Open Joint Stock Company Gazprom

OAO GAZPROMNOTES TO THE IAS CONSOLIDATED FINANCIAL STATEMENTS—(Continued)(In millions of Russian Roubles in terms of the equivalent purchasing power of the Rouble at5 SEGMENT INFORMATION—(Continued)31 December 2001, except as noted)The inter–segment revenues mainly consist of:• Production – sale of gas to the Distribution segment and sale of hydrocarbons to theRefining segment;• Refining – sale of refined products to other segments;• Transport – rendering transportation services to the Distribution segment; and• Distribution – sale of gas to the Transport segment for technological needs.Internal transfer prices are established by the management of the Group with the objective ofproviding for the specific medium and long–term funding requirements of the individual segments.Provisions for guarantees (see Note 25) have been included within unallocated expenses. Also includedwithin unallocated expenses are corporate expenses, including provision for the impairment of otherinvestments.Segment assets consist primarily of property, plant and equipment and current assets.Unallocated assets include other investments and deferred tax assets. Segment liabilities compriseoperating liabilities, excluding items such as taxes payable, borrowings, and deferred tax liabilities.Capital expenditures comprise additions to property, plant and equipment. Charges forimpairment relate only to those charges made against allocated assets. A significant portion ofoperations is transacted by mutual cancellations or barter. As disclosed in Note 4, such transactions arereported on the same basis as cash transactions. Consequently, expenses paid by mutual cancellationsor barter are not disclosed as non–cash expenses in this note.Substantially all of the Group's operating assets are located in the Russian Federation. Gas salesto different geographical regions are disclosed in Note 19.6 CASH AND CASH EQUIVALENTSIncluded within cash and cash equivalents in the consolidated balance sheet are balancestotalling RR 17,235 and RR 18,346 at 31 December 2000 and 1999, respectively, representing cash inhand and balances with banks. Included within other current assets are balances of cash and cashequivalents totalling RR 37,811 and RR 30,376 at 31 December 2000 and 1999, respectively, which arerestricted as to withdrawal under the terms of certain of the borrowings (see Note 15). In addition, othercurrent assets include balances of cash RR 5,929 and RR 5,151 at 31 December 2000 and 1999,respectively, which are restricted in subsidiary banks as to withdrawal under banking regulations.7 MARKETABLE SECURITIESAt 31 December 2000, marketable securities include Ukrainian eurobonds of RR 6,965 held byNational Reserve Bank (see Note 11). The remaining carrying value of marketable securities principallycomprises Russian government bonds.F-17