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)24 NET CASH PROVIDED BY OPERATING ACTIVITIESYear ended 31 December2001 2000Profit before profit tax and minority interest 201,294 183,195Adjustments to net profit before profit taxDepreciation 86,751 83,555Impairment provisions for investments, other long-term assets, property,plant and equipment and inventories 8,286 61,496Net unrealised foreign exchange losses 8,146 7,058Impairment provision for accounts receivable 30,464 31,374Interest expense 33,692 32,324Gain on restructured taxes (18,699) (20,011)Loss on disposal of property, plant and equipment 5,081 12,360Monetary effects on non-operating balances (60,706) (75,394)Interest income (12,321) (13,560)Decrease in provisions for liabilities and charges (22,567) (12,443)Net increase in long-term assets 20,740 10,801Mutual cancellations and barter settlements (43,677) (63,286)(Gain) loss on fair value adjustment for trading andavailable-for-sale investments (1,324) 2,666Total effect of adjustments 33,866 56,940Adjusted profit before changes in working capital 235,160 240,135Changes in working capitalDecrease (increase) in accounts receivable and prepayments 62,170 (38,694)Increase in inventories (7,915) (14,087)(Increase) decrease in other current assets (22,967) 5,073Increase in accounts payable and accrued charges, excluding interest,dividends and capital construction 8,124 18,273Decrease in taxes payable (other than profit tax) (53,381) (25,469)Decrease (increase) in available-for-sale and trading investments 5,400 (2,591)Total effect of working capital changes (8,569) (57,495)Profit tax paid (91,373) (80,549)Net cash provided by operating activities 135,218 102,091Total cash taxes paid:Year ended 31 December2001 2000Excise 112,695 110,605Profit tax 91,373 80,549VAT 58,456 32,064Custom duties 35,600 27,877Other 18,686 5,284Royalty and mineral restoration tax 18,468 4,743Road users tax 12,360 15,190Property tax 7,346 4,368Total taxes paid 354,984 280,680F-74