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In his last annual press conference before the upcoming March elections Russian President Vladimir Putin praised the country’s economic growth but lamented over the depopulation of the remotest region of Russia – the Far East.

Putin stressed that he considered the year 2007 a successful year for Russia, noting the rise in the economy of 8.1 percent. The income of Russian people grew 10.4 percent while the increase in wages went up 16.2 percent, Putin revealed.

Investments in the private sector grew 21.1 percent hitting the mark of $82.3 billion rubles, doubling the increase compared to 2006. Putin also praised the 3.4 trillion rubles in stabilization fund. The major problem for Russia, according to Putin, is inflation which reached 11.9 percent in 2007.

After the brief optimistic report, came a session of questions lasting a record 4 hours and 40 minutes. One of the first questions came from Vladivostok – the neglected region experiences a heavy outflow of residents despite all federal programs.

“We indeed observe the depopulation of territories of Eastern Siberia and the Far East. The outflow is continuing, and the measures being taken do not yield a good result so far,” Putin admitted.

Putin noted that hosting a number of international events, including the 2012 APEC summit in Vladivostok, will help boost the region’s development. “We have planned to allocate large sums from the federal budget for developing the territories, and first of all - the infrastructure,” he indicated.

Basic things like tariffs for electric energy, heating and transport should be more attractive for those people living far from the main part of the country, Putin said. In reality the remotest territories have the highest prices and the lowest wages.

“We consider the depopulation of the territories intolerable and will accumulate our efforts to make living in the territory comfortable. We will pay constant attention to Russia’s eastern territories - Chukotka, Primorye, Sakhalin and Kamchatka,” Putin promised. It should be mentioned here that constant promises of high horizons do not make life in the region easier for ordinary residents.

Speaking about the 2012 APEC summit, Putin stressed that there will be no changes in plans to hold the event in Vladivostok.

“We will hold the summit in the city of Vladivostok. There are some delays where and what to build there, but the final decisions have been made and we intend to extend the city’s airport, build roads and construct the bridge to the city’s Russky Island. Nothing has changed, and we will implement everything what we have spoken about,” Putin stressed.

Within the federal target program of developing Russia’s Far East and Zabaikalye territories, which was signed by Vladimir Putin in December 2007, some 100 billion rubles ($4.07 billion) will be allocated for holding the 2012 APEC summit in Vladivostok. The finances will go for constructing the objects planned for the summit and developing the city infrastructure, building the bridges, up-to-date highways, hotels, a medical center and an opera theater.

The major construction work on Russky Island is supposed to begin in 2009, when 10.9 million tons of construction materials will have to be shipped to the island.

Vladivostok Marine Commercial Port recently offered its participation in the project. The Port authorities suggest building a temporary storage facility within a projected container terminal at the port of Vladivostok, with an additional train line to be constructed. This implies that the project will satisfy demands in handling and overloading capacities while supplying materials to the Russky Island. The other projects offered by the Port are improving the building to the Marine station, constructing a hotel complex and a road extension.