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Meeting with First Deputy Prime Minister of the Chechen Government Ramzan Kadyrov and Chairman of the Public Council for Control of Economic and Social Rebuilding in Chechnya Alu Alkhanov

August 22, 2004, Sochi

Ramzan Kadyrov: Vladimir Vladimirovich [Putin], we are very grateful to you for finding the time to come and visit the grave of the Chechen President. This is a mark of respect for the President and all those who lost their lives defending the interests of the Russian Federation. Thank you very much.

Vladimir Putin: There is no need to thank me for this. For a start, it is something I have been wanting to do for a long time, and secondly, it is my duty and my tribute to the memory of Akhmat-Khadji Kadyrov.

Let us talk about the current situation. How do you assess the latest economic and social developments and the work that the public council, which you head, has begun to do. Do you see any positive, visible results for the economic and social sectors?

Alu Alkhanov: Vladimir Vladimirovich, the economic situation in the republic is quite complicated, but at the same time, the latest decisions taken by the intergovernmental commission headed by Minister for Economic Development German Gref give us reason to hope that social and economic reconstruction work in the republic will improve noticeably. There are already some signs of this. When Akhmat Kadyrov was President, there was a proposal to decide who would act as state procurement agent. This proposal was put forward a number of times. Now we can say that as from January 1, this question will be settled. The state procurement agent for rebuilding the republic’s economy will be the government of the Chechen Republic. We think this is a positive decision.

As for the public council’s work, I think the very fact it was created is already a very positive step. People themselves are saying that this is something good and something they wanted done. Over this time since the public council was created we have developed organisationally and have also begun carrying out practical work. The public council has already received 12,000 people over this time. Of course, the main problem today is compensation payments. Unfortunately, there was a certain slowdown in this work following the death of Akhmat Kadyrov, but the measures taken, including by federal organisations, I mean, by the heads of the intergovernmental commission, the Interior Ministry, the government and the public council, have brought results. Combined efforts have resulted in 11,697 compensation payments being made to people who have lost their homes and property. Only 3,917 compensation payments had been made by the end of July. After changes were made enabling people to go through a simplified procedure for obtaining compensation, after the public council took specific measures and steps, we were able to make around 7,000 compensation payments in the second half of July and in August.

Vladimir Putin: You know the problems. There are these lists of all the people who need and are entitled to compensation, but providing all the required documents often turns out to be a problem. Turning here to you, Mr Deputy Prime Minister, the law enforcement and security agencies must get involved here and do their part because without your help this work is almost impossible. These compensation payments must continue being made and the process cannot be stopped under the pretext that all the required documents are not available. So I am asking you, as you oversee the law enforcement and security agencies, to treat this issue very seriously, for getting this crucial social question settled depends directly on the work and professionalism of the law enforcement and security agencies.

* * *

Alu Alkhanov: Vladimir Vladimirovich, as I said, the republic is in quite a difficult economic situation and rebuilding the economy will require a lot of money. We have been thinking about how to find a solution and have been looking at what rational proposals might be acceptable to all sides. What we are proposing is the following plan – part of the oil produced here then leaves Russia and goes to export markets. We are asking you to help us by allowing the money earned from exporting Chechen oil to be spent on social and economic reconstruction in Chechnya. We think that this approach would help to ease the tension somewhat. It would at least help ease the burden a little on the federal budget. I realise that this is a complex issue and that there are many problems involved but I ask you nevertheless to support this proposal. Specialists say that it would help us considerably to step up reconstruction work and to finance the republic’s social programmes.

Vladimir Putin: I think this plan is possible. Does the Chechen Republic government support this idea?

Ramzan Kadyrov: Yes, the proposal has been discussed with the government and we think it is a good and timely idea.

Vladimir Putin: Then set it out on paper for the Russian Prime Minister. I will talk with him. I think the idea is reasonable and that everyone will see its sense. If it requires some legislative changes to be made I am ready to put the corresponding request to the State Duma deputies. I think that indeed, if the oil is being produced here it would fair, in this situation at any rate, to put the earnings from it back into rebuilding the republic. But it is very important in this respect that the government organisations set out and formulate their proposals clearly and precisely and that the public council does not stop working, even after the elections, but on the contrary, expands the scope of its activities, including control over how this money too is spent. It is imperative that not a single kopek of this money goes astray and that it all goes to benefit the people living here in Chechnya.

Alu Alkhanov: Thank you, Vladimir Vladimirovich. Once again, if you support this proposal, it will help us achieve more active and rational social and economic development and, as I said, it will somewhat relieve the burden on the federal budget.

Vladimir Putin: I think that in this regard the deputies will support the proposal because there is no reason to spend extra federal budget money if the republic has a product to offer for which there is huge demand and which commands a high price on world markets. You can use these earnings to resolve the social and economic problems in the republic. But we all know that social and economic problems cannot be solved without first establishing order and ensuring security. One aspect of this is to ensure coordination between the different law enforcement and security agencies. I know that you are responsible for precisely this area. How is work on establishing this coordination proceeding?

Ramzan Kadyrov: On your instructions, the Interior Minister held a meeting in Khankala. Some progress was made after this meeting. I think that soon everything will be as it should. There are problems but there are always solutions that can be found. After the meeting everyone began to work together and to coordinate.

Vladimir Putin: In other words, the latest organisational measures you took were a step in the right direction? We very much hope that this will increase effectiveness because, as we all know, the bandits have not stopped making incursions. The law enforcement and security organisations’ work must be as effective as possible and they should be able to immediately understand each other, react adequately to each other’s actions and support each other.

Ramzan Kadyrov: We hope that there will soon be no more terrorist incursions in Chechnya.

Vladimir Putin: I also share this hope.

August 22, 2004, Sochi