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Mr Masorin reported to Mr Putin on preparations for a 30-day joint exercise involving the navies of Black Sea countries, scheduled for August 2003.

President Putin inquired about preparations for a Russian naval exercise in the Indian Ocean that would involve elements of the Indian Navy. Admiral Masorin said Black Sea Fleet personnel had reacted enthusiastically to the idea of holding the exercise, that all preliminary work, including a rigorous General Staff check, had been completed, and that all objectives would be accomplished.

Vladimir Masorin also told President Putin about the current fleet developments and said Russian military personnel were feeling comfortable in the Crimea, that relations with local authorities were normal, and that the few arising problems were being solved.

Admiral Masorin said contract sailors in Sevastopol received 40% more pay than those in Russia, and that the overall fleet situation was stable.