Print

---

#18

http://premier.gov.ru <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
<outbind://81/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.

 

********