST MACKEVICIUS: Mr Putin, let us answer

another question from the studio before we switch to Nalchik.

 

The right stall - Dmitry Sedov's, please.

 

DMITRY SEDOV: I am ready, Ernest.

 

I see a hand lifted. Please introduce yourself and ask your question.

 

ROMAN GREBENNIKOV: Good afternoon, Mr Putin. I am

Roman Grebennikov, the mayor of the heroic city of Volgograd.

 

My city stretches along the Volga bank for 89

kilometres, yet to this day, it has no bypass

motorway. What we call the Third Lengthway has

only a part of the northern stretch, built in

2001. The southern, most important, stretch,

about 40 kilometres long, is absent, causing traffic jams and air pollution.

 

How can the United Russia party help my city, a

million-strong in population, to cope with it?

Volgograd will not be able to afford the motorway

single-handed, considering its municipal budget.

 

VLADIMIR PUTIN: A part of the highway is ready,

you say? I think it's a pure economic matter, and

thus should not be entirely rested on a political

party. We should merely reconsider the plans of

relevant federal services and see whether they

correlate to transport development in the region.

 

Many constituent entities enjoy federal support

in such matters because such projects are very

expensive, often too expensive for local budgets, even on a regional scale.

 

We shall come back to the issue. I shall

certainly take it up, and the Road Service will

have a relevant assignment. The governor and I

shall see what must be done to implement the project.

 

ERNEST MACKEVICIUS: Traffic congestion harasses

us Muscovites, too. What can be done about it?

 

VLADIMIR PUTIN: Moscow receives huge allocations

for its transportation network - incomparable to

what other parts of Russia have. Moscow has

considerable budget revenues. Practically all of

Russia's foremost taxpayers are concentrated

here, and almost all energy companies are registered in Moscow.

 

I have discussed the matter with the Moscow

mayor, and I know that City Hall has offered

long-term plans for transportation infrastructure

development for discussion. We shall implement

those plans no matter what. How much money should

come from the federal purse and how much from the

municipal will be settled at the negotiating

table. No doubt, we will make all necessary decisions.

 

ERNEST MACKEVICIUS: This is a hopeful statement. Thank you, Mr Putin.

 

We have had linkups with Khabarovsk,

Severodvinsk, Saratov, Rostov-on-Don, and the

Republic of Tatarstan. It is Nalchik's turn now.

 

My colleague Ilya Kanavin is working in

Kabardino-Balkaria. Take the floor, Ilya.

 

ILYA KANAVIN: Good afternoon, Ernest. Good afternoon, Mr Putin.

 

Nalchik is the capital of Kabardino-Balkaria. I

think you can see that we are in a wrestling gym.

It is the republic's Record Sport School. The

North Caucasus has a special penchant for

wrestling. The school offers classes for all

tastes - Greco-Roman, freestyle, judo, karate,

and other kinds of wrestling. Many children and

adolescents study here. This school brings up

champions who do extremely well in contests.

Russia owed a great part of its sport glory to

North Caucasian and other Caucasian wrestlers at

competitions of all levels for many decades.

 

Here are weightlifter Khadzhimurat Akayev,

Beijing Olympics bronze medal-winner, and Olympic

champion wrestler Aslambek Khushtov, I cannot

help but let him ask his question.

 

Take the floor, Aslambek.

 

ASLAMBEK KHUSHTOV: Good afternoon, Mr Putin.

 

VLADIMIR PUTIN: Good afternoon.

 

ASLAMBEK KHUSHTOV: By the way, I am a member of the United Russia party.

 

I talked about the continuity of generations. As

far as professional sports are concerned, we can

see the state's support. But we are seriously

concerned about the training of young athletes.

Surely, mere enthusiasm is not enough here.

 

VLADIMIR PUTIN: You are absolutely right. Last

decade, primarily in the early and mid-1990s, the

system of sports schools for children and

teenagers was discontinued. This is obvious: We

have lost a lot of professional coaches and must

now reinstate these programmes.

 

Although we have made some strides in the last

few years, it is not enough. We will step up

these efforts despite all difficulties.

 

As you know, large-scale projects are being

implemented. In effect, we have started

reinstating such major events as the Golden Puck

and Leather Ball junior-league hockey and

football tournaments. All-out competition

involving rural young people and even the

All-Russian Rural Youth Sports Games are also

being held. I attended one of these events. These

are truly large-scale projects.

 

I repeat that we will step up these efforts and

will do our best to restore the prestige of coaches' work.

 

The number of sports facilities and swimming

pools has increased considerably. Although you

are a wrestler, you are obviously interested in

other sports that amount to a healthy lifestyle.

Sports benefit boys, girls and all Russian young people.

 

We are implementing a football-field construction

sub-programme under the federal target

sports-development programme. We are doing this

in conjunction with the Russian regions. This

implies construction of small football fields and large stadiums.

 

All this is part of our plans which will not be downsized.

 

ERNEST MACKEVICIUS: Thank you. Ilya, let's put

through another question from Nalchik.

 

ILYA KANAVIN: I think the boys should have a chance to speak.

 

What are your names?

 

IDRIS SUMAYEV: Good afternoon, my name is Idris

Sumayev, a student at school 16 in Nalchik.

 

My friends and parents have talked a lot about

the war in South Ossetia and are deeply upset in

this connection. What if the West decides not to

hold the Olympic Games in Sochi under the pretext

of the South Ossetian war? Will there be enough

funding to prepare for the Olympics?

 

KERIM KHULAMKHANOV: My name is Kerim

Khulamkhanov, a student at school 16 in Nalchik.

It is now possible to ski and ride on snowboards

in the foothills of Mount Elbrus. Wrestling is not the only local sport.

 

VLADIMIR PUTIN: Yes, I know that it is possible

to ski there. I've been to Kabardino-Balkaria

many times. I have skied in Cheget and Elbrus, which are wonderful places.

 

Although we must accomplish a lot in order to

improve the infrastructure of these resorts, the

local environment is very good.

 

As far as the Olympic Games are concerned, the

International Olympic Committee, rather than

politicians, makes such decisions. I hope very

much that as was in previous decades, the

International Olympic Committee's activities will

not be politicised. This is the first thing.

 

Despite the attempts of some Western politicians

to defend their clients in the Georgian

leadership who launched a bloody aggression

against South Ossetia, people are becoming

convinced that incumbent Georgian leaders are

responsible for this aggression and the bloodshed

that took place in the North Caucasus and its

southern sector, South Ossetia. I believe this

trend will become more pronounced.

 

This is why I see no reason to revise the

International Olympic Committee's decisions to

organise and hold the 22nd Winter Olympic Games in Sochi in 2014.

 

We have allocated financial resources for

conducting the required preparatory work. These

allocations will not be reduced; and we will implement all our plans.

 

At the same time, I would like to stress once

again that most allocations will be spent on the

regional infrastructure's development, rather

than Olympic-facility construction. The

population of the Krasnodar Territory, Sochi

residents, as well as holiday visitors from all

Russian regions will be able to use that infrastructure in summer and winter.

 

ERNEST MACKEVICIUS: Thank you, Mr Putin.

 

Thank you, Nalchik.

 

Thank you, Ilya.

 

We have been broadcasting live for almost three

hours. We are now switching to the

information-processing centre where Maria Sittel is working.

 

Maria, you have the floor.

 

MARIA SITTEL: Before we give any statistics on

the number of telephone calls and SMS messages,

let's listen to this telephone question on a highly important issue.

 

Bashkortostan, can you hear us?

 

ELVIRA PAYUSHINA: Good afternoon. I am Elvira

Payushina from Karmasan village in the Ufa District, Bashkortostan.

 

I adopted a six-year-old disabled child from an

orphanage. He was born with a tumor on his left

leg. The leg was amputated after he was born. The

child cannot move by himself. Twice a year, we have to ...

 

ERNEST MACKEVICIUS: Unfortunately, reception is very bad.

 

MARIA SITTEL: Thank you. That was Elvira

Payushina who wanted to know about medical

examinations for permanently disabled persons.

 

ERNEST MACKEVICIUS: Judging by what we heard, a

sick child with just one leg was adopted.

 

VLADIMIR PUTIN: If I understand correctly, he has

to undergo repeat medical examinations.

 

Frankly speaking, this is strange because we have

adopted a decision that there will be no more

repeat medical examinations. I am very sorry that

the concerned agencies in Bashkortostan have not reacted accordingly to this.

 

I repeat once again that this issue was settled

in early 2008, and that the Government passed the

relevant executive order abolishing such repeat

medical examinations. I promise you that we will

react to this, and the situation will be rectified.

 

MARIA SITTEL: Thank you, Mr Putin.

 

Let's listen to another telephone call.

 

Your question, please, St Petersburg.

 

ALEXEI NIKOLAYEVICH: Good afternoon, Mr Putin.

This is Alexei Nikolayevich from St Petersburg.

 

I would like to know whether Russia will

establish naval bases in Venezuela and Cuba.

 

VLADIMIR PUTIN: We traditionally maintain very

good relations with Venezuela and Cuba. As you

know, a joint naval exercise involving the

Russian Navy and Venezuelan warships has just ended successfully.

 

There is no need to establish permanent bases

there today. Meanwhile we have reached an

agreement with the Venezuelan leadership, I don't

think that the Cuban leadership would refuse to

abide by its provisions. If necessary, our

warships would be able to enter the seaports of

both countries in order to replenish their food supplies and to refuel.

 

On the whole, we have ample opportunities not

only in those countries that you have mentioned

but at other national seaports.

 

I want to tell you "a great military secret".

When we announced plans to dispatch our warships

to Venezuela for subsequent joint naval

manoeuvres, we were surprised to receive numerous

requests from many other countries asking our

warships to call at their seaports.

 

ERNEST MACKEVICIUS: Maria, do you have news from

the information-processing centre?

 

MARIA SITTEL: Yes, we have news, and not only from the center.

 

Mr Putin, we know by tradition at the end of a

long live session you pick questions yourself.

Without breaking this tradition, we would like to

offer a blitz interview. Here are questions from

the information-processing center.

 

ERNEST MACKEVICIUS: This is a special folder.

 

MARIA SITTEL: Nothing personal.

 

VLADIMIR PUTIN: "You said that there should be no

experiments on people serving in the army, but

experiments continue: elimination of warrant

officers, sweeping layoffs, no pensions, no flats."

 

I think I heard this question from a person who

is here. I have already said that layoffs will

affect only those who complete their service next

year, or whose contracts expired, or servicemen

who were called up within two years of graduating

from military departments, or if vacancies are

reduced. No other cuts have been planned. And for

sure nobody is planning to send people off

without flats and adequate payments.

 

"Good afternoon! Is it true that new money has been issued?"

 

Rubbish.

 

"Why don't we equip the Air Force with fifth generation aircraft?"

 

We don't because we don't yet have them. By the

way, they don't yet exist anywhere. But we are

developing such aircraft, and this work is going

according to plan. I'm sure that the Russian

armed forces will receive such aircraft, and it

would be great if they are built on schedule.

 

This note is about problems in the 42nd division

and the 291st mountainous motorized rifle

regiment. I won't repeat the whole question. And

this is not a question, but a request to pay attention to the problems there.

 

I promise to give this note to the Defence Minister, and response will come.

 

"Good afternoon, Mr Putin. On behalf of all

pensioners I would like to find out whether we

will be deprived of all benefits next year?"

 

No, this is nonsense. Such an idea didn't even occur to anyone.

 

"Please, look into massive dismissals at the

cement plant in Stary Oskol. Its top managers

compel employees to apply for the termination of labour contracts."

 

This is another difficult question but I consider

it important because top managers are compelling

people to terminate labour contracts.

 

I'd like to say right off that businessmen, top

managers of this particular plant or any other

have no right to do this. Employees should not

sign documents terminating their contracts

because if they do this, they will lose the right

to get a dismissal wage, as well as full

unemployment benefits which will be raised to

4,900 roubles starting January 1. If they do

this, they won't receive the money.

 

The bodies supervising the operation of

companies, including the prosecution agencies

should adequately react to this. By the way, we

have already talked with trade union officials

and representatives of the United Russia party in

the provinces, and I recommended they should pay

special attention to these cases.

 

"I have eight children, my eldest daughter is 20.

I have not received the Order of Maternal Glory,

and, hence, I don't get the benefits."

 

It goes without saying I will check on this. I

can't comment on this particular case now, but

this mistake should be corrected. I hope you've

left your address here. We will find you.

 

"What is the Government willing to do to improve relations with Ukraine?"

 

I think that we are doing all we can for this. We

do not raise far-fetched issues like the

Holodomor (famine), politicizing these common

problems from the past. We are doing everything

to promote relations with this truly fraternal

republic. Needless to say, we will do all we can.

Naturally, in the process we will establish fair

interstate relations, in the economy as well. By

fair relations I mean market-based relations.

 

"My niece has only one eye. She had lifelong

disability status before the age of 18, when she

was deprived of it. According to a response to my

inquiry, there was a relevant order in Bashkortostan."

 

I cannot get it. That is, I know that this is

really so, but constituent entities are unable to

issue orders of their own on such matters. It was

a misunderstanding, I think. At any rate, we will

look into it. These issues are up to the Health

Ministry social medical service. The ministry

will be given a relevant instruction today. The

only lawful thing to do about it is to give your

niece adult disability status when she has come

of age. The issue must be settled urgently.

 

"Dear Mr Putin, I found my father's grave killed

during WWII on the Internet." The man asks to

help with restoring the monument, which the local budget cannot afford.

 

We shall contact you. This is a sacred duty of

local and regional authorities alike. If they do

not have enough money, I would stress that the

matter implies not only money but also morals. We

shall help if they cannot afford such things, but

I don't think this is a matter where thrift should come in to play.

 

"We have no school and no art or knitting classes

near our home. The children hope you will help."

 

This is also a matter of regional scope, but we

shall help, as the message has reached me. We shall certainly help.

 

"My request concerns my son, who will be

conscripted next autumn. He dreams of serving in the Kremlin Regiment."

 

Good boy! It's great that he wants to go into the

army. As for the Kremlin Regiment, it has certain

qualifications. I will pass your message along to

the Federal Guard Service, and I believe its chiefs will do something for you.

 

"Mr Putin, thousands of Internet users are eager

for an answer. When will you start your blog and

write at least several lines a day?"

 

You know, the Russian Government has its own

website, and I think it has been working smoothly

enough. If you think it needs some additions, we will willingly make them.

 

By the way, the Health Ministry opened a special

site for visually impaired people yesterday, on

International Day of People with Disabilities.

 

We will continue to ensure that the public has

timely and reliable information about Russian Government work.

 

"Mr Putin, why should children go to school on Saturdays?"

 

This is a serious matter, but the question should

be addressed to school principals because,

whatever they might say to you, the acting

legislation makes no one other than school

administrators responsible for school arrangements.

 

"We are writing from Chuvashia. What ideology is

reigning on in Russia? What do you think about

monuments to Soviet soldiers being destroyed in certain countries?"

 

This is a downright crime, and should be treated

as such. Those who do this are imprudent; he that

mischief hatches, mischief catches.

 

Here is a long message. I think it was faxed. I

cannot read all two pages of it now.

 

"We see you only on short occasions during

Government meetings, when you say a sentence or

two. There are no interviews, news conferences,

messages or meetings broadcast."

 

I hope I have satisfied those who want to see

more of me - at least partly - today.

 

Here is a request to help with building a

swimming pool. I hope we can find the author -

it's an SMS with no address, but we can track the

author down. Here is a similar request from a

child of the town of Pokrovsk - also about

building sports facilities. We will certainly try to help.

 

"What do you think about the Russian steam bath?"

 

I love it! I like every Russian thing.

 

"Mr Putin, why aren't Dagestani boys conscripted

for the army? It takes a bribe to get into the

army. Is it a paid service now?"

 

Very unexpected! Some people go to great lengths

to dodge conscription, while others cannot join

the army when they want. This is very peculiar -

all the more so since it concerns Dagestan. The

Dagestani people have proven many times that they

can fight for their native land and for all of

Russia. I can't see what the problem is about,

but the Defence Ministry will, as in previous

instances, look into it. I shall inform the Defence Minister."

 

Now, as for "prime-ministerial vacations", I have

no comments. This is a job that demands hard

work. I knew it, so I don't complain.

 

A question from a 17-year-old from Saratov: "Do

you think the prolongation of the presidential

and parliamentary terms will improve their

performance? What do you think of it?"

 

The measures President Dmitry Medvedev has

proposed to streamline the Russian political

system do not boil down to longer presidential

and parliamentary terms. It is a package that

envisages, in particular, an improvement of the

formative principles of the upper parliamentary

house. There are other initiatives, as well.

 

On the whole, the President has not proposed

cardinal changes that involve the basis of the

constitutional system. The President and the

Parliament retain their electivity, swearing-in,

and later routine. Mr Medvedev's initiatives do

not aim to abolish the principle of removability

of the top national leadership, as is the case in

certain countries that elect their heads of state

for an indefinite term. Russia retains such limitations.

 

As for longer terms, it is largely a matter of

taste. I think it is justified in a country as

vast as Russia. Six years of presidency is a

reasonable term in a country with such a

problematic ethnic composition. Take Finland, a

small neighbouring country. Six years is the presidential term there.

 

"Where will you ring in the New Year?"

 

At home.

 

"Are you romantic?"

 

A bit.

 

"When will we have snow?"

 

That's up to God.

 

"The mess in the country starts with elections, don't you think?"

 

Which country do you mean?

 

"Why don't central television channels broadcast morning exercises?"

 

I think because their bosses feel perfectly fit.

But I think you are right, they should consider the matter.

 

"Do you think your assistants tell you only what you would like to hear?"

 

No! We never gloss anything over. The Government

is very outspoken in its discussions. Opinions

clash on many problems, and I think that's the

best way to arrive at the best possible decision.

 

Many messages have come through the public

reception offices of the United Russia party

leader. They all concern practical matters and

come from people burdened with struggles -

unmarried mothers, disabled people, and others. I

shall not read them all here because they are,

for the most part, not questions but requests. We

shall take stock of them and make proper responses.

 

"The crisis is very hard on us! When will it end, Mr Putin?"

 

This is a vital question. Expert opinions on

global economic developments and the impact of

the crisis on the Russian economy differ in this

and other countries. Some expect a global - which

means Russian, too - economic rise as early as

the end of the second or third quarter of 2009.

Such optimistic experts are few and far between.

A majority do not expect a rise earlier than the spring of 2010.

 

At any rate (I have said so during this

discussion, and I stress it again), Russia has

seen greater problems, and coped with them. We

shall cope with the present crisis, too, if we

follow the right course and are purposeful about

our complicated economic and social matters. We

have every chance to do it, and need to do only

one thing - to concentrate on national interests

and work together. This was always the case when Russia was facing problems.

 

"What do you love most of all?"

 

Russia.

 

Thank you.

 

ERNEST MACKEVICIUS: That was the last question and answer.

 

Our live broadcast took more than three hours.

 

Thank you, Mr Putin.

 

The programme "A Conversation with Vladimir Putin" is over.

 

Good bye.

 

VLADIMIR PUTIN: Thank you.

 

********