Practice English Speaking&Listening with: V.Putin.On the situation in city Pikalevo.04.06.09.Part 3

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Vladimir Putin: Have you signed the contract?

Mikhail Volkov: Yes

Vladimir Putin: Did Mr Deripaska sign the document?

I do not see your signature. Come over here.

Sign it. The document is over here.

Oleg Deripaska: Just give me a pen.

Vladimir Putin:Give a pen back

Vladimir Putin: Excellent.

I heard what you said and hope that the agreement

that has been reached and finally signed will be fulfilled.

As far as further developments, we will discuss them separately.

If assistance is required, we will deal with it separately.

To ensure that raw materials are supplied here,

they need to be transported, and the transportation tariffs

should be reasonable to ensure profitable

functioning of the enterprises.

Mr Yakunin, go ahead, please .

Vladimir Yakunin: Mr Putin, colleagues,

we started to deal with the problems at this manufacturing complex

following a letter from the Governor of the Leningrad Region

of March 11 addressed to the President.

We immediately prepared appropriate

measures and submitted them

to the Leningrad Region Governor's office.

At the meeting convened day before yesterday

by your deputy, Mr Sechin, it was determined

that there were no critical problems

as far as transportation is concerned

We have enough carriages

to transport materials.

As for the clinker, we have already signed an agreement

the transportation will be implemented under tariff 1001

We are ready to provide the First Freight Company

carriages for the purpose.

As far as nepheline, the proposals currently

on the table will result in RZhD

losses in the amount of 56 million roubles.

As far as I understand,

instructions have been given to compensate

these losses in accordance with the law

These instructions are ready to be signed.

I would like to stress once again

that there are no problems whatsoever

as far as the company is concerned

and the technological aspects of transportation

the participants of the meeting

do not have any concerns either.

Vladimir Putin: We have also agreed that the compensation

will be made out of the regional budget

They receive the revenues

from the transportation

Vladimir Yakunin: Mr Putin, this is beyond our prerogative

Vladimir Putin: True. I would just like to ask the Governor if there is such an agreement.

Valery Serdyukov: Mr Putin, we have fulfilled

all our commitments to the Russian Railways

as far as subsidised passenger transportation is concerned.

The losses incurred by the Oktyabrskaya Railway

Passenger transportation and commuter transportation

depend on the established tariffs.

The Oktyabrskaya Railway informed us that 14 roubles

was a justified tariff for 2009

and we accepted it.

Therefore, we have not accepted

any debts related to the losses.

Had we established a lower tariff

than the one proposed by the RZhD

(they proposed a 14 roubles tariff,

and we established it at 14 roubles

then we would have been

responsible for the losses

Vladimir Putin: What are RZhD's shortfalls in revenues?

Vladimir Yakunin: The problem is that the existing system

does not register any debts on the balance sheet

of a constituent entity of the Russian Federation.

These calculations are made by our agency

According to our estimates,

which, however, will need to be coordinated

the shortfall in revenues are in excess of 100

Currently, none of the regions cover

the passenger transportation losses.

As for tariffs, according to the law

RZhD does not set commuter transportation tariffs

In fact, RZhD does not set any tariffs

Tariffs are established by the constituent

entities of the Russian Federation and freight tariffs

by the Federal Tariff Service

Vladimir Putin: Mr Novak please make all financial calculations

As for the sources, we will decide on them

and report to me

Now let us address the infrastructure issue of the complex.

What are the problems there?

Why is it not possible for the complex

to work as a single unit?

I mean joint use of the infrastructure

Filaret Galchev: I would like to address this issue.

Filaret Galchev: First of all, when the site was divided,

I have the lay-out here, the main railways supplying our cement

enterprises became the property of BaselCement

We have had many complaints

and lawsuits on the issue

When they stopped delivering

raw materials to us

we launched our own deliveries

Of course, we had periodic problems

a locomotive would break down or reconstruction

would be required, there is always something

Therefore, neither BaselCement nor anyone

else really needs the railway tracks located in

the territory of our enterprise, except us.

Vladimir Putin: Yesterday

an agreement was reached between the parties concerned

Are there any objections to the scheme that was proposed

for -Basic Element and the Piskalyevo Cement Plant?

Dmitry Savenkov: Yesterday we signed an agreement with Evrocement

on unimpeded cargo transportation using our railways

Therefore, I believe that the issue has been resolved

Vladimir Putin: Very good

I would like to see Mr Deripaska's signature

Could you pass it to him? Please sign the document.

Now, let us discuss the future

We will resolve the current situation

That is good

I will say a little later what methods

and resources we are going to use

The question is what we are going to undertake in the future

Denis Manturov: Mr Putin

I don't think we should go into a detailed discussion

of the issues that arose in 2004

The issue has been analysed thoroughly

Even without a detailed analysis it is obvious

that the divided management structure of the complex

has unfortunately proved ineffective

However, I believe that we should not make

any hasty decisions regarding the corporate structures at this point

At yesterday's meeting, Mr Sechin instructed our ministry

together with the Ministry of Finance to prepare proposals

on the future structure of the enterprise to ensure its efficient functioning

I believe that on top of the priority measures

that you have already mentioned today

an agreement has to be reached on supplying nepheline

The solution to this issue lies with

the joint use of the infrastructure

It is also necessary to sign an agreement on supplying nepheline

from BaselCement-Pikalyovo to Pikalyevo Cement

The supply of carbonate solution to Metakhim

also needs to be ensured

As a result, we will launch the mechanism

that will ensure the functioning of all three

enterprises comprising the complex

Of course, we should issue loans to BaselCement-Pikalyevo

on a priority basis to launch the operation of the complex

and start buying the concentrate, which was mentioned above

We will prepare all necessary proposals in the near

future and will coordinate them with you

Vladimir Putin: Good

The Description of V.Putin.On the situation in city Pikalevo.04.06.09.Part 3