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 December 2001 the Group subsidiary OAO AK Sibur purchased interests in the followingcompanies:Purchasedinterest as of31 DecemberCompanies (subsidiaries and associated undertakings) 2001 (%)OAO Kemerovsky Azot 75OAO Kautchuk 100OAO Uralorgsintez 51OAO Volzhsky AKZ 51OAO Sibur-Tyumen 42OAO Stirol 42Interests in the above companies, all of which are involved in the petrochemical industry in theRussian Federation, were purchased from OOO IT. Total fair value of consideration paid to OOO IT wasRR 6,491, of which RR 3,691 was attributable to acquired subsidiaries. The Group management iscurrently unable to assess whether the transaction with OOO IT is a related party transaction or if OOOIT is a related company to former management of OAO AK Sibur.Details of net assets acquired and goodwill are as follows:Purchase consideration:Promissory notes of OAO AK Sibur's related parties and contractors at fair value 3,691Total purchase consideration 3,691Less fair value of identifiable net assets acquired (1,252)Goodwill at acquisition 2,439Less goodwill impaired (2,439)Unamortised goodwill as of 31 December 2001 –Lebedinsky GOKIn January 2001 the Group exchanged a 57% interest in Lebedinsky GOK and a 17% interest inOskolsky EMK for a 48% interest in ZAO Gazmetall. ZAO Gazmetall is a metallurgical holding companywith controlling interests in Lebedinsky GOK and Oskolsky EMK. As the Group intends to sell its sharesof ZAO Gazmetall, the investment has been classified as an available-for-sale investment. During thethird quarter of 2001 management revalued the investment in ZAO Gazmetall to its estimated currentmarket value of RR 2,000, recognising the net effect of revaluation in gains and losses on available-forsalesecurities in the consolidated statement of operations (See Note 7). In March 2002 the Group madean agreement to sell its 48% interest in ZAO Gazmetall for USD70 million. In accordance with theagreement the buyer of the above shares is OAO Oskolsky Metallurgical Plant, a subsidiary of ZAOGazmetall.F-77