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The recent tragedy in Kaspiisk has shown that the security agencies must be on constant high alert, the Russian President told the meeting. The difficult economic situation is a breeding ground for crime. Not only thieves but drug and arms smugglers also thrive in that situation.

Mr Putin stressed the need for all the government bodies to work together to combat crime in southern Russia. Massive investments will come to the region only if there is order and if the crime situation is dramatically improved, he noted.

The President believes that the governors of the southern Russian regions have not fully tapped the internal resources for the development of their regions. Unemployment in the district remains high, and the federal targeted programmes and the creation of free economic zones have done little to improve the situation.

The Federal Districts were created not only for efficient management. Their aim is also to consolidate efforts in overcoming crises and making plans for the future, the head of state said.

At the same time, the President paid attention to the economic advantages of Russia’s southern regions. The shortest transport corridors from Asia to Europe pass through these regions, and they have fertile soil and considerable labour resources, the President noted.

Mr Putin announced that he signed a decree granting the head of the Chechen Administration the right to independently appoint the heads of regions and members of the republic’s government.

The President believes that the economic resurgence of Chechnya is one of the key tasks in the Southern Federal District. He also thinks that if that task is solved the economic situation in the region as a whole could be improved and a much greater degree of stability could be achieved in the district and in Russia as a whole.