Open Joint Stock Company Gazprom

OAO GAZPROMNOTES TO THE IAS CONSOLIDATED FINANCIAL STATEMENTS(In millions of Russian Roubles in terms of the equivalent purchasing power of the Rouble asof 31 December 2001)Principal associated undertakings% of share capital held31 DecemberAssociated undertaking Country Nature of operations 2001 2000Agrochemical Azot Russia Sale of agricultural chemicals 46 –AEB Hungary Banking 26 26Armrosgazprom Armenia Gas distribution and transportation 45 –BSPC Netherlands Construction and gas transportation 50 50EuRoPol GAZ S.A. Poland Gas distribution and transportation 48 48Gas undWarenhandeslgesellschaftGmbH Austria Gas distribution 50 50Gasym Oy Finland Gas distribution and transportation 25 25Moldovagaz Moldova Gas distribution and transportation 50 50Latvias Gaze Latvia Gas distribution and transportation 25 25Overgaz Inc. Bulgaria Gas distribution 50 50Panrusgaz Hungary Gas distribution 31 31Prometheus Gas Greece Construction 50 50Sibur-Tyumen Russia Refining investments 42 –Slovrusgaz Slovakia Gas distribution 50 50Stella Vitae Lithuania Gas distribution and transportation 30 30Turusgaz Turkey Gas distribution 45 45WINGAS GmbH Germany Gas distribution and transportation 35 35Dividends received from associated undertakings were RR 716 and RR 772 for the years ended31 December 2001 and 2000, respectively.12 OTHER LONG-TERM INVESTMENTS31 December2001 2000South Pars project (net of provision for impairment of RR 1,770and nil as of 31 December 2001 and 2000, respectively) 16,996 13,833Other joint ventures (net of provision for impairment of RR14,889 and RR 15,408 as of 31 December 2001 and 2000, respectively) 1,814 2,269Available-for-sale investments (net of provision for impairment of RR 12,136and RR 6,712 as of 31 December 2001 and 2000, respectively) 13,697 15,46032,507 31,562South Pars is a joint venture with Total South Pars and Parsi International Ltd. established in 1997to provide services to National Iranian Oil Company in relation to development of South Pars oil and gasfield in Iran. Under the terms of agreement OAO Gazprom has a 30% interest in the joint venture.Management have assessed the recoverable amount of the Group's investment in the South Pars jointventure based on the present value of expected future cash flows and applying a discount rate of 16%.As a result, a RR 1,770 impairment has been recognised and recorded within operating expenses inthe consolidated statements of operations for the year ended 31 December 2001. The impairment isprimarily due to revised timing of cash inflows and outflows associated with the joint venture.Available for sale investments include the Group's 14.3% interest in ZAO Media-Most. Theinterest in ZAO Media-Most was acquired in 1999 via the settlement of ZAO Media-Most's debt to theF-62