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Taking part in the meeting were Deputy Prime Minister Marat Khusnullin, Presidential Aide Maxim Oreshkin, Minister of Natural Resources and Environment Alexander Kozlov, Minister of Economic Development Maxim Reshetnikov, Minister of Transport Vitaly Savelyev. Joining via videoconference were First Deputy Prime Minister Andrei Belousov, Presidential Aide Igor Levitin, Minister of Health Mikhail Murashko, Minister of Finance Anton Siluanov, Minister of Construction, Housing and Utilities Irek Fayzullin, as well as the heads of the Republic of Adygea, Donetsk People’s Republic, Republic of Crimea, Lugansk People’s Republic, Krasnodar Territory, Zaporozhye Region, Rostov Region, Kherson Region, and the Governor of the federal city of Sevastopol.

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President of Russia Vladimir Putin: Colleagues, good afternoon.

We have agreed to devote today’s meeting to the economy, housing, transport infrastructure, as well as environmental conditions in the south of Russia and the Sea of Azov region.

We will talk about such regions as the Republic of Crimea, the city of Sevastopol, the Krasnodar Territory, the Rostov Region and the Republic of Adygea, the Donetsk and Lugansk people's republics, the Zaporozhye and Kherson regions.

Let me first note that all these regions have great potential for progress, primarily in the real sector of the economy, including metallurgy, mechanical engineering, and the agro-industrial sector.

Last week, in my Address [to the Federal Assembly] I spoke about the entire range of measures aimed at supporting local business and investment activity, so that new, sophisticated, high-tech manufacturing enterprises sprout up all across Russia, and good, well-paid, modern jobs are created.

Taking into account these decisions, I expect a detailed report on specific economic development projects that are already being implemented or planned in the southern and Azov regions.

Of course, the prospects for expanding business and for domestic companies to enter foreign markets are tied to improving transport infrastructure. I already discussed this topic this morning with some colleagues.

Unfortunately, there are bottlenecks here, in the southern regions. First, I mean the railway. These bottlenecks must also be monitored now. The railway is responsible for the bulk of cargo transportation, and it is already handling increased volumes. This includes the growing business demand for transportation to southern ports.

We know very well how many goods can be transshipped through the ports of the Black Sea basin alone and how many goods can be transported to these ports via railway. If I am not mistaken, the railway can transport four times less cargo than ports can transship. Today I ask you to outline proposals for expanding the capacity of railways towards the Azov and Black seas. In particular, let's think about the possible separation of freight and passenger traffic in the southern direction.

At the same time, let me remind you of the task that has already been set. What I mean is that it is necessary to reduce the travel time of passenger trains from Moscow to the Black Sea coast to 16 hours. We have already talked about this repeatedly. The Azov and Black seas are very popular holiday destinations for millions of our citizens, and tourism is one of the key economic sectors of the entire region.

In my Address I announced the launch of an ambitious project entitled Five Seas, which will also cover the Azov and Black Sea regions. Modern resorts with hotels, health and rehabilitation infrastructure, and water tourism and recreation centres will be built here.

We need to get as many of our citizens and families as possible to go on holiday in Russia, whether they prefer the beach, Alpine skiing, educational tourism or something else. And it should be a comfortable experience at affordable prices.

Today, many tourists travel south, to the sea, by car along the M-4 Don motorway. In my Address, I also spoke about the idea of ​​​​building a new Dzhubga-Sochi motorway on the Black Sea coast with many tunnels and bridges. Today we also discussed this topic with some colleagues from the Government. During the meeting, we will also address approaches to implementing this complex, capital-intensive, but certainly important and much needed project. We also discussed this topic with the Prime Minister, we understand what this is all about. This is a capital-intensive project. We should approach it in a very careful and measured way. I repeat once again: this is a necessary project for people.

In general, I can note that we have big plans to develop roads in the Azov-Black Sea region. In the next five years, 460 kilometres of federal and 320 kilometres of regional roads will be built and modified here. We will upgrade the exits from the Tavrida highway to the southern coast of Crimea.

A separate issue is the further development of the so-called Azov ring, a motorway around our internal Azov Sea. We will definitely discuss this topic. How long is the Azov ring, Mr Khusnullin? 1,400 kilometres? We are working on a project to widen the two-lane motorway to four lanes.

I would like to add the following. New infrastructure, roads and networks are a major factor in the socio-economic development of residential districts, cities and regions.

Last year, 13 million square metres of housing were opened in the Krasnodar Territory, the Rostov Region, Adygea, Crimea and Sevastopol. This is 12 percent of the total housing construction in Russia. Importantly, the town-planning potential for 2030 – that is, drafted and already launched projects – exceeds 74 million square metres.

It is very important to ensure that the gained rates in the construction industry and our support tools, including family mortgages, are making housing more affordable for people, for families. They should be able to improve their housing conditions by moving to new houses and flats. Of course, this housing construction must be coordinated with new social infrastructure, including schools, hospitals and kindergartens. We always talk about this with the governors, including the heads of these regions.

I would also like to note that, with federal support, our southern regions have substantially increased the rate of resettlement from dilapidated housing. It is important not to lose momentum. The Government has already been instructed to draft a new federal programme on this issue. I am sure that my colleagues in the regions will join these efforts or continue this pace where it is already underway.

It is necessary to pay special attention to improving the urban environment. Over 2,700 courtyards and other public spaces have been improved under the federal project in the south and in the Sea of Azov area. As I said, we will certainly continue this project. We will emphasise support for the regions, which includes rebuilding embankments, parks, squares and historical centres in many cities. I hope the regions in southern Russia will also use this opportunity.

In conclusion, I would like to say the following: we will meet in Sochi, the site of the 2014 Winter Olympics. The city’s public transport fleet was upgraded on the eve of these Games, but ten years have passed since then. The current condition of the buses and their environmental class often fail to meet the needs of residents and guests in the south of Russia, those who visit Sochi. In this context, I suggest studying the issue of the comprehensive renovation of Sochi’s public transit – of course, while using domestic equipment, advanced environmental standards and high quality transportation. This is important for the residents of Sochi, the Krasnodar Territory and the rest of the country because holidaymakers come here from all parts of the country.

Let’s get down to work, please.

To be continued.