YAKUTSK, January 6 (RIA Novosti) - President Vladimir Putin arrived Friday in the republic of Yakutia (Sakha) in eastern Siberia to hold a session with federal and local government officials to discuss the republic's social and economic development, a government source said.
At the session, Putin said that the republic's underdeveloped transport infrastructure and the lack of direct long-term investment posed serious obstacles to the region's development. The weak position of small and medium-sized businesses, and the monostructural nature of the republic's economy are also factors that need to be addressed, he said.
The president said the Finance Ministry planned to increase the level of funds allocated to Yakutia from the federal budget to more than $550 million.
The republic's economy could be boosted by developing Yakutia's oil and natural gas sector, he said. Proven reserves alone exceed local demand. More investment, both Russian and foreign, is needed in this area, he said.
Putin also said it was important to accelerate the development of a unified system for production and transport of natural gas in East Siberia and the Far East
"The development of Yakutia's oil and gas industry could become an essential factor for the region's growth, and not only provide for its internal demands, but also secure supplies of energy resources to the Asian-Pacific region," he said.
The president spoke in favor of partnership between the state and businesses in implementing major projects, citing the Elgin coal deposit in Yakutia. State resources must only be distributed after relevant infrastructure has been created, and their value increased, he said.
He also proposed that an international consortium be established to implement the Elgin project, led by the Russian strategic investor.
"This will attract modern technology and capital, and at the same time ensure control over this promising resource base," the president said.
The Elgin project is expected to provide up to 30 million metric tons of coal annually from 2010 onwards.
Putin said modernizing the education, healthcare and housing sectors were of strategic importance in Yakutia, and urged for national projects to be taken full advantage of. He pledged to increase salaries for general practitioners, nurses and teachers.
Considering the large territory of Yakutia, the introduction of remote education programs, access to the Internet, and the use of telecommunications support for the healthcare system are particularly important, he said.
The president called for construction in the republic to be stepped up, with a focus on mortgage programs, and specialized programs for young families and young professionals.
