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 at31 December 2001, except as noted)23 PRINCIPAL SUBSIDIARY UNDERTAKINGS (continued)Year ended 31 December2000 1999Minority interest at the beginning of the reporting period 8,819 6,763Minority interest share of net profit of subsidiary undertakings 1,801 261Change in minority interest as a result of (disposal) acquisition (265) 1,795Minority interest at the end of reporting period 10,355 8,81924 RELATED PARTIESRelated parties are considered to be related if one party has the ability to control the other partyor exercise significant influence over the other party in making financial and operating decisions.GovernmentThe Government of the Russian Federation, the principal shareholder of the Group, ownsapproximately 38.37% of the issued shares of the Group. Governmental economic and social policiesaffect the Group's financial position, results of operations and cash flows.As a condition of privatisation in 1992, the Government imposed an obligation on the Group toprovide an uninterrupted supply of gas to customers in the Russian Federation at government controlledprices.Directors' remunerationIn 2000 the Company paid to members of the Board of Directors and Management Committeeremuneration (salary and bonuses) for the total amount of approximately RR 66. The remuneration ofmembers of the Board of Directors is subject to approval by the General shareholders meeting.Compensation paid to members of the Management Committee is determined by the terms of annualemployment contracts.OtherIncluded within other long-term assets are USD denominated receivables from EuRoPolGaz s.a.in the amount of RR 14,404 and RR 17,502 at 31 December 2000 and 1999, respectively. Includedwithin associated undertakings (see Note 11) is an interest-bearing loan receivable from EuRoPolGazs.a., in the amount of RR 27,855 and RR 27,228 at 31 December 2000 and 1999, respectively, issuedby Gazprombank, a subsidiary of the Group.Also included within associated undertakings (see Note 11) is an interest-bearing loan receivablefrom WINGAS GmbH, in the amount of RR 15,399 and RR 19,267 at 31 December 2000 and 1999,respectively. In determining the interest rates for related party financing, the Group follows a pricingpolicy which requires positive interest margins to be earned on all lendings to related parties.Included within accounts receivable (see Note 8) are accounts receivable from Group associates(excluding EuRoPolGaz s.a.) in the amount of RR 20,189 and RR 22,099 as at 31 December 2000 and31 December 1999 respectively.During 2000 and 1999 the Group supplied gas to its associates in the amount of RR 43,353 andRR 27,691, respectively.F-32