SECURITIES PROSPECTUS

The Internal Audit Commission of the Company is composed of 5 (five) members.The Internal Audit Commission of the Company is authorized to:1) confirm the reliability of data contained in the annual report, balance sheet and incomestatement of the Company;2) analyze the Company’s financial standing, identify reserves to improve the Company’sfinancial standing and develop recommendations for the management bodies of the Company;3) organize and conduct audits (inspections) of the financing and economic activities of theCompany, namely:− audit (inspect) financial, accounting, payment and other documentation of the Companyrelated to the financing and economic activities performed by the Company as to its compliancewith the laws of the Russian Federation, the Articles of Association, internal and otherdocuments of the Company;− control the preservation and use of fixed assets;− control compliance with the approved procedure for charging the debts owed byinsolvent debtors to the Company’s losses;− control the spending of the Company’s funds in accordance with the approved businessplan and budget of the Company;− control the formation and use of reserve and other special funds of the Company;− check the correctness and timeliness of the accrual and payment of dividend on theCompany’s shares, bond interest and yield on other securities;− check the execution of earlier directives on the elimination of breaches and drawbacksidentified by previous audits (inspections);4) other actions (activities) related to the inspection of the Company’s financing andeconomic activities.All resolutions on issues falling within the jurisdiction of the Internal Audit Commissionare adopted by a simple majority of total number of votes cast by its members.The Internal Audit Commission of the Company is entitled or (if any significant breachesin the financing and economic activities of the Company are identified) obliged to request thatthe extraordinary general meeting of the Company be convened.The operating procedures of the Internal Audit Commission of the Company are specifiedin the internal document of the Company approved by the General Meeting of Shareholders ofthe Company.Upon request from the Internal Audit Commission of the Company, individualsoccupying positions with the management bodies of the Company are obliged to submitdocuments on the financing and economic activities of the Company.The financing and economic activities of the Company may be audited (inspected) at anytime at the sole discretion of the Internal Audit Commission of the Company, pursuant to theresolution of the General Meeting of Shareholders, the Board of Directors of the Company orupon request from the shareholder(s) of the Company owning at least a total of 10 percent ofvoting shares in the Company.Information concerning the system of internal control of the issuer’s financing andeconomic activities:Information concerning the existence, period of existence and key employees of theinternal control function.Internal control functions are imposed by the issuer on the Internal Audit Department,which is the internal audit division.The Internal Audit Department was established for an indefinite term.Key employees of the Internal Audit Department: the Internal Audit Department manageris S. B. Sidorov.The Internal Audit Department is composed of two units:− Audit Organization and Conducting Unit;− Investing Activities Control Unit.158