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)As of 31 December 2000, profit tax payable included current, differed and restructured liabilitiesof RR 8,985, RR nil and RR 828, respectively. As of 31 December 2001, profit tax payable representsonly restructured profit tax as the Group had a net prepayment for current profit tax amounting to RR7,278; these receivables are included within other current assets.In 2001 excise tax rate for gas sales to CIS countries was reduced from 30% to 15%, effectivefrom 1 January 2001. Meanwhile, certain excise tax exemptions were abolished effective 1 October2001 (see Note 27).During 2001 the Group continued to negotiate the restructuring of its tax liabilities in accordancewith current tax regulations. The Group's current restructuring agreements presume payments ofoutstanding restructured taxes over a period of ten years through 2011, in accordance with agreedpayment schedules. Interest expense on restructured tax liabilities is accrued quarterly based onoutstanding restructured tax liabilities, applying the refinancing rate of the Central Bank of the RussianFederation.The long-term portion of the restructured tax and penalties liabilities has the following maturityprofile:31 December2001 2000Due for repayment:Between one and two years 3,994 2,703Between two and five years 6,061 8,092After five years 39,756 17,65449,811 28,449Less: unamortized discount on restructured taxes (30,738) (17,930)19,073 10,519The gain recorded upon restructured taxes is disclosed in the statements of operations as a partof net finance costs in the amount discounting of RR 18,699 and RR 20,011 for the years ended 31December 2001 and 2000, respectively. The amortization of the discount on restructured taxes isrecorded within other interest expense and amounted to RR 3,052 and RR 2,081 for the years ended31 December 2001 and 2000, respectively.15 SHORT-TERM BORROWINGS AND CURRENT PORTION OF LONG-TERM BORROWINGS31 December2001 2000Short-term borrowings:RR denominated borrowings 67,947 74,806Foreign currency denominated borrowings 20,723 2,65288,670 77,458Current portion of long-term borrowings (see Note 16) 79,059 55,496167,729 132,954Short-term RR denominated borrowings had average interest rates ranging from 5.0% to 25.0%and 17.0% to 37.0% for the years ended 31 December 2001 and 2000, respectively. Short-term foreigncurrency denominated borrowings had average interest rates ranging from 6.5% to 15.0% and from7.0% to 18.0% for the years ended 31 December 2001 and 2000, respectively.F-64