"It goes without saying that redistribution of finances alone will not resolve the problems. Besides, this is also a problem, which needs a separate approach," President Putin said at a meeting with representatives of Russia's northern territories.
"Our objective is to combine relevant forms of state support with new solutions based on efficient market arrangements," said the president.
Mr. Putin said Russia's and the world's experience showed that such solutions were possible.
"We need to update the economic and legal basis of the traditional businesses, which are not merely production means to the indigenous northern peoples. They make the basis of their spirituality, their life style and the basis for preserving their unique culture," emphasised Mr. Putin.
The president said he had been shown a village, which was home to indigenous northern people, which he had liked very much. "I hope this is not the only village of this kind in the North," the president said smiling.
"We cannot afford to lose the unique cultural traditions maintained by the ethnic groups living in the North, as it is the Russian people's culture, rather than oil and gas, that make Russia a rich country," Mr. Putin said emphatically.
The northern people's self-government bodies should be employed in achieving the above objective, according to the president.
"The new law on local self-government is designed to promote the development of these bodies. Municipal bodies are expected to play a crucial role in the development of the economic, cultural, social and municipal environments," said the president.
The president said it was time to start preparing to address this issue.
"We are about to adopt a final decision on this issue," the president said, but added that not all the aspects had been addressed thus far.
President Putin urged the diversification of the northern areas' economy.
"We need a system approach to the problem of diversifying the economy, employing new technology and using natural resources," said the president.
Such an approach will promote the emergence of new jobs, according to the head of state.
Mr. Putin also noted the importance of preserving the northern territories' environmental balance. "We know how vulnerable is the nature," said the president.
Mr. Putin assured that the government would continue fulfilling its social obligations and paying compensations to residents of Russia's North.
"The state will fulfil the social obligations it had taken on earlier, which include housing subsidies, special pension payments and salaries, state housing certificates and re-settlement programmes," said the Russian leader.
