Using the density matrix method in the form developed by Zubarev, equa
tions of motion for nonequilibrium quantum systems with continuous sho
rt range interactions are derived which describe kinetic and hydrodyna
mic processes in a consistent way. The T-matrix as well as the two-par
ticle density matrix determining the nonequilibrium collision integral
are obtained in the ladder approximation including the Hartree-Fock c
orrections and the Pauli blocking for intermediate states. It is shown
that in this approximation the total energy is conserved. The develop
ed approach to the kinetic theory of dense quantum systems is able to
reproduce the virial corrections consistent with the generalized Beth-
Uhlenbeck approximation in equilibrium, The contribution of many-parti
cle correlations to the drift term in the quantum kinetic equation for
dense systems is discussed.