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Audit Report – JSC “INTER RAO UES” 

Table of Contents 

Page 

Independent Auditor’s Report 3 

Accounting Balance Sheet 5 

STATEMENT OF FINANCIAL RESULTS 7 

STATEMENT OF CHANGES IN EQUITY for the year 2012 8 

ERNST &YOUNG 2

To shareholders of JSC ―INTER RAO UES‖ 

Independent Auditor’s Report 

We audited accounting (financial) statements of JSC ―INTER RAO UES‖ attached hereto, which 

consist of accounting balance-sheet as of December 31, 2012, statement of financial results for 

the year 2012, and annexes thereto. 

Liability for Accounting (Financial) Statements of the Audited Entity 

The management staff of JSC ―INTER RAO UES‖ bears responsibility for preparation and 

accuracy of the said accounting (financial) statements in accordance with rules for preparing 

accounting (financial) statements established in the Russian Federation, as well as for internal 

control system required for preparing accounting (financial) statements without material 

misstatements whether due to fraud or error. 

Auditor’s liability 

Ernst & Young LLC 

ООО «Эрнст энд Янг» 

77 Sadovnicheskaya Nab., bld. 1 Россия, 115035, Москва 

Moscow, 115035, Russia Садовническая наб., 77, стр. 1 

Tel: +7 (495) 705 9700 Тел.: +7 (495) 705 9700 

+7 (495) 755 9700 +7 (495) 755 9700 

Fax: +7 (495) 755 9701 Факс: +7 (495) 755 9701 

www.ey.com 

ОКПО:59002827 

Our liability is in expressing opinion on the accuracy of these statements on the basis of our 

audit. 

We conducted audit in accordance with the federal standards of auditing activity applicable in 

the Russian Federation, and International Standards of Auditing. These standards require the 

compliance with applicable ethical norms, as well as planning and conducting an audit in the 

manner as to obtain sufficient confidence that the accounting (financial) statements are free from 

material misstatements. 

Audit includes conducting the auditing procedures aimed at obtaining audit evidences 

confirming the numerical indicators contained in the accounting (financial) statements, as well as 

information disclosed in them. The choice of auditing procedures remains a subject of auditor’s 

judgment, which is based on the risk assessment of material misstatements in the accounting 

(financial) statements, whether due to fraud or error. In the process of assessing this risk, the 

auditor studies internal control system, which ensures preparation and accuracy of accounting 

(financial) statements, in order to select an appropriate set of auditing procedures, but not to 

express opinion on the internal control system efficiency. Audit also includes assessment of 

proper character of the applied accounting policy, and validity of assessment estimates made by 

the management staff, as well as assessment of submitting accounting (financial) statements in 

general. 

We believe that audit evidences found by us constitute sufficient and proper basis for expressing 

our opinion. 

A member firm of Ernst & Young Global Limited 

3

Opinion 

In our opinion, the accounting (financial) statements authentically reflect in all material aspects 

the financial position of JSC ―INTER RAO UES‖ as of December 31, 2012, the results of its 

financial and economic activities and cash flows in the year 2012 in accordance with the rules of 

preparing accounting (financial) statements established in the Russian Federation. 

Other information 

Accounting (financial) statements attached hereto are not intended to represent financial position 

and results of activity in accordance with accounting principles or methods generally accepted in 

the countries and other territories other than the Russian Federation. Therefore, accounting 

(financial) statements attached hereto are not intended for persons that are not familiar with 

accounting principles, procedures and methods accepted in the Russian Federation. 

D.E. Lobachev 

Partner, CEO 

Ernst&Young LLC 

February 21, 2013 

Information about the entity under audit 

Name: JSC ―INTER RAO UES‖ 

Details of registration in the Unified State Register of Legal Entities concerning the legal entity (certificate of state 

registration of legal entity under 1022302933630 issued by Interdistrict FTSI of Russia No. 7 for Krasnodar Region 

(Territorial area 2320 for Central District) dated November 1, 2002). 

Location: 27, Bolshaya Pirogovskaya Str., Building 3, Moscow, 119435 Russian Federation 

Information about auditor 

Name: Ernst&Young LLC 

Primary State Registration Number 1027739707203. 

Location: 77, Sadovnicheskaya Emb., Building 1, Moscow 115035 Russia. 

Ernst&Young LLC is a member of Non-commercial Partnership Audit Chamber of Russia 

(NP ACR). Ernst&Young LLC is registered in the register of auditors and audit organizations NP ACR under No. 

3028, and is included into the control copy of the register of auditors and audit organizations under Primary State 

Registration Number 10201017420. 

4

Accounting Balance Sheet 

as of December 31, 2012 

Organization 

Open Joint Stock Company “INTER RAO UES” 

Taxpayer Identification Number 

Type of activity _____________ Electricity resale and production 

Legal form/form of ownership 

Open Joint Stock Company/private property 

Unit of measurement: thousand rubles 

Annex No. 1 

to the Order of the Ministry of Finance of the 

Russian Federation 

dd. 02/07/2010 No. 66n 

CODES 

OKUD Form No. 2 0710001 

Date (day, month, year) 31 12 2012 

OKPO form 33741102 

TIN 2320109650 

OKVED form 40.10.11 51.56.4 

OKOPF/OKFS form 47 41 

OKEI form 384 

Location (address) 27, Bolshaya Pirogovskaya Str., Building 3, Moscow, 119435 

Clarification 

s 

Name of the indicator 

ASSET 

Indicator 

code 

As of December 

31, 2012 


31, 2011 


31, 2010 

PZ-1 

I. CAPITAL ASSETS 

Intangible Assets 1110 75 857 6 630 3 533 

PZ-2 Results of research and development 1120 - 1 908 5 555 

Intangible research assets 1130 - - - 

Tangible research assets 1140 - - - 

PZ-3 Fixed assets 1150 3 241 714 28 551 362 61 771 367 

PZ-4 including unfinished construction 1151 11 381 9 425 348 22 340 149 

PZ-3 Income-bearing investments in tangible assets 1160 84 727 42 053 17 846 

PZ-6 Financial Investments 1170 334 946 242 241 150 388 46 454 407 

Deferred tax assets 1180 3 814 926 8010018 470 704 

PZ-5 Other capital assets 1190 27 151 917 5 000 301 5 279 270 

PZ-8.1 

including long-term 

receivables 1191 26 967 810 3 862 219 2 308 241 

TOTAL on section I 1100 369 315 383 282 762 660 114 002 682 

PZ-7 

II. CURRENT ASSETS 

Inventories 1210 13 823 851 783 657 151 

Value Added Tax on assets purchased 1220 765 487 868 103 1 078 983 

PZ-8 Receivables 1230 59 345 981 61 497 955 11 328 889 

PZ-8.2 

including 

buyers and customers 1231 2 806 082 3 773 174 5 112 631 

PZ-8.4 advance payments granted 1232 3 503 957 1 302 231 2 184 478 

PZ-8.3 other debtors 1233 53 035 942 56 422 550 4 031 780 

PZ-6.2 Financial investments (other than cash equivalents) 1240 937 985 6 028 375 4 020 736 

PZ-9 Cash and cash equivalents 1250 14 069 790 4 868 696 4 062 822 

PZ-10 Other current assets 1260 210 461 440 626 125 573 

TOTAL on section II 1200 75 343 527 74 555 538 21 274 154 

BALANCE 1600 444 658 910 357 318 198 135 276 836 

5

Clarification 

s 


LIABILITY 

III. CAPITAL AND RESERVES 

Indicator 

code 


31, 2012 


31, 2011 

Form 0710001 p. 2 


31, 2010 

PZ-11 Authorized capital 1310 293 339 703 272 996 962 81 287 328 

PZ-11 Treasury shares 1320 (409) - - 

Revaluation of capital assets 1340 308 415 352 952 6 110 175 

PZ-11 Additional capital (without revaluation) 1350 195 416 130 195 090 785 21 771 383 

PZ-11 Reserve capital 1360 296 339 296 339 161 118 

PZ-13 

Retained profit (uncovered loss), including: 1370 (105 340 945) (154 609 257) (16 953 277) 

retained profit of previous years 1371 (90 980 304) (11 481 290) (16 953 277) 

retained profit of current year 1372 (14 360 641) (143 127 967) - 

TOTAL on section III 1300 384 019 233 314 127 781 92 376 727 

IV. LONG-TERM LIABILITIES 

Borrowed funds 1410 10 951 941 17 965 196 19 731 635 

Deferred tax liabilities 1420 52 721 241 196 698 112 

Estimated liabilities 1430 - - - 

PZ-14.3 Other long-term liabilities 1450 1 726 174 19 269 014 - 

TOTAL on section IV 1400 12 730 836 37 475 406 20 429 747 

V. SHORT-TERM LIABILITIES 

PZ-13 Borrowed funds 1510 3 235 056 340 268 660 792 

PZ-14 Payables 1520 43 778 492 4 481 858 6 811 969 

including: 

PZ-14.1 suppliers and contractors 1521 3 489 736 3 584 965 2 919 632 

payables to organization’s employees 1522 1 762 234 6 258 

payables to government extrabudgetary funds 1523 

taxes and levies due 1524 594 50 722 406 080 

advance payments received 1525 2 097 550 496 864 615 434 

PZ-14.2 other creditors 1526 38 188 850 349 073 2 864 565 

Deferred revenues 1530 - - - 

PZ-12 Estimated liabilities 1540 895 293 892 885 567 956 

Other short-term liabilities 1550 - - 14 429 645 

TOTAL on section V 1500 47 908 841 5 715 011 22 470 362 

BALANCE 1700 444 658 910 357 318 198 135 276 836 

Head B.Yu. Kovalchuk Chief accountant A.O. Chesnokova 

(signature) (full name) (signature) (full name) 

" 21 " February 2013 

6

Annex 



dd. 02/07/2010 No. 66n 

STATEMENT OF FINANCIAL RESULTS 

for a period of January 01 to December 31, 

2012 

Organization 







Clarificati 

ons 

PZ-15 

Name of the indicator Code For January – 

December 2012 

For January – 

December 2011 

Proceeds (net) from sales of goods and services (net of value added tax, 

excise and similar mandatory payments), including: 2110 42 692 178 73 387 956 

Electricity export 2111 25 574 816 36 919 150 

Sale of electricity (power) in the domestic market 2112 16 646 011 35 264 217 

Other 2114 471 351 1 204 589 

PZ-16 Prime cost of goods, products, works, services sold 2120 (35 175 079) (60 755 152) 

Purchase of electricity (power) in the domestic market 2121 (27 695 611) (40 351 447) 

electricity (power) production 2122 (4 396 357) (16 291 204) 

Electricity import 2123 (2 260 700) (2 913 588) 

Other 2125 (822 411) (1 198 913) 

Gross profit 2100 7 517 099 12 632 804 

PZ-16 Commercial costs 2210 (4 153 181) (6 646 199) 

PZ-16 Administrative costs 2220 (4 510 163) (3 899 084) 

Profit (loss) from sales 2200 (1 146 245) 2 087 521 

Revenues from participation in other organizations 2310 2 573 215 1 355 352 

Interest receivable 2320 1 723 504 1 262 734 

Interest payable 2330 (1 919 141) (1 739 263) 

PZ-17 Other revenues 2340 121 529 638 65 327 947 

PZ-17 Other costs 2350 (132 550 135) (218 698 144) 

Profit (loss) before tax 2300 (9 789 164) (150 403 853) 

PZ-19 Current income tax 2410 (660 220) (626 525) 

including permanent tax liabilities (assets) 2421 7 196 334 23 557 657 

Change in deferred tax liabilities 2430 171 780 (191 961) 

Change in deferred tax assets 2450 (4 235 418) 7 612 670 

Other 2460 152 381 481 702 

Net profit (loss) of the reporting period 2400 (14 360 641) (143 127 967) 

FOR REFERENCE 

Result from revaluation of fixed assets not included in net profit (loss) for 

the period 

Result from other transactions not included in net profit (loss) for the 

period 

2510 

2520 

CODES 




TIN 2320109650 

OKVED form 40.10.11 51.56.4 


OKEI form 384 

- - 

- - 

Aggregate financial result for the period 2500 (14 360 641) (143 127 967) 

PZ-20 Base profit (loss) per share (kopecks) 2900 (0,1472) (2,0824) 

PZ-20 Diluted profit (loss) per share (kopecks) 2910 (0,1472) (2,0824) 



" 21 " February 2013 

7

Annex 



dd. 02/07/2010 No. 66n 

STATEMENT OF CHANGES IN EQUITY for the year 2012 

For 2012 

Organization 







Name of the indicator Code Authorized 

capital 

1. Cash Flow 

Treasury 

shares 

Additional capital 

Reserve 

capital 

Retained profit 

(uncovered loss) 

Value of capital as of December 31, 

2010 

3100 81 287 328 - 27 881 558 161 118 (16 953 277) 92 376 727 

For 2011 

Increase in capital – total: 

3210 191 709 634 173 319 402 365 029 036 

including 

net profit 

3211 X X X X 

revaluation of assets 3212 X X - X - - 

revenues booked directly to the 

increase in capital 

3213 X X - X 

additional issue of shares 3214 191 709 634 - 173 319 402 X X 365 029 036 

Increase in nominal value of 

shares 

3215 - - X 

legal entity’s reorganization 3216 - - - - 

Reduction in capital – total: 3220 - - - - (143 277 982) (143 277 982) 

including 

loss 

3221 X X X X (143 127 967) (143 127 967) 


expenses booked directly to the 

decrease in capital 

3223 X X X - 

decrease in nominal value of 

shares 

3224 - X - 

decrease in number of shares 3225 - - X - - 

legal entity’s reorganization 3226 - - - - 

dividends 3227 X X X - (150 015) (150 015) 

Change in additional capital 3230 X X (5 757 223) - 5 757 223 X 

Change in reserve capital 3240 X X X 135 221 (135 221) X 


2011 

3200 272 996 962 195 443 737 296 339 (154 609 257) 314 127 781 

For 2012 

Increase in capital – total 

3310 20 342 741 6 493 057 325 345 63 584 416 90 745 559 

including 

net profit 

3311 X X X X 


revenues booked directly to the 

increase in capital 

3313 X X - X 

additional issue of shares 3314 20 342 741 - - X X 20 342 741 

Increase in nominal value of 

shares 

3315 - X X 

legal entity’s reorganization 3316 - 325 345 63 584 416 63 909 761 

sale of treasury shares 3317 - 6 493 057 - 6 493 057 

Reduction in capital – total 3320 - (6 493 466) (44 537) - (14 316 104) (20 854 107) 

including 

loss 

3321 X X X X (14 360 641) (14 360 641) 


expenses booked directly to the 

decrease in capital 

3323 X X (44 537) X 44 537 

decrease in nominal value of 

shares 

3324 - - X - 

8 

CODES 




TIN 2320109650 

OKVED form 40.10.11 51.56.4 


OKEI form 384 

Total

decrease in number of shares 3325 - - X - 

legal entity’s reorganization 3326 - (6 493 466) - (6 493 466) 

dividends 3327 X X X - - 

Change in additional capital 3330 X X - - X 

Change in reserve capital 3340 X X X - X 


2012 

3300 293 339 703 (409) 195 724 545 296 339 (105 340 945) 384 019 233 


2. Adjustments due to changes in accounting policy and error corrections 

code 

As of 

December 31, 

2011 

Change in capital for 2012 As of December 31, 2012 

at the expense of net profit 

(loss) 

at the expense 

of other factors 

Capital - total 

before adjustments 3400 314 127 781 49 268 312 20 623 140 384 019 233 

adjustment due to: 

changes in the accounting policy 3410 - - - - 

correction of errors 3420 - - - - 

after adjustments 3500 314 127 781 49 268 312 20 623 140 384 019 233 

including: 

retained profits (uncovered losses): 

before adjustments 3401 - - - - 




after adjustments 3501 - - - - 

other items of capital adjusted 

- 

before adjustments 3402 - - - - 




after adjustments 3502 - - - - 


3. Net assets 

Code As of December 31, 

2012 

As of December 31, 

2011 


2010 

Net assets 3600 384 019 233 314 127 781 92 376 727 



" 21 " February 2013 

9

STATEMENT OF CASH FLOW 

For 2012 

Organization 

Open Joint Stock Company “INTER RAO UES“ 






Annex 



dd. 02/07/2010 No. 66n 

CODES 




TIN 2320109650 

OKVED form 40.10.11 51.56.4 


OKEI form 384 

Name of the indicator Code For 2012 For 2011 

Cash flows from current transactions 

Proceeds - total 4110 47 971 248 78 478 823 

including: 

from sales of products, goods, works and services 4111 43 836 454 76 771 224 

lease payments, license fees, royalties, commissions and other similar 

payments 4112 336 868 113 278 

from resale of financial investments 4113 - - 

other proceeds 4119 3 797 926 1 594 321 

Payments - total 4120 (50 826 306) (77 452 865) 

including 

to suppliers (contractors) for raw materials, materials, works and 

services 4121 (41 445 008) (65 408 314) 

due to payment of employees’ remuneration 4122 (2 858 752) (3 293 852) 

interests on debt liabilities 4123 (1 309 016) (1 644 097) 

organizations’ income tax 4124 (765 454) (1 631 237) 

other payments 4129 (4 448 076) (5 475 365) 

Balance of cash flows from current transactions 4100 (2 855 058) 1 025 958 

Cash flows from investment transactions 


including: 

from sales of current assets (other than financial investments) 4211 2 255 854 3 782 329 

from sales of shares (participatory interest) in other organizations 4212 24 287 712 3 484 096 

from return of loans provided, from sales of debt securities (right of 

demand of cash to other persons) 4213 5 227 000 4 145 753 

dividends, interest on debt financial investments and similar proceeds 

from equity participation in other organizations 4214 3 633 733 2 163 326 

other proceeds 4219 1 005 500 - 


including 

due to acquisition, creation, modernization, reconstruction and 

preparation for use of non-current assets 4221 (303 325) (2 314 613) 

due to acquisition of shares (participatory interest) in other organizations 4222 (9 696 789) (4 127 972) 

due to acquisition of debt financial investments (right of demand of cash 

to other persons), provision of loans to other entities 4223 (1 539 847) (5 478 299) 

Interests on debt liabilities, including into the cost of investment asset 4224 

other payments 4229 - (1 005 500) 

Balance of cash flows from investment transactions 4200 24 869 838 649 120 

Cash flows from financial transactions 

Proceeds - total 4310 16 082 285 

including: 

obtaining credits and loans 4311 16 031 902 

Cash contributions of owners (participants) 4312 - - 

from issue of shares, increase of participatory interest 4313 - 50 383 

10

from issue of bonds, bills of exchange and other debt securities, etc. 4314 

other proceeds 4319 - - 


including: 

to owners (participants) due to repurchase of organization’s shares 

(participatory interest) from them or their quit from composition of 

participants 4321 (6 493 466) 

for payout of dividends and other payments on distribution of profits in 

favor of owners (participants) 4322 (150 015) 

due to repayment (repurchase) of bills of exchange and other debt 

securities, repayment of credits and loans 4323 (6 116 040) (16 868 794) 

other payments 4329 - - 

Balance of cash flows from financial transactions 4300 (12 609 506) (936 524) 

Balance of cash flows for reporting period 4400 9 405 274 738 554 

Balance of cash and cash equivalents at the beginning of reporting 

period 4450 4 868 696 4 062 822 

Balance of cash and cash equivalents at the end of reporting period 4500 14 069 790 4 868 696 

The influence of fluctuations in the exchange rate of foreign currency vs. 

Russian ruble 4490 (204 180) 67 320 



" 21 " February 2013 

11

EXPLANATIONS 

to the accounting (financial) statements of 

JSC “INTER RAO UES” for the year 2012 

These explanations constitute an integral part of the annual accounting (financial) statements of JSC 

―INTER RAO UES‖ for the year 2012 prepared in accordance with applicable laws of the Russian 

Federation. 

All sums are shown in thousand rubles, unless otherwise specified. 

I. GENERAL INFORMATION 

Open Joint Stock Company ―INTER RAO UES‖ 1 (the Company) was founded on October 23, 2002. 

Core activity of the Company was production of electricity and power. The Company and its 

subsidiaries are hereinafter collectively referred to as INTER RAO UES Group. 

In 2008 as a result of reorganization, CJSC ―INTER RAO UES‖, JSC ―North-West Thermal Power 

Plant‖, JSC ―Ivanovskie PGU‖, JSC ―Kaliningradskaya TEC-2‖, JSC ―INTER RAO HOLDING‖ were 

incorporated in the Company. Branches of the same name have been established on the basis of assets 

of JSC ―North-West Thermal Power Plant‖, JSC ―Ivanovskie PGU‖, JSC ―Kaliningradskaya TEC-2‖, 

JSC ―Sochinskaya TEC‖. Executive Office carrying out the management functions over the Company 

has been established on the base of JSC ―INTER RAO UES‖. Core activity of the Company 

throughout 2008-2011 was production of electricity and heat energy on the base of the branches, and 

electricity sale at the domestic market and outside the Russian Federation. 

In 2011 – 2012 in the result of structural re-arrangement of the model of business conduct, aimed at 

creating a Holding Company on the base of JSC ―INTER RAO UES‖, production branches of ―North- 

West Thermal Power Plant‖, ―Kaliningradskaya TEC-2‖, ―Sochinskaya TEC‖, and ―Ivanovskie PGU‖ 

being a part of the Company were moved to the balance-sheet of 100 % subsidiary of INTER RAO – 

Electric Power Plants, OJSC. Sales activity previously conducted on the base of the branch in Orel was 

assigned to 100 % subsidiary INTER RAO – Orel Energy Distribution, LLC. Detailed information is 

provided in section 26 ―Terminated Activity‖ of this Explanatory note. 

In 2012 as a result of reorganization, the Company was incorporated with JSC ―OGK-1‖, JSC ―OGK- 

3‖, JSC ―INTER RAO – Energy‖, JSC ―INTER RAO - EnergyAsset‖, and JSC ―Bashenergoaktiv‖. 

Production branches generating electricity and heat energy, which used to be a part of JSC ―OGK-1‖, 

―OGK-3‖, were incorporated with 100 % subsidiary INTER RAO – Electric Power Plants, OJSC. 

1 Before renaming – JSC ―Sochinskaya TEC‖ (renamed in pursuance of the decision of a sole shareholder of the Company 

– JSC RAO ―UES of Russia‖ dd. 28/03/ 

12

EXPLANATIONS 



Assets were moved to the balance-sheet of the Company in the form of financial investments in 

subsidiary and affiliate companies, different kinds of payables and receivables. Detailed information is 

provided in section 27 ―Reorganization‖ of this Explanatory Note. 

At the present time the Company conducts activity on selling electricity at the domestic market and 

outside the Russian Federation, supplying power equipment abroad, and controls activity of generating 

and selling companies of INTER RAO UES Group. Company’s activity on production of electricity 

and heat energy is a terminated activity, its scope has been of vestigial nature throughout the year of 

report. The Company’s shares are quoted within the Russian Trading System, Moscow Interbank 

Currency Exchange. 2 

JSC ―INTER RAO UES‖ is registered at: 27, Bolshaya Pirogovskaya Str., Building 3, Moscow 

119435, Russia. Before July 29, 2011, JSC ―INTER RAO UES‖ was registered at: 12, 

Krasnopresnenskaya Emb., Entrance 7, Moscow 123610, Russia. 

Taxpayer Identification Number (TIN): 2320109650. 

Average number of listed employees of the Company in 2012 amounted to 539 persons (2,246 persons 

in 2011). 

This statement was signed on February 21, 2013 

2 

December 2011, Russian Trading System and Moscow Interbank Currency Exchange merged into a single trading 

platform. 

13

EXPLANATIONS 



Branches and representative offices of the Company as of December 31, 2012. 

Name Type of activity Location 

Branch ―North-West 

Thermal Power Plant‖ 

In the process of liquidation. 

Activity was assigned to 100 % 

subsidiary 

34, 3 rd Konnaya Lakhta, 

Olgino, St. Petersburg, 

Russia 

Branch 

―Kaliningradskaya TEC-2" 



2, Energetikov Lane, 

Kaliningrad, Russia 

subsidiary 

Branch ―Sochinskaya TEC‖ In the process of liquidation. 


133, Transportnaya Str., 

Sochi, Russia 

subsidiary 

Branch ―Ivanovskie PGU‖ In the process of liquidation. 


subsidiary 

1, Komsomolskaya Str., 

Komsomolsk, 

Ivanovo Region, Russia 

Orel branch 



137, Moskovskoye Shosse, 

Orel, Russia 

subsidiary 

Representative office in the 

Republic of Cuba 

Representative office functions 3 rd Avenida/ 70 and 80, Santa 

Clara, 

Playa, Miramar, 

Havana, Republic of Cuba 

Representative office in the 

Republic of Ecuador 

Representative office functions World Trade Center, Tower B, 

Office 403, 

12 October Ave. No. 24-528 and 

Louis Cordero, Quito, the 

Republic of Ecuador 

Office on the territory of the Representative office functions Rond Point Schuman 6, Brussels 

Kingdom of Belgium 

1040, Kingdom of Belgium 

14

EXPLANATIONS 



Composition of the Company’s Board of Directors from January 01, 2012 to February 15, 2012. 

1 Grigoriy Markovich Kurtser Chairman of the Board of Directors 

of JSC ―INTER RAO UES‖, President of 

JSC ―Russian Regional Development Bank‖ 

2 Oleg Mikhailovich Budargin Chairman of the Management Board, Member of the 

Board of Directors of Federal Grid Company of 

Unified Energy System OJSC 

3 Evgeniy Vyacheslavovich Dod Chairman of the Management Board of JSC 

―RusHydro‖ 

4 Vladimir Aleksandrovich Dmitriev Chairman of the State Corporation ―The Bank for 

Development and Foreign Economic Affairs ( 

Vnesheconombank)‖ 

5 Boris Yuryevich Kovalchuk Chairman of the Management Board of 

JSC ―INTER RAO UES‖ 

6 Vyacheslav Mikhailovich Kravchenko General Director of JSC ―OESK‖ 

7 Aleksandr Markovich Lokshin Deputy General Director – director of the Directorate 

for Nuclear Power Complex of the State Corporation 

for Nuclear Power ―Rosatom‖ 

8 Kirill Gennadyevich Seleznev Member of the Management Board, Head of Gas & 

Liquid Hydrocarbons Marketing and Processing 

Department of JSC ―Gazprom‖ 

9 Vladimir Igorevich Strzhalkovskiy General Director, Chairman of the Management 

Board of JSC ―MMK Norilsk Nickel‖ 

10 Denis Vladimirovich Fedorov Head of Power Sector Development and Marketing 

Department in JSC ―Gazprom‖, General Director 

of Gazpromenergoholding LLC 

11 Dmitriy Evgenyevich Shugaev Deputy General Director of the Rostec State 

Corporation 

15

EXPLANATIONS 



Composition of the Company’s Board of Directors from February 15, 2012 to December 31, 2012. 

1 Grigoriy Markovich Kurtser Chairman of the Board of Directors of JSC ―INTER 

RAO UES‖, President of JSC ―Russian Regional 

Development Bank‖ 

2 Oleg Mikhailovich Budargin Chairman of the Management Board, Member of the 

Board of Directors of JSC ―Federal Grid Company of 

Unified Energy System‖ 

3 Vladimir Aleksandrovich Dmitriev Chairman of the State Corporation ―The Bank for 

Development and Foreign Economic Affairs ( 

Vnesheconombank)‖ 

4 Boris Yuryevich Kovalchuk Chairman of the Management Board of JSC ―INTER 

RAO UES‖ 

5 Vyacheslav Mikhailovich Kravchenko Chairman of the Management Board of Non- 

Commercial Partnership ―Market Council‖ 

6 Aleksandr Markovich Lokshin First Deputy General Director – Director of the 

Directorate for Nuclear Power Complex of the State 

Corporation for Nuclear Power ―Rosatom‖ 

7 Kirill Gennadyevich Seleznev Member of the Management Board, Head of Gas & 

Liquid Hydrocarbons Marketing and Processing 

Department of JSC ―Gazprom‖, General Director of 

Mezhregiongaz LLC 

8 Vladimir Igorevich Strzhalkovskiy General Director, Chairman of the Management 

Board of JSC ―MMK Norilsk Nickel‖ 

9 Ferdinando Falco Beccalli President and Chief Executive Officer of GE Europe 

& North Asia 

10 Denis Vladimirovich Fedorov Head of Power Sector Development and Marketing 

Department in Gazprom OJSC, General Director of 

Gazpromenergoholding LLC 

11 Dmitriy Evgenyevich Shugaev Deputy General Director of the Rostec State 

Corporation 

16

EXPLANATIONS 



Composition of the Company’s Audit Commission from January 01, 2012 to June 25, 2012. 

1 Aleksandr Evgenyevich Abramkov Head of the Internal Audit, Controlling and Risk 

Management Unit of JSC ―INTER RAO UES‖ 

2 Natalia Aleksandrovna Ananyeva Head of the Foreign Assets Audit Division of the 

Internal Audit Department of the Internal Audit, 

Controlling and Risk Management Unit of JSC 

―INTER RAO UES‖ 

3 Elena Fedorovna Ivanova Deputy Head of the Internal Audit Department of the 

Internal Audit, Controlling and Risk Management 

Unit of JSC ―INTER RAO UES‖ 

4 Svetlana Gennadyevna Meshcherina Deputy Chief Accountant of the State Corporation 

for Nuclear Power "Rosatom" 

5 Elena Gennadyevna Ryzhkova Head of the Internal Audit Department of the Internal 

Audit, Controlling and Risk Management Unit of 

JSC ―INTER RAO UES‖ 

Composition of the Company’s Audit Commission from June 25, 2012 to December 31, 2012 

1 Nikolay Nikolaevich Varlamov Deputy Chairman of the Management Board of JSC 

―FGC UES‖ 

2 Anna Valeryevna Drokova Deputy Head of the FEC and Coal Industry 

Companies Division of the Federal Agency for State 

Property Management 

3 Elena Aleksandrovna Kabizskina Deputy Head of Control and Audit Department of JSC 

―FGC UES‖ 

4 Ekaterina Viktorovna Heymits Head of Assets Safety Control Division of JSC 

―MMK Norilsk Nickel‖ 

5 Yuriy Aleksandrovich Shcherbakov Head of Treasury Department of JSC ―INTER RAO 

UES‖ 

12

EXPLANATIONS 



Composition of the Company’s Management Board from January 01 to February 13, 2012 


RAO UES‖ 

2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board – Head 

of Trading Unit of JSC ―INTER RAO UES‖ 

3 Aleksandr Gennadyevich Boris Member of the Management Board of JSC ―INTER 

RAO UES‖ 

4 Andrey Vladimirovich Golovlev Member of the Management Board – Head of 

financial and economic center of JSC ―INTER RAO 

UES‖ 

5 Ilnar Ilbatyrovich Mirsiyapov Member of the Management Board – Head of 

Strategy and Investment Unit of JSC ―INTER RAO 

UES‖ 

6 Pavel Ivanovich Oklei Member of the Management Board – Head of 

Production Activity Unit of JSC ―INTER RAO 

UES‖ 

7 Dmitriy Nikolaevich Palunin Member of the Management Board – Financial 

Director of JSC ―INTER RAO UES‖ 

8 Aleksandr Aleksandrovich Pakhomov Member of the Management Board – Head of Legal 

Support Unit of JSC ―INTER RAO UES‖ 

9 Sergey Yuryevich Rumyantsev Member of the Management Board – Director of 

Economy of JSC ―INTER RAO UES‖ 

10 Yury Vladimirovich Sharov Deputy Chairman of the Management Board – Head 

of Capital Construction and Engineering Unit of JSC 


12

EXPLANATIONS 



Composition of the Company’s Management Board from February 14 to May 04, 2012 


RAO UES‖ 

2 Vyacheslav Yuryevich Artamonov Deputy Chairman of the Management Board of JSC 



RAO UES‖ 

4 Andrey Vladimirovich Golovlev Member of the Management Board – Head of 


UES‖ 



UES‖ 



UES‖ 










11 Karina Valeryevna Tsurkan Member of the Management Board – Head of 

Trading Unit of JSC ―INTER RAO UES‖ 

13

EXPLANATIONS 



Composition of the Company’s Management Board from May 05 to September 23, 2012 


RAO UES‖ 




RAO UES‖ 



UES‖ 



UES‖ 












14

EXPLANATIONS 



Composition of the Company’s Management Board from September 24 to December 13, 2012 


RAO UES‖ 




RAO UES‖ 



UES‖ 

5 Valeriy Valeryevich Murgulets Member of the Management Board – Head of 

Innovation, Investment and Cost Management Unit 

of JSC ―INTER RAO UES‖ 



UES‖ 

7 Dmitriy Nikolaevich Palunin Member of the Management Board – Head of 


UES‖ 










15

EXPLANATIONS 



Composition of the Company’s Management Board from December 14 to December 31, 2012 


RAO UES‖ 




RAO UES‖ 



UES‖ 

5 Valeriy Valeryevich Murgulets Member of the Management Board – Head of 

Innovation, Investment and Cost Management Unit 

of JSC ―INTER RAO UES‖ 



UES‖ 

7 Dmitriy Nikolaevich Palunin Member of the Management Board – Head of 


UES‖ 








16

EXPLANATIONS 



II. 

BASIC PROVISIONS OF THE ACCOUNTING POLICY 

These accounting (financial) statements of the Company have been prepared based on the following 

accounting policy. 

Basic Approaches to Preparation of the Annual Accounting (Financial) Statements 

Acounting (financial) statements of the Company are drawn up proceeding from the rules of 

accounting and reporting applicable in the Russian Federation, particularly, Federal Law dd. December 

06, 2011 No. 402-FZ On Accounting, Regulations On Accounting ―Accounting Policy of the 

Organization‖ PBU 1/2008 approved by order of the Ministry of Finance of the Russian Federation dd. 

December 9, 1998 No. 60n, Regulation On Accounting and Reporting in the Russian Federation 

approved by order of the Ministry of Finance dd. July 29, 1998 No. 34n, Regulation On Accounting 

―Accounting Reports of the Organization‖ PBU 4/99, approved by order of the Ministry of Finance of 

the Russian Federation dd. July 06, 1999 No. 43n. 

Uncertainty of accounting estimates 

There are basic assumptions given below, which concern future events, as well as other sources of 

uncertainty of accounting estimates as of the reporting date, which imply considerable risk of the 

necessity to make material adjustments in the book value of assets and liabilities in the next reporting 

year: 

- Provision for doubtful debts 

- Provision for depreciation of inventories 

- Provision for depreciation of financial investments 

- Provision for liabilities and charges 

- Reserve for contingency 

- Useful life of intangible assets and fixed assets. 

Fixed assets 

Fix assets account the property with the useful life of over 12 months. Housing facilities, including 

apartments, are accounted in fixed assets. 

17

EXPLANATIONS 



Completed, commissioned, and actually used items of immoveable property, documents to which have 

been submitted for state registration, are accounted separately in fixed assets. 

Purchased items with initial value up to 40 thsd. rubles per item are accounted in the inventories. 

Items of fixed assets are accepted for accounting depending on the actual costs of their purchasing 

(erection). 

Upon purchasing items of fixed assets under the contracts that provide for discharge of liabilities not in 

cash, initial cost of such items shall be the cost of valuables transferred or to be transferred. The cost of 

valuables either transferred or to be transferred by the Company is determined proceeding from the 

price at which the Company usually determines the cost of similar valuables in the similar 

circumstances. The Company has not acquired items of fixed assets other than for money in the 

reporting period. 

The Company carries out revaluation of fixed assets in case if current (replacement) value of fixed 

assets differs considerably from the value reflected in the Company’s books. Considerable difference 

shall be the difference of cumulative replacement value of a group of similar items from the current 

(replacement) value of this group of similar items by 20 %. 

Revaluation shall be done for the following equipment: 

- Steam boilers, except for central heating boilers 

- Power distributing equipment and control equipment 

- Process control equipment. 

In the year of report, the Company did not carry out revaluation of fixed assets for the reason of 

retirement of the groups of equipment being subject to revaluation. 

Fixed assets are shown in the accounting (financial) statements at their initial value minus amortization 

accumulated for the time of operation. 

18

EXPLANATIONS 



Depreciation of fixed assets is charged using straight-line method. 

Depreciation of fixed assets, including fixed assets received during reorganization in 2008, is 

calculated proceeding from the useful life, as determined in accordance with the Classification of 

Fixed Assets Included in the Depreciation Groups approved by resolution of the Government of the 

Russian Federation on January 1, 2002 No. 1. Useful life for the groups of fixed assets approved by the 

Company is given below. 

Group of Fixed Assets 

Useful Life (years) of Items Put on the Books 

Buildings 7 - 101 

Structures and transmitting equipment 13 - 40 

Machines and equipment 7 - 30 

Transport vehicles 5 - 15 

Production and household inventory 3 - 10 

Other types of fixed assets 3 - 15 

Land plots and objects of nature management - 

No Depreciation is charged on: 

- Land plots 

- Objects completely depreciated but not written off from the balance sheet 

- Fixed assets temporary closed down. 

Profits and loss from retirement of fixed assets are reflected in the statement of financial results in the 

structure of other profits and losses. 

Expenses on credits and loans received for purchasing, erecting, making items of fixed assets, accrued 

before putting such items of fixed assets on the books, are included in their initial value, and those 

accrued after putting the items of fixed assets on the books are reflected in the statement of financial 

results in the structure of other expenses. 

Leased fixed assets are reflected off-balance at the value specified in the lease agreement. 

Intangible Assets 

Intangible assets are accepted for accounting at their initial value. The initial value of intangible assets 

acquired for a fee is specified in the actual costs of purchase. 

19

EXPLANATIONS 



The initial value of intangible assets received under agreements that provide for discharge of liabilities 

in kind is determined based on the value of goods (valuables) transferred or subject to transfer. If it is 

impossible to determine the value of goods (assets) transferred or subject to transfer under such 

agreements, the value of intangible assets received by the Company is fixed based on the price at 

which similar intangible assets are acquired in comparable circumstances. The Company has not 

acquired intangible assets objects for consideration in kind in the reporting period. 

Depreciation of intangible assets is charged using a straight-line method, based on the following terms 

of useful life: 

- Rights to software products - 2 to 10 years. 

- Rights to use a trade mark - 7 to 10 years. 

In the accounting (financial) statements intangible assets are shown at their initial value minus 

depreciation accumulated for the entire period of use. 

Expenses for Research and Development, Experiment/Design and Technology Works (R&D) 

Costs of research and development, experiment/design and technology works are subject to writing-off 

to costs of usual kinds of activity during the fixed period of useful operation. If use of the results of a 

certain research and development, experiment/design and technology work in the manufacture of 

products (performance of work, provision of services) or for the Company's administrative needs is 

terminated, the amount of costs is subject to be written-off to costs of the reporting period. Decision on 

non-use of the R & D results is made based on an analysis of the Company's middle-term and/or longterm 

development plans. 

Information concerning the costs of research and development, experiment/design and technology 

works is reflected on the balance sheet in Non-current assets section. The Company reflects costs of 

research and development, experiment/design and technology works in the line item Research and 

development results. Writing-off to costs is carried out using a linear method. 

Inventories 

The following assets shall be regarded by the Company as inventories: 

Used as raw, materials etc. when manufacturing products intended for sale (performance of 

works, provisions of services). 

Intended for sale. 

20

EXPLANATIONS 



Used for the organization’s administrative needs. 

Inventories are evaluated in the sum of actual costs of purchase (manufacture) thereof. If the cost of 

materials is reduced, the Company shall create a provision for depreciation. Provision is calculated 

using the method that implies determination of the market value (possible selling price) of low-rotation 

inventories, except for inventories included in the following groups: 

Materials transferred for processing 

Special equipment and special clothing in use. 

Rotation is considered to be low if the sum of write-offs for inventory costs during the period of report 

makes less than 5 % of their book value at the beginning of the year of report. The sum of reserve is 

accounted in the structure of other expenses. In the year of report the Company did not create a 

provision for depreciation of materials. 

Evaluation of inventories upon their retirement is carried out: 

By actual net value of each item - for writing off the goods for re-sale (purchased electricity 

(power)); 

According to a FIFO method – for all other inventories. 

Inventories acquired for construction, modernization or reconstruction of fixed assets objects are 

reflected on the balance sheet in Non-current assets section on the line ―Other non-current assets‖. All 

the rest of inventories are reflected on the balance sheet in the structure of current assets. 

Receivables 

Accounts receivable from buyers and customers have been determined based on the prices fixed by 

agreements between the Company and buyers (customers), taking into account all discounts 

(surcharges) provided/charged by the Company, VAT and prices as established under the contract. 

Receivables repayable (payable) within 12 months after the reporting date are reflected on the balance 

sheet in the structure of current assets. Receivables repayable (payable) within more than 12 months 

after the reporting date are reflected on the balance sheet in Non-current assets section on the line 

―Other non-current assets‖. 

21

EXPLANATIONS 



The Company forms a provision for bad debts in respect of trade and other accounts receivable. The 

provision is formed for each bad debt not repaid within a period exceeding 1 month, unless it is 

secured with pledge, surety or a bank guarantee. 

The main factor influencing the calculation of the provision amount is the period of delay in payment. 

The Company has accepted the following principles of calculation of this provision: 

Period of delay in payment, months Provision, % 

Over 12 months 100 

From 6 to 12 months 50 



Less than 1 month 

No provision is formed 

This method does not apply to receivables of subsidiaries and affiliated companies. The Company has 

the right to change or apply a separate provision rate in respect of individual debtors in the case of 

information received, which allows making a conclusion on a significant change in their financial 

situation. The last rule also applies to subsidiaries and affiliated companies. 

With respect to the suppliers’ receivables (advance payments granted), the Company charges a 

provision in the event of the supplier’s failure to comply with its obligations within the term stipulated 

by the agreement. 

Period of delay in performing obligations on advance payments 

granted, months 

Provision, % 



Income 

Proceeds are accepted for accounting in the amount calculated in monetary terms equal to the amount 

of cash and other property received, and/or to the amount of receivables (subject to the provisions of 

Clause 3 of the Rules of Accounting Incomes of Organization PBU 9/99 No. 32n (as amended on 

December 30, 1999; March 30, 2001; September 18, 2006, and November 27, 2006)). If the funds 

received cover a part of proceeds only, then the proceeds accepted for accounting are defined as the 

amount of the funds received and the receivables (to the extent not covered with the funds received). 

22

EXPLANATIONS 



Proceeds are recognized by the Company in accounting if the following conditions are simultaneously 

met: 

The organization is entitled to such proceeds, as follows from a certain agreement, or as duly 

confirmed otherwise. 

The amount of proceeds may be determined. 

There is confidence that economic benefits will grow as a result of a certain transaction. 

The right of ownership (possession, use, or disposal) for products (goods) has passed from the 

organization to the buyer, or the work has been accepted by the customer (service has been 

provided). 

The costs, which have been or may be incurred in connection with such transaction, may be 

determined. 

The structure of other incomes includes proceeds from lease of property, interests charged upon 

borrowed funds provided (including upon deposits placed), income from participation in other 

organizations, income from revaluation of financial investments, income from sale of currency and 

fixed assets, disposal of financial investments and other assets, penalties receivable under agreements 

in the area of power trade-in, profits of previous years, positive exchange differences, changes in the 

accounting estimates etc. The Company also accounts stock-market variation margin received from 

transactions in sale/purchase of futures at the Moscow Energy Exchange in the structure of other 

incomes. 

Costs 

The Company's costs are recognized in the reporting period in which they are incurred, irrespective of 

payment of funds. 

The net value of trading transactions (purchase of electricity (power) in the domestic market, import of 

electricity, sale of electricity without delivery to the RF customs territory) consists in the costs of 

purchase of electricity and power. 

The prime cost of products manufactured includes plants' general production and general business 

costs. General production and general business costs are distributed among the kinds of products 

manufactured pro rata to the production cost price of separate kinds of products. 

23

EXPLANATIONS 



The Company's commercial costs are not distributed among the prime cost of separate kinds of sales. 

The structure of commercial costs includes costs of transportation of electricity, loss of electricity, 

customs payments, wages of personnel engaged in trading and selling activity, etc. 

Management costs of the Company’s Executive Office are not distributed among the prime cost of 

separate kinds of sales. 

The structure of other costs includes costs connected with lease of property, interests charged upon 

borrowed funds provided, costs of sale of currency and fixed assets, disposal of financial investments 

and other assets, penalties payable under agreements in the area of power trade-in, losses of previous 

years, negative exchange differences, chaitable contributions, changes in the accounting estimates etc. 

The Company also accounts stock-market variation margin paid on transactions in sale/purchase of 

futures on the Moscow Energy Exchange in the structure of other costs. 

Accounting of Loans and Credits 

The indebtedness under a loan and/or a credit is reflected by the Company in the amount of the funds 

actually received or in the value of other assets assessment stipulated by an agreement at the moment 

of actual transfer of the funds or other assets. 

Indebtedness at the end of the reporting period is stated subject to interests payable in the structure of 

payables. The Company charges interests depending on the terms of agreement. 

Indebtedness under loans and/or credits received is subdivided in accounting into short-term and longterm, 

as well as into mature and overdue. The Company transfers liabilities from long-term to shortterm 

when, according to the terms of agreement, 365 (or 366) days remain to repayment of the 

principal part of the debt. 

Additional charges connected with receipt of loans and/or credits are included as a lump-sum in the 

structure of other costs at the moment of arising thereof. Payments to the banks in consideration for 

credit line opening are reflected in the statement of financial results in the structure of interests 

payable. 

Financial Investments 

Financial investments are accepted for accounting based on the actual costs of their purchase. 

24

EXPLANATIONS 



Financial investments for which current market value can be determined in accordance with 

established procedure are accounted in the accounting (financial) statements at the end of the year of 

report at their current market value. The difference between evaluation of financial investments at their 

current market value on the date of report and previous evaluation of financial investments is classified 

as financial results in the structure of other profits and expenses. Such revaluation is done once a year, 

while drawing up the annual accounting (financial) statements. 

Financial investments for which no current market value is determined are reflected in the accounting 

balance-sheet as of the end of the year of report at their book (balance-sheet) value minus provision for 

depreciation of financial investments, created for assets for which there are conditions of stable 

considerable depreciation as of the date of report. 

Provision for depreciation of financial investments is created once a year, based on the inventory 

results as of December 31 of the year of report. Upon determining the amount of provision, the 

Company based on available information determines the estimated cost of financial investments with 

the signs of stable depreciation, and creates a provision for depreciation of financial investments for a 

sum of excess of book (balance-sheet) value of these investments over their estimated cost. In respect 

of loans issued to third parties, the Company forms a provision for depreciation proceeding from the 

following principles: 

Period of delay in payment, months Provision, % 







Less than 6 months 

No provision is formed 

The total amount of the provision formed is attributed to other costs. 

Accounting of REPO transactions is carried out according to the procedure similar to accounting of 

loans provided. Income from REPO transactions is determined as the difference between the prices of 

25

EXPLANATIONS 



purchase and repurchase of the object of a transaction, and are reflected in the structure of interest 

incomes. 

If an asset disposes, which has been accepted for accounting as a financial investment the market value 

for which cannot be determined, its value is determined based on the initial value of each unit of 

financial investments. 

Income and costs from financial investments are reflected in the structure of other income and costs. 

Income and costs from transactions with financial bills of exchange are reflected in the statement of 

financial results in details. 

Property Appraisal Methods 

In accordance with Clause 1, Art. 12 of the Federal Law No. 402-FZ, assets and liabilities are 

evaluated for their reflection in accounting and in the accounting (financial) statements in monetary 

terms. 

Property acquired for a consideration is evaluated by summing up the actual costs of purchase thereof; 

property received on a free of charge basis – at its market value at the date of registration; property 

produced by the organization – at the cost of manufacture thereof. 

Depreciation of fixed assets and intangible assets is charged irrespective of the results of the 

Company's business activities in the reporting period. 

Cash and Cash Equivalents, Reflection of Cash Flows 

Cash and Cash Equivalents 

For the purpose of preparing Statement of cash flow, the Company includes in the structure of cash the 

cash equivalents, which mean short-term highly liquid financial investments that may easily be 

converted to a known amount of cash and are subject to an insignificant risk of changes in value. In 

particular, the Company attributes to cash equivalents the deposits in credit institutions issued at the 

request and/or with a maturity of three months or less, as well as highly liquid bank bills of exchange 

with a maturity up to three months. For the purpose of preparing balance sheet, the Company includes 

in the structure of cash the cash equivalents. 

Minimized Reflection of Cash Flows 

26

EXPLANATIONS 



Cash flows are reflected in the statement of cash flows minimized in cases where they characterize not 

only the organization's activities, but the activities of its contractors. In particular, the Company 

reflects the principal’s cash flows minimized in cases where the Company is a commission agent or an 

agent. 

Cash flows are also reflected in the statement of cash flows minimized in cases where they are 

distinguished by a great turnover, large amounts and shorter repayment periods. Likewise, income and 

expenses from foreign exchange transactions are reflected minimized (purchase/sale of foreign 

currency). 

Accounting of Cash Flows in Foreign Currency 

For the purpose of drawing up a statement of cash flow, the sum of cash flows in foreign currency is 

converted in Russian rubles according to the exchange rate of this foreign currency to Russian ruble, as 

established by the Central Bank of the Russian Federation on the date of making and receiving 

payment. 

Other 

Assets and Liabilities in Foreign Currencies 

Upon accounting economic transactions settled in foreign currency, official exchange rate of foreign 

currency to Russian ruble established on the date of transaction shall apply. The cost of currency notes 

in the Company’s cash desk, funds kept at bank accounts (bank deposits), money and payment 

documents, securities (except for shares), resources in settlements, including those on loan obligations 

(except for funds received, and advance payments and downpayment paid), expressed in foreign 

currency, is reflected in the accounting (financial) statements in the sums calculated on the basis of 

official exchange rate on December 31, 2012. Exchange rates on this date made 30.3727 RUB per 1 

US Dollar (December 31, 2011 – 32.1961 RUB), 40.2286 RUB per 1 EUR (December 31, 2011 - 

41.6714 RUB). 

Exchange difference shall be classified in the financial results of the Company as other profits or other 

expenses, except for exchange difference connected with formation of the authorized capital of the 

Company, which is to be classified as additional capital. 

Accounting of Financial Instruments of Forward Deals 

27

EXPLANATIONS 



The Company settles transactions with financial instruments of forward deals (FIFD) for the purpose 

of hedging currency, interest and other risks. Upon settling transactions with FIFD, the books shall 

reflect the settlements connected with fulfillment of respective contracts. At the moment of settling the 

deal, no records in the books are made. Profits and expenses on the transactions with FIFD are 

determined as of the closing date of the period of report, as of the date of interim settlements (if 

provided for by the contract), and as of the date of deal settlement. 

The financial result from transactions with FIFD on hedging the interest risk under a credit is reflected 

in the structure of interests receivable (payable); for other transactions – in the structure of other 

income/charges. 

Deferred Costs 

Costs incurred by the Company in the accounting year, but relating to forthcoming reporting periods, 

have been reflected as deferred costs. These costs are written off evenly during the period to which 

they relate. The duration of such period is fixed at the moment of acceptance of deferred costs for 

accounting. 

The structure of deferred costs includes such costs as: software products for which the Company has 

no exclusive rights; licenses and certificates obtained; compensations paid to advisers and/or 

intermediaries for the conclusion of agreements being a source of economic benefits for the Company 

during several reporting periods, other costs. 

Deferred costs related to periods after expiration of the year following the accounting year have been 

shown on the balance sheet in Non-current assets section on the line Other non-current assets. Deferred 

costs subject to a write-off within 12 months are reflected on the balance sheet in the structure of 

current assets on line Other current assets. 

Authorized, Additional, and Reserve Capital 

Authorized capital is reflected as par value of ordinary shares. The amount of the authorized capital 

corresponds to the amount specified in the Company’s Articles of Association. 

28

EXPLANATIONS 



Additional capital of the Company includes the sum of increase in the value of the items of fixed assets 

determined during revaluation, paid-in capital received in the result of distributing the Company’s 

shares at the price exceeding their par value. 

In accordance with the Articles of Association, the Company creates a reserve fund in the amount of 

15 % of the authorized capital. 

Procedure for Formation of the section “Capital and Provisions” During Company’s Reorganization 

through Affiliation of Reorganized Companies to the Company 

During reorganization, the Company forms a balance-sheet section ―Capital and Provisions‖ in a 

special way, as set forth in the order of the Ministry of Finance No. 44n dd. 20/05/2003 On Approving 

Procedural Guidelines For Formation Of Accounting (Financial) Statements During Reorganization 

Of Companies, i.e.: 

- Authorized capital of legal successor (JSC ―INTER RAO UES‖) is formed in the sum fixed 

in the contract of affiliation; yet, if the contract of affiliation provides for reduction of the legal 

successor’s authorized capital against the sum of authorized capitals of affiliated companies, the 

difference between algebraic sum of authorized capitals of all reorganized companies and the 

authorized capital fixed in the contract of affiliation shall be reflected in the legal successor’s balance 

sheet in the section ―Capital and Provisions‖ as a numerical indicator ―Undistributed income 

(uncovered loss)‖ 

- If the cost of legal successor’s net assets exceeds the sum of authorized capital fixed in the 

contract of affiliation during conversion of shares, numerical indicators of the section ―Capital and 

Provisions‖ of accounting balance-sheet shall be formed in the amount of net assets, with division into 

authorized capital and additional capital 

- In other cases the difference is accounted in ―Undistributed income (uncovered loss)‖ 

- Other balance-sheet items in the section ―Capital and Provisions‖, such as revaluation of capital 

assets, reserve capital, treasury shares, are formed on the basis of legal successor’s (JSC ―INTER RAO 

UES‖) data. 

29

EXPLANATIONS 



Segment Reporting 

Risks and profits of the Company are mainly defined by distinctions between the geographical regions 

where the Company sells electricity. Therefore, primary accounting segment is geographic – by 

regions of sales markets. 

Profits of the primary segment are distributed by segments, depending on geographically defined place 

of ownership transfer from the Company to the buyer of electricity (irrespective of the buyer’s country 

of incorporation). 

Secondary segment is operational segment. The Company discloses information on the operational 

segments with the breakdown by proceeds received, assets and capital investments. 

Changes in the Accounting Policy 

In accordance with the Orders of the Ministry of Finance of the Russian Federation taking effect with 

accounting (financial) statements for the year 2012, the following documents have been approved: 

Regulation on accounting ―Accounting of costs of natural resources development‖ (RAS 24/2011) 

Federal Law ―On Accounting‖ No. 402-FZ dd. February 6, 2011; 

Federal Law ―On Consolidated Accounting (Financial) Reporting‖ No. 208-FZ dd. July 27, 2010. 

Changes in the laws did not affect the Company’s accounting policy in 2012. In 2012 no considerable 

changes were made to the Company’s accounting policy. The Company does not plan making 

considerable changes to the accounting policy for the year 2013 if compared to the year 2012. 

III. 

CHANGES TO THE OPENING BALANCE-SHEET 

Changes to the opening balance, indicators of the statement of financial results, statement of changes 

in equity for the years 2011-2010 were not made. 

30

EXPLANATIONS 



IV. 

DISCLOSURE OF SIGNIFICANT PARAMETERS 

1. INTANGIBLE ASSETS 

Flow of intangible assets during the year of report is shown in the table below: 

Name of the 

indicator 

Code Period 

As of the beginning of the year 

Changes for the period 

disposed 

As of the end of the year 

accumulated 

accumulated 

depreciation accumulated 

depreciation 

accumulated received 

original value 

original value and depreciation original value and 

depreciation 

impairment 

impairment 

losses 

losses 

Intangible assets 

- total 

5100 2012 14 317 (7 687) 78 886 (12 804) 8 019 (4 874) 80 399 (4 642) 

5110 2011 8 607 (6 074) 6 710 - - (2 613) 14 317 (7 687) 

including: 

Exclusive rights 

to software 

products 

5101 2012 14 086 (7 611) 78 886 (12 804) 8 019 (4 846) 80 168 (4 438) 

5111 2011 8 376 (5 026) 5 710 - - (2 585) 14 086 (7 611) 

Other IA 

5102 2012 231 (76) - - - (28) 231 (104) 

5112 2011 231 (48) - - - (28) 231 (76) 

As of December 31, 2012 the Company has no intangible assets that are subject to depreciation and 

have indefinite period of useful life. Remaining period of useful life of intangible assets amounts to: 

For exclusive rights to software products – from 3 to 5 years 

For a trade mark – from 3 to 7 years. 

Initial value of intangible assets in the year of report did not change, useful life was not revised. 

Intangible assets with fully paid value, but not written off the books, make 0.5 % (378 thsd. rubles) of 

the book value of exclusive rights to software products. The Company has no intangible assets created 

by the Company itself. 

In the year of report the Company included in its intangible assets exclusive rights to creating 

information systems for management of Company’s activity, which have been developed on the basis 

of ORACLE software. These systems include: 

Software complex ―Unified Information System of Procurements‖ designed for 

procurement management in JSC ―INTER RAO UES‖; 

31

EXPLANATIONS 



Software complex ―TAS/INTER IAS‖ designed for information and analytical support of 

decision-making with regard to the sale of electricity at the wholesale market; 

- Software complex ―Property Complex Management System‖ designed for corporate 

management of assets in INTER RAO UES Group; 

Information system ―Register of Lawsuits‖. 

In the year of report the Company excluded from its intangible assets exclusive rights to software 

products in the result of their sale to 100 % subsidiary INTER RAO – Electric Power Plants, OJSC, 

because of termination of Company’s activity. These intangible assets have been sold at a market price 

calculated by the appraiser. The loss from sale made 3 thsd. rubles. 

2. RESEARCHES AND DEVELOPMENTS RESULTS (R&D) 

R&D process and results during the year of report are shown in the table below: 

R&D - total 


Code Period 

As of the beginning of the 

year 

original 

value 

part of the 

cost 

expensed as 

incurred 

received 


original 

value 

disposed 

part of the 

cost 

expensed as 

incurred 

part of 

the cost 

expensed as 

incurred for 

the period 


original value 

part of the 

cost 

expensed as 

incurred 

5140 2012 1908 - - - (670) (1238) - - 

5150 2011 5555 - 3409 - - (7056) 1 908 - 

including: 

Development to improve the 

reliability of the heat-recovery 

boilers PGU-450T of the North- 

Western Thermal Power Plant 

Development of dynamic OES 

model of the North-Western 

Thermal Power Plant 

Development and testing of 

dynamic model of the Finnish 

energy system 

Development for studying heat 

energy market in terms of 

developing the TPP capacity to the 

project level 

Development of software and 

graphic modules of thermal circuit 

of the North Western Thermal 

Power Plant 

5141 2012 - - - - - - - - 

5151 2011 4263 - - - - (4263) - - 

5142 2012 - - - - - - - - 

5152 2011 458 - - - - (458) - - 

5143 2012 - - - - - - - - 

5153 2011 834 - - - - (834) - - 

5147 2012 1786 - - - (670) (1116) - - 

5157 2011 - - 2679 - - (893) 1786 - 

5148 2012 122 - - - (122) - - 

5158 2011 - - 730 - - (608) 122 - 

32

EXPLANATIONS 



R&D process and unfinished and non-documented results thereof, as well as unfinished transactions on 

purchasing intangible assets throughout the year of report is shown in the table below. 


Name of the indicator Code Period 

As of the 

beginning 

of the year 

expenses 

for the 

period 

expenditures expensed as 

incurred without giving a 

positive result 

reclass 

accepted to be registered 

as intangible assets or 

R&D 

As of the 

end of the 

period 

Expenses on unfinished 

researches and developments - 

total 

including: 

Development of software and 

graphic modules of thermal 

circuit of the North Western 

Thermal Power Plant 

Development to create and test 

low emission combustion 

chamber GTE-110 

Development of scheme of 

power distribution of 

Baltiyskaya NPP 

Development of heat energy 

market model in terms of 

developing the TPP capacity to 

the project level 

Development of automated 

management systems of 

Company’s activity 

Other developments 

5160 2012 - 136 300 - - (78 886) 66 416 

5170 2011 160 379 14 968 (21 696) (140 242) (3 410) - 

5161 2012 - - - - - 

5171 2011 730 - - - (730) - 

5162 2012 - - - - - - 

5172 2011 127 954 12 288 - (140 242) - - 

5163 2012 - - - - - - 

5173 2011 21 695 - (21 695) - - 

5167 2012 - - - - - - 

5177 2011 - 2 680 - (2 680) - 

5168 2012 - 134 073 - - (78 885) 55 188 

5178 2011 - - - - - - 

5169 2012 - 1 227 - - - 1 227 

5179 2011 - - - - - - 

As of 31/12/2012б the scope of unfinished transactions on purchasing intangible assets include the 

costs of creating automated information systems for management of Company’s activity, which have 

been developed on the basis of different software products. They include the management system for 

Company’s investment programs, management of IT activity, corporate planning etc. As of 

31/12/2012 the costs of creating the said systems amounted to 55,188 thsd. rubles. Their 

commissioning is planned for the first half-year of 2013. 

In the Company’s accounting balance-sheet unfinished transactions on purchasing intangible assets are 

reflected in the line 1190 ―Other intangible assets‖. 

3. FIXED ASSETS AND INCOME BEARING INVESTMENTS IN TANGIBLE ASSETS 

Book value of fixed assets as of December 31, 2012 amounted to 3,230,333 thousand rubles 

(19,126,014 thousand rubles - as of December 31, 2011; 39,431,218 thousand rubles – as of December 

31, 2010). Book value of completely depreciated fixed assets with no consideration to wear and tear as 

33

EXPLANATIONS 



of December 31, 2012 amounted to 66,838 thousand rubles (110,229 thousand rubles - as of December 

31, 2011; 276,264 thousand rubles - as of December 31, 2010). The Company has not got any pledged 

fixed assets. 

Fixed Assets Acquisition 

During the year of report the Company commissioned new items of fixed assets (not including those 

received from reorganization), including upgraded items, for a total sum of 9,926,700 thsd. rubles 

(15,183,517 thsd. rubles in 2011). Items of fixed assets of the 2 nd power unit of CCP-325 of the branch 

"Ivanovskie PGU" have been commissioned. Initial value of the said items amounted to 9,599,152 

thsd. rubles. In the executive bodies of the Company items of fixed assets with the initial value of 

304,418 thsd. rubles (13,603 thsd. rubles in 2011) have been commissioned. They are mainly server, 

network and communication equipment. 

In November 2012 the Company received on its balance buildings and structures in the result of 

affiliation with JSC ―Bashenergoaktiv‖ 3 . According to the general conditions of formation of spin-off 

balance-sheet of JSC ―Bashkirenergo‖, the property, including fixed assets, are transferred to its legal 

successor at their book value. Book value of buildings and structures amounted to 124,491 thsd. rubles 

according to the deed of transfer, including facilities accounted in the structure of fixed assets in the 

amount of 55,106 thsd. rubles, and facilities accounted in the structure of income-bearing investments 

in tangible assets in the amount of 69,385 thsd. rubles. 

Retirement of Fixed Assets 

In 2012 the Company continued its operations on transferring fixed assets to 100 % subsidiary – 

INTER RAO – Electric Power Plants, OJSC – for the purpose of implementing the decision made in 

2011 on the shutdown of electricity and heat energy production, and transferring this function to the 

said company. As of 31/12/2012 the book value of the items of fixed assets sold amounted to 

25,078,548 thsd. rubles (in 2011 – 3,101,420 thsd. rubles). The sum of liquidated items of fixed assets 

amounted to 68,311 thsd. rubles (in 2011 – 2,718 thsd. rubles). 

3 Bashnergoaktiv‖ was formed in November 2012 through separation during reorganization of JSC ―Bashkirenergo‖. 

34

3.1. Availability and flow of fixed assets 




Decrease in cost due to 

Increase in cost due to 

Code 

Period 

Disposal 

Accumulated 

depreciation 

Modernization, 

reconstruction of the 

FA objects 

Depreciation 

Accumulated 

depreciation 

Partial 

liquidation 

Divestiture of 

facilities 

Disposal Original 

value 

Downsizing of FA 

objects 

Accumulated 

depreciation 

Original value 

Receipt 

Original value 

(884 811) 

4 115 144 

(70 016) 

1 557 176 | 

(26 704 035) 

(730 629) 

70 016 

1 217 406 

8 764 401 

(1 711 358) 

20 837 372 

5200 

2012 

(1 711 358) 

20 837 372 

(1 936 483)| 

14 078 129 | 

(47 103 044) 

(2 463 807) 

1 936 484 

635 827 

| 14 547 690 

(13 325 680) 

52 756 898 

5210 

2011 

including 

Buildings and constructions 

(752 777) 

3 637 873 

(69 513) 

545 393 

(8 111 665) 

(276 922) 

69 513 

1 215 345 

1 586 480 

(1 021 248) 

8 947 713 

5201 

2012 

EXPLANATIONS 



(1 021 248) 

8 947 713 

(1 148 831) 

2 104 342 

(14 814 675) 

(551 179) 

873 040 

221 424 

3 059 052 

(2 574 411) 

20 757 703 

5211 

2011 

Machines and equipment 

(124 648) 

409 021 

- 

963 549 

(18 491 608) 

(446 714) 

- 

2 061 

7 113 754 

(641 483) 

11 784 814 

5202 

2012 

(641 483) 

11 784 814 

(787 052) 

11 860 805 

(32 101 903) 

(1 893 307) 

1 062 844 

414 403 

11 463 887 

(10 608 981) 

31 732 635 

5212 

2011 

Tools and utility accessories 

(5 319) 

51 720 

- 

34 131 

(49 767) 

(4 186) 

- 

- 

51 065 

(35 264) 

50 422 

5203 

2012 

(35 264) 

50 422 

- 

40 257 

(51 189) 

(8 419) 

- 

- 

9 930 

(67 102) 

91 681 

5213 

2011 

Transport vehicles 

(1 881) 

7 150 

- 

12 979 

(25 763) 

(2 507) 

- 

- 

2 627 

(12 353) 

30 286 

5204 

2012 

(12 353) 

30 286 

- 

71 599 

(110 041) 

(10 452) 

- 

- 

13 183 

(73 500) 

127 144 

5214 

2011 

Land plots and objects of nature management 

2 040 

(503) 

- 

(23 857) 

- 

503 

- 

3 134 

- 

22763 

5205 

2012 

22 763 

(600) 

- 

(20 522) 

- 

606 

- 

1 638 

- 

41 647 

5215 

2011 

Other types of fixed assets 

(186) 

7 340 

- 

1 124 

(1 375) 

(300) 

- 

- 

7 341 

(1 010) 

1 374 

5206 

2012 

(1 010) 

1 374 

- 

1 126 

(4 714) 

(450) 

- 

- 

- 

(1 686) 

6 088 

5216 

2011 

Registered as income bearing investments in the tangible assets - total 

(455) 

85 279 

- 

1 707 

(43 505) 

(807) 

- 

- 

85 279 

43 505 

5200 

2012 

( 1 452) 

(1 452) 

43 505 

- 

- 

- 

(890) 

- 

- 

| 25 097 | 

(562) 

18 408 

5210 

2011 

including: 

Transfer into rent residual premises 

- 

- 

- 

1 707 

(43 505) 

(255) 

- 

- 

- 

(1 452) 

43 505 

5220 

2012 

(1 452) 

4 305 

- 

- 

- 

(890) 

- 

- 

25 097 

(562) 

18 408 

5230 

2011 

Buildings and constructions 

(134) 

59 041 

- 

- 

- 

(134) 

- 

- 

59 041 

- 

- 

5220 

2012 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

5230 

2011 

Machines and equipment 

(418) 

26 238 

- 

- 

- 

(418) 

- 

- 

26 238 

- 

- 

5220 

2011 

35

EXPLANATIONS 



3.2 Other use of fixed assets 


Code 


2012 


2011 


2010 

Fixed assets accounted on the balance sheet, including: 

Fixed assets transferred into operational lease 

5280 2 671 976 771 036 1 780 627 

Real estate objects transferred for operation and 

actually used being in the process of state 

registration 5284 3 368 284 847 1 931 649 

Fixed assets on conservation 

5285 16 664 26 887 3 092 467 

TOTAL 

2 691 998 1 082 770 6 804 633 

Fixed assets accounted on the off-balance sheet , including: 

Fixed assets received into operational lease, total 

5283 18 702 263 43 034 004 868 210 

Fixed assets received into operational lease 

(leasing) 5283 678 417 678 417 2 734 141 

TOTAL 19 380 680 43 712 421 3 692 361 

Leased Fixed Assets 

Fixed Assets Received on a Leasing Basis 

Fixed assets received under leasing agreements are accounted on the lessor's balance sheet. Company 

accounts the property received off the balance. 

Information on the fixed assets received under leasing agreement is given below: 

Name of the object of 

leasing 

Duration: 

Value as of 

31/12/2011 

Arrived in 

2012 

Disposed in 

2012 

Value as of 

31/12/2012 

Aircraft Bombardier 

CL-60002B16 

2015 678 417 678 417 

TOTAL 678 417 - - 678 417 

Leasing payments charged in 2012 amounted to 67 148 thousand rubles (64 ,080 thousand rubles - in 

2011). Advance payment on the redemption payments for the aircraft as of December 31, 2012 

amounted to 231 .189 thousand rubles. (129 ,994 thousand rubles – as of 31/12/2011; 33 ,423 thousand 

rubles - as of December 31, 2010). 

36

EXPLANATIONS 



Fixed assets Taken on Lease 

Information on the fixed assets received under leasing (sub-leasing) agreement is given below: 

Name of the object of 

leasing 

Main production 

equipment of North- 

West Thermal Power 

Plant 


equipment of 

Kaliningradskaya 

TEC-2 


equipment of 

Ivanovskie PGU 


equipment of 

Sochinskaya TEC 

Main process 

equipment of 

SochinskayaTEC 

Main process 

equipment of 

Kaliningradskaya 

TEC-2 

Duration: 

Value as of 

31/12/2011 

Arrived in 

2012 

Disposed in 

2012 

February 

2012 19 136 712 (19 136 712) 

February 

2012 8 824 973 (8 824 973) 

Value as of 

31/12/2012 

August 

2013 7 005 272 8 973 360 15 978 632 

February 

2012 4 891 086 (4 891 086) 

February 

2012 1 644 585 (1 644 585) 

February 

2012 411 139 (411 139) 

Property of Test stand 

of Ivanovskaya GRES 

August 

2013 297 522 (191 533) 105 989 

TOTAL 42 211 289 8 973 360 (35 100 028) 16 084 621 

Besides the aforesaid equipment, fixed assets taken on lease as of December 31/2012 include land 

plots with cadastral value of 1,519,324 thsd. rubles (817,197 thsd. rubles – as of 31/12/2011), office 

space of the executive bodies of the Company with the value of 1,095,762 thsd. rubles, and other 

equipment for a total sum of 2,556 thsd. rubles (5,518 thsd. rubles – as of 31/12/2011). 

4. UNFINISHED CONSTRUCTION 

37

EXPLANATIONS 



In 2011 in the process of transferring fixed assets to 100 % subsidiary – INTER RAO – Electric Power 

Plants, OJSC – the Company sold the objects of capital investments in purchase (creation) of future 

fixed assets required for production activity. The book value of sold objects as of 31/12/2012 

amounted to 218,574 thsd. rubles. The sum of liquidated objects of unfinished capital expenditures 

unfit for further use amounted to 94,218 thsd. rubles as of 31/12/2012. 

Information about the flow and existence of the objects of unfinished construction and unfinished 

operations on purchasing and upgrading fixed assets is given in the table below. 



Code Period 

As of the 

beginning of 

the year 

expenses for 

the period 

expenses as 

incurred 

(including 

realized) 

Put on the books in 

the structure of 

fixed 

assets/material and 

non-material 

valuables 

As of the end of 

the period 

Unfinished construction and 

unfinished transactions on acquisition, 

modernization of fixed assets - total 

5240 2012 9 426 348 938 181 (412 687) (9 939 461) 11 381 

5250 2011 22 340 149 2 905 428 (617 646) (15 202 684) 9 425 348 

including: 

expenses for construction and 

acquisition of fixed assets objects 

expenses for reconstruction, 

modernization of fixed assets objects 

5241 2012 9 253 099 934 123 (240 460) (9 935 381) 11 381 

5251 2011 22 23 520 1 961 606 (415 542) (14 531 485) 9 253 099 

5242 2012 172 249 4 058 (172 227) (4 080) - 

5252 2011 101 629 943 822 (202 103) (671 099) 172 249 

5. OTHER CAPITAL ASSETS 

Information on other capital assets of the Company is presented below: 

38

EXPLANATIONS 



Name As of December 31, As of December As of December 

2012 

31, 2011 31, 2010 

Receivables 26 967 810 3 862 219 2 308 241 

Total deferred expenses, including 124 622 1 062 881 331 309 

- fee for process integration 

of power receivers - 784 748 23 596 

- software products 105 545 125 815 138 893 

- rights to use land 2 632 105 277 110 536 

plots 

- commissioning work on new fixed assets 18 738 28 108 

- agency fee receivable 4 756 7 134 9 513 

- other 11 689 21 169 20 663 

Costs of a feasibility study of investments 

72 130 

Unfinished operations on purchasing intangible assets 

56 414 

Apartments 3 071 3 071 28 058 

Costs of unfinished R&D - - 150 379 

Materials intended for modernization of fixed assets 222 443 

Value-added tax on the costs of construction of the starting complex of 

the second power unit PGU-450 MW of Kaliningrad TPP-2 2 238 840 

TOTAL 27 151 917 5 000 301 5 279 270 

Flow and structure of receivables is shown in the section 8 ―Long-Term Receivables‖ and in the 

section 8.1 ―Long-Term Receivables‖ of this Explanatory Note. 

6. FINANCIAL INVESTMENTS 

6.1. Long-term financial investments 

Financial investments on the balance sheet are shown net of a provision for devaluation of financial 

investments in the amount of 334,946,242 thousand rubles as of December 31, 2012 (241,150,388 

thousand rubles - as of December 31, 2011, 46,454,407 thousand rubles - as of December 31, 2010). 

Shares quoted on the Stock Exchange are reflected on the balance sheet at the market value calculated 

by exchange trade organizer (MICEX) on the last working day, December 28, 2012 

As of December 31, 2012 the value of provision created for devaluation of financial investments in the 

authorized (share) capitals of other companies amounts to 49,387,799 thousand rubles (2,554,855 

thousand rubles – as of December 31, 2011; 633,513 thousand rubles – as of December 31, 2010). 

39

Code 

5301 

5311 

Period 

2012 

2011 

those taken into account by 

current market value 

5302 

532 

2 

2012 

2011 


actual costs 

530 

3 

532 

3 

530 

4 

5324 

530 

5 

5325 

530 

6 

532 

6 

5307 

532 

7 

5308 

5328 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 


actual costs 

5309 

532 

9 

531 

0 

533 

0 

5311 

5331 

5312 

5332 

2012 

| 2011 

2012 

| 2011 

2012 

2011 

2012 

2011 

2012 

2011 


Book value 

243 705 243 

47 087 920 

179 997 082 

24 325 457 

59 580 879 

15 683 153 

4 043 724 

4 882 654 

- 

2 185 034 

66 122 

- 

17 436 

11 622 

6 034 567 

4 052 414 

3 264 978 

1 764 089 

249 739 810 

51 140 334 

Devaluation 

provision 

(2 554 855) 

(633 513) 

- 

- 

(2 554 855) 

(663513) 

- 

- 

- 

- 

- 

- 

- 

(6 192) 

(31 678) 

- 

- 

(6 192) 

(31 678) 

- 

- 

- 

- 

(2 561 047) 

(665 191) 

Received 

289 023 575 

330 901 751 

45 402 984 

281 295 108 

241 677 634 

46 915 400 

1 942 957 

2 619 357 

- 

66 072 

5 814 

7 454 052 

6 344 494 

4 901 160 

3 898 218 

1 202 892 

460 776 

1 350 000 

1 985 500 

- 

296 477 627 

337 246 245 

Availability and flow of financial investments 

Disposed (repaid) 

(150 399 736) 

(8 803 921) 

(150 301 771) 

(5 737 679) 

(3 065 283) 

(58 325) 

(959) 

- 

(39 640) 

- 

- 

(12 425 277) 

(9 903 042) 

(8 337 176) 

| (1 582 824)| 

(1 732 601) 

(5 273 982) 

(2 355 500) 

(980 000) 

(2 066 236) 

(162 825 013) 

(18 706 963) 


Influence of 

market quotations, 

exchange rate 

differences, 

discount on bills of 

exchange 

1 870 641 

(120 067 810) 

1 859 759 

(119 838 195) 

- 

8 495 

(172 130)| 

(57 535) 

2 387 

50 

- 

20 937 

128 004 

171 038 

31 498 

(150 101) 

157 769 

(61 263) 

1 891 578 

(119 939 806) 

Devaluation 

provision 

(46 832 944) 

(1 921 342) 

(46 832 944) 

(1 921 342) 

- 

- 

(5 784) 

25 486 

(5 784) 

25 486 

(46 838 728) 

(1 895 856) 

Reclass 

134 318 

(5 412 697) 

(83 576) 

(47609) 

83 576 

47 609 

163 187 

(3 285 198) 

(2 127 499) 

(28 869) 

- 

- 

(134 318) 

5 412 697 

28 869 

(163 187) 

3 285 198 

2 127 499 

- 

- 

As of the end of the period 

Book value 

384 334 041 

243 705 243 

76 874 478 

179 997 082 

301 342 089 

59 580 879 

6 100 038 

4 043 724 

- 

- 

- 

66 122 

17 436 

17436 

949 961 

6 034 567 

28 869 

3 264 978 

921 092 

1 764 089 

- 

1 005 500 

- 

- 

385 284 002 

249 739 810 

Impairment provision 

(49 387 799) 

(2 554 855) 

- 

- 

(49 387 799) 

(2 554 855) 

- 

- 

- 

- 

- 

- 

- 

- 

(11 976)| 

(6 192) 

- 

- 

(11 976) 

( 6192) 

- 

- 

- 

- 

(49 399 775)| 

(2 561 047) 

EXPLANATIONS 



Information about the existence and flow of financial investments in the period of report is shown in 

the table below. 

40


Long-term - total 

including: 

shares quoted on stock 

exchange 

shares and investment units 

loans 

debt acquired on the basis of 

concession 

debt securities 

contributions into joint activity 

Short-term - total 

including: 

debt securities 

loans 

deposits in banks 

debt acquired on the basis of 

concession 

Financial investments - 

total 

EXPLANATIONS 



6.1. Long-term financial investments – continue 

Participation in the Authorized Capital of Other Organizations 

Unlisted Financial Investments: 

In the period of report the Company increased investments in the subsidiary and affiliate companies by 

making additional contribution to the authorized (share) capital of the following companies: 

Name of legal entity 

Amount of 

financial 

investment as 

of 31/12/2011 

Amount of 

additional 

contribution 

Devaluation 

provision 

Amount of 

financial 

investment as of 

31/12/2012 

INTER RAO – Capital 

CJSC 1 923 000 69 333 907 (48 001 092) 23 255 815 

INTER RAO Holding B.V. 

3 724 544 689 124 4 413 668 

RAO Intertech B. V. 71 169 300 201 - 371 370 

INTER RAO – Export 

LLC 30 000 270 000 - 300 000 

INTER RAO – Orel 

Energosbyt LLC 10 000 50 000 60 000 

TOTAL: 5 758 713 70 643 232 (48 001 092) 28 400 853 

In the result of reorganization and affiliation of JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO – 

Energy‖, JSC ―INTER RAO – EnergoAktiv‖, JSC ―Bashenergoaktiv‖, the Company received on its 

balance financial investments in the form of shares in the authorized capital of the following 

companies: 


Amount of 

financial 

investment as 

of 31/12/2011 

Received in the 

result of 

reorganization 

Devaluation 

provision 

Amount of 

financial 


31/12/2012 

INTER RAO – Electric 

Power Plants, OJSC 34 631 499 149 144 213 183 775 712 

41

EXPLANATIONS 



Bashkiria Generating 

Company LLC 

17 157 773 17 157 773 

CCP TPP-5 LLC - 2 193 231 - 2 193 231 

Bashkiria Heat Distribution 

Systems LLC 

2 359 923 (672 438) 1 687 485 

OGK-1 Finance LLC 

- 10 000 - 10 000 

Coal Mine LLC 

79 515 (79 515) 

TOTAL: 34 631 499 170 944 655 (751 953) 204 824 201 

In the period of report the Company purchased stock/shares in the authorized (share) capital of the 

following companies under purchase agreements: 


Amount of 

financial 

investment as 

of 31/12/2011 

Purchased in the 

year of report 

Devaluation 

provision 

Amount of 

financial 


31/12/2012 

JSC ―Elektroluch‖ 2 020 825 44 748 - 2 065 573 

INTER RAO UES Energy 

Efficiency Center LLC 45 000 - 45 000 

TOTAL: 2 020 825 89 748 - 2 110 573 

Quoted Financial Investments: 

Information about purchase and disposal of quoted shares is given in the table below: 

Name of legal 

entity 

Amount of 

financial 

investment as 

of 31/12/2011 

Arrived in 2012 Revaluation Amount of 

financial 

from from 


reorganization purchase/sale 

31/12/2012 

JSC 

Petersburg 

Company‖ 

―Saint 

Sale 

9 838 857 1 292 154 1 492 052 12 623 063 

JSC ―TGK-6‖ 3 254 521 235 911 - (1 632 610) 1 857 822 

JSC ―TGK-11‖ 3 115 973 255 783 2 138 619 2 397 483 7 907 858 

TOTAL: 16 209 351 491 694 3 430 773 2 256 925 22 388 743 

In 2012 in the course of reorganization of JSC ―Bashkirenergo‖, the Company purchased shares of the 

latter from minority shareholders, and also purchased shares of JSC ―Bashkirenergo‖ from JSC 

―System-Invest‖ with the consent of JSC ―AFK System‖. By mutual consent of the parties a part of the 

sum was paid in cash, the remaining sum was paid by Company’s bills of exchange. Maturity time of 

42

EXPLANATIONS 



the bills of exchange is January – September 2013. The Company’s debt on its own bills of exchange 

is reflected in the books in the structure of other payables, and is itemized in the section 14.2 hereof. In 

January 2013 the Company extinguished its debt on its own bills of exchange in the amount of 

3,467,416 thsd. rubles. In 2012 the Company purchased shares of JSC ―OGK-1‖, JSC ―OGK-3‖, 

JSC ―Saint Petersburg Sale Company‖, JSC ―TGK-11‖ from its subsidiary – JSC ―INTER RAO 

Capital‖, for a total sum of 26,296,486 thsd. rubles. Company’s debt for purchased securities is 

reflected in the books in the structure of other payables, and is itemized in the section 14.2 hereof. 

Quoted Financial Investments (continue) 

Information about purchasing and disposal of quoted shares is given in the table below: 

Name of legal 

entity 

Amount of 

financial 

investment as 

of 31/12/2011 

Arrived in 

2012 

Disposed in 2012 

from 


from 

purchase/sale 

Amount of 

financial 

investment as 

of 31/12/2012 

JSC ―OGK-3‖ 33 310 742 9 632 798 (32 778 734) (10 164 806) - 

JSC ―OGK-1‖ 32 346 558 12 489 048 (34 055 704) (10 779 902) - 

Enel OGK-5 17 090 794 - - (17 090 794) - 

JSC 

―Bashkirenergo‖ 8 722 230 18 614 804 (27 337 034) 

JSC ―RusHydro‖ 

5 091 474 - (5 091 474) 

E.ON Russia 4 386 405 - - (4 386 405) - 

JSC ―Mosenergo‖ 

3 433 616 - (3 433 616) 

OGK-2 2 562 701 - - (2 562 701) - 

JSC ―Saint 

Petersburg Sale 

Company‖ 

743 867 (743 867) 

JSC ―TGK-1‖ 717 483 - - (717 483) - 

JSC ―TGK-9‖ 361 700 - - (361 700) - 

JSC 

―Kuzbassenergo‖ 275 335 - (275 335) 

JSC ―Kvadra‖ 244 947 - - (244 947) - 

JSC ―Enisey TGK‖ 

211 842 (211 842) 

JSC ―TGK-2‖ 44 579 - - (44 579) - 

JSC ―TGK-14‖ 13 136 - - (13 136) - 

JSC 

―Novosibirskenergo‖ 

7 712 (7 712) 

TOTAL: 109 565 121 40 736 650 (94 171 472) (56 130 299) - 

43

EXPLANATIONS 



As a result of sale of the shares, the Company received income exceeding the value of purchase. 

Detailed information is presented in the section 15 ―Other incomes and costs" of this Explanatory note. 

Information about financial investments as of 31/12/2012 kept in pledge and in trust management is 

given in the table below: 

6.2. Other use of financial investments 

Name of the indicator Code As of 31/12/2012 As of 31/12/2011 As of 31/12/2010 

Financial investments kept in pledge - total 5320 1 069 412 2 536 129 1 215 027 

including 

shares of JSC ―Saint Petersburg Sale Company‖ 5321 - 1 388 580 1 215 027 

shares of JSC ―Stantsiya Ekibastuzskaya GRES-2‖ 5322 1 069 412 1 147 549 - 

Financial investments transferred to third parties 

(other than by sale) - total 

5325 7 254 610 24 750 396 - 

including 

shares of JSC ―Bashkirenergo‖ transferred into trust 

management of Gazprombank Asset Management CJSC 

5326 - 659 929 - 

shares of JSC ―Volga TGK‖ transferred into trust 


5327 6 824 034 8 421 324 - 

shares of JSC ―OGK-1‖ transferred into trust 


5328 - 8 192 726 - 

shares of JSC ―OGK-3‖ transferred into trust 


5329 - 7 318 660 - 

shares of JSC ―TGK-6‖ transferred into trust 


5330 409 191 136 372 - 

shares of Tomsk Energy Retail Company OJSC 

transferred into trust management of Gazprombank 5331 21 385 21 385 - 

Asset Management CJSC 

Other use of financial investments 5335 - - - 

Subsidiary and Associated Companies 

The Company controls another entity when by virtue of its participation or in accordance with the 

powers received from other entities, it has more than 50 % of the total number of votes related to 

voting shares (participatory interest) in the authorized (share) capital of the legal entity, and can 

determine decisions made by such entity. Such participation shall be attributed by the Company to a 

category of participation in subsidiaries. 

The Company influences another entity when it has the right to manage directly or through its 

subsidiaries more than 20 % of the total number of votes related to voting shares (participatory 

interest) in the authorized (share) capital of the legal entity and has the ability to determine decisions 

made by such entity. Such participation shall be attributed by the Company to a category of 

participation in associated companies. 

44

EXPLANATIONS 



Information about Company’s participation in the authorized capitals of other entities, specifying the 

share therein as of December 31, 2012, is given below: 

Name 

of a legal entity 

Percentage 

of 

participation 

in the capital 

Amount of 

financial 

investment 

Devaluation 

provision 

Amount of 

investment 

minus 

provision 

Amount of 

investment 

minus 

provision 

Amount of 

investment 

minus 

provision 

as of as of as of as of as of as of 

Investments in subsidiaries 

31.12.2012 31.12.2012 31.12.2012 31.12.2012 31.12.2011 31.12.2010 

48 978 274 253 140 194 37 610 

- 323 232 499 546 953 350 785 

INTER RAO – 

183 775 34 631 

Elektrogeneratsiya OJSC Russia 100,0000 183 775 712 - 712 499 - 

CJSC ―INTER RAO – Capital‖ 

48 001 23 255 

Russia 100,0000 71 256 907 092 815 - 1 923 000 

Bashkiria Generating Company 

17 157 

LLC, Russia 100,0000 17 157 773 - 773 - - 

JSC ―Saint Petersburg Sale 

Company‖ 

11 493 

(ordinary shares) Russia** 85,37 11 493 589 - 589 9 094 990 2 439 611 

JSC ―Saint Petersburg Sale 

Company‖ 

(preferred shares) Russia** 14,63 1 129 474 - 1 129 473 743 867 332 670 

Territorial Generation Company 

No. 1 OJSC Russia * 98,5326 7 907 858 - 7 907 858 3 115 973 275 175 

JSC ―MOSENERGOSBYT― 

Russia* 50,9189 6 363 592 - 6 363 592 6 675 731 - 

LLC ―RN-Energo Ltd" Russia 100,0000 4 995 804 - 4 995 804 4 995 804 - 

Moldavskaya GRES CJSC 

Pridnestrovian Moldavian 

Republic 80,9000 4 964 103 - 4 964 103 4 964 103 2 646 004 

INTER RAO HOLDING B.V. 

the Netherlands 100,0000 4 413 668 - 4 413 668 3 724 544 1 861 680 

Bashkiria Distribution Systems 

LLC, Russia 92,84 2 359 923 672 438 1 687 485 

JSC ―Eastern 

Energy Company‖, Russia 100,0000 2 190 290 - 2 190 290 2 190 290 2 190 290 

JSC ―Elektroluch‖ Russia 99,82 2 065 573 - 2 065 573 2 020 825 1 756 693 

45

EXPLANATIONS 




Percentage 

of 

participation 


as of 

31.12.2012 

Amount of 

financial 

investment 

as of 

31.12.2012 

Devaluation 

provision 

as of 

31.12.2012 

Amount of 

investment 

minus 

provision 

as of 

31.12.2012 

Amount of 

investment 

minus 

provision 

as of 

31.12.2011 

Amount of 

investment 

minus 

provision 

as of 

31.12.2010 

Razdan Energy Company OJSC 

(RazTES) 

Republic of Armenia* 100,0000 624 579 - 624 579 624 579 - 

RAO Intertech B.V. 

the Netherlands 100,0000 371 370 - 371 370 71 169 853 

JSC ―Altaienergosbyt‖ 

Russia 100,0000 330 000 - 330 000 330 000 - 

INTER RAO – Export LLC Russia 100,0000 300 000 - 300 000 30 000 - 

Testing stand of JSC ―Ivanovskie 

GPU‖ 

Russia 82,8359 290 055 186 348 103 707 103 707 103 707 

JSC «Tambov Energy Retail 

Company‖ 

Russia* 59,3845 246 129 - 246 129 343 489 - 

INTER RAO Middle East B.V. the 

Netherlands 100,0000 245 362 - 245 362 245 362 245 362 

JSC ―Saratovenergo‖ 

Russia 56,9715 220 357 - 220 357 279 404 - 

INTER RAO – Procurement 

Management Center LLC 

Russia 100,0000 122 038 - 122 038 122 038 19 342 

INTER RAO Finance B.V. the 

Netherlands 100,0000 82 748 - 82 748 82 748 - 

INTER RAO Central Asia LLP 

Kazakhstan 100,0000 47 443 - 47 443 47 443 47 443 

JSC ―United Energy Retailing 

Company‖ 

Russia 100,0000 44 800 - 44 800 44 800 - 

RAO Nordic Oy Republic of Finland 100,0000 43 410 - 43 410 43 410 43 410 

Coal Mine LLC 

Russia 100,0000 79 515 79 515 - - - 

INTER RAO – Orel Energy 

Distribution LLC 

Russia 100,0000 60 000 - 60 000 10 000 - 

TGR Enerji Electrik Toptan Ticaret 

A.S. 

Republic of Turkey 70,0000 39 153 39 153 - - - 

INTER RAO – Engineering 

LLC 

Russia 100,0000 775 - 775 775 - 

INTER RAO – Management of 

Electric Power Plants LLC 

Russia 100,0000 500 - 500 500 - 

46

EXPLANATIONS 



Name 


Percentage 

of 

participation 


as of 

31.12.2012 

Amount of 

financial 

investment 

as of 

31.12.2012 

Devaluation 

provision 

as of 

31.12.2012 

Amount of 

investment 

minus 

provision 

as of 

31.12.2012 

Amount of 

investment 

minus 

provision 

as of 

31.12.2011 

Amount of 

investment 

minus 

provision 

as of 

31.12.2010 

FREECOM Trading Limited, 

Republic of Cyprus - - - - - 2 447 545 

OGK-1 Finance LLC 

Russia 100,0000 10 000 - 10 000 - 

JSC ―First Generation Company of 

Wholesale Electricity Market‖ 

Russia** - - - - 32 346 558 21 278 000 

JSC ―Third Generation Company of 

Wholesale Electricity Market‖ 

Russia* - - - - 33 310 742 - 

Investments in subsidiaries 53 114 883 12 899 53 101 984 78 004 994 655 563 

JSC ―Irkutskenergo‖ 

Russia 40,0070 32 263 558 - 32 263 558 28 594 384 - 

JSC ―Volga TGK‖ 

Russia 32,4400 15 370 715 - 15 370 715 18 968 509 - 

CCP TPP-5 LLC 

Russia 43,69 2 193 231 - 2 193 231 - - 

Territorial Generating Company No. 

6 OJSC 

Russia 27,6179 1 857 822 - 1 857 822 3 254 521 - 

JSC ―Stantsiya Ekibastuzskaya 

GRES-2‖ 

Kazakhstan 50,0000 603 311 - 603 311 603 311 603 311 

INTER RAO – LED Systems OJSC 

Russia 35,1700 600 000 - 600 000 600 000 - 

JSC ―Tomsk Energy Retailing 

Company‖ 4 

(ordinary shares) 

Russia 24,5644 83 602 - 83 602 83 602 - 

INTER RAO UES Energy 

Efficiency Center 

LLC 

Russia 50,0000 45 000 - 45 000 - - 

Kambartinskaya GES-1, CJSC 

Republic of 

Kyrgyzstan 50,0000 28 864 - 28 864 28 864 28 864 

JSC ―Tomsk Energy Retailing 

Company‖ 

(preferred shares) Russia 6,7089 21 358 - 21 358 21 358 - 

4 In June 2012 trading of shares of Tomsk Energy Distribution Company at the Russian stock exchange markets was 

stoppedCurrent market value as of 31/12/2012 is not determined, shares are reflected in the accounting nooks at the value 

of their last valuation – as of 31/12/2011 

47

EXPLANATIONS 




Percentage 

of 

participation 


Amount of 

financial 

investment 

Devaluation 

provision 

Amount of 

investment 

minus 

provision 

Amount of 

investment 

minus 

provision 

Amount of 

investment 

minus 

provision 

as of 

31.12.2012 

as of 

31.12.2012 

as of 

31.12.2012 

as of 

31.12.2012 

as of 

31.12.2011 

as of 

31.12.2010 

Inter RAO – WorleyParsons LLC 

Russia 51,0000 19 384 - 19 384 19 384 19 384 

Industrial Energy Company CJSC 

Russia 50,0000 10 000 10 000 - - - 

RT – Energotrading LLC 

Russia 50,0000 9 805 - 9 805 9 805 - 

Energoconnect LLC 

Republic of Belarus 50,0000 4 229 - 4 229 4 229 - 

INTERENERGOEFFECT LLC 

Russia 50,0000 4 004 2 899 1 105 4 004 4 004 

JSC ―Enel OGK-5‖ 

Russia - - - - 17 090 794 - 

JSC ―Bashkirenergo‖ (ordinary 

shares) 

Russia - - - - 8 501 797 - 

JSC ―Bashkirenergo‖ (preferred 

shares) 

Russia - - - - 220 432 - 

Investments in other 

companies - 1 869 185 396 354 1 472 831 18 823 761 1 108 747 

AKKUYU NPP ELECTRICITY 

GENERATION JOINT-STOCK 

COMPANY 

Republic of Turkey 3,4700 1 025 707 - 1 025 707 1 025 707 1 025 707 

Sangtuda GES-1 OJSC, 

Tajikistan 14,8700 795 869 396 354 399 515 399 515 83 040 

SIBEKO OJSC 

Russia 0,1613 18 738 - 18 738 18 738 - 

Elektromagistral OJSC (preferred 

shares) 

Russia 0,1085 16 022 - 16 022 16 022 - 

Elektromagistral OJSC (ordinary 

shares) 

Russia 0,0870 12 849 - 12 849 12 849 - 

Federal Hydrogeneration Company 

OJSC 

Russia - - - - 5 091 474 - 

JSC ―E.ON Russia‖ 

Russia - - - - 4 386 405 - 

JSC ―Mosenergo‖ 

Russia - - - - 3 433 616 -- 

48

EXPLANATIONS 



Name 


Percentage 

of 

participation 


Amount of 

financial 

investment 

Devaluation 

provision 

Amount of 

investment 

minus 

provision 

Amount of 

investment 

minus 

provision 

Amount of 

investment 

minus 

provision 

as of 

31.12.2012 

as of 

31.12.2012 

as of 

31.12.2012 

as of 

31.12.2012 

as of 

31.12.2011 

as of 

31.12.2010 

JSC ―Second Generation Company 

of Wholesale Electricity Market‖ 

Russia - - - - 2 562 701 - 

JSC ―Territorial Generating 

Company No. 1‖ 

Russia - - - - 717 483 - 



Russia - - - - 361 700 - 

JSC ―Kuzbassenergo‖ 

Russia - - - - 275 335 - 

JSC ―Kvadra-Generation company‖ 

(preferred shares) 

Russia - - - - 244 301 - 

JSC ―Kvadra-Generation company‖ 

(ordinary shares) 

Russia - - - - 646 - 

JSC ―Yenisei TGK (TGK-13)‖ 

Russia - - - - 211 842 - 



Russia - - - - 44 579 - 



Russia - - - - 13 136 - 

JSC ―Novosibirskenergo‖ (ordinary 

shares) 

Russia - - - - 4 051 - 

JSC ―Novosibirskenergo‖ (preferred 

shares) 

Russia - - - - 3 661 - 

Total (investment units and 

shares) - 378 216 567 49 387 799 328 828 768 237 023 105 39 375 095 

Investments into joint activity 

In 2007 the Company concluded a simple partnership agreement for participation in the joint activity 

on receiving written substantiation of investments into joint construction of Kambartinskaya GES-1 

and GES-2 in the Kyrgyz Republic. Another participant under the contract is Electricheskiye Stantsii 

49

EXPLANATIONS 



OJSC /Power Plants OJSC/ (Kirghizia). The participants make the following contributions in cash in 

the joint activity. Company’s contribution as of 31/12/2012 made 17,436 thsd. rubles (17,436 thsd. 

rubles – as of 31/12/2011; 11,622 thsd. rubles – as of 31/12/2010). 

Debt Financial Investments 

Long-term loans issued in foreign currency 

Information about long-term loans issued in foreign currency is given in the table below: 

Name 

Remaining 

loan as of 

31/12/2011 

In the currency of the contract 

Arrived in 2012 Disposed in 2012 Remaining 

loan as of 

31/12/2012 

Issued in 

2012 

Transferred 

from shortterm 

loans 

Repaid in 

2012 

Transferred 

to shortterm 

loans 

Loans in USD 8 065 3 476 54 014 (1 800) (16 115) 47 640 

Loans in EUR 30 000 - - - - 30 000 

Loans in RUB 

equivalent 1 509 803 108 761 1 591 857 (57 366) (507 744) 2 645 311 

Exchange rate 

influence - - 8 495 

Total in RUB 

equivalent 2 653 806 

The Company provides long-term loans in currency to the companies of INTER RAO UES Group. 

Terms for repayment of loans in USD – 2015-2023, in EUR – 2023. Interest rates applicable in 2012 

made 10 % to 15 % per annum for loans in USD, and 10 % to 12.5 % per annum - for loans in EUR. 

Long-term loans issued in rubles 

Information about long-term loans issued in rubles is given in the table below: 

Name 

Remaining 

loan as of 

31/12/2011 


loan as of 

31/12/2012 

Issued in 

2012 

From 


Repaid in 

2012 

Reclassified 

into shortterm 

loans 

Loans in rubles 2 533 921 1 128 196 706 000 (959) (920 926) 3 446 232 

50

EXPLANATIONS 



The Company provides long-term loans in rubles to the companies of INTER RAO UES Group and to 

the employees of the Company. The term of loan repayment is in 2014-2015. Interest rates applicable 

in 2012 made 10 % to 13.5 % per annum. 

Long-term debt securities 

As of 31/12/2012 the Company has no long-term debt securities (66,122 thsd. rubles as of 31/12/2011; 

no debt securities as of 31/12/2010). Bills of exchange accounted as of 31/12/2011 as long-term 

financial investments in the sum of 66,122 thsd. rubles were submitted for receipt in the amount of 

39,639 thsd. rubles, and moved to short-term financial investments in accordance with their repayment 

terms in the amount of 28,869 thsd. rubles. Discount was charged on bills of exchange in the structure 

of interest yield in the amount of 2,386 thsd. rubles in the year 2012. 

6.2. Short-term financial investments (other than cash equivalents) 

Financial investments (other than cash equivalents) on the balance sheet are shown net of a provision 

for devaluation of financial investments in the amount of 937,985 thousand rubles as of December 31, 

2012 (6,028,375 thousand rubles - as of December 31, 2011, 4,020,736 thousand rubles - as of 

December 31, 2010). 

The amount of provision created for devaluation of financial investments with respect to the short-term 

financial investments in the form of loans issued, as of December 31, 2012 amounts to 11,976 

thousand rubles (6,192 thousand rubles – as of December 31, 2011; 31,678 thousand rubles – as of 

December 31, 2010). 

Short-term loans issued in foreign currency 

Information about short-term loans issued in foreign currency is given in the table below: 

Name 

Remaining 

loan as of 

31/12/2011 

In the currency of the contract 


loan as of 

31/12/2012 

Issued in 

2012 

Transferred 

from longterm 

loans 

Repaid in 

2012 

Transferred 

to long-term 

loans 

Loans in USD 54 740 268 16 115 (16 467) (54 014) 642 

Provision for 

devaluation in 

USD 

(204) (190) - (394) 

51

EXPLANATIONS 



Loans in RUB 

equivalent 

Exchange rate 

influence 

Total in RUB 

equivalent 

Provision for 

devaluation in 

RUB 

1 762 426 7 896 507 744 (516 606) (1 591 857) 169 603 

- - (150 101) 

19 502 

(6 192) (5 784) (11 976) 

The Company provides short-term loans in foreign currency to INTER RAO UES Group with the term 

of repayment less than 365 days. As of 31/12/2012 short-term loans in foreign currency include 

remaining debt on the long-term loan with the maturity time in 2013 in the amount of 248 thsd. USD 

(7,526 thsd. rubles). Detailed information is given in the section ―Related Parties‖. 

Short-term loans issued in rubles 

Information about short -term loans issued in rubles is given in the table below: 

Name 

Remaining 

loan as of 

31/12/2011 

Issued in 

2012 

Arrived in 2012 

From 


Transferred 

from longterm 

loans 

Repaid in 

2012 

Remaining 

loan as of 

31/12/2012 

Loans in rubles 1 663 294 996 900 000 920 926 (1 215 995) 901 590 

The Company provides short-term loans in rubles to the companies of INTER RAO UES Group and to 

the employees of the Company with the term of repayment less than 365 days. Interest rates applicable 

in 2012 made 7.8 % to 10.25 % per annum. 

Bank deposits 

In 2012 the Company used to keep free cash funds at bank deposits. Deposits were made in Russian 

rubles. Interest rates on deposits in rubles varied within 3.9 %-7.7 % per annum (2.05 % - 7.7 % per 

annum in 2011). The term of deposits made 1 to 214 days. 

Deposits with the term of repayment less than 3 months are reflected by the Company in the books in 

the structure of cash funds and their equivalents. Cash equivalents as of 31/12/2012 made 2,100,000 

52

EXPLANATIONS 



thsd. rubles (3,357,000 thsd. rubles – as of 31/12/2011; no cash equivalents – as of 31/12/2010). As of 

31/12/2012 the Company has no deposits with the term of repayment over 3 months (1,005,500 thsd. 

rubles – as of 31/12/2011; no deposits – as of 31/12/2010). 

Information about deposits in the commercial banks as of 31/12/2012 is given in the table below: 

Name of the credit organization 

Period of placement (year, month) 

Amount 

thousand rubles 

Effective as of 

Up to 

JSC ―Gazprombank‖ December 2012 January 2013 1 000 000 

JSB Peresvet CJSC December 2012 January 2013 1 100 000 

TOTAL Deposits reflected in the structure of cash funds and their equivalents 2 100 000 

TOTAL 

- - 

2 100 000 

Comparative information about deposits in the commercial banks as of 31/12/2011 is given in the table 

below: 

Name of the credit organization 

Period of placement (year, month) 

Amount 

thousand rubles 

Effective as of 

Up to 

Moscow Credit bank OJSC December 2011 January 2012 1 970 000 

NOVIKOMBANK CJSC December 2011 March 2012 500 000 

Nordea OJSC December 2011 January 2012 300 000 

JSB Peresvet CJSC December 2011 February 2012 587 000 

TOTAL Deposits reflected in the structure of cash funds and their equivalents 3 357 000 

Sobinbank OJSC October 2011 August 2012 1 005 500 

TOTAL Deposits reflected in the structure of short-term financial investments 1 005 500 

TOTAL 

- - 

4 362 500 

53

EXPLANATIONS 



7. INVENTORIES 

Information about existence and flow of inventories as of 31/12/2012 is shown in the table below: 

As of the beginning 

As of the end of the 


of the year year 

Name of the indicator Code Period 

disposed Inventory turnover 

book value receipts 

among their groups book value 

book value 

(types) 

5400 2012 964 081 2 376 391 (3 326 649) - 13 823 

Inventories - total 

5420 2011 886 572 10 263 937 (10 186 428) - 964 081 

including: 

5401 2012 132 558 57 559 (195 087) 4 994 24 

raw and materials 

5421 2011 91 279 314 875 (275 623) 2 027 132 558 

5402 2012 253 510 2 136 380 (2 384 722) (4 985) 183 

fuel and petroleum products 

5422 2011 244 907 9 543 680 (9 534 219) (858) 253 510 

5403 2012 267 819 11 141 (278 960) - - 

spare parts 

5423 2011 163 587 148 532 (28 912) (15 388) 267 819 

5404 2012 148 690 - (148 690) - - 

construction materials 

5424 2011 141 367 29 618 (1 752) (20 543) 148 690 

inventory and utility 

appliances 

special equipment and special 

clothing 

low-value fixed assets 

other materials 

value of reserve for a value 

decrease 

5405 2012 31 448 38 143 (67 238) 432 2 785 

5425 2011 16 255 96 693 (80 571) (929) 31 448 

5406 2012 9 022 - (9 022) - - 

5426 2011 9 058 8 596 (9 408) 776 9 022 

5407 2012 10 507 73 291 (87 070) 6 372 3 100 

5427 2011 3 487 44 553 (38 174) 641 10 507 

5408 2012 110 527 59 877 (155 860) (6 813) 7 731 

5428 2011 216 632 77 390 (217 769) 34 274 110 527 

5409 2012 (112 298) - 112 298 - - 

5429 2011 (6 979) (112 264) 6 945 - (112 298) 

As of 31/12/2012 the Company has no morally obsolete inventories, which have fully or partially lost 

their quality or are pledged. Provision for devaluation of inventories in 2012 was not formed (112,298 

thsd. rubles – as of 31/12/2011, 6,979 thsd. rubles – as of 31/12/2010). 

In the period of report the Company sold its inventories to its 100 % subsidiary INTER RAO – Electric 

Power Plants, OJSC in the course of activity termination. Inventories have been sold at their current 

market value determined by the appraiser. The Company received income from the said operations. 

Detailed information is provided in section 26 ―Terminated Activity‖ hereof. 

8. RECEIVABLES 

54

Code 

2 

5501 

5521 

including: 

5502 

5522 

5503 

5523 

5504 

5524 

5505 

5525 

5506 

5526 

5507 

5527 

Period 

3 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

As of the beginning of the 

year 

Recorded 

under the 

terms of 

contract 

4 

4 290 574 

2 354 923 

1 223 359 

1 236 474 

320 848 

277 951 

- 

760 393 

2 746 367 

33 423 

- 

- 

- 

46 682 

overdue debt 

reserve 

5 

(428 355) 

(46 682) 

(428 355) 

- 

-- 

- 

- 

- 

- 

- 

- 

- 

- 

(46 682) 

8.1. Presence and flow of long-term receivables 

receipt as a 

result of 

business 

transactions 

6 

26 009 776 

3 071 348 

108 611 

27 148 

- 

76 475 

- 

190 701 

101 196 

2 777 024 

19 579 131 

- 

6 220 838 

repayment 

7 

(3 827 216) 

(515 368) 

(1 202 458) 


disposal 

- 

(238 043) 

- 

- 

(451 288) 

- 

( 64 080) 

(2 386 715) 

- 

- 

Writing-off to 

financial result 

8 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

overdue debt 

reserve 

9 

340 038 

(381 673) 

428 355 

(428 355) 

- 

- 

- 

- 

- 

- 

- 

- 

(88 317) 

46 682 

reclass 

10 

582 993 

(620 329) 

(20 902) 

(40 263) 

- 

(33 578) 

1 206 366 

(499 806) 

(697 321) 

- 

- 

- 

94 850 

(46 682) 


Recorded under 

the terms of 

contract 

11 

27 056 127 

4 290 574 

108 610 

1 223 359 

82 805 

320 848 

1 206 366 

- 

2 150 242 

2 746 367 

17 192 416 

- 

6 315 688 

- 

overdue debt 

reserve 

12 

(88 317) 

(428 355) 

- 

(428 355) 

- 

- 

- 

- 

- 

- 

- 

- 

(88 317) 

- 

EXPLANATIONS 



55

1 

Name of the 

indicator 

Long-term 

receivables - total 

securities 

transactions 

on the interest-free 

loans (instalment 

plan) 

interest revenues 

advance payments 

granted 

On the property 

sale transactions 

other debts 

EXPLANATIONS 



8.1. Long-term receivables 

Long-term receivables are reflected net of provision for bad debts included in other capital assets of 

the balance sheet in the amount of 26,967,810 thousand rubles as of December 31, 2012 (3,862,219 

thousand rubles - as of December 31, 2011; 2,308,241 thousand rubles – as of December 31, 2010). 

The amount of provision for bad debts formed in terms of long-term receivables, as of December 31, 

2012 amounts to 88,317 thousand rubles (428,355 thousand rubles – as of December 31, 2011; 46,682 

thousand rubles – as of December 31, 2010). 

The long-term receivables include debt on the interest-free bank bills of exchange of Alfa-Bank OJSC 

and Bashkiria Industrial Bank OJSC, received in payment for supplied electricity. Bills of exchange of 

Bashkiria Industrial Bank OJSC were received by the Company in the result of reorganization and 

affiliation of JSC ―Bashenergoaktiv‖ in November 2012. The term of payment of bills of exchange is 

in 2014-2017. 

Other long-term receivables include debt of subsidiary companies Bashkiria Generating Company 

LLC and Bashkiria Heat Distribution Systems LLC in the amount of 6,220,838 thsd. rubles. This debt 

has been received to the Company’s balance in the result of reorganization and affiliation of JSC 

―Bashenergoaktiv‖ in November 2012. The debt has been formed under different agreements, and 

includes settlements for inventories, settlements for the assignment of receivables. 

The debt of subsidiary company INTER RAO – Electric Power Plants OJSC in the amount of 

17,192,416 thsd. rubles was formed under the property purchase agreements as a part of Company’s 

terminated activity on production of electricity and heat energy, and transferring this function to the 

said subsidiary company. The Company provided payment by instalments with the monthly payment 

of interests at 8.25 % per annum. The term for debt repayment is 2017. 

Long-term receivables net of provision for doubtful debts as of 31/12/2012 is given in the table below: 

56

EXPLANATIONS 



Kind of debts 

As of 

December 31, 

2012 

As of 

December 31, 

2011 

As of 

December 31, 

2010 

Repayment 

term 

On the operations of property sale as a part of Company’s 

terminated activity: 

Debt of subsidiary company 

INTER RAO – Electric Power 

Plants OJSC 17 192 416 - - 2017 

Advance payments paid to suppliers: 

For supply of power equipment 1 919 052 2 616 373 - 2014-2015 

On redemption payment to a 

leasing company 231 190 129 994 33 423 2015 

On interest yields 

Organizations of INTER RAO 

UES Group 1 206 366 - 760 393 2014-2023 

On the transactions with securities: 

Organizations of INTER RAO 

UES Group - 767 856 1 196 211 2013 

Bank bills of exchange received in 

payment for electricity 108 610 27 148 40 263 2014-2017 

On interest-free loans: 

Debts of the Company's employees 

on apartments bought on 

instalment plan 6 330 244 373 277 951 2014-2026 

Debts of the Company's employees 

on the special-purpose interest-free 

loans 76 475 76 475 - 2015 

Other debts (mainly of subsidiary 

companies) 6 227 371 - - 2014-2017 

TOTAL 26 967 810 3 862 219 2 308 241 - 

8.2. Short-term receivables of buyers and customers 

Short-term receivables of buyers and customers are reflected net of provision for doubtful debts 

included in current assets of the balance sheet in the amount of 2,806,082 thousand rubles as of 

December 31, 2012 (3,773,174 thousand rubles - as of December 31, 2011; 5,112,631 thousand rubles 

– as of December 31, 2010). The amount of provision for doubtful debts formed in terms of short-term 

receivables, as of December 31, 2012 amounts to 770,356 thousand rubles (815,501 thousand rubles – 

as of December 31, 2010; 647,427 thousand rubles – as of December 31, 2010). 

Short-term receivables as of 31/12/2012 are shown in the table below: 

57

8.2. Presence and flow of short-term receivables 




|Disposal| 


the terms of 

contract 

Received in 

the result of 

economic operations 


the terms of 

contract 

Year 

Code 


size of overdue 

debt reserve 

overdue debt 

reserve 

overdue debt 

reserve 

reclass 



repayment 

Short-term receivables - total 

(1 065 652) 

60 411 633 

(582 992) 

28 949 417 

(92) 

(159 415 607) 

128 897 300 

(30 015 069) 

91 513 024 

2012 

5510 

(30 015 069) 

91 513 024 

620 329 

(29 250 857) 

(41 002) 

(573 310 874) 

652 151 470 

(764 212) 

12 093 101 

2011 

5530 

including: 

Trade receivables 

for electricity (power) sold inside 

the RF 

(540 201) 

1 495 445 

- 

(77 940) 

(92) 

(20 614 188) 

20 050 011 

(462 261) 

2 059 714 

2012 

5511 

(462 261) 

2 059 714 

(238 947) 

(16 376) 

(41 953 106) 

41 820 072 

(223 314) 

2 209 124 

2011 

5531 

EXPLANATIONS 



for electricity (power) sold outside 

the RF 

(230 155) 

1 838 950 

- 

13 817 

- 

(26 077 140) 

25 747 230 

(243 972) 

2 168 860 

2012 

5512 

(243 972) 

2 168 860 

- 

148 879 

- 

(38 253 249) 

37 189 246 

(392 851) 

3 232 863 

2011 

5532 

- 

37 290 

(76 264) 

76 448 

- 

(640 016) 

458 884 

(76 448) 

294 686 

2012 

5513 

(76 448) 

294 686 

27 718 

(46 919) 

- 

(786 394) 

872 588 

(29 529) 

180 774 

2011 

5533 

other debts 

- 

204 753 

- 

32 820 

- 

(328 381) 

467 719 

(32 820) 

65 415 

2012 

5514 

(32 820) 

65 415 

- 

(31 087) 

- 

(5 453) 

(66 429) 

(1 733) 

137 297 

2011 

5534 

Total commercial debt 

(770 356) 

3 576 438 

(76 264) 

45 145 

(92) 

(47 659 725) 

46 723 844 

(815 501) 

4 588 675 

2102 

5515 

(815 501)| 

4 588 675 

27 718 

(168 074) 

(16 376) 

(80 998 202) 

79 815 477 

(647 427) 

5 760 058 

2011 

5535 

Other receivables 

On the operations with securities 

(40 322)| 

38 139 997 

20 902 

1 003 688 

- 

(2 878 585) 

38 078 831 

(1 044 010) 

2 918 849 

2012 

5516 

(1 044 010) 

2 918 849 

40 263 

(1 044 010) 

- 

(421 350 664) 

424 229 250 

- 

- 

2011 

5536 

On interest yields 

- 

309 402 

(1 206 366) 

- 

- 

(1 127 599) 

1 517 794 

- 

1 125 573 

2012 

5517 

- 

1 125 573 

499 806 

- 

(53) 

(1 552 801) 

1 366 394 

- 

812 227 

2011 

5537 

On the dividends payable 

- 

5 280 

- 

- 

- 

(223 508) 

5 280 

- 

223 508 

2012 

5518 

- 

223 508 

- 

- 

- 

(1 258 124) 

1 045 361 

- 

436 271 

2011 

5538 

other debts 

(197 025) 

14 818 610 

(18 585) 

27 865 248 

- 

(81 236 026) 

14 812 318 

(28 062 273) 

81 260 903 

2012 

5519 

(28 062 273) 

81 260 903 

52 542 

(28 048 641) 

(5 111) 

(23 569 043) 

101 985 601 

(13 632) 

2 796 914 

2011 

5539 

Total other debts 

(237 347) 

53 273 289 

(1 204 049) 

28 868 936 

- 

(85 465 718) 

54 414 223 

(29 106 283) 

85 528 833 

2012 

5520 

(29 106 283) 

85 528 833 

592 611 

(29 092 651) 

(5 164) 

(447 730 632) 

528 626 606 

(13 632) 

4 045 412 

2011 

5540 

Advance payments granted 

advance payments granted 

(57 949) 

3 561 906 

697 321 

35 336 

(26 290 164) 

27 759 233 

(93 285) 

1 395 516 

2012 

5521 

- 

(93 285) 

1 395 516 

9 868 

(19 462) 

(44 582 040) 

43 709 387 

(103 153) 

2 287 631 

2011 

5541 

58

EXPLANATIONS 



The Company's largest debtors in terms of payment for electricity (power) as of December 31, 2012: 

Centre of Financial Settlements JSC ―CFR‖. The debt of JSC ―CFR‖ to the Company amounts to 

771,252 thousand rubles (872,629 thousand rubles as of December 31, 2011; 1,459,731 thousand 

rubles as of December 31, 2010). The Company has formed a provision for doubtful debts in 

respect of this debt in the amount of 35,567 thousand rubles (173,823 thousand rubles as of 

December 31, 2011; 116,691 thousand rubles as of December 31, 2010). 

INTER RAO Lietuva (Republic of Lithuania). The debt to the Company amounts to 508,077 

thousand rubles (344,549 thousand rubles as of December 31, 2011; 794,056 thousand rubles — 

as of December 31, 2010). 

8.3. Other short-term receivables 

Other receivables are reflected in the balance-sheet net of provision for bad debts included in current 

assets in the amount of 53,035,942 thousand rubles as of December 31, 2012 (56,422,550 thousand 

rubles - as of December 31, 2011; 4,031,780 thousand rubles – as of December 31, 2010). 

The amount of provision for doubtful debts formed in terms of other receivables, as of December 31, 

2012 amounts to 237,347 thousand rubles (29,106,283 thousand rubles – as of December 31, 2011; 

13,632 thousand rubles – as of December 31, 2010). Previously formed provision for receivables of 

subsidiary company INTER RAO Capital CJSC in the amount of 29,002,645 as of 31/12/2011 was 

reclassified into provision for devaluation of financial investments as of 31/12/2012 into the said 

Company. 

Other short-term receivables are given below net of doubtful debt provision: 


As of 

31/12/2012 

As of 

31/12/2011 

As of 

31/12/2010 

Other debtors total: 53 035 942 56 422 550 4 031 780 

including: 

Debt of subsidiary company INTER RAO 

Capital CJSC on payment for securities (shares) 37 817 839 1 799 284 

59

EXPLANATIONS 




As of 

31/12/2012 

As of 

31/12/2011 

As of 

31/12/2010 

Debt of subsidiary company INTER RAO – 

Electric Power Plants OJSC for the property 10 861 751 

Debt of subsidiary company INTER RAO – 

Electric Power Plants OJSC for the assignment 

of receivables 1 636 439 

Debt of subsidiaries and affiliates relating to the 

due income on borrowed funds and deferred 

payments 309 402 1 124 863 812 227 

Overpayment of taxes to the federal budget, the 

budgets of the constituent entities of the Russian 

Federation 351 102 898 911 11 045 

Debt on settlements for electricity under 

contracts of commission, assignments 792 604 415 255 129 169 

VAT to be compensated from the budget 

including on export 783 159 1 507 741 2 390 247 

Debts in bank interest-free bills of exchange 

received in payment for electricity supplied 68 585 

Debts payable on dividends 5 280 223 508 436 271 

Debt of subsidiary company INTER RAO 

Capital CJSC on the interest-free loan 50 189 901 

Debt on securities (shares) 75 555 

Other debtors 409 781 187 532 252 821 

Debt of subsidiary company INTER RAO Capital CJSC was counted in 2012 as payment of 

Company’s debt on the contribution to the authorized capital of INTER RAO Capital CJSC. 

8.4 Advance payments granted 

Advance payments granted are reflected net of provision for doubtful debts included in current assets 

of the balance sheet in the amount of 3,503,957 thousand rubles as of December 31, 2012 (1,302,231 

thousand rubles - as of December 31, 2011; 2,184,478 thousand rubles – as of December 31, 2010). 

The amount of provision for doubtful debts formed in terms of advance payments granted as of 

December 31, 2012 amounts to 57,949 thousand rubles (93,285 thousand rubles – as of December 31, 

2011; 103,153 thousand rubles – as of December 31, 2010). 

As of 31/12/2012 advance payments granted mainly include advance payment paid for supply of 

power equipment to Bolivarian Republic of Venezuela in the amount of 2,204,000 thsd. rubles 

(296,332 thsd. rubles – as of 31/12/2011). Increase in the sum of advance payments granted as of 

31/12/2012 against the sum of advance payments as of 31/12/2011 is connected with reclassification of 

60

EXPLANATIONS 



advance payment paid for supply of power equipment to Ecuador from long-term to short-term, in the 

amount of 697,320 thsd. rubles. Besides, in the year of report current advance payments were paid for 

supply of power equipment to Venezuela according to the contract conditions in the amount of 

1,210,348 thsd. rubles. 

9. CASH FUNDS AND CASH EQUIVALENTS 

Cash Funds 


31, 2012 


31, 2011 


31, 2010 

Cash in rubles in the cash desk and on 

accounts in banks 10 882 874 493 494 3 222 647 

Cash in foreign currency in the cash 

desk and on accounts in banks 1 086 890 1 018 180 840 160 

Monetary documents in rubles in the 

cash desk 26 22 15 

TOTAL 11 969 790 1 511 696 4 062 822 

Cash funds in foreign currency 

In thousand units of currency 

Cash Funds As of 31/12/2012 As of 31/12/2011 As of 31/12/2010 

Cash on accounts in banks in USD 

24 335 12 829 8 238 

RUB equivalent according to the 

exchange rate of the Central Bank 739 109 413 031 251 060 

Cash on accounts in banks in EUR 

8 645 14 522 14 606 

RUB equivalent according to the 

exchange rate of the Central Bank 347 781 605 149 589 100 

TOTAL in rubles 1 086 890 1 018 180 840 160 

Cash equivalents 

Kind of cash equivalents As of 31/12/2012 As of 31/12/2011 As of 31/12/2010 

Short-term bank deposits (with a term 

up to three months) 2 100 000 3 357 000 - 

The Company has no funds unavailable for use. As of December 31, 2012 the Company has an 

opportunity to raise additional cash funds within open, but unused credit lines opened for the Company 

as of the reporting date for a total sum of 7,000,000 thousand rubles. 

10. OTHER CURRENT ASSETS 

61

EXPLANATIONS 



Deferred expenses with a writing-off period within 12 months after reporting date, costs of unfinished 

research and development and experimental and technological works, costs proposed to be disposed 

within 12 months after the reporting date, and so on are reflected in the structure of other current 

assets. As of December 31, 2011 unfinished R&D in the amount of 116,563 thsd. rubles were 

transferred to the Scientific & Innovation Activity Support Foundation ―Energy Beyond Borders‖. 

Unfinished R&D for a sum of 66,305 thsd. rubles were written off to financial result as given no 

effect. Unfinished R&D in the amount of 73,937 thousand rubles is to be transferred by the Company 

in 2013 to the Scientific and Innovation Activity Support Foundation ―Energy Beyond Borders‖. 

Information on other current assets of the Company is presented below: 

Description 

As of 

31.12.2012 

As of 

31.12.2011 

As of 

31.12.2010 

Total unfinished R&D costs, 

including: 73 937 256 805 - 

- unfinished developments to create and test low 

emission combustion chamber GTE-110 73 937 140 242 

- unfinished developments to improve energy 

efficiency, reliability and safe operation of TPP 116 563 

Total deferred expenses, including 136 524 178 954 125 573 

- software products 72 492 62 992 66 356 

- costs of voluntary health insurance 44 373 49 747 568 

- payment for process connection of power-receiving 

devices 27 735 989 

- voluntary property and liability insurance 6 163 10 006 27 805 

- commissioning work on new fixed assets 9 369 9 369 

- rights to use land plots 4 251 4 099 

- agent's fee - 2 378 2 378 

- other 13 496 12 476 14 009 

Other - 4 867 - 

TOTAL 210 461 440 626 125 573 

11. CAPITAL AND RESERVES 

On April 26, 2012 the Company’s shareholders made a decision at the special General Meeting of 

Shareholders on the Company’s reorganization by consolidation with JSC ―OGK-1‖, JSC ―OGK-3‖, 

JSC ―Bashenergoaktiv‖, INTER RAO – Energy OJSC, INTER RAO – EnergoAktiv OJSC. 

Consolidation with JSC―OGK-1‖, JSC ―OGK-3‖, INTER RAO – Energy OJSC, INTER RAO – 

EnergoAktiv OJSC took place on October 01, 2012. JSC ―Bashenergoaktiv‖ was connected to the 

Company on November 06, 2012. 

62

Authorized capital 

EXPLANATIONS 



On December 25, 2012 the Company registered an increase in the authorized capital through additional 

placement of ordinary shares. In accordance with the decision on reorganization through consolidation 

with JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―Bashenergoaktiv‖, INTER RAO – Energy OJSC, INTER 

RAO – EnergoAktiv OJSC, all ordinary registered uncertified shares of consolidated companies were 

converted into additional ordinary registered uncertified shares of JSC ―INTER RAO UES‖, placed for 

the purpose of conversion. The scope of additional issue for the purpose of conversion made 

724,000,997,683 shares with a par value of 0.02809767, for a total sum of 20,342,741 thsd. rubles. 

In the result of additional issue of shares the authorized capital of the Company was increased by 

20,342,741 thsd. rubles, and as of December 31, 2012 makes 293,339,703 thsd. rubles. It is divided 

into 10,440,000,997,683 ordinary shares with a par value of 0.02809767 rubles. The Company has no 

preferred shares. 

The major shareholders of the Company as of December 31, 2012 are the companies of FSK UES 

Group (18.57 %), the Russian Federation represented by the Federal Agency for State Property 

Management (13.76 % shares), INTER RAO Capital CJSC (13.93 %), companies the Norilsk Nickel 

Group (13.21 %), companies of the Rosatom Group (12.49 %). 

As of December 31, 2012 the subsidiary companies INTER RAO Capital CJSC, INTER RAO Invest 

CJSC, Bashkiria Generating Company LLC own Company’s shares with a par value of 40,851,089 

thsd. rubles, 329,926 thsd. rubles, and 176,576 thsd. rubles respectively (as of 31/12/2012 – 

34,279,211 thsd. rubles, 332,870 thsd. rubles and 0 thsd. rubles respectively). 

As of December 31, 2012 the Company's authorized capital has been fully paid. 

Treasury shares 

On April 26, 2012 a special meeting of shareholders of JSC ―INTER RAO UES‖ was held. At this 

meeting reorganization of the Company through consolidation of JSC ―OGK-1‖, JSC ―OGK-3‖, JSC 

―INTER RAO EnergoAktiv‖, JSC ―INTER RAO Energy‖, and JSC ―Bashenergoaktiv‖ was approved. 

The shareholders who did not take part in voting, or voted against reorganization, received the right to 

offer their shares for repurchase. In the result thereof 228,643,162,642 shares were offered and 

repurchased by the Company in June – July 2012 at a price of 0.0284 rubles per share, for a total sum 

of 6,493,466 thsd. rubles. These shares were reflected in the treasury shares. 

63

EXPLANATIONS 



In October 2012 the Company sold 228,628,756,041 shares repurchased from shareholders at a price 

of 0.0284 per share to the subsidiary company INTER RAO Capital CJSC, for a total sum of 

6,493,057 thousand rubles. 

Therefore, as of 31/12/2012 the Company has its own shares accounted on its balance, which have 

been repurchased from the shareholders in the amount of 14,406,601 shares for a sum of 409 thousand 

rubles. 

Reserve capital 

In accordance with the laws and the Articles of Association, the Company creates a reserve fund in the 

amount of 15 % of its authorized capital. In 2012 no deductions to the reserve fund were made because 

of facing net loss in the year 2011. Reserve capital has not changed in the result of Company’s 

reorganization. The amount of reserve capital as of 31/12/2012 makes 296,339 thsd. rubles, which 

makes 0.1010 % of the authorized capital. 

Additional capital 

In the structure of its additional capital, the Company accounts: 

Line-items of additional capital 

Amount 

As of 31/12/2012 As of 31/12/2011 As of 31/12/2010 

Paid-in income 195 090 772 195 090 772 21 771 370 

Increase in the value of the items of 

fixed assets 308 402 352 952 6 110 175 

Profit from reorganization 325 345 - - 

Other 13 13 13 

TOTAL 195 724 532 195 443 737 27 881 558 

The amount of additional capital was changed in the period of report because of the following events: 

- Decrease in additional capital with regard to increase in the value of the items of fixed assets 

in 2012 compared to the previous year was caused by disposal of the items of fixed assets in 2012 in 

connection with the termination of production of electricity and heat energy and transfer of this 

function to 100 % subsidiary INTER RAO - Electric Power Plants OJSC. Retirement of the increase in 

value of the items of fixed assets in the amount of 44,550 thousand rubles was carried out at the 

expense of Company’s retained profits. 

- In the result of Company’s reorganization through connection of the last of reorganized 

companies JSC ―Bashenergoaktiv‖ as of November 06, 2012, the difference between net assets of 

64

EXPLANATIONS 



connected company Bashenergoaktiv OJSC aand increase in the authorized capital formed in the result 

of additional issue for the purpose of converting shares of minority shareholders of JSC 

―Bashkirenergo‖ into Company’s shares, appeared. The difference in the amount of 325,345 thousand 

rubles was attributed to the additional capital of the Company. Detailed information is provided in 

section 27 ―Reorganization‖ of this Explanatory Note. 

Dividends 

In 2012 the Company did not pay dividends because of net loss faced in the year 2011. Dividends for 

the year 2010 on the ordinary shares in the amount of 150,015 thousand rubles, at 0.00001544 rubles 

per one ordinary share were paid in the year 2011. 

12. ESTIMATED LIABILITIES 

The table below shows the progress between the items of provisions for future costs for the year 2012: 

Kind of provision 

As of 

31/12/2011 

Received Disposed As of 

31/12/2012 

Provision for future costs on 

payment of remunerations for 

the year 2012 to the Company's 

employees, and Members of the 

Board of Directors 464 524 424 892 (464 524) 424 892 


payment for vacations unused 

by the Company's employees 

164 211 32 967 (55) 197 123 

Unfinished legal proceedings 60 711 9 128 - 69 839 

Provision for possible losses 

203 439 - - 203 439 

TOTAL 892 885 466 987 (464 579) 895 293 

Provision for future costs on payment of remunerations 

Provision for future costs on payment of remunerations for the year 2012 to the Company’s employees 

in the amount of 424,892 thousand rubles was formed due to the substantial value of the planned 

payments. Remunerations are provided for by the collective agreement and the regulation on bonus 

payments to the Company’s employees. This provision will be used in the first half of the year 2013. 

In the opinion of the management staff, the actual payments for the said purposes will not exceed the 

sum of provision formed. 

Provision for future costs on payment for vacations unused 

65

EXPLANATIONS 



Provision for future costs of payment for vacations unused in the amount of 197,123 thousand rubles 

was formed by the Company on the basis of statistics of accounting data of working days and vacation 

days within the period of 2008-2012. Pursuant to the principle of prudence, the Company has 

recognized its obligation to the employees on payment for vacations unused as of December 31, 2012. 

This provision will be recalculated as of each reporting date, and adjusted downwards (upwards) 

depending on the decrease (increase) of unused vacation days. Provision will be fully expended in the 

event of simultaneous dismissal of employees during the reorganization (liquidation) of the Company 

Provision for unfinished legal proceedings 

Provision for unfinished legal proceedings in the amount of 69,839 thousand rubles was formed on the 

basis of data on probability of the legal proceedings outcome not in favor of the Company. In 2011 a 

field tax audit was conducted in the Company for the period of activity from 2008 to 2010. Based on 

the audit results tax authority issued a decision on additional accrual of taxes, penalties and fines 

amounting to 60,711 thousand rubles. The Company disagreed with the decision of the tax authority 

and decided to defend its position in court. As of 31/12/2012 legal proceedings on this claim have not 

been finished yet. The Company left the provision accrued without changes. Additional provision in 

the amount of 9,128 thsd. rubles was received by the Company in 2012 in the structure of liabilities 

received in the result of reorganization of JSC ―Bashenergoaktiv‖. 

Provision for possible losses 

Provision for possible losses in the amount of 203,439 thousand rubles was formed in 2011 on the 

basis of data on likely reduction of economic benefits in the result of fulfilling the following 

obligations by the Company: 

Repayment of obligations of subsidiary INTER RAO Capital CJSC on the payment of the part of 

profits from the sale of a block of shares of JSC ―Kuban Generation Company‖ in the amount of 

203,439 thousand rubles of JSC ―Rosneft‖. 

It is expected that the provision will be expended before the end of 2013. 

The table below shows the progress between the items of provisions for future costs for the year 2011: 

Kind of provision 

As of 

31/12/2010 

Received Disposed As of 

31/12/2011 


payment of remunerations for 

the year 2011 to the Company's 

employees, and Members of the 389 433 464 524 389 433 464 524 

66

EXPLANATIONS 



Board of Directors 


payment for vacations unused 

by the Company's employees 

176 985 22 141 34 915 164 211 

Provision for future costs of 

payment for auditor's services 1 538 1 538 

Unfinished legal proceedings 60 711 60 711 

Provision for possible losses 203 439 203 439 

TOTAL 567 956 750 815 425 886 892 885 

13. CREDITS AND LOANS 

In 2012 the Company borrowed funds in the form of bank credits and loans. Credits were provided 

within the framework of open credit lines. Information on free remains of the funds available for the 

Company under credit lines is given in the section ―Credit Lines‖. As of December 31, 2012 the 

Company has not overdue debts on the borrowed funds. 

Itemization of credits and loans attracted by the Company is given below: 

Creditor 

Currency 

of credit 

Remaining 

credit as of 

31/12/2010 

Remaining 

credit as of 

31/12/2011 

Remaining 

credit as of 

31/12/2012 

Date of 

credit 

repayment 

Thousand rubles 

Security 

Bank credits 

Sberbank of Russia JSC 

(OJSC) Roubles 4 000 000 2 000 000 2 000 000 14.06.2013 none 

SC "Vnesheconombank" US 

Dollars 4 967 735 12.11.2013 none 

Gazprombank (OJSC) Roubles 1 680 628 - - 29.08.2014 none 

SC "Vnesheconombank" Roubles 2 449 312 - - 30.09.2018 none 

Bank VTB Capital US 

Dollars 253 974 21.03.2011 none 

Gazprombank (OJSC) Roubles 850 000 - - 20.10.2014 none 

Gazprombank (OJSC) Roubles 1 700 000 2 200 000 - 07.06.2013 None, (a) 

TransCreditBank (OJSC) Roubles 2 200 000 27.05.2013 None, (a) 

"Alfa-Bank" (OJSC) Roubles 2 200 000 2 200 000 900 000 30.06.2013 None, (a) 

"Alfa-Bank" (OJSC) Roubles 2 500 000 2 500 000 31.12.2015 None, (a) 

JSB Russia (OJSC) Roubles 2 000 000 2 000 000 31.05.2014 none 

Loans 

INTER RAO Credit B.V. Roubles - 2 133 272 1 817 232 29.09.2018 none 

US 

Dollars 5 247 964 4 950 750 11.11.2015 none 

INTER RAO Credit B.V. 

TOTAL net of interest 20 301 649 18 281 236 14 167 982 

Debts on interests (shortterm) 

90 778 24 228 19 015 

TOTAL, with interests 

Line 1410 + line 1510 of 

Form 1 20 392 427 18 305 464 14 186 997 

67

EXPLANATIONS 



The total amount of long-term credits repayable within not more than one year from the reporting date 

and transferred to short-term debts, not taking into account interests, made 3,216,041 thousand rubles 

as of December 31, 2012 (316,040 thousand rubles – as of December 31, 2011; 570,014 thousand 

rubles - as of December 31, 2010). 

Interest rates under long-term credits in 2012 ranged from 7.5 % to 8.95 % under credits in rubles (7.5 

% to 8.95 % in 2011), and from 5.2 to 5.5 % (5.5 % in 2011) under credits in foreign currency. 

In the period of report the Company received to its balance in the result of reorganization and 

consolidation of JSC ―OGK-1‖ the liabilities on the loan in the sum of 2,309,586 thousand rubles, 

including interests in the amount of 9.586 thousand rubles. This liability was extinguished by the 

Company in full, and there is no debt as of 31/12/2012. 

Interests on borrowings included in the value of investment assets 

There have been no interests on credits and loans included in the value of investment assets in 2011 

and 2012. 

Credit lines 

Creditor Limit Unused sum as of Availability deadline 

31/12/2012 

"Alfa-Bank" (OJSC) 3 800 000 1 300 000 December 2015 

"Alfa-Bank" (OJSC) 2 200 000 1 300 000 June 2013 

Gazprombank (OJSC) 2 200 000 2 200 000 June 2013 

TransCreditBank (OJSC) 

2 200 000 2 200 000 May 2013 

TOTAL 10 400 000 7 000 000 

14. PAYABLES 

As of December 31, 2012 and 2010-2011, the structure of the Company's accounts payable includes 

current (not overdue) debts to suppliers and contractors, personnel of the organization, tax authorities, 

extra-budgetary funds and other creditors. 

The flow and existence of accounts payable is given in the table below. 

68

including: 


Short-term payables - total 

For electricity (power) 

purchased 

For electricity transportation 

For gas (including gas 

transportation) 

other debts 

Total debt to suppliers and 

contractors 

On the operations with 

securities 

On financial instruments 

transactions 

other debts (including taxes and 

levies, payments to employees) 

Total other payables 

Advance payments received 

Code 

5560 

5580 

5561 

5581 

5562 

5582 

5563 

5583 

5564 

5584 

5565 

5585 

5566 

5586 

5567 

5587 

5568 

5588 

5569 

5589 

5570 

5590 

Year 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

2012 

2011 

14.1. Presence and flow of short-term payables 

Balance as of the 

beginning of the 

year 

4 481 858 

6 811 969 

1 829 446 

1 530 536 

472 912 

477 036 

- 

83 137 

1 199 591 

828 923 

3 584 965 

2 919 632 

159 188 

2 630 562 

8 907 

11 548 

231 934 

634 793 

400 029 

3 276 903 

496 864 

615 434 

Receipt 

as a result of business 

transactions 

103 732 972 

130 352 087 

Debt to suppliers and contractors 

36 874 749 

53 062 091 

4 678 919 

5 817 352 

2 040 646 

11 220 557 

1 973 726 

6 089 555 

45 568 040 

76 189 555 

Other payables 

37 410 730 

745 425 

88 358 

190 369 

1 323 968 

8 838 807 

38 823 056 

9 774 601 

Advance payments received 

19 341 876 

44 387 931 


|Disposal| 

repayment 

(65 083 424) 

(132 678 291) 

(36 967 901) 

(52 763 181) 

(4 745 735) 

(5 821 476) 

(2 123 662) 

(11 220 678) 

(1 825 971) 

(5 715 017) 

(45 663 269) 

(75 520 352) 

(712 082) 

(3 216 799) 

(88 260) 

(193 010) 

(231 537) 

(9 241 658) 

(1 031 879) 

(12 651 467) 

(18 388 276) 

(44 506 472) 



- 

(3 907) 

- 

- 

- 

- 

- 

- 

- 

(3 870) 

- 

(3 870) 

- 

- 

- 

- 

- 

(8) 

- 

(8) 

- 

(29) 

reclass 

647 086 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

647 086 

- 

Balance as of the 

end of the year 

1 736 294 

1 829 446 

406 096 

472 912 

(83 016) 

83 016 

1 347 346 

1 199 591 

3 489 736 

3 584 965 

36 857 836 

159 188 

9 005 

8 907 

1 324 365 

231 934 

38 191 206 

400 029 

2 097 550 

496 864 

43 778 492 

4 481 858 

EXPLANATIONS 



69

14.1 Payables to suppliers and contractors 

EXPLANATIONS 



The major creditors of the Company as at December 31, 2012 are: 

Centre of Financial Settlements JSC ―CFR‖. The debt of the Company to JSC ―CFR‖ for 

electricity (power) amounts to 1,039,753 thousand rubles (969,662 thousand rubles as of 

December 31, 2011; 999,245 thousand rubles — as of December 31, 2010). 

INTER RAO – Electric Power Plants OJSC The debt of the Company to INTER RAO – Electric 

Power Plants OJSC for the power supplied and for the lease of production equipment amounts to 

1,072,486 thousand rubles (940,957 thousand rubles – as of 31/12/2011; none – as of 

31/12/2010). 

Federal Grid Company OJSC The debt of the Company for transportation of electricity to FGC 

OJSC amounts to 366,620 thousand rubles (323,501 thousand rubles as of December 31, 2011; 

313,235 thousand rubles — as of December 31, 2010). 

14.2 Other payables 

Other accounts payable mainly include the sums of debt on payment for purchased securities (shares), 

and the debt on the agreements of assignment of liabilities, the debt on contribution to the authorized 

capital of subsidiary, and settlements with other creditors of the Company. 

The Company's other payables are given below: 


As of 

31/12/2012 

As of 

31/12/2011 

As of 

31/12/2010 

Other creditors, total: 38 188 850 349 073 2 864 565 

including: 

Debts to the subsidiary on payment for 

securities 26 296 486 1 471 610 

Company’s debt on its own bills of exchange 10 402 247 - 

Debt on settlements for electricity under 

contracts of commission, assignments 588 940 86 979 129 169 

Value-added tax 499 378 18 838 85 348 

Debts on contribution to the authorized capital 

of the subsidiary (affiliated) company 152 929 159 188 1 158 952 

Debt on assignment of liabilities to the 

subsidiary 150 870 

Debts to insurance companies 46 981 47 944 

other creditors 51 019 36 124 19 486 

70

EXPLANATIONS 



In 2012 in the course of reorganization of JSC ―Bashkirenergo‖ the Company purchased shares of the 

latter from minority shareholders, and also purchased shares of JSC ―Bashkirenergo‖ from JSC 

―System-Invest‖ with the consent of JSC ―AFK System‖. The cost of purchase made 11,115,870 

thousand rubles. By mutual consent of the parties a part of the sum in the amount of 713,623 thousand 

rubles was paid in cash, the remaining sum in the amount of 10,402,247 thousand rubles was paid by 

the Company with its own bills of exchange. Maturity time of the bills of exchange is January, May, 

September 2013. 

In 2012 the Company purchased shares of JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―Saint Petersburg Sale 

Company‖, JSC ―TGK-11‖ from the subsidiary company INTER RAO Capital CJSC. The cost of 

purchasing the said shares made 26,296,786 thousand rubles. This debt will be repaid during the year 

2013. The Company plans to repay the debt through the offset of mutual similar liabilities. 

14.3 Other long-term liabilities 


Long-term payables - total 

Code Period 

Balance as 

of the 

beginning 

of the year 

proceeds 

as a result of 

business 

transactions 


repayment 

disposal 

Writing-off 

to financial 

result 

reclass 

Balance as of 

the end of the 

year 

5551 2012 19 269 014 - (16 895 753) - (647 087) 1 726 174 

5571 2011 - 19 269 014 - - - 19 269 014 

including: 

debt appeared on the basis of 

concession 

advance payments received 

5552 2012 16 895 753 - (16 895 753) - - - 

5572 2011 - 16 895 753 - - - 

16 895 753 

5553 2012 2 373 261 - - (647 087) 1 726 174 

5573 2011 - 2 373 261 - - - 

2 373 261 

As of 31/12/2012 the Company reflects in the structure of other long-term liabilities the debt on 

advance payments received from the buyers of power equipment. During the period of report a part of 

long-term debt was reclassified into short-term debt in the sum of 647,087 thousand rubles. 

Company’s long-term liabilities broken down by creditors are shown below: 

Other long-term liabilities As of As of As of 

71

EXPLANATIONS 



31/12/2012 31/12/2011 31/12/2010 

Debt to subsidiary INTER RAO Capital CJSC formed 

as a result of assignment of debt (including interest) 16 895 753 

Advances received from buyers of power equipment, 

total 1 726 174 2 373 261 

including: 

BARIVEN 

(Bolivarian Republic of Venezuela) 864 165 1 511 252 

HIDROTOAPI (Republic of Ecuador) 862 009 862 009 

TOTAL 1 726 174 19 269 014 - 

15. PROCEEDS FROM SALES 

The Company discloses information on the proceeds from sales in the years 2011-2012 in the section 

22 ―Segment Reporting‖. 

16. EXPENDITURES ON REGULAR ACTIVITIES 

Expenditures on regular activities are shown in the table below. 

72

EXPLANATIONS 




Tangible costs - total 5610 32 218 939 53 297 853 

including: 

electricity (power) for resale 5611 29 956 311 43 265 035 

process fuel (gas) 5612 2 097 817 9 495 359 

other materials 5613 164 811 509 823 

power equipment for export 

5614 

- 27 636 

Remuneration costs 5620 2 571 074 3 465 608 

Allocations for social needs 5630 347 289 361 432 

Depreciation - total 5640 536 460 2 402 822 

including: 

fixed assets depreciation 5641 531 803 2 400 209 

intangible assets depreciation 5642 4 657 2 613 

Other costs – total, 5650 8 164 661 11 772 720 

including: 

electricity transportation costs 5651 3 007 991 5 281 801 

operational property lease 5652 1 958 823 2 299 888 

infrastructure services costs 5653 805 361 1 162 658 

taxes and levies, including customs payments 5654 137 300 628 127 

fixed assets repairs and maintenance costs 5655 811 073 624 589 

consultation and information, legal, audit services 

5657 

333 442 530 543 

travel, transport costs 5658 305 831 355 799 

financial lease (leasing) 5659 75 587 278 253 

expenses on voluntary insurance of property, civil 

liability, medical insurance 

5660 

52 703 184 367 

expenses on software purchase and support 5661 153 963 136 943 

security services costs 5662 17 211 92 229 

representation and advertisement costs 5663 50 004 49 043 

other expenses 5664 455 372 148 480 

Total on elements 5665 43 838 423 71 300 435 

Change in balances (growth (-), decrease (+)) 

unfinished construction, finished product (growth (-)) 5670 

unfinished construction, finished product (decrease 

(+)) 

5680 

TOTAL expenses on regular activities 5600 43 838 423 71 300 435 

17. OTHER PROFITS AND EXPENSES 

In the statement of financial results of the Company for the years 2012 and 2011, the structure of other 

profits and expenses mainly reflect proceeds and costs from operations with currency, exchange 

differences from revaluation of assets and liabilities expressed in foreign currency, incomes (costs) 

from lease of property, income (costs) from revaluation of quoted securities, provisions for 

depreciation of financial investments, etc. 

Other profits and expenses from the settled operations are given in the table below. 

73

EXPLANATIONS 



Other profits For 2012 For 2011 

Other profits, total: 121 529 638 65 327 947 

including: 

Profits from the operations of currency sale 19 730 983 41 824 824 

Profits received as a result of revaluation of quoted 

securities 7 558 709 5 600 841 

Profits derived from disposal of financial investments 

traded on the Organized Market 55 081 135 5 570 208 

Profits from disposal of fixed assets, material assets 

and other property 26 928 326 4 108 874 

Exchange differences from revaluation of assets and 

liabilities in foreign currency 2 671 695 3 732 288 

Profits derived from disposal of financial investments 

not traded on the Organized Market 8 384 387 3 340 177 

Restoration of provisions for doubtful debts 379 706 313 724 

Insurance indemnity 29 114 185 181 

Fines, penalties on the business agreements 131 136 149 972 

Profits derived from the sale of of receivables 28 375 132 594 

Profits from the lease of property 295 930 76 225 

Profits derives from assignment of rights (except for 

rights of claim for receivables) 46 345 

Profits of previous years 19 393 74 516 

Exchange differences from purchase/sale of currency 

at the exchange rate other than that fixed by the RF 

Central Bank 12 353 69 746 

Income formed as a result of confirmation of 0 % 

VAT rate - 55 209 

Restoration of provision for devaluation - 32 135 

of financial investments 

Restoration of provision for reduction in the value of 

materials 112 299 6 945 

Profits from writing off the payables with an expired 

period of limitation 447 3 908 

Stock exchange variation margin 55 462 3 561 

Other profits 63 843 47 019 

74

EXPLANATIONS 



Other expenses For 2012 For 2011 

Other expenses, total: 132 550 135 218 698 144 

including: 

Costs of revaluation of quoted securities 5 698 950 125 439 036 

Costs of operations for purchasing foreign currency 18 998 242 41 404 843 

Provisions for bad debts 348 531 29 946 254 

Costs derived from disposal of financial investments 

traded on the Organized Market 51 601 451 5 737 679 

Costs derived from disposal of financial investments 

not traded on the Organized Market 8 376 815 4 728 541 

Exchange differences from revaluation of assets and 

liabilities in foreign currency 2 771 769 4 003 615 

Costs of disposal of fixed assets, material assets and 

other property 26 655 236 3 404 738 

Costs derives from assignment of rights (except for 

rights of claim for receivables) 46 345 

Provisions for devaluation of financial investments 16 655 774 1 927 991 

Contributions to the scientific and innovation activity 

support foundations - 968 230 

Provision for forthcoming costs 98 854 301 804 

Costs of organizing the issue and service of securities 19 132 139 771 

Costs derived from the sale of receivables 30 020 133 453 

Provision for reduction in the value of inventories - 112 264 

Losses of previous years 86 001 87 841 

Other expenses For 2012 For 2011 

Costs of cultural and sports events for the Company’s 

employees 63 396 71 500 

Costs of lease of property 153 843 45 794 

Shareholders’ meeting costs 47 527 44 608 

Bank services 271 293 43 025 

Writing-off receivables with an expired period of 

limitation 95 41 002 

Other taxes (including VAT) 63 789 18 002 

Contributions to non-profit organizations 12 357 17 425 

Charity costs 6 000 12 815 

Fines, penalties on the business agreements 78 091 9 068 

Stock exchange variation margin 60 732 4 553 

Exchange differences from purchase/sale of currency 

at the exchange rate other than that fixed by the RF 

Central Bank 44 103 4 423 

Costs of reorganization 116 532 

Other expenses 245 257 49 869 

19. TAXES 

Amount 

75

EXPLANATIONS 



Loss before tax (except for profits from participation in other entities) according 

to accounting books (12 362 379) 

Amount of provisional profit tax income 2 472 476 

Permanent differences of the reporting period, including: 35 981 668 

- on the sale of financial investments (quoted shares) (12 103 039) 

- on the revaluation of financial investments (quoted shares) (1 859 759) 

- on commercial and administrative costs 756 731 

- on depreciation of fixed assets 33 459 

- on the liquidation of fixed assets 37 062 

- on the liquidation of other property 10 965 

- on the provision for devaluation of financial investments 46 086 774 

- on the provision for future costs 98 854 

- on the provision for reduction in the value of inventories (112 299) 

- on the sale of fixed assets 252 566 

- on the sale of inventories 132 460 

- on the sale of unfinished construction 5 110 

- on the retirement of R&D that has given no result 66 305 

- on other costs 2 576 479 

Deductible temporary differences of the reporting period, including: (21 177 091) 

- under the provision for unused vacations and forthcoming costs (237 939) 

- under provision for bad debts (29 462 175) 

- under electricity transportation costs (78 710) 

- on the sale of securities 8 615 784 

- on other costs (14 051) 

Taxable temporary differences of the reporting period, including: 858 902 

- on depreciation of fixed assets 41 357 

- Process consolidation (2 nd power unit of the Branch ―Kaliningrad TPP-2‖ 822 203 

- on other costs (4 658) 

Taxable profit under tax accounting 3 301 100 

Profit tax rate 20 % 

Profit tax 660 220 

Profits from participation in other entities (dividends) received by the Company in 2012 amounted to 

2,573,215 thousand rubles (1,355,352 thousand rubles – in 2011). Profit tax charged from the profits 

from participation in other entities is accounted by the Company in a separate line 2460 ―Other‖ of the 

76

EXPLANATIONS 



Statement of Financial Results. Profits from participation in other entities in the amount of 208,826 

thousand rubles (384,531 thousand rubles – in 2011) are subject to profit taxation at the rate of 0 %. 

Itemization of the line 2460 ―Other‖ of the Statement of Financial Results. 

2012 2011 

Profit tax from participation in other entities (dividends) (38 158) (86 079) 

Profit tax payable in addition under clarified tax returns (16) 

Adjustment (charging) of deferred tax liability (5 720) (895) 

Penalties under taxes (5) (696) 

Profit tax to be reduced under clarified tax returns 194 310 12 086 

Adjustment (charging) of a deferred tax asset (949) (73 356) 

Adjustment (writing-off) of a deferred tax liability 2 903 630 658 

Total 152 381 481 702 

Value-added tax 

The total debt in compensation of VAT from federal budget, including supplies of electricity for 

export, is equal to 783,159 thousand rubles as of 31/12/2012 (1,507,741 thousand rubles – as of 

31/12/2011; 2,390,247 thousand rubles – as of 31/12/2010). This amount is in the structure of other 

receivables of the balance sheet. 

20. PROFIT PER SHARE 

The base profit per share reflects a part of the profits of the reporting period, which can be potentially 

distributed among the shareholders – holders of ordinary shares. It is calculated as the ratio of the base 

profit for the accounting year to the average quantity of outstanding ordinary shares in the accounting 

year. 

In June 2012 the Company repurchased its own shares from the shareholders who did not take part in 

voting or voted against reorganization of the Company, in the amount of 195,177,711,798 shares at 

0.0284 RUB per share, for a total sum of 5,543,047 thousand rubles. 

77

EXPLANATIONS 



In July 2012 the Company repurchased its own shares from the shareholders who did not take part in 

voting or voted against reorganization of the Company, in the amount of 33,465,450,844 shares at 

0.0284 RUB per share, for a total sum of 950,419 thousand rubles. 

In October 2012 the Company sold 228,628,756,041 shares of its own at a price of 0.0284 RUB per 

share to the subsidiary company INTER RAO Capital CJSC, for a total sum of 6,493,057 thousand 

rubles. 

In October 2012 within the frames of reorganization the Company carried out additional issue of 

ordinary shares in the amount of 664,956,390,935 shares at the placing price of 0.02809767 RUB, for 

a total sum of 18,683,725 thousand rubles. The date of actual placement of shares is 01/10/2012. Issue 

has been carried out for the purpose of converning the shares kept by minority shareholders of JSC 

―PGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO Energy‖, JSC ―INTER RAO EnergoAktiv‖, into shares 

of JSC ―INTER RAO UES‖ upon consolidation of the said companies with the Company. 

In November 2012 within the frames of reorganization the Company carried out additional issue of 

ordinary shares in the amount of 59,044,606,748 shares at the placing price of 0.02809767 RUB, for a 

total sum of 1,659,016 thousand rubles. The date of actual placement of shares is 06/11/2012. Issue has 

been carried out for the purpose of converning the shares kept by minority shareholders of JSC 

―Bashkirenergo‖ into shares of JSC ―INTER RAO UES‖ upon consolidation of the said company with 

the Company. 

The calculation of the 2012 2011 2010 

average quantity of shares 

outstanding during the 

reporting period has been 

made according to the 

Methodical 

recommendations on 

disclosure of information 

on profits per share, 

approved by the RF 

Ministry of Finance Order 

of March 21, 2000 No. 

29n. 

Base profit/(loss) for the 

reporting period, thousand 

rubles (14 360 641) (143 127 967) 2 704 427 

Quantity of shares, units 9 758 318 447 974 6 873 094 737 595 2 639 852 861 935 

Base profit (loss) per share 

(kopecks) 

(0,1472) (2,0824) 0,1024 

78

EXPLANATIONS 



Diluted profit per share, 

kopecks 

(0,1472) (2,0824) 0,1024 

In 2012 and 2011-2010 the Company had no bonds convertible into shares. 

21. RELATED PARTIES 

21.1. Major entities 

As of December 31, 2012 there is no shareholder (legal entity or individual) in the structure of the 

Company's shareholders with a participation interest exceeding 20 % of the authorized capital. 

21.2. Subsidiaries and associated companies 

Full list of subsidiaries and associated companies is posted on the Company’s website 

http://www.interrao.ru/investors/disclosure/affiliated/ 

21.2.1. Proceeds from sales to subsidiaries and associated companies 

Company’s proceeds from sales of goods (works, services) to subsidiaries and associated companies in 

2012 amounted to 16,873,727 thousand rubles. (30,353,147 thousand rubles - in 2011) without VAT. 

Sale of electricity was carried out on regular commercial terms at market prices for the corresponding 

regions of supplies. Other sales mainly include agent’s fee and operations on the sale of information 

and process services. The cost of services rendered corresponds to the market value. 

Proceeds from sale 

Sum 

2012 2011 

Total sales 16 873 727 30 353 147 

including: 

Sale of electricity (power) under bilateral agreements 14 059 055 25 558 015 

Sale of electricity (power) under the contract of 

commission concluded with JSC ―CFR‖ 2 739 258 4 698 396 

Other sales 75 414 96 736 

21.2.2. Profits in the form of dividends received from subsidiaries and associated companies 

79

EXPLANATIONS 



Name of related party 

Sum 

2012 2011 

Total interests, including: 2 453 767 1 223 211 

- on the ordinary shares 2 453 767 1 191 506 

- on the preferred shares - 31 705 

21.2.3. Interest yield from all types of borrowings issued to subsidiaries and associated companies 

Interest yield from all types of borrowings issued to subsidiaries and associated companies in 2012 

amounted to 801,534 thousand rubles (856,114 thousand rubles – in 2011). Interest rates applicable in 

2012 corresponded to the level of market interest rates for similar borrowings. 

21.2.4. Other profits in the form of profits from the sale of property, lease of property, fines under 

agreements and other non-operating income received from subsidiaries and associated 

companies 

Other profits in the form of profits from the sale of property, lease of property, fines under agreements, 

and other non-operating income received from subsidiaries and associated companies in 2012 

amounted to 27,145,607 thousand rubles (4,101,362 thousand rubles - in 2011), not including VAT. 

The Company leases out its own property with the book value of 2,571,976 thousand rubles as of 

31/12/2012 (771,036 thousand rubles - as of 31/12/2011). 

80

EXPLANATIONS 



21.2.5. Purchase of goods (works, services) from subsidiaries and associated companies 

The cost of purchased goods, works, services provided by subsidiaries and associated companies in 

2012 amounted to 6,273,535 thousand rubles. (11,473,261 thousand rubles - in 2011) without VAT. 

Purchases were carried out on regular commercial terms and conditions. Itemization is given below: 


Sum 

2012 2011 

Purchase of electricity (power), total 6 273 535 11 473 261 

Purchase of electricity (power) 3 324 582 9 111 504 

Purchase of services 2 948 953 2 245 195 

Purchase of R&D - 116 562 

The scope of expenses on purchasing the services reflects the expenses on the lease of equipment and 

office premises from subsidiaries with the total book value of 17,180,383 thousand rubles (detailed 

information is provided in note 3). 

21.2.6. State of settlements with subsidiaries and associated companies 

RECEIVABLES 

Short-term receivables of associated companies 


As of 

31.12.2012 

Receivables 

As of 

31.12.2011 

As of 

31.12.2010 

Short-term receivables of buyers 

and customers 879 799 585 951 1 861 814 

Short-term receivables of buyers of 

electricity (power) under 

commission agreement entered into 

with JSC ―CFR‖. 82 283 113 821 72 126 

Advances paid to suppliers and 

contractors 1 082 620 164 068 7 952 

Other receivables 52 345 479 53 742 377 1 330 798 

TOTAL 54 390 181 54 606 217 3 272 690 

81

EXPLANATIONS 



Long-term receivables of associated companies 


As of 

31.12.2012 

Receivables 

As of 

31.12.2011 

As of 

31.12.2010 

Long-term receivables 

24 466 099 767 856 1 956 604 

TOTAL 24 466 099 767 856 1 956 604 

PAYABLES 

Short-term payables of associated companies 


As of 

31.12.2012 

Payables 

As of 

31.12.2011 

As of 

31.12.2010 

Payables of suppliers and 

contractors 1 418 180 1 284 529 261 349 

Advance payments received from 

buyers - 112 915 598 028 


26 607 819 159 187 2 630 561 

TOTAL 28 025 999 1 556 631 3 489 938 

Other long-term payables of associated companies 


As of 

31.12.2012 

Payables 

As of 

31.12.2011 

As of 

31/12/2010 

Other long-term payables 

- 16 895 753 - 

TOTAL - 16 895 753 - 

21.2.7. Loans issued to subsidiaries and associated companies 

Interest rates on the borrowings issued in 20122 made 10 % to 15 % per annum in foreign currency 

(6.924 % to 15 % - in 2011), 7.8 % - 10.25 % per annum - in rubles (8 % to 14.6 % - in 2011). 

82

EXPLANATIONS 



Data in the table below are exclusive of interests. 

Name of related 

party 

Remaining 

loan as of 

31/12/2011 

Issued in 

2012 

Repaid in 

2012 

Provision 

Exchange 

differences 

balance 

Remaining 

loan as of 

31/12/2012 

Electric Networks 

of Armenia CJSC 

INTERENERGO 

B.V. 

ASIA ENERGY 

B.V. 

Moldavskaya 

GRES CJSC 

1 470 685 - - - (55 774) 1 414 911 

- - - - - - 

39 118 - (29 857) - (1 736) 7 525 

1 749 732 116 656 (544 116) - (83 377) 1 238 895 

Elektroluch CJSC 2 527 558 328 195 (120 000) - - 2 735 753 

INTER RAO 

CREDIT B.V. 

Bashkiria 

Generating 

Company LLC ** 

- 1 094 996 (1 094 996) - - - 

- 900 000 - - - 900 000 

Coal Mine LLC ** - 706 000 - - - 706 000 

TGR ENERJI* 6 502 - - (5 783) (719) - 

TOTAL 5 793 595 3 145 847 (1 788 969) (5 783) (141 606) 7 003 084 

(*) Data in the table are provided net of provision for devaluation of loans issued in the amount 

of 11,976 thousand rubles as of 31/12/2012 in respect of the debt of subsidiary company 

TGR ENERJI (6.193 thousand rubles – as of 31/12/2011). 

(**) The said loans have been transferred to the Company in the result of reorganization and 

consolidation of JSC ―Bashenergoaktiv‖ and JSC ―OGK-3‖. These sums are not accounted 

in the statement of cash flows, in the structure of the operations with related parties in the 

line 4223. 

21.2.8. Loans received from subsidiaries and associated companies 

Long-term loans in foreign currency 

In 2011 the Company raised borrowed funds in the amount of 163,000 thousand USD. Interest rate 

corresponds to the market interest rate for similar borrowings. The term of repayment is 2015. Data in 

the table below include interests. 

83

EXPLANATIONS 




party 

Remaining 

loan as of 

31/12/2011 

Issued/charged 

in 2012 

Repaid in 

2012 

Exchange 

differences 

balance 

Remaining 

loan as of 

31/12/2012 

INTER RAO 

CREDIT B.V. 

5 255 080 275 795 (282 363) (292 124) 4 956 388 

Including interests 7 116 275 795 (282 363) 5 090 5 638 

Long-term loans in rubles 

In 2011 the Company raised borrowed funds in rubles. Interest rate corresponds to the market interest 

rate for similar borrowings. The term of repayment is 2018. Data in the table below include interests. 


party 

Remaining 

loan as of 

31/12/2011 


in 2012 

Repaid in 

2012 

Transferred to 

short-term loans 

Remaining 

loan as of 

31/12/2012 

INTER RAO 

CREDIT B.V. 

1 822 055 180 089 (181 261) (316 040) 1 504 843 

Including interests 4 824 180 089 (181 261) - 3 652 

Short-term loans in rubles 

In 2012 in the result of consolidation with JSC ―OGK-1‖, the Company received to its balance an 

intra-group loan in the amount of 2,309,586 thousand rubles, including interests in the amount of 9.586 

thousand rubles. The Company additionally charged the interests due in the amount of 2,663 thousand 

rubles, and repaid debt in full in October 2012. Data in the table below include interests. 


party 

Remaining 

loan as of 

31/12/2011 


in 2012 

Repaid in 

2012 

Transferred 

from long-term 

loans 

Remaining 

loan as of 

31/12/2012 

INTER RAO 

CREDIT B.V. 

316 040 2 312 249 (2 628 289) 316 040 316 040 

Including interests - 12 249 (12 249) - - 

84

EXPLANATIONS 



21.2.9. Bills of exchange of subsidiaries and associated companies (excluding interest) 


Remaining 

loan as of 

31/12/2011 

Issued in 

2012 

Repaid in 

2012 

Exchange 

differences 

balance 

Remaining 

loan as of 

31/12/2012 

INTER RAO UES 

Energy Efficiency 

Center LLC 

400 000 - 400 000 - - 

INTER RAO – 

Information 

- 10 020 10 020 - - 

Technologies LLC 

TOTAL 400 000 10 020 410 020 - - 

21.3. Information on transactions with key management personnel 

The Company attributes Management Board and Board of Directors members to the key management 

personnel. Their lists are given in the General data section of the Explanatory Note. 

In 2012 the Company has charged bonuses to the members of the Board of Directors for participation 

in meetings in the total amount of 12,908 thousand rubles (in 2011 - 10,903 thousand rubles). No other 

payments were made for the members of the Board of Directors in 2012. 

In 2012 the Company has charged remuneration to the members of the Management Board (wages, 

bonuses, privileges, interest-free loans) for the total amount of 667,421 thousand rubles (in 2011 - 

420,546 thousand rubles). Besides, in 2012 the Company transferred voluntary pension fees to nonstate 

pension fund GAZFOND in favor of the members of the Management Board in the amount of 

27,372 thousand rubles (in 2011 - no). No other payments to the members of the Management Board 

were effected in 2012 and 2011. 

Besides, in 2012 the Company has charged remuneration to the members of the Audit Committee 

(wages, bonuses, privileges, remunerations) for the total amount of 49,978 thousand rubles (in 2011 - 

22,349 thousand rubles). In 2012 the Company transferred voluntary pension fees to non-state pension 

fund GAZFOND in favor of the Company’s employees - members of the Audit Committee in the the 

amount of 3,254 thousand rubles (in 2011 - no). No other payments to the members of the Audit 

Committee were effected in 2012 and 2011. 

85

EXPLANATIONS 



21.4. Cash flows on transactions with related parties 




including 

from sales of products, goods, works 

and services 4111 13 706 785 26 798 962 

from the sale of electricity (power) 

under commission agreement entered 

into with FIC CJSC 4111 2 739 258 4 656 701 

lease payments, license fees, royalties, 

commissions and other similar 

payments 4112 272 912 30 540 

other proceeds 4119 990 942 - 


including 

to suppliers (contractors) for raw 

materials, works and services 4121 (5 860 461) (10 581 142) 

due to payment of employees’ 

remuneration 4122 (569 935) (413 541) 

other payments 4129 (44 450) (70 903) 



including 

from sales of current assets (other than 

financial investments) 4211 2 105 915 3 782 329 

from sales of shares (participatory 

interest) in other organizations 4212 

from return of loans provided, from 

sales of debt securities (right of demand 

of cash to other persons) 4213 2 198 989 4 145 753 

dividends, interest on debt financial 

investments and similar proceeds from 

equity participation in other 

organizations 4214 2 978 111 1 873 579 

86

EXPLANATIONS 





including 

due to acquisition of shares 

(participatory interest) in other 

organizations 4222 (2 609 023) (3 863 840) 

due to acquisition of debt financial 

investments (right of demand of cash to 

other persons), provision of loans to 

other entities 4223 (1 549 867) (5 478 299) 

Cash flows from financial transactions 

Proceeds - total 4310 - 7 357 116 

including 

obtaining credits and loans 4311 - 7 357 116 

Payments - total 4320 (9 585 380) (124 577) 

including 

to owners (participants) due to 

repurchase of organization’s shares 

(participatory interest) from them or 

their quit from composition of 

participants 4321 (6 493 466) 

for payout of dividends and other 

payments on distribution of profits in 

favor of owners (participants) 4322 (45 567) 

due to repayment (repurchase) of bills 

of exchange and other debt securities, 

repayment of credits and loans 4323 (3 091 914) (79 010) 

22. INFORMATION BY SEGMENTS 

Risks and profits of the Company are defined mainly by distinctions between the geographical regions 

where the Company sells electricity. Thus, the Company distinguishes as the primary information 

geographical segments by the principle of sales markets of electricity. The main share of sales in 2012 

falls on the domestic market (40 %). 

Considerable volume of electricity is supplied to Lithuania (18 %), Belarus (17 %), Finland (14 %). 

The segment ―other countries‖ includes minor supplies to Azerbaijan, Georgia, Kazakhstan, Ukraine, 

South Ossetia. The share of proceeds falling on sales to each of the listed countries separately is less 

than 10 %. 

87

EXPLANATIONS 



Indicators of the reportable segments to be disclosed are set out in the assessment, in which they are 

submitted to the Company's management for decision making (according to management accounting). 

Retained costs represent the costs related to the Company in general. Segment assets consist mainly of 

fixed assets, intangible assets, inventories, receivables and cash Segment assets generally do not 

include investments. Segment liabilities comprise operating liabilities and exclude items such as tax 

liabilities and certain types of loans related to the Company in general. Capital costs include the receipt 

of fixed assets. Impairment loss and provisions relate to the segment only if they relate to the assets 

thereof. 

In the reporting period there was no changes in way to assess the indicators used for determining the 

financial result (profit or loss) of the reportable segment, as compared to previous periods and, 

accordingly, the effect of changes in the financial result (profit, loss) of the reportable segment in the 

reporting period. 

The tables below present information on income and profits, as well as assets and liabilities by the 

Company’s geographical segments. 

For 2012 

Description Russia Finland Lithuania Belarus 

Other 

countries 

Total 

Proceeds 17 117 362 5 774 561 7 782 284 7 192 853 4 825 118 42 692 178 

Costs (18 924 103) (4 152 720) (4 874 724) (4 212 557) (3 010 975) (35 175 079) 

Profit by segments (1 806 741) 1 621 841 2 907 560 2 980 296 1 814 143 7 517 099 

Retained costs (17 306 263) 

Total profit before taxation (9 789 164) 

Assets by segments 84 338 817 345 397 508 077 318 459 803 040 86 313 790 

Retained assets 358 345 120 

Total on assets 444 658 910 

Capital assets by 

segments 

3 402 298 - - - - 3 402 298 

Retained capital assets 365 913 085 

Total on capital assets 369 315 383 

88

EXPLANATIONS 



Liabilities by 

segments 

41 306 365 116 - 43 797 4 152 032 45 502 310 

Undistributed liabilities 15 137 367 

Total on liabilities 

Capital investments 

60 639 677 

1 067 051 - - - - 1 067 051 

For 2011 

Proceeds 36 436 576 18 314 219 9 116 217 5 553 083 3 967 861 73 387 956 

Costs (38 756 546) (10 543 299) (5 322 740) (3 370 176) (2 762 391) (60 755 152) 

Profit by segments (2 319 970) 7 770 920 3 793 477 2 182 907 1 205 470 

12 632 804 

Retained costs (163 036 657) 

Total profit before taxation (150 403 853) 

Assets by segments 9 105 878 136 008 344 549 432 521 4 446 491 14 464 447 

Retained assets 342 853 751 

Total on assets 357 318 198 

Capital assets by 

segments 

29 689 654 - - - 2 616 374 32 306 028 

Retained capital assets 250 456 632 

Total on capital assets 282 762 660 

Liabilities by 

segments 

20 625 575 72 001 112 915 29 655 2 859 769 23 699 915 

Undistributed liabilities 19 490 502 

Total on liabilities 43 190 417 

Capital investments 2 552 992 - - - - 2 552 992 

In 2011-2012 the Company was engaged in the production of electricity. In this connection, the 

Company discloses information by operational segments, with a breakdown into proceeds from 

realization of electricity (power and other products) acquired, and realization of other goods (work, 

services). Production activity of the Company is in the process of termination, and is of closing nature 

in the period of report. In the structure of other sales the Company mainly includes compensation for 

electricity supply under the contracts of commission. 

89

EXPLANATIONS 



Description 

Production of 

electricity (power and 

other products) 

Resale of electricity 

(power) 

Other sales Retained assets Total 

As of 31/12/2012 

Proceeds 4 826 491 37 766 224 99 463 - 42 692 178 

Assets by 

segments 

Capital 

investments 

2 861 931 861 012 87 746 440 848 221 444 658 910 

594 764 469 239 3 048 - 1 067 051 

As of 31/12/2011 

Proceeds 18 813 248 54 132 023 442 685 - 73 387 956 

Assets by 

segments 

Capital 

investments 

As of 31/12/2010 

30 355 270 103 472 2 933 072 323 926 184 357 318 198 

2 534 152 18 840 - - 2 552 992 

Proceeds 12 479 810 47 746 702 1 166 800 - 61 393 312 

Assets by 

segments 

Capital 

investments 

50 437 521 416 590 14 697 943 69 724 782 135 276 836 

9 397 204 55 281 - - 9 452 485 

The following table represents information on buyers (customers), sales to which provides proceeds at 

least 10 % of total proceeds from sales to the Company’s buyers (customers): 

Name of buyer 

Total value of 

proceeds 

Share in the total 

proceeds from sale, 

% 

Name of the 

reporting segment 

For 2012 

RAO NORDIC OY 4 882 430 11,44 Finland 

UAB "INTER RAO Lietuva" 7 782 283 18,23 Lithuania 

GPO Belenergo 7 192 853 16,85 Belarus 

JSC ―CFR‖ 13 462 582 31,53 Russia 

TOTAL 33 320 148 78,05 

For 2011 



JSC ―CFR‖ 24 060 151 32,78 Russia 

TOTAL 47 630 017 64,89 

For 2010 


90

EXPLANATIONS 




JSC ―CFR‖ 20 558 043 33,49 Russia 

TOTAL 37 880 318 61,71 

These parameters are given in the evaluation applicable for reflection in the accounting (financial) 

statements of the similar parameters of the Company in general. 

23. DISCLOSURE OF INFORMATION ABOUT OFF-BALANCE-SHEET ITEMS 

Itemization of securities and other bonds issued by the Company 

The total amount of securities and other bonds issued by the Company is equal to 77,681,752 thousand 

rubles as of December 31, 2012 (75,054,136 thousand rubles – as of December 31, 2011; 41,583,600 

thousand rubles – as of December 31, 2010). 

Itemization of securities and other bonds is given below. 

Name of security issued Date of issue Fulfilment 

period 

Organization 

the surety bond 

has been issued 

to 

The sum of 

security as of 

December 31, 

2012 

Surety for obligations of 

Silvelteria Holdings LTD to 

Vnesheconombank Group 

under option agreement 

25.06.2010 25.06.2016 

Silvelteria 

Holdings LTD 

26 646 880 

Surety issued for obligations of 

INTER RAO Capital CJSC to 

JSC ―Mezhregiongaz‖ 27.06.2011 23.06.2015 

INTER RAO – 

Capital CJSC 

17 036 925 

Liabilities on payment of base 

asset 

on forward transactions 

concluded with UniCredit Bank 

CJSC, the Royal Bank of 

Scotland, BNP Paribas and 

HSBC Bank Ltd 

05.08.2011 31.12.2013 CJSC UniCredit 7 723 891 

Bank, the Royal 

Bank of Scotland, 

BNP Paribas, 

HSBC Bank Ltd 

TOTAL 51 407 696 

91

EXPLANATIONS 



Description of securities and other bonds issued by the Company (continued) 


period 

Organization 

the surety bond 

has been issued 

to 

The sum of 


December 31, 

2012 

Surety on the loan issued by 

Vnesheconombank Group to 

INTER RAO Credit B.V. 21.12.2011 30.09.2018 

INTER RAO 

Credit B.V. 

6 780 503 


EABR (Vnesheconombank) to 

JSC ―Stantsiya Ekibastuzskaya 

GRES-2‖ 

23.12.2011 30.09.2018 

JSC ―Stantsiya 

Ekibastuzskaya 

GRES-2‖ 

4 663 694 

Counter-guarantee of VTB 

Bank OJSC isssued to BNP 

Paribas, Netherlands, which has 

issued a direct guarantee to 

BARIVEN S.A. 

24.03.2011 08.03.2013 

BARIVEN 

S.A., Venezuela 

2 997 856 


ING Bank N.V. to 

INTER RAO Credit B.V. 

27.09.2011 23.09.2016 

INTER RAO 

Credit B.V. 

2 264 452 

Surety issued on theliability of 

INTER RAO Turkey Enerji 

Holding A.S. under the Loan 

Agreement to ING Bank B.V. 

04.12.2012 04.12.2018 

INTER RAO 

Turkey Enerji 

Holding A.S. 

2 055 013 

Surety on the loan issued by the 

European Bank of 

Reconstruction and 

Development to Electric 

Networks of Armenia CJSC 

17.06.2009 01.10.2018 

Electric 

Networks of 

Armenia CJSC 

1 280 809 

Pledge of shares of JSC 

―Stantsiya Ekibastuzskaya 

GRES-2‖ (7,559,026 of 

common shares) for ensuring 

obligations of JSC ―Stantsiya 

Ekibastuzskaya GRES-2‖ with 

respect to EBRD and 

Vnesheconombank Group 

17.10.2011 

until 

fulfilment of 

obligations 

JSC ―Stantsiya 

Ekibastuzskaya 

GRES-2‖ 

1 069 413 

TOTAL 21 111 740 

92

EXPLANATIONS 



Description of securities and other bonds issued by the Company (continued) 


period 

Organization 

the surety 

bond has been 

issued to 

The sum of 


December 31, 

2012 

Surety on the Guarantee issued 

by Nordea Bank Finland Plc. to 

RAO Nordic Oy 

Counter-guarantees of Nordea 

Bank, issued to Banco 

PICHINCHA C.A. (Ecuador), 

which has issued direct 

guarantees to HIDROTOAPI EP 


Gazprombank to INTER RAO 

28.12.2009 

until 

fulfilment of 

obligations 

25.08.2011 19.05.2015 

24.09.2012 31.03.2020 

RAO Nordic 

Oy 

HIDROTOAP I 

EP, Ecuador 

INTER RAO 

Credit B.V. 

1 005 715 

880 800 

821 324 

Credit B.V. 


EBRD to JSC ―Telasi‖ 02.02.2011 04.11.2020 JSC ―Telasi‖ 764 174 


Vnesheconombank CJSC to 

Electric Networks of Armenia 

CJSC 

09.03.2010 01.10.2018 

Electric 

Networks of 

Armenia CJSC 

689 423 


Gazprombank to INTER RAO 

Credit B.V. 

Obligation to pay money (return 

investments), reserve letter of 

credit issued by VTB Bank OJSC 

to GE Energy Holdings Vostok 

B.V. 

Surety issued on the liabilities 

of INTER RAO UES Energy 

Efficiency Center LLC 

to Moscow Credit Bank OJSC 

20.06.2012 06.06.2017 

17.08.2012 17.08.2017 

25.08.2011 28.02.2013 

INTER RAO 

Credit B.V. 

GE Energy 

Holdings 

Vostok B.V. 

INTER RAO 

UES Energy 

Efficiency 

Center LLC 

252 248 

483 123 

265 509 

TOTAL 5 162 316 

Description of securities of obligations and payments received by the Company 

93

EXPLANATIONS 



The total amount of securities for liabilities and payments received by the Company is equal to 

36,952,247 thousand rubles as of December 31, 2012 (16,601,427 thousand rubles – as of December 

31, 2011; 17,847,310 thousand rubles – as of December 31, 2010). 

Itemization of securities and other bonds is given below. 

Name of security received, Guarantor Term of validity 

of the guarantee 

Surety under the General Agreement 

dd. 12/05/2012 with System-Invest 

OJSC and Ecu Gest Holding S.A. on 

discharge of obligations thereunder 

06.11.2018 

Organization the 

guarantee has been 

received for 

/Pledger 

JSC ―System-Invest‖ 

and Ecu Gest 

Holding S.A. 

The sum of 


December 31, 

2012 

22 500 000 

Obligations on paying for a base asset 

under forward transactions concluded 

with UniCredit Bank CJSC, the Royal 

Bank of Scotland, BNP Paribas and 

HSBC Bank Ltd 

Property received in pledge under the 

mortgage agreement. Subjects of 

pledge: non-residential buildings owned 

by the pledgor on the base of the rights 

of ownership; right of use of land plots 

under long-term lease agreements. 

Location of the property: 27, Bolshaya 

Pirogovskaya Str., Moscow 

31.12.2013 

UniCredit Bank 

CJSC, the Royal 

Bank of Scotland, 

BNP Paribas, HSBC 

Bank Ltd 

8 450 530 

01.07.2014 Elektroluch CJSC 2 093 431 

Bank guarantee for advance payment 

return, issued by OJSC 

11.01.2014 NGO Privod LLC 2 634 099 



Organization the 

guarantee has been 

received for 

/Pledger 

The sum of 


December 31, 

2012 

TransCreditBank under the contract 

with NGO Privod LLC 

Bank guarantee for return of advance 

payment, issued by JSC 

―Gazprombank‖ under agreement with 

JSC ―TYAZHMASH‖ 


return, issued by Bank VTB 24 OJSC 

under the contract with Service-Sklad 

CJSC 

27.02.2015 

JSC 

―TYAZHMASH‖ 

1 220 703 

01.04.2013 Service-Sklad CJSC 12 041 

TOTAL 36 910 804 

94

EXPLANATIONS 



Description of securities of obligations and payments received by the Company (continued) 



Bank guarantee for proper fulfilment of 

obligations of the guarantee period 

under the contract with NPO 

Energoresurs CJSC 

23.05.2013 

Organization for 

which the guarantee 

has been received 

NPO Energoresurs 

CJSC 

The sum of 


December 31, 

2012 

11 102 

Obligations received from individuals – 

employees of the Company under 

apartments sale-purchase agreements in 

the amount equal to the balance of their 

debts 


return, issued by HSBC Bank LLC 

(RR) under the contract with the 

Moscow Representative Office of 

Deloitte & Touche Regional Consulting 

Services Ltd. 

until repayment 

of debts 

10.01.2013 

individuals – 

employees of the 

Company 

Moscow 

Representative Office 

of Deloitte & Touche 

Regional Consulting 

Services Ltd. 

9 960 

9 942 

Bank guarantee issued by CB United 

Bank of Development LLC under the 

contract with Novogradstroy LLC 

Bank guarantee for return of advance 

payment, issued by JSC 

―Gazprombank‖ under the agreement 

with IskraSvyaz LLC 

01.07.2013 Novogradstroy LLC 6 490 

10.02.2013 IskraSvyaz LLC 2 548 

95

EXPLANATIONS 




return, issued by MTS-Bank OJSC 

under the contract with Reduction 

Cooling Plants CJSC 

19.03.2013 

Reduction Cooling 

Plants CJSC 

1 401 

TOTAL 41 443 

24. CONDITIONAL LIABILITIES AND FACTS OF BUSINESS ACTIVITIES 

Factors influencing the financial standing of the Company 

Conditions of the Company's activities 

Economic reforms and development of the legal, tax and administrative infrastructure continue in 

Russia, which infrastructure would meet the requirements of the market economy. Stability of the 

Russian economy will to a high degree depend on the course of such reforms, as well as on the 

efficiency of the measures taken by the Government in the sphere of economics, financial and fiscal 

policy. 

Market fluctuations and reduced pace of economic development in the world economy also produce 

considerable influence on the Russian economy. World financial crisis resulted in uncertainty as to the 

future economic growth, availability of financing, and the cost of equity, which can negatively 

influence the financial standing, results of operations, and economic prospects of the Company in 

future. At present, it is impossible to forecast such influence. The Company's management believes 

that they take all the appropriate measures to support economic stability of the Company in these 

conditions. 

Taxation 

The Russian tax, currency and customs laws suppose different interpretation and are subject to 

frequent changes. Interpretation of such laws by the Company's management concerning the 

operations and activity of the Company's companies may be challenged by competent regional and 

federal authorities. Recent events in the Russian Federation have shown that tax authorities may take a 

stricter position in the interpretation of the laws and the audit of tax calculations. As a consequence, 

tax authorities may produce claims as to those transactions and methods of accounting to which they 

have never produced claims before. As a result, significant taxes, fines and penalties may be charged. 

Determination of amounts of claims under possible but not produced claims, as well as estimation of 

96

EXPLANATIONS 



the probability of negative outcome, are impossible. Tax audits may cover three calendar years of 

activity immediately preceding to the year of audit. In certain conditions, earlier periods may also be 

subject to auditing. 

In the management's opinion, as at December 31, 2012, corresponding provisions of the laws are 

interpreted by them correctly, and the probability of preservation of the Company's state in connection 

with the tax, currency and customs laws, is high. 

Existing and potential actions against the Company 

The Company participates in legal proceedings arising in the course of its financial and business 

activity. The provision for possible risks connected with unfavourable outcome of legal proceedings 

for the Company has been formed as of December 31, 2012 in the amount of 68,691 thousand rubles 

(60,711 thousand rubles – as of 31/12/2011; as of December 31, 2010 it has not been formed due to its 

insignificant amount). 

Guarantees 

As of 31/12/2012 the Company issued sureties to third persons’ creditors, the maturity time of which 

has not come yet, for a total sum of 77,681,752 thousand rubles (75,054,136 thousand rubles – as of 

31/12/2011; 27,935,851 thousand rubles – as of 31/12/2010). The Company’s management does not 

expect occurrence of any considerable liabilities in connection with these sureties. 

Obligations under forward deals 

Forwards for currency sale 

In connection with receiving regular currency proceeds, the Company performs transaction in the 

market of derivative financial instruments in order to minimize currency risk on the regular basis. 

Transactions with derivative financial instruments are made with the main leading banks within the 

framework of the relevant General agreement entered into and incorporate minimum guaranteed 

exchange rate, at which the Company undertakes to sell the defined the currency amount, and the Bank 

respectively undertakes to buy the specified currency amount on the specified date in the future. All of 

the settled transactions with derivative financial instruments for the purpose of reducing the currency 

risk constitute deliverable transactions with a deferred term of execution. 

97

EXPLANATIONS 



As of the reporting date of December 31, 2012 the off-balance-sheet items of the Company reflected 

security of Company’s obligations under forward contracts in the amount of 7,723,891 thousand 

rubles, calculated on the basis of the exchange rate of the Central Bank of the Russian Federation as of 

December 31, 2012, as well as the security of obligations of counteragent banks in the amount of 

8,450,530 thousand rubles, calculated at the rate of forward deals. All deals will be executed in 2013. 

Net fair value of forward contracts as of December 31, 2012 is equal to 179,086 thousand rubles 

(45,761 thousand rubles – as of December 31, 2011). When assessing the fair value, Bloomberg 

analytical system data were used. 

Interest Swap 

In order to minimize potential financial losses, in consequence of the growth of LIBOR6m floating 

rate index, the Company entered into a transaction — interest-rate swap to hedge changes in future 

interest payments on the loan received. The financial result of the Transaction is reflected by the 

Company in the structure of interests received/paid. Fulfilment of obligations under the transaction 

occurs once in half a year until the end of the interest rate swap -November 12, 2013. 

Under the terms of Transaction the Company effects payments to the Bank-counteragent based on a 

fixed rate and receives payments based on LIBOR6m floating rate index calculated similarly to the 

interests on the loan received on the basis of the LIBOR6m floating rate index. This hedging 

transaction allows, in terms of established share of hedging, insurance against the fall of cash flows of 

the Company in consequence of the growth of LIBOR6m floating rate index. 

When assessing the efficiency, the Company uses retrospective and perspective hedge efficiency 

analyses. Based on the results of perspective and retrospective analyses, as of December 31, 2012, 

hedging of interest rate risks with the use of the said interest rate swap transaction has been found 

efficient. 

Net negative fair value (loss) of interest swap as of December 31, 2012 is equal to 68,649 thousand 

rubles (121,288 thousand rubles – as of December 31, 2011). When assessing the fair value, 

Bloomberg analytical system data were used. 

Futures Contracts at the Energy Exchange 

98

EXPLANATIONS 



Futures used for Hedging Purposes 

The Company uses futures as a price risk hedging instrument at the DAM (Day-Ahead Market). 

Unfavourable changes in electricity prices at the DAM may reduce the profit margin relative to a 

margin profit indicator, approved in the Company's business plan. The purpose of entering into 

hedging futures is the reduction in price risk at the DAM and the achievement of profit margin 

indicator, approved in the Company's business plan. 

As of December 31, 2012, the Company reflects on the off-balance-sheeet items open long futures 

positions on futures in order to hedge the risk of increase in the electricity prices at the Day-Ahead 

Market at market valuation of 61,847 thousand rubles. 

For the purposes of assessing the hedging efficiency with the use of these instruments, the Company 

uses the retrospective and prospective analyzes using a hypothetical derivative method. According to 

the said method it is defined how the actual change in the fair value of net cash flows of hypothetical 

derivative is compensated with the actual change in the fair value of net cash flows of hedging 

instruments. 

Based on the retrospective and prospective hedging efficiency analysis as of December 31, 2012, the 

hedging of obligations on purchase of electricity in a free sector of Wholesale Electricity and Power 

Market (WEPM) for ensuring the electricity supplies for export at the price prevailing in the market for 

each hour (date) during the period of supply with the help of transactions with futures contracts on the 

average price index can be considered efficient, since at the time of decision on hedging, a prospective 

analysis of its efficiency has been positive. 

Other futures 

As of December 31, 2012, the market valuation of forward transactions open positions is reflected on 

the off-balance accounts of the Company, and namely: 

• Transactions aimed at speculation for a purchase of futures contracts in the quantity of 316 at 

market valuation of 56,001 thousand rubles with the purpose of its further resale (execution) at the 

market price. 

• Transactions aimed at speculation for a sale of futures contracts in the quantity of 528 at market 

valuation of 23,462 thousand rubles with the purpose of its further purchase (execution) at the 

market price. 

99

EXPLANATIONS 



Term of execution of the above said contracts is 2013. 

25. EVENTS AFTER THE REPORTING DATE 

The shares of INTER RAO UES of additional issues, the shares of minority shareholders of JSC 

―OGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO – Energy‖, and JSC ―INTER RAO – EnrgoAktiv‖ have 

been converted into, have been consolidated with the shares of primary issue of JSC ―INTER RAO 

UES‖ (state registration number 1-03-33498-E dd. October 29, 2009) pursuant to the decision of the 

Federal Financial Markets Service. Individual numbers (codes) of these issues have been cancelled. 

26. TERMINATED ACTIVITY 

In 2011 the Company founded a 100 % subsidiary INTER RAO – Electric Power Plants OJSC for the 

purpose of transferring the latter the activity on production of electricity and heat energy, within the 

frames of changeover of JSC ―INTER RAO UES‖ for holding structure of management. 

In the period of report within the frames of activity termination the Company sold the items of fixed 

assets, inseparable improvements and unfinished capital investments into fixed assets, intangible 

assets, inventories at their market value. Market value has been determined by the parties based on the 

data provided by independent appraiser. 

As a result of selling the items of fixed assets the Company has received profit of 501,360 thousand 

rubles, which is reflected in other profits and expenses in the Statement of Financial Results for 2012. 

The sum of profit tax from sale amounted to 382,473 thousand rubles. The debt of INTER RAO – 

Electric Power Plants OJSC to the Company for purchased property amounted to 28,014,193 thousand 

rubles as of 31/12/2012. 

As of 31/12/2012 the balance-sheet of the Company included items of fixed assets, which are to be 

sold in 2013. Book value of these items makes 2,832,061 thousand rubles. 

In the period of report the Company transferred the subsidiary INTER RAO - Electric Power Plants 

OJSC receivables and payables under the agreements concluded within the framework of carrying out 

production activity. Such agreements particularly include agreements on the sale of electricity and heat 

100

EXPLANATIONS 



energy, agreements on purchase of fuel, parts, works and services required for repair and upgrade of 

the items of fixed assets, etc. The debt of INTER RAO – Electric Power Plants OJSC for assigned 

liabilities under the said agreements as of 31/12/2012 amounts to 1,636,438 thousand rubles. 

Statement of Financial Results for the year 2012 

with regard to information about terminated activity 

Name of the indicator Code Continued activity 

Terminated 

activity 

Organization in 

general 

Proceeds from realization 

(excluding VAT) 2110 37 865 687 4 826 491 42 692 178 

Cost of sales 2120 (30 166 466) (5 008 613) (35 175 079) 

Gross profit 2100 7 699 221 (182 122) 7 517 099 

Commercial costs 2210 (4 153 181) (4 153 181) 

Administrative costs 2220 (4 510 163) (4 510 163) 

Profit (loss) from sales 2200 (964 123) (182 122) (1 146 245) 

Revenues from participation 

in other organizations 2310 2 573 215 2 573 215 


Interest payable 2330 (1 919 141) - (1 919 141) 

Other profits 2340 94 528 373 27 001 265 121 529 638 

including 

realization of fixed assets 2 012 25 622 473 25 624 485 

Sale of income-bearing 

investments in tangible 

assets 41 803 41 803 

Sale of unfinished capital 

expenditures 220 555 220 555 

Sale of inventories - 998 267 998 267 

Sale of intangible assets and 

R&D 5 903 5 903 

Provision for reduction in 

the value of inventories 112 264 112 264 

Other expenses 2350 (106 232 352) (26 317 783) (132 550 135) 

including 

realization of fixed assets (1 767) (25 077 184) (25 078 951) 

Sale of income-bearing 

investments in tangible 

assets (41 798) (41 798) 

Sale of inventories - (974 324) (974 324) 

Sale of unfinished capital 

investments into fixed assets (218 574) (218 574) 

Sale of intangible assets and 

R&D (5 903) (5 903) 

Profit (loss) before tax 2300 (10 290 524) 501 360 (9 789 164) 

Profit tax 2410 (277 747) (382 473) (660 220) 

101

EXPLANATIONS 



including PTl (PTA): 2421 7 068 438 127 896 7 196 334 

Change in deferred tax 

liabilities 2430 (6 055) 177 835 171 780 


assets 2450 (4 211 888) (23 530) (4 235 418) 

Other 2460 156 268 (3 886) 152 381 

including - (4 945) - 

Net profit (loss) 2400 (14 629 946) 269 305 (14 360 641) 

102

EXPLANATIONS 



Statement of Financial Results for the year 2011 

with regard to information about terminated activity 


Terminated 

activity 


general 

Proceeds from realization 

(excluding VAT) 2110 54 574 708 18 813 248 73 387 956 

Cost of sales 2120 (43 297 171) (17 457 981) (60 755 152) 

Gross profit 2100 11 277 537 1 355 267 12 632 804 

Commercial costs 2210 (6 646 199) (6 646 199) 

Administrative costs 2220 (3 899 084) (3 899 084) 

Profit (loss) from sales 2200 721 576 1 365 945 2 087 521 

Revenues from participation 

in other organizations 2310 1 355 352 1 355 352 


Interest payable 2330 (1 739 263) - (1 739 263) 

Other profits 2340 61 285 288 4 042 659 65 327 947 

including 

Sale of fixed assets 4 887 3 782 330 3 787 217 

Sale of inseparable 

improvements 260 329 260 329 

Sale of inventories - - - 

Other expenses 2350 (215 224 164) (3 473 980) (218 698 144) 

including 

Sale of fixed assets (2 748) (3 101 420) (3 104 168) 

Sale of inseparable 

improvements (260 296) (260 296) 

Sale of inventories - - - 

Provision for reduction in 

the value of inventories (112 264) (112 264) 

103

EXPLANATIONS 




Terminated 

activity 


general 

Profit (loss) before tax 

2300 (152 338 477) 1 934 624 (150 403 853) 

Profit tax 2410 (244 744) (381 781) (626 525) 

including PTl (PTA): 2421 23 361 977 195 680 23 557 657 


liabilities 

2430 3 642 (195 603) (191 961) 


assets 

2450 7 617 891 (5 221) 7 612 670 

Other 2460 (75 616) 557 318 481 702 

including 

Write-off of DTL/DTA on 

disposed fixed assets 

557 318 557 318 

Net profit (loss) 2400 (145 037 304) 1 909 337 (143 127 967) 

Statement of Cash Flow for the year 2012 

on the terminated activity 

Name of the indicator Code For 2012 



including 

from sales of products, goods, works and services 4111 5 082 847 

lease payments, license fees, royalties, commissions 

and other similar payments 4112 283 536 

other proceeds 4119 990 942 

Payments - total 4120 (4 690 210) 

including 

to suppliers (contractors) for raw materials, works and 

services 4121 (4 570 975) 

due to payment of employees’ remuneration 4122 (119 235)- 

other payments 4129 - 



including 

from sales of current assets (other than financial 

investments) 4211 2 106 220 

104

EXPLANATIONS 



Payments - total 4220 (303 325) 

including 

due to acquisition, creation, modernization, 

reconstruction and preparation for use of non-current 

assets 4221 (303 325) 

Statement of Cash Flow for the year 2011 

on the terminated activity 

Name of the indicator Code For 2011 



including 

from sales of products, goods, works and services 4111 18 407 950 

lease payments, license fees, royalties, commissions 

and other similar payments 4112 40 443 

other proceeds 4119 1 127 910 


including 

to suppliers (contractors) for raw materials, works and 

services 4121 (12 704 206) 

due to payment of employees’ remuneration 4122 (1 131 851) 

other payments 4129 (1 068 360) 



including 

from sales of current assets (other than financial 

investments) 4211 3 782 329 


including 

due to acquisition, creation, modernization, 

reconstruction and preparation for use of non-current 

assets 4221 (2 314 613) 

Terminated activity does not significantly affect the cash flow from financial transactions of the 

Company. 

27. REORGANIZATION 

105

EXPLANATIONS 



On April 26, 2012 the Company’s shareholders made a decision at the special General Meeting of 

Shareholders on the Company’s reorganization by consolidation with JSC ―OGK-1‖, JSC ―OGK-3‖, 

JSC ―INTER RAO – Energy‖, JSC ―INTER RAO – EnergoAktiv‖, JSC ―BashEnergoAktiv‖. 

Purpose and procedure of reorganization 

Within the frames of forming a target corporate structure of INTER RAO UES Group, which provides 

for transition to 100 % possession of the main generating assets, in March 2012 the Board of Directors 

of the Company decided to implement the following activities: 

1. To separate two companies from JSC ―OGK-1‖ and JSC ―OGK-3‖ – JSC ―First Generation‖ and 

JSC ―Third Generation‖ respectively, and to transfer them the assets and liabilities of primary 

companies. At the same time, to connect separated companies to INTER RAO - Electric Power 

Plants OJSC (which currently includes Kaliningradskaya TEC-2, North-West Thermal Power 

Plant, Sochinskaya TEC and Ivanovskie PGU). Alongside with that, to connect JSC ―OGK-1‖ and 

JSC ―OGK-3‖ to JSC ―INTER RAO UES‖. 

2. To connect the following associated companies to JSC ―INTER RAO Energy‖ and JSC ―INTER 

RAO EnergoAktiv‖ to JSC ―INTER RAO UES‖ for consolidating at the Company’s balance-sheet 

the packages of shares of JSC ―TGK-6‖ and JSC ―TGK-11‖. 

3. To separate two companies from JSC ―Bashkirenergo‖ by means of non-proportional division: 

Bashkiria Electric Grid Company OJSC, to which all electric grid assets shall be transferred, and 

JSC ―Bashenergoaktiv‖ (with simultaneous connection to JSC ―INTER RAO UES‖), to which the 

whole generating business shall be transferred in the form of participatory shares in Bashkiria 

Generating Company LLC, Bashkiria Heat Distribution Systems LLC, and CCP TPP-5 LLC. 

The shares of connected companies have been converted into Company’s shares. Share conversion 

factors have been determined on the basis of reports of the independent appraiser – Institute of 

Independent Appraisal LLC. Conclusion on the fairness of conversion factors has been submitted by 

investment banks Morgan Stanley and Troika Dialogue. 0.0416666666666667 of ordinary share og 

JSC ―OGK-1‖, 0.025 of ordinary share of JSC ―OGK-3‖, 0.00218293620292083 of preferred share of 

Bashenergoaktiv OJSC, and 0.0016588785046729 of ordinary share of Bashenergoaktiv OJSC was 

converted into one ordinary share of JSC ―INTER RAO UES‖. The scope of additional issue for the 

purpose of conversion made 724,000,997,683 shares with a par value of 0.02809767, for a total sum of 

20,342,741 thsd. rubles. 

Influence of reorganization on Company’s reports 

106

EXPLANATIONS 



Consolidation of the Company with JSC ―OGK-1‖, JSC ―OGK-3‖, JSC ―INTER RAO – Energy‖, JSC 

―INTER RAO – EnergoAktiv‖ took place on October 01, 2012. 

In the result of consolidation Company’s assets as of 01/10/2012 increased by 85,165,472 thousand 

rubles, including repayment of financial investments of the Company in the shares of JSC ―OGK-1‖ in 

the amount of 34,055,703 thousand rubles, and in the shares of JSC ―OGK-3‖ in the amount of 

32,778,733 thousand rubles. Liabilities of the Company grew by 2,897,331 thousand rubles. 

Authorized capital of the Company in the result of additional issue of shares increased by 18,683,725 

thousand rubles, and made 291,680,687 thousand rubles as of October 01, 2012. As the difference 

between the authorized capital of the Company recorded in the contract of consolidation, and algebraic 

sum of authorized capitals of reorganized entities calculated as of 01/10/2012 was negative, the effect 

from consolidation was attributed to retained income of the Company. Cumulative effect from 

consolidation on the retained income of the Company as of 01/10/2012 made 63,584,415 thousand 

rubles, and represents the difference between conneccted net assets and the amount of increase in the 

authorized capital of the Company. 

JSC ―Bashenergoaktiv‖ was connected to the Company on November 06, 2012. In the result of 

consolidation, Company’s assets as of 06/11/2012 grew by 2,324,182 thousand rubles, including 

repayment of financial investments of the Company in the shares of JSC ―Bashkirenergo‖ in the 

amount of 27,337,033 thousand rubles. Company’s liabilities grew by 339,821 thousand rubles. 

Authorized capital of the Company in the result of additional issue of shares increased by 1,659,016 

thousand rubles, and made 293,339,703 thousand rubles as of November 06, 2012. As the difference 

between the authorized capital of the Company recorded in the contract of consolidation, and the 

authorized capital of reorganized entity is positive, the effect from consolidation was reflected in the 

item ―Additional Capital‖. Additional capital of the Company increased by 325,345 thousand rubles as 

of 06/11/2012 in the result of the difference between connected net assets and the increase in the 

authorized capital of the Company. 

Company’s expenses on reorganization amounted to 116,532 thousand rubles as of 31/12/2012. These 

expenses mainly consist of the sums paid to consultants for financial and legal services of transaction 

support, audit firms for verification of information specified in the prospects of securities issue, and fee 

to the register holder for the operations on registering transactions with Company’s shares. 

Disclosure of the scope and sums of received assets and liabilities has been described in the respective 

sections they are attributed to herein. 

Received to the Company’s balance in the result of 

reorganization 01.10.2012 06.11.2012 

ASSET 

107

EXPLANATIONS 



I. CAPITAL ASSETS 150 387 601 27 389 399 

including 

Fixed assets - 55 105 

Financial Investments 150 351 908 21 038 489 

Income-bearing investments in tangible assets - 69 385 

Deferred tax assets 35 693 5 582 

Other capital assets - 6 220 838 

including 

Long-term receivables - 6 220 838 

II. CURRENT ASSETS 1 612 306 2 271 816 

including 

Inventories - 434 

Receivables 1 611 515 1 050 186 

Financial Investments - 901 893 

Cash funds and 

cash equivalents 

789 313 717 

Other current assets 2 5 586 

LIABILITY 

V. SHORT-TERM LIABILITIES 2 897 331 339 821 

including 

Borrowed funds 2 309 586 - 

Payables 587 745 302 784 

Estimated liabilities - 37 037 

108

EXPLANATIONS 



26. RISKS OF BUSINESS ACTIVITY 

Information about the risks of business activity is published by the Company in the issuer’s quarterly 

report posted on the website, in the section ―For shareholders and investors‖ 

http://www.interrao.ru/investors/disclosure/quarterly/. 

February 21, 2013 

Chairman of the Management 

Board 

B.Yu. Kovalchuk 

Chief accountant 

A.O. Chesnokova 

109

Total number of sheets stitched, numbered and sealed - 117

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