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)27 POST BALANCE SHEET EVENTS (continued)In January 2001 the Board of Directors of OAO Gazprom initiated an investigation into thefinancial, property, commercial and operational relationships between OAO Gazprom and the Itera 27Group of companies. The accompanying notes to the consolidated financial reports do not reflect anyresults of this investigation, which is ongoing.During 2000 OAO Gazprom signed agreements with a consortium of West European banks andwith Japanese banks on obtaining loans to finance OAO Gazprom's interest in the Blue Stream project.The first tranche under these agreements of USD 117 was received in the second quarter of 2001. Inaddition, during the first quarter of 2001 a loan in the amount of Euro 250 million was provided by aconsortium of West European banks.28 ADJUSTMENTS FOR HYPERINFLATIONIn accordance with IAS 29 the consolidated financial statements as of and for the year ended 31December 2000 was originally prepared in terms of the measuring unit current at the balance sheetdate. The restatement was calculated from the conversion factors derived from the Russian FederationConsumer Price Index, published by the Russian State Committee on Statistics ("Goscomstat"), andfrom indices obtained from other published sources for years prior to 1992.The significant guidelines followed in restating the consolidated financial statements are:• all amounts are stated in terms of the measuring unit current at 31 December 2000;• monetary assets and liabilities are not restated because they are already expressed interms of the monetary unity current at 31 December 2000;• non-monetary assets and liabilities (items which are not expressed in terms of themonetary unit current at 31 December 2000) and shareholders' equity, including the sharecapital, are restated by applying the relevant conversion factors;• all items in the consolidated statements of operations and of cash flows are restated byapplying appropriate conversions factors;• the effect of inflation on the Group's net monetary position is included in the consolidatedstatement of operations as a net monetary gain or loss; and• comparative amounts for 1999 are restated using the conversion factors 1.20 in order tostate them in terms of the measuring unit current at 31 December 2000.All amounts originally stated in the consolidated financial statements in terms of the measuringunit current at the balance sheet date have been subsequently restated using the conversion factor of1.19 in order to state them in terms of the monetary unit current at 31 December 2001. The restatementmakes the consolidated financial statements more meaningful when compared to the consolidatedfinancial statements for the year ended 31 December 2001.F-38