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Vadim Shumkov, who was appointed Acting Governor last October, described the situation in the region over the recent decades as well as the current conditions in a number of the most important areas of the region’s socioeconomic development, including the average economic indexes that lag behind those in neighbouring regions, the Ural Federal District and Russia in general. Among the problems are public debt growth in the past seven years, the declining birth rate and the ageing population.

According to Mr Shumkov, the operation of executive authorities and local self-government bodies is being adjusted, and social expenditures are being revised. The scope of repair and construction works is growing, roads are getting mended, and the amount of social facilities repairs has tripled, including through attracting corporate funds. Land parcels are allotted for private housing construction and private farm holdings. A number of measures to promote industry and agriculture are underway.

Then Mr Shumkov presented the regional development plan to the President and said that he had asked First Deputy Prime Minister – Finance Minister Anton Siluanov to be the region’s supervisor. The Acting Governor also presented the financing structure of the core national projects.

The plan has been submitted to the Government and is being discussed. The key ministries have been instructed to prepare their opinions on the basic parameters of the three main sections: Economy, Infrastructure & Capital Construction and Investment.

The Acting Governor asked the President to support certain organisational and financial measures of the plan, in particular, the transfer to the region of part of taxpayers who operate there. Vladimir Putin said that the measure was justified but noted some difficulties involved.

They also discussed encouraging a number of companies to localise systemic investment projects, including the establishment of a free economic zone that is being discussed with Rostec and cooperation with Gazprom in supplying gas to the region.