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)25 SUBSIDIARY UNDERTAKINGS–(Continued)In August 2001 the Group participated in the fourth stock issue of ZAO AKB Sovfintrade and asa result, the Group's interest in the bank's share capital increased from 65% to 94%, including 26% heldby AB Gazprombank (ZAO).As of 31 December 2001, the Group's interest in the equity capital of OAO AKB National ReserveBank is 40%, in OAO Zapsibgazprom – 34% and OAO Gazavtomatika – 49%. However, due to the factthat the Group continued to exercise control over activities of the above companies, they were stillconsidered as subsidiaries.Acquisition of OAO AK SIBURIn January 2001 the Group acquired 51% of the voting shares of OAO AK Sibur. OAO AK Siburis a leading seller of petrochemical products in Russia, it is also involved in light hydrocarbonsprocessing. The consideration of RR 2,619 was settled by a combination of cash, promissory notes ofGroup companies and other securities.Details of net assets acquired and goodwill are as follows:Purchase consideration:Cash paid 750Promissory notes of Group companies 1,185Shares in other investments 684Total purchase consideration 2,619Fair value of identifiable net assets acquired (982)Goodwill 1,637Other than for short-term investments, the fair value of the net assets approximated the bookvalue of the net assets acquired.The net cash flow arising from the acquisition is as follows:Total purchase consideration 2,619Less:Cash and cash equivalents acquired (1,042)Promissory notes of the Group companies (1,185)Shares in other investments (684)Net cash received on acquisition (292)OAO AK Sibur is one of the founders of OAO Gazsibcontract with a 45% interest in the chartercapital. As a result of acquiring OAO AK Sibur the Group's effective share in the charter capital of OAOGazsibcontract increased from 51% to 74%.F-76