ENERGY BEYOND BORDERS 2010 JSC

Light Heat Energy INTER RAO UES ANNUAL REPORT ANNUAL REPORT JSC INTER RAO UES

2010 The Report was provisionally approved by the Board of Directors of JSC INTER RAO UES on May 16, 2011 and was submitted for approval by the annual Gen- eral Meeting of Shareholders of the Company to be held on June 24, 2011

Chairman of the Management Board B.Yu. Kovalchuk

Chief Accountant A.O. Chesnokova TABLE Of CONTENTS

ADDRESS Of ThE ChAIRMAN Of ThE BOARD Of DIRECTORS Of JSC INTER RAO UES ...... 7 ADDRESS Of ThE ChAIRMAN Of ThE MANAGEMENT BOARD Of JSC INTER RAO UES ...... 8

INfORMATION ABOUT ThE COMPANY AND ITS POSITION IN ThE INDUSTRY ...... 10 GENERAL INfORMATION ABOUT JSC INTER RAO UES...... 11 BRIEf hISTORY Of ThE COMPANY ...... 11 INTER RAO UES IN 2010 ...... 13

ShARE CAPITAL AND ShAREhOLDERS Of ThE COMPANY ...... 15

CORPORATE GOvERNANCE STRUCTURE AND PRINCIPLES ...... 25 PRINCIPLES AND DOCUMENTS ...... 26 DISCLOSURE Of INfORMATION ...... 28 MANAGEMENT AND CONTROL ...... 29 INfORMATION ABOUT MEMBERS Of ThE BOARD Of DIRECTORS ...... 33 ExECUTIvE BODIES ...... 44 ACTUAL MEMBERS Of ThE MANAGEMENT ...... 46 REvISION COMMISSION ...... 56 AUDITOR ...... 59 ORGANIGRAM Of JSC INTER RAO UES...... 60

MAIN ISSUES Of COMPANY STRATEGIC DEvELOPMENT...... 62 MISSION ...... 63 vISION (2020) ...... 63 STRATEGIC OBJECTIvES ...... 64 MAIN TRENDS Of DEvELOPMENT...... 64

ACTIvITY ...... 66 PRODUCTION ACTIvITIES ...... 67 TRADING AND SALES. TRADING-PURChASING ACTIvITY BY MARKET SECTORS ...... 73 fOREIGN ECONOMIC ACTIvITY ...... 76 fOREIGN ASSETS MANAGEMENT ACTIvITY ...... 77 INvESTMENT ACTIvITIES Of JSC INTER RAO UES IN 2010 ...... 80 MAIN fINANCIAL RESULTS fOR 2010 ...... 81

SUSTAINABLE DEvELOPMENT ...... 86 hR AND SOCIAL POLICY ...... 87 ChARITY ...... 90 ENvIRONMENT PROTECTION ...... 90 PURChASE ACTIvITIES ...... 94 fACTORS AND RISKS INfLUENCING ThE COMPANY ACTIvITY ...... 97

DIvISION Of PROfITS AND DIvIDEND POLICY ...... 104

ANNEx ...... 106 REPORT Of REvISION COMMISSION Of JSC INTER RAO UES ...... 107 REPORT Of INDEPENDENT AUDITOR Of ThE COMPANY ...... 108 ACCOUNTING REPORTS Of JSC INTER RAO UES AS fOR 12.31.2010 ...... 111 OBSERvANCE Of ThE CORPORATE CODE Of CONDUCT BY JSC INTER RAO UES .... 125 LIST Of MAJOR AND INTERESTED PARTY TRANSACTIONS MADE BY JSC INTER RAO UES IN 2010 ...... 134 INfORMATION ABOUT JSC INTER RAO UES EqUITY TRANSACTIONS MADE BY MEMBERS Of JSC INTER RAO UES ExECUTIvE BODIES ...... 164 GLOSSARY ...... 167 CONTACT INfORMATION Of JSC INTER RAO UES ...... 168 BRANChES REGISTERED BY JSC REGISTRATOR R.O.S.T...... 169 all key sectors of power market — from fuel fuel —from market power of key sectors all in positions top occupying holding power adiversified to create aims RAO INTER company. the of value nally, fifth and implementation of innovations, and fi fourth sector, power Russian in leadership inforcing second abroad, and Russia in interests business of —extension first involves: It to 2015-2020. up development Company’s of Strategy the approved Directors of Board 2010 the ber Decem- In tasks. ambitious challenging has Company the that to emphasize like I would responsibility. a special bearing time same the at and opportunities ample ing fac- players market major the of one into RAO INTER turns step year. last This 30 September on signed was capital Charter to the stake state-owned Russia's of UES RAO of ference trans- on Decree President’s The velopment. de- RAO INTER of trend further determined mainly that events important 2010 witnessed Dear shareholders! — enhancement of power efficiency — ensuring energy safety, third —re- safety, third energy —ensuring — long-term growth of shareholder shareholder of growth —long-term Of JSCINTERRAOUES Of ThEBOARDDIRECTORS ADDRESS OfThEChAIRMAN - sure to state this. to state sure quite to be me permits hands your in holding are you report the in 2010.ket in Information mar- the in foothold asolid gained company The generated. energy of volume total by the leader world’s the into company a regional from turn shall RAO INTER years ten Within position. RAO’s international INTER of strengthening to contribute shall technologies innovation of exchange and contractors foreign with capacities. Development of trade relations generating new of building including ments, activities, fulfillment of investment commit sia, performance enhancement of operation Rus- in generation power in growth are: future 2011 for RAO’spriorities key INTER Among a sustainable and long-term development. ensure will activities business of versification di- industrial and Geographic America. Latin and Europe Africa, Asia, including expansion foreign active support shall Company The generated. energy of volume total the by companies ten top world’s the among be shall Company the years ten In trading. and distribution to energy supply and production - of JSC INTER RAO UES RAO INTER JSC of Directors of Board the of Chairman Igor S EC h IN ,

7 ANNUAL REPORT JSC RAO UES / 2010 8 ANNUAL REPORT JSC RAO UES / 2010 set up by INTER RAO and an Australian com- Australian an and RAO INTER by up set production engineering branch. A joint venture plants within the framework of development of and service of high performance industrial gas Electric on joint production, assembly, marketing poration and multinational corporation General agree an signed ment RAO with the Russian Technologies INTER State Cor 2010 December In tion of innovations and shareholder value growth. safety, enhancing power efficiency, implementa tions in Russian power industry, posi ensuring energy leading obtaining abroad, and Russia in Company strategy aimed at expanding business In 2010 we began practical implementation of the with leading world market players were signed. alliances strategic building on agreements of number a and determined wasdevelopment tered into the operation, Strategy of RAO INTER en werecapacities newimplemented, were companies affiliated of programsinvestment Decree; President’s the with accordance in state-owned stake transferred to the Company aimed at of processes corporate integration the basis for further growth of the Company’s value In 2010 were great efforts made to build up a firm Dear shareholders! Of JSCINTERRAOUES Of ThEMANAGEMENTBOARD ADDRESS OfThEChAIRMAN - - - - - Abovyan substations. gradedandput into operation Echmiadzin and affiliate CJSC Electric Networks of Armenia up Russian Russian the the outside generationpower developed with ship partner in gas of instead coal use to switched was plant power GRES Kashira of unit third the Ch security of the region. A new power unit at Tyumen ofthe Kaliningrad Region and ensuring energy the 450 MW,the within scope of was commissioned unit of Kaliningrad thermal power plant (TPP-2), into put were operation. plants In late December the second power power new of number a 2010 sphere of wind and thermal power generation. In p.A. was signed to establish cooperation in the larly, a Memorandum of Intent with Italian ENEL S. efficiency spheres were also developed. Particu energy and energyalternative in Partnerships sectors. service and engineering in Companies of Group Russian in stake controlling a buy to 2010in July was closed deal another Besides, gineering technologies into the Russian market. September to bring modern electric power en registeredin also WorleyParsonswaspany P-1 was taken into commercial operation and f ederal Target Program for the Development f q ederation: in early 2010 INTER RAO’s RAO’s INTER 2010 early in ederation: uartz uartz Group of Companies. We also q uartz, uartz, one of the Russian leaders - - - - 5.13% and the Company’s revenue grew bygrewrevenue5.13% Company’s the and to 4.58% from increased margin operating year the of end the At RAO. INTER of results improvestructure,toallowedfinancial which measures aimed at optimizing the expenditure In 2010 there was implemented a complex of market. user end significantly cemented the Company’s place in panies in INTER RAO management, which has the transferred of assets six power com- supply Rush 2010 August In well. as Russia in business of scope our enlarged we Besides, UAE. and Ecuador decided to open representative offices in Cuba, Directorsof Board RAO INTER development and develop new lines of prospective business enhance operational control over assets abroad to order In year. last Turkeystarted to exports power electric and prolongedwere Mongolia to exports power electric forContractsRAO. INTER of participation the with signed were Cooperationwith Ukrainian power companies khstan power systems and a Memorandum of Kaza and Russian the of operationparallel complete package of agreements for securing a 2010 In holding. RAO INTER of priorities gic Development business abroad is one of strate ydro ydro - - 31.09% amounting to RUR 61.39 bln. In 2010 In 61.39bln. RUR to 31.09%amounting fessional training and personnel development. Thecompany will pay careful attention to pro ing innovations are our key priorities for this year. enhancing operational efficiency and encourag forming new system of corporate governance, sources, energy purchasing services, saving Increasing power distribution system and energy facility. power any of ment services complex capable of providing a whole scope of work on establishing an engineering full-service In 2011 RAO’s INTER will continue management year. this bln 45 RUR of it is which to expected about spend support with implementation of investment projects, for proceed will maintenance.We and struction recon modernization,technical of programs complexapproved be will particular,there In one of the key priorities at all production units. remain will safety operational and Security group. the and maximize the synergy opportunities inside ensure an effective management of new assets to challenge the facing are executives pany’s Com The emerge. will markets and services the will increase. New holding trends of activity, completed this year the market capitalization of be will which shares of issue additional of sult re- a As us. for tasks new 2011sets year The payment. dividends of issue Com the results pany offered the shareholders financial to consider the annual of basis the On abroad. power electric of consumers main wereLithuania bln. to 29.02 RUR amounted and enue from foreign trade increased by 30.38% rev the 2010 of end the in sector: trading in growth witness (24%also We increase).ergy en thermal of Gcal ths. 272.7 1 and 2009), in than 7.9%less power electric of kWh mln. 8979.1 generated plants power RAO’ INTER

— from design planning to managetoplanning designfrom — f inland and ------of JSC INTER RAO UES RAO INTER JSC of Board Management the of Chairman Boris KOv Boris users. to end power engineering and power generation to marketing equipmentproduction, fuel fromstages: all atmarkets Russian andinternational in value management process maximizing shareholder asset overall effective in assets of integration management of the Company arethe ensuringfor full challenges key The ahead. still is lot a 2010,but in done was work Considerable purpose. this for spent be will UES RAO INTER JSC of capital charter year.this launched More than 2% of increased optional program for top managers will also be An of the effects cumulative activities. company into employee each of contribution actual the newreward andrecognition system based on a implementing2011 foris plans our Among success. our of key elements the of one are professional growth of INTER RAO’s employees company.and Developmentthe of position of market capitalization and strong competitive and motivated personnel can ensure increase truly global corporation. chal Only highly professional the and business lenges in will allow INTER RAO to position itself as complexity a of rise The ALC h UK , -

9 ANNUAL REPORT JSC RAO UES / 2010 InformatIon about the Company & Its posItIon In the Industry

1.1 1. 2 1. 3 GENERAL INfORMATION BRIEf hISTORY Of ThE INTER RAO UES IN 2010 ABOUT JSC INTER RAO COMPANY 1 UES CJSC INTER RAO UES was established as 100% 100% as RUSSIA. of UES RAO JSC of affiliate established was UES RAO INTER CJSC 1997: JSC INTER RAO UES RAO INTER JSC ENGLISH: ABBREVIATED CORPORATENAMEIN РАООАО «ИНТЕР ЕЭС» SIAN ABBREVIATED CORPORATE NAME IN RUS- UES RAO NTER Company Stock Joint Open FULL CORPORATENAMEINENGLISH РАО ЕЭС» «ИНТЕРобщество акционерное Открытое FULL CORPORATENAMEINRUSSIAN: 002387411 No. 23 Series REGISTER OFLEGALENTITIES: CATE OFENTRYINTOTHEUNIFIEDSTATE SERIES ANDNUMBEROFTHECERTIFI- 1.2 1.1 Of ThECOMPANY BRIEf hISTORY ABOUT JSCINTERRAOUES GENERAL INfORMATION of electric power generated at Ignalina NPP Ignalina atgenerated power electric of supply was project major first The launched. been have export power electric on projects 2001: into the Uniform State Register of Legal Entities: Legal of Register State Uniform the into entry of Certificate the of number and Series (3) Region Krasnodar the of Sochi in Russia of Levies and Taxes of Ministry the of Inspection Entities: Legal of Register State Uniform the into entry of Certificate the in stateddata the with Name of the registration authority in accordance 01, 2002 November STATE REGISTRATIONDATE: (OGRN): 1022302933630 Entity Legal a of registrationnumber state Primary STATE REGISTRATIONINFORMATION: 123610 f Russian the Moscow, 7, dyezd NaberezhnayaKrasnopresnenskaya12,Po LOCATION OFTHECOMPANY: ederation, - ment ergo OJSC) and started new business develop (OrenburgenIriklinskayaGRESunitat power a lease ontook it Russia; frompowerelectric of export independent started Company the 2002: foreign power markets have been established. Kaliningrad Region. the and Belarus of Republic the to (Lithuania) JSC INTER RAO UES is aimed at establishing a a establishing at aimed is UES RAO INTER JSC activities and energy efficiency. The strategy of including fuel business, engineering, investment business, of trends newdeveloping also and presence in generation and distribution sectors its increasing actively is group The kWh. bln 20 over was 2010 of end the by operations trade of import electric power. Thevolume of foreign and export of area the in Russia in positions leading retainsCompany The countries. eign for 27 in and Russia in industry power electric of sectorsvarious in working holding power electric diversified a is UES RAO INTER JSC 2010 was over 18,000 MW. 18,000 2010 over was 31, December for as Group UES RAO INTER by managed and owned plantspower electric in world power market. The installed capacity of global power company Series 23 No.002387411 23 Series — electric power production. f irst affiliated companies in

— one of the key players players key the of one — - - -

11 ANNUAL REPORT JSC RAO UES / 2010 12 ANNUAL REPORT JSC RAO UES / 2010 as well as in potential neighboring markets. neighboring potential in as well as market Turkish the in projects investment joint commercial operations and implementation of its toexpand order in Enerji TGR company ish CJSC RAO INTER UES 70% purchased of Turk- pur also UES 25%chased RAO + 1 TPP. share in JSC North-West INTER CJSC GRES. davian Mol CJSC purchased group UES RAO INTER up. set was JSC Sangtuda-1ventureTadjik-Russianjoint into ownership. shares of Power GRES-2 JSC Ekibastuz Station 50% obtained UES RAO INTER CJSC power electricreceived the for companieskhstan's within the framework of settling debts of Kaza 2005: f in structures business major the of one became — Oy Nordic RAO — UES RAO INTER CJSC of affiliate trading a 2004: abroad. assets power of ing Market). The Company initiated active purchas (f by organized purchase power excess on in tenders RAO UES part took INTER CJSC country. the in producers power electric largest two the came a unified export and import operator of powerabroad electric supplying of field the in capacities event led to a significant increase of Company’s structuretheinchanges ofsharethis capital sold was UES to RAO INTER CJSC of shares 40% 2003: ederal all-Russian Wholesale Electric Power f SUE concern Rosenergoatom.Besides concern SUE

— CJSC INTER RAO UES be UES RAO INTER CJSC — inland. fOREM fOREM hPP hPP - - - - - TPP TPP as of part RAO INTER CJSC UES. A general Generators),KaliningradJSC TPP-2, Sochi JSC ( PGU Ivanovo TPP,JSC North-West JSC of assets generating power consolidateto taken was decision The 2007: UES. RAO INTER Armeniato Interenergo of sell 100% Networks of shares Electric CJSC to permission grantedArmenia of Republic Public Services Regulatory Commission of the 2006: Lithuania. to supply power electric on contract 10-year second the into entered UES RAO INTER JSC Company. the to OGK-1 JSC of body executive sole the of powers the delegate to contract a OGK-1signed JSC and UES RAO INTER JSC index. EM MSCI JSC INTER RAO UES shares were included in 2009: company. the of shares 100% consolidated UES RAO INTER JSC shares GRES davskaya Mol- CJSC of 49% purchasing of result a As exchanges. stock Russian on traded were TPP-2. JSC Kaliningrad The shares Company’s and PGU, Ivanovo TPP,JSC North-West JSC TPP, Sochi JSC affiliates with UES RAO INTER CJSC INTER RAO UES was into reorganized JSC 2008: TPP. Sochi to JSC affiliation further its UES by JSC forming INTER RAO UES the decision taken to reorganize JSC INTER RAO meeting of shareholders was held where there was h RSG

— — an affiliate of CJSC CJSC of affiliate an — h eat Recovery Steam Recovery eat h olding with moved into adjacent businesses, particularly particularly businesses, adjacent into moved and developed rapidly UES RAO INTER JSC by 2020. market tenplayers theinternationalon electricpower devel mid-term opment strategy challenging to approved enter world’s UES top RAO INTER JSC 2010: took management of 16.25% shares of TGK-11. of TGK-11 RAO UES JSC INTER LLC. Besides, shares 29.9% purchased CJSC) Capital RAO CJSC INTER RAO UES (later Baltia renamed into issue of shares. of issue additional offramework the evaluatedwithin wereCompanyalso the of capital charter the to contributed Power assets vate subscription. a large-scale additional issue of shares by pri of JSC Shareholders INTER RAO UES approved S.p.A. and WorleyParsons. Electric,General including alliances the leading world power machine engineering with up set ventures joint several were There closed. was Russia, in leaders service and engineering of one Companies, of Group quartz of purchase the on deal The engineering and power machine engineering. f enice - - Armenian NPP(Armenia) Affiliates ofINTERRAOUES: Total foreignassets Sangtudinskaya hPP-1JSC International EnergyCorporation(Sevan-hrazdanCascadeofhPPsinArmenia) Khrami hPP-2(Georgia) Khrami hPP-1(Georgia) Mtkvari TPP(Georgia) Moldavskaya GRES(Moldova) Ekibastuzskaya GRES-2PowerStation(Kazakhstan) Total assetsinRussia TGK-11 OGK-1 (includingNizhnevartovskayaGRES) M G 1.3 Foreign Assets(installedcapacity) Russian Assets(installedcapacity) ENERATING CAPACITIES ANAGEMENT Ivanovskiye PGU Kaliningradskaya TPP-2 Severo-Zapadnaya TPP Sochinskaya TPP AND CONTROL IN 2010 INTER RAOUES UNDER INTERRAOUES

6 402.2MW 14 195MW 114.4 MW 112.8 MW 2 520MW 1 000MW 2 283MW 2 051MW 9 861MW 670 MW 561 MW 600 MW 815 MW electric power was more than 21 bln KWh/year. holding exceeded 18 GW, volume ofthe of produced capacity generating total the 2010 end khstan,Georgia, Moldova andArmenia. Asof Kaza- Russia, in based plants power hydro UES include 24 thermal, one nuclear, RAO and INTER three JSC of assets generating Power

13 ANNUAL REPORT JSC RAO UES / 2010 1414 ANNUAL REPORT JSC RAO UES / 2010 Electric poweroutput,mlnkWh Long-term obligations,mlnRUR Short-term obligations,mlnRUR ROA, % ROE, % EBIT asprofitability,% Net profit,mlnRUR Earnings beforetax,mlnRUR Sales profit,mlnRUR Revenue, mlnRUR,including Payroll staff,persons Specific consumptionofconditionalfuel,year/kWh Installed CapacityUtilizationfactor,% heating energyoutput,thsGkal KEY FIGURES Production figuresin2010 other domestic distributionofelectricpower electric powerexport 1 272.7 8 979.1 30 765 29 017 61 393 20 430 22 470 1 612 2 371 245.3 2 704 3 319 3 147 2.2 3.8 9.4 57 ten energy market players. market energy ten low the Company to be among the world’s top al will This 2015. by GW 40 reach to expected is UES RAO INTER by owned plants power of capacity installedtotal the generationof field Asthe result of strategy implementation in the generation in the Russian and foreign markets. in growth ment involves the further sector of heat develop UES RAO INTER JSC of strategy The - - share CapItal and shareholders 2 of the Company registered the issue and a prospectus of regis ƒ ƒ ƒ At the annual General meeting of JSC INTER INTER JSC of meeting General annual the At share. per hundred-millionth) seven sixty and hundredseven thousand, nine and hundred nominal value RUR 0.02809767 (two million eight and thirteen) registered ordinary shares with the thirteen million eight hundred forty five thousand hundredonehundredseventy billionfour two 2 into 274 divided was 113 013 845 trillion (two one thousand nine hundred seventy one) and it six million hundred forty nine and point sixty fifty million three hundred thousand three hundred 359.60641971 sevenninetyhundred eight billionthree (sixty 300 897 63 RUR was 2010 1, uary of Charter capital JSC INTER RAO UES as of Jan- the amount the of amount 618 913 525 216 with the nominal in UES RAO INTER JSC of shares uncertified registeredordinary issuing of results the on September 23, 2010 on held placement of results the to According — issue 1-03-33498-E-001D. the of private sub-scription, state registration number RAO INTER Company UES (Moscow) placed by tered ordinary uncertified shares of Joint Stock f The (ROSIMUS f and the the f Russian the State Atomic Energy Corporation Rosatom eign Economic Affairs ( Corporation the Bank for Development and Participants in private subscription are the State terms following the Shares) on the as of JSC RAO INTER referred UES to(hereinafter sharesregistered uncertified ditionalordinary ad placing by UES RAO INTER JSC of capital charter the to taken increase was decision the RAO UES shareholders held on June 25, 2009,

ederal Agency for State Property Management scription. — sub- private by — shares placing of SharesMethod placed Nominal valuepershare—RUR0.2809767; of 1 600000000; amount The ederal hChESTv f inancial Markets Service ( MS ffMS registered the Report ederation represented by O). v NES h ECONOMBANK), MS) ffMS) f or - - - 16 ANNUAL REPORT JSC RAO UES / 2010 rubles and/or the following property (list of prop- 5. forms of payment for shares placed are cash RAO INTER JSC placement. Shares the of date the before UES of Directors of Board the by have rights to preference shares) was determined the price of (including shares placement for shareholders placement who Shares of price The 4. scription. placement Shares of Method 3. lionth ruble). mil hundredseven sixty and hundredseven thousand nine andhundred eight million(two 2. Nominal value per share shares. hundred(thirteenbillion)eighttrillion 000 000 shares placed of quantity The 1. UES (hereinafter RAO INTER JSC of shares uncertified ordinary UES by placing an additional issue of registered RAO INTER JSC of capital charter the increase held on June 25, 2010, the decision was taken to shareholders of MeetingGeneral Annual the At assets. power of anumber to purchase order creasing the charter capital of the Company in in on decisions made 2010shareholders In shares. 370 229 027 893 2 of amount the in 0.02809767 RUR valueshare nominal the with shares ordinary into divided was and 349.66226643 328 287 81 RUR was UES RAO INTER JSC of capital ance with the registered alterations the charter accord- In 11,2010. October on Moscow for 46 № Russia of Tax Service federal the of ate capital were registered by Interdistrict Inspector UES into taking the account in increase charter in the of Amendments Charter JSC RAO INTER subscription. share value RUR 0,02809767 placed by private

— Shares) on the following terms: following the on Shares) — — RUR 0.02809767

— private sub private — — 13 000 800 - - - - UES), OGRN: 1024701893336;UES), OGRN: Company of Unified Energy System (JSC 5.1 Shares of the following stock companies: stock 5.1 following the of Shares Shares): placed for to up pay erty Generation Company of the Wholesale Electrici Second the Company Stock Joint 5.1.4 Open 1057200597960; OGRN: OGK-1), (JSC Market Generating Company on the Wholesale Energy Power first Company Stock Joint 5.1.3Open f 5.1.2 Company Stock Joint Open 1042401810494; (OGRN):Entity Legal the of number tration Rus (JSC dro Rus Company Stock Joint 5.1.1 Open Generating Company №9 (JSC TGK-9), OGRN: 5.1.15TerritorialCompanyStock Joint Open TGK-7), JSC 1056315070350; TGK, OGRN: Territorial Generating Company (JSC 5.1.14v Company Stock Joint Open 1055230028006; Generating Company №6 (JSC TGK-6), OGRN: 5.1.13TerritorialCompanyStock Joint Open 1056882304489; (JSCCompanyGenerating q Company Stock 5.1.12 Joint 1027700302420; Open OGRN: MOSENERGO), (OAO “MOSENERGO”Electrification and Industry Power of Company 5.1.11 Joint-Stock Open 1057601091151; Generating Company №2 (JSC TGK-2), OGRN: 5.1.10TerritorialCompanyStock Joint Open 1057810153400; Generating Company №1 (JSC TGK-1), OGRN: TerritorialCompany Stock5.1.9 Joint Open 1056164020769; (JSC OGRN: OGK-6), Wholesale Power Market Generating Company Sixth the Company Stock Joint 5.1.8Open 1046604013257; OGRN: OGK-5), Enel (OJSC OGK-5 Enel Company Stock 1058602056985; 5.1.7Joint Open OGRN: OGK-4), (JSC Market” Electricity Wholesale the of Companyeration 5.1.6 1040302983093; Open Joint Stock Company the f OGRN: OGK-3), (JSC Market Gen Third Electricity the Wholesale the of Companyeration Company Stock Joint Open 1052600002180; 5.1.5 OGRN: OGK-2), (JSC Market ty h do, rmr sae regis state Primary ydro), quadra), OGRN: OGRN: quadra), ederal Grid v ourth ourth Gen olghskaya olghskaya uadra fGC fGC hy- — - - - - al Generating Company №14CompanyGenerating (JSCTGK-14), al TerritoriCompanyStock 5.1.20 1051901068020; Joint Open OGRN: TGK-13), Yeniseyskaya Territorial Generation Company (TGK-13, OJSC 5.1.19 Open Joint Stock Yeniseyskaya Company 1024200678260; OGRN: Elec and Power trification Company (JSC KUZBASSENERGO), Joint-Stock Kuzbass The 5.1.18 1055406226237; Generating Company №11 (JSC TGK-11), OGRN: 5.1.17TerritorialCompany Stock Joint Open 1058602102437; OGRN: fortum), 5.1.16 Open Joint (JSCStock fortum Company 1045900550024; 1062224065166; OGRN: Altaienergosbyt); (JSC Altai energosbyt Company Stock Joint Open 5.1.30 OGRN: 1057746557329; Mosenergosbyt), (JSC ergosbyt Mosen Company Stock Joint5.1.29 Open 1057812496818; OGRN: Company), Sales Power Sales Company (JSC Petersburg Power 5.1.28 Open Joint Stock Company Petersburg 1097746376793;pany), OGRN: Sales Company (JSC Unified Power Sales Com 5.1.27 Open Joint Stock Company Unified Power 1062309019805; pany), OGRN: erating Company (JSC Kuban Generating Com 5.1.26 Open Joint Stock Company Kuban Gen 1026402199636; Saratovenergo), OGRN: Industry and Electrification Saratovenergo (JSC Powerfor5.1.25 CompanyJoint-Stock Open 1020202769146; Bashkirenergo),(JSCBashkirenergoOGRN: Com Electrificationand Industry Powerfor Joint-Stockpany Open Bashkir 5.1.24 1025403195674; OGRN: SKENERGO), En Power of gineering and Electrification Company (OJSC NO Stock Joint Open 5.1.23 1023801003313; OGRN: Irkutskenergo), (JSCCompany Distribution and Generation 5.1.22 Open Joint Stock Power Irkutsk Company 1087760000052; East), OGRN: the System of the East (JSC RAO Energy System of 5.1.21 Open Joint Stock RAO Company Energy 1047550031242; OGRN; v OSIBIR------5.1.31 Open Joint Stock Company Tambov Power Sales Company (JSC Tambov Power Sales Company), OGRN: 1056882285129; 5.1.32 Open Joint Stock Company Tomsk Power Sales Company (JSC Tomsk Power Sales Com- pany), OGRN: 1057000128184; 5.1.33 Open Joint Stock Company Kuban Pow- er Sales Company (JSC Kubanenergosbyt), OGRN: 1062309019794; 5.1.34 Closed Joint Stock Company Novosibir- skenergo (CJSC Novosibirskenergo), OGRN: 1045401912401; 5.1.35 Open Joint Stock Company TGK- 11 holding (JSC TGK-11 holding), OGRN: 1087760000063; 5.1.36 Open Joint Stock Company Tomskener- goremont (JSC Tomskenergoremont), OGRN: 1057000128107; 5.1.37 Open Joint Stock Company EnergoMashi- nostroitelny Alliance (PJSC EMAlliance), OGRN: 1055014708297; 5.1.38 Open Joint Stock Company “Design- ing, Surveying and Research Institute “hydro- project”, named after S.Y. Zhuk” (JSC Institute hydro project), OGRN: 5087746440766; 5.1.39 Open Joint Stock Company Sangtu- dinskaya hPP-1 (JSC Sangtudinskaya hPP- 1), location — Republic of Tajikistan, 734033, Dushanbe, Shestopalova St., 2a; 5.1.40 Open Joint Stock Company Razdanskaya Power Company (RazTPP), (JSC RazTPP), location: 378550, Republic of Armenia, Kotayksky Marz, Razdan, hortzaranain St., Razdanskaya TPP; 5.1.41 Open Joint Stock Company United Energy System GruzRosenergo (JSC UES GruzRosen- ergo), location: Georgia, 0159, Tbilisi, Marshal Gelovani St.,2; 5.1.42 Stusara N.v., a company registered under the Law of the Kingdom of the Netherlands, reg- ister № 34256034, address: fred. Roeskestraat 123, 1076EE, Amsterdam, The Netherlands; 5.1.43 RES holdings B.v., a company registered under the Law of the Kingdom of the Nether- lands, register № 34246824, address: fred. Roeskestraat 1231hg, 1076EE Amterdam, The Netherlands. 18 ANNUAL REPORT JSC RAO UES / 2010 OGRN: 1087746560197;OGRN: GAS (OJSC ROSNEfTEGAS), OGRN: OGRN: ROSNEfTEGAS), 1047796902966; (OJSC GAS ROSNEf Company Stock Joint 7.6Open gy Ener of Index Company 7.5 Liability Limited Rus Rus Company Stock Joint Open 7.4 f 7.3 Limited Liability Company Index of Energy 1024701893336;UES), OGRN: Companyof United Energy System (JSC f Company Stock Joint Open 7.2 (Rosimushchestvo); f 7.1 f The the Russian holders (potential Shares purchasers): stake- following the to offered be to 7. Shares 1037743018576. OGRN: IBC), (CJSC evaluation” investments,Consultations,Center: Business 6.7 Closed Joint Stock Company “International 1037739271701;BDO), OGRN: 6.6 Joint Closed Stock “BDO” Company (CJSC 1027739441553; OGRN: TOP-AUDIT), firm ing firm (LLC TOP-AUDIT” Aud and Consulting 6.5 Limited Liability Company Audit and Consult 1047796989679; LLC), OGRN: Consulting Pacioli (Nexia sulting 6.4 Limited Liability Company Nexia Pacioli Con 1027800561458; (LLC IPP), OGRN: Studies” Entrepreneurial for Institute “The Company Liability Limited 6.3 1027700125628; KPMG), OGRN: 6.2 Joint Closed Stock KPMG Company (CJSC 1027700425444; OGRN: CIS), Touche and Deloitte (CJSC CIS Touche 6.1ClosedJointStockandCompany Deloitte placed: Shares for payment for used market evaluating that price of can be property ployment agreements with appraisers hired for 6. Names of legal entities who entered into em 1047796118182. OGRN: (LLC RN-Energo), capital of Limited Liability Company RN-Energo 5.2 Share (shares, of part a share), in the charter droOGC), OGRN: 1087746560131;droOGC), OGRN: ederal Agency for State Property Management GC UES” (LLC Index of energy of Index (LLC UES” GC — hydroOGC (LLC Index of energy — h — energy of Index (LLC hydroOGC — hydro), 1042401810494; OGRN: ederation represented by — UES),fGC ederal Grid ederal hydro hydro (JSC fGC fGC TE — y------1027700091286; Capital),OGRN: RAO INTER (CJSC Capital RAO INTER 7.11 Company Stock Joint Closed 1087760000052; East), OGRN: the of System Energy RAO (JSC East the of System Energy RAO Company Stock 7.10 Joint Open 1077746098495; OGRN: Neft-Activ), (LLC7.9Neft-ActivCompany Liability Limited 1027700043502; OGRN: Rosneft), OC (OJSC Rosneft pany Com Oil Company Stock Joint Open 7.8 1077799032926; Rosatom),(StateCorporationsatomOGRN: Ro Corporation Energy Atomic State 7.7 12.28.2010 №36) the price of placement of ad of placement ditional of shares. In accordance price with the the decision №36) 12.28.2010 dated (protocol determined UES RAO TER IN- JSC of Directors of Board 12.27.2010 the —1-03-33498-E-002D. issue the of number placed by state registration private subscription, (Moscow), UES RAO INTER Company Stock registeredsharesJointof uncertified ordinary of prospectus a and issue an registered 2010 Russia) by the decision taken on November 16, f Cyprus. P.CBuilding,Karapatakis1, 6018,Larnaca, of register № Cyprus, 148237, address; Naousis, the Law of under the Republic pany registered 7.17AUBURNIN Cyprus; Limassol, 14, Zakaki, Amorgou 203767, address: hE № registered Cyprus, of the Law of under the Republic pany registered 7.16 1027700076513; OGRN: AGANA), MC (LLC AGANA Company 7.15Management Company Liability Limited (GPB (JSC)), 1027700167110; OGRN: 7.14 Gasprombank (Open Joint Stock Company) OGRN: 1020202555240; (JSCBashneft),JSOC Bashneft Company Oil Joint-Stock Company Stock 7.13Joint Open OGRN: Invest), RAO 1087746984490; INTER (LLC Invest RAO INTER 7.12Company Liability Limited ederal Service for v f ADI IN CONSULTINGcom INLIMITED,a vESTMENT LIMITED, a com- a LIMITED, vESTMENT f inancial Markets ( fSfM fSfM of - - - - ƒ ƒ ƒ ƒ ƒ of Directors of JSC INTER RAO UES as follows: as UES RAO INTER JSC of Directors of Board the by determined be shall purchased securities forpayment as offeredmoney) of terms (in property of value market Estimated additional shares persons having the preemptive right to purchase of JSC RAO INTER UES, may be also offered to for 1 (one) registered ordinary uncertified share (fivefive 0.0535 ten hundred thirty thousandth) taken the price of securities placement is RUR

generating Company (JSC Rushydro), OGRN: hydro- federal Company Stock Joint Open of share uncertified ordinary registered one Open Joint Stock Company the Third Generation of share uncertified registered ordinary one point fiftythree-hundredthrubles) pershare; 1-02-65105-D, in the amount of RUR 1.53 (one thoundth), state registration number of the issue ten- seven twenty and hundred six thousand with the nominal share value RUR 0.3627 (three Market (JSC OGK-2), OGRN: 1052600002180, Electricity Wholesale the of Company eration Gen- Second the Company Stock Joint Open of share uncertified registered ordinary one per share; RUR 1.12 (one point twelve-hundredth rubles) of amount the in 1-02-65107-D, issue the of hundred-thousandths), state registration number thousand four hundred and seventy eight one- (fifty-seven 0.57478 RUR value share nominal (JSC OGK-1), OGRN: 1057200597960, with the ing Company on the Wholesale Energy Market Open Joint Stock Company first Power Generat- of share uncertified registered ordinary one per share; in the amount of RUR 0.35 (thirty five hundredth) registration number of the issue 1-01-65018-D, nominal share value RUR 0.5 (five tenth), state the with 1024701893336, OGRN: UES), fGC (JSC Company Grid federal Unified of pany Open Joint Stock Company federal Grid Com- of share uncertified registered ordinary one and seventytwohundredth)RURpershare; issue 1-01-55038-E, in the amount of 1.72 (one the of number registration state RUR, (one) 1 value share nominal the with 1042401810494, ƒ ƒ ƒ ƒ ƒ ƒ

Open Joint Stock Company Territorial Gen- Territorial Company Stock Joint Open of share uncertified registered privileged one kopecks) pershare; in the amount of RUR 0.92 (ninety two hundredth registration number of the issue 1-01-10420-A, state each, rubles) hundredth (one 0.01 RUR value share nominal the with 1057601091151, OGRN: TGK-2), (JSC №2 Company erating Gen- Territorial Company Stock Joint Open of share uncertified registered ordinary one kopecks) pershare; amount of RUR 2.04 (two point four hundredth the in 1-01-03388-D, issue the of number tion RUR 0.01 (one hundredth) each, state registra- value share nominal the with 1057810153400, OGRN: TGK-1), (JSC №1 Company erating Gen- Territorial Company Stock Joint Open of share uncertified registered ordinary one sixty ninehundredthrubles)pershare; 65106-D, in the amount of RUR 1.69 (one point 1-02- issue the of number registration state hundredth), eight (forty 0.48 RUR value share nominal the with 1056164020769, OGRN: 6), Power Market Generating Company (JSC OGK- Open Joint Stock Company the Sixth Wholesale of share uncertified registered ordinary one hundredth rubles)pershare; in the amount of RUR 2.63 (two point sixty three registration number of the issue 1-01-50077-A, state ruble), (one 1 RUR value share nominal Enel OGK-5), OGRN: 1046604013257, with the (JSC OGC-5 Enel Company Stock Joint Open of share uncertified registered ordinary one point thirtytwohundredthruble)pershare; 1-02-65104-D, in the amount of RUR 2.32 (two issue the of number registration state ruble), with the nominal share value RUR 0.4 (four tenth Market (JSC OGK-4), OGRN: 1058602056985, Electricity Wholesale the of Company eration Gen- fourth the Company Stock Joint Open of share uncertified registered ordinary one seven-hundredth rubles)pershare; eighty point (one 1.87 RUR of amount the in registration number of the issue 1-01-50079-A, state ruble), (one 1 RUR value share nominal (JSC OGK-3), OGRN: 1040302983093, with the market electricity wholesale the of Company ƒ ƒ ƒ ƒ ƒ ƒ

rubles) pershare; hundredth eight fifty point (three 3.58 RUR of number of the issue 1-01-00085-A, in the amount value RUR 1 (one ruble) each, state registration OGRN: 1027700302420, with the nominal share trification MOSENERGO (OAO MOSENERGO), Open Joint Stock Company of Energy and Elec- of share uncertified registered ordinary one kopecks) pershare; the amount of RUR 0.92 (ninety two hundredth in 2-01-10420-A, issue the of number tration regis- state rubles), hundredth (one 0.01 RUR value share nominal the with 1057601091151, OGRN: TGK-2), (JSC №2 Company erating one ordinary registered uncertified share of share uncertified registered ordinary one hundredth rubles)pershare; in the amount of RUR 2.47 (two point forty seven registration number of the issue 1-01-55113-E, state each, ruble) (one 1 RUR value share nal TGK-7), OGRN: 1056315070350, with the nomi- JSC TGK, volga (JSC Company Generating Territorial volga Company Stock Joint Open of share uncertified registered ordinary one hundredth kopecks)pershare; nine sixty point (one 1.69 RUR of amount the in 1-01-55091-E, issue the of number tration regis- state ruble), hundredth (one 0.01 RUR value share nominal the with 1055230028006, OGRN: TGK-6), (JSC №6 Company erating Gen- Territorial Company Stock Joint Open of share uncertified registered ordinary one hundredth kopecks)pershare; eight thirty point (one 1.38 RUR of amount the in 2-01-43069-A, issue the of number tration regis- state ruble), hundredth (one 0.01 RUR value share nominal the with 1056882304489, OGRN: quadra), (JSC Company Generating — quadra Company Stock Joint Open of share uncertified registered privileged one hundredth kopecks)perashare; eight thirty point (one 1.38 RUR of amount the in 1-01-43069-A, issue the of number tration regis- state ruble), hundredth (one 0.01 RUR OGRN: value nominal share the with 1056882304489, quadra), (JSC Company erating Gen- — quadra Company Stock Joint Open of share uncertified registered ordinary one ƒ ƒ ƒ ƒ ƒ

RUR 44.53 (forty four point fifty three hundredth of amount the in 1-01-55090-E, issue the of number registration state rubles), hundredth six sixty point (one 1.66 RUR value share nal nomi- the with 1058602102437, OGRN: tum), for- (JSC fortum Company Stock Joint Open of share uncertified registered ordinary one kopecks) pershare; in the amount of RUR 0.48 (forty eight hundredth registration number of the issue 1-01-56741-D, RUR 0.003 (three thousandth ruble) each, state value share nominal the with 1045900550024, OGRN: TGK-9), (JSC №9 Company erating Gen- Territorial Company Stock Joint Open per share; the amount 0.45 (forty five hundredth kopecks) in 1-01-22451-f, issue the of number istration reg- state ruble), thousandth (one 0.001 RUR value share nominal the with 1047550031242, OGRN; TGK-14), (JSC №14 Company ating Gener- Territorial Company Stock Joint Open of share uncertified registered ordinary one (eleven hundredthruble)pershare; issue 1-02-55093-E, in the amount of RUR 0.11 the of number registration state ruble), dredth hun- (one 0.01 RUR value share nominal the with 1051901068020, OGRN: TGK-13), sey Yeni- OJSC (TGK-13, Company Generating Open Joint Stock Company Yenisey Territorial of share uncertified registered ordinary one ruble) pershare; in the amount of RUR 0.34 ( thirty four hundredth registration number of the issue 1-02-00064-A, state ruble), hundredth (one 0.01 RUR value OGRN: 1024200678260, with the nominal share KUZBASSENERGO), (JSC Electrification and Kuzbass Open Joint-Stock Company for Energy of share uncertified registered ordinary one kopecks) pershare; amount of RUR 2.01 (two point one hundredth the in 1-01-12087-f, issue the of number tion RUR 0.01 (one hundredth ruble), state registra- value share nominal the with 1055406226237, OGRN: TGK-11), (JSC №11 Company ating Gener- Territorial Company Stock Joint Open of share uncertified registered ordinary one rubles) pershare;

19 ANNUAL REPORT JSC RAO UES / 2010

ƒ ƒ ƒ ƒ ƒ ƒ

(JSC Bashkirenergo), OGRN: 1020202769146, Bashkirenergo Electrification and Engineering Power Bashkir of Company Stock Joint Open of share uncertified registered ordinary one two point fifty three hundredth rubles) per share; 892.53 (one thousand eight hundred and ninety the issue 2-03-00105-A, in the amount of RUR 1 RUR 10 (ten rubles), state registration number of value share nominal the with 1025403195674, OGRN: NOvOSIBIRSKENERGO), (OJSC go Novosibirskener- Electrification and neering Engi- Power of Company Stock Joint Open of share uncertified registered privileged one per share; and ninety two point fifty three hundredth rubles) hundred eight thousand (one 892.53 1 RUR of amount the in 1-04-00105-A, issue the of RUR 10 (ten rubles), state registration number value share nominal the with 1025403195674, OGRN: NOvOSIBIRSKENERGO), (OJSC go Novosibirskener- Electrification and neering Engi- Power of Company Stock Joint Open of share uncertified registered ordinary one thirty threehundredthruble)pershare; point five (twenty 25.33 RUR of amount the in registration number of the issue 1-01-00041-E, state ruble), (one 1 RUR value share nominal the with 1023801003313, OGRN: skenergo), Irkut- (JSC Company Distribution and eration Open Joint Stock Company Irkutsk Power Gen- of share uncertified registered ordinary one ruble) pershare; in the amount of RUR 0.42 (forty two hundredth registration number of the issue 2-01-55384-E, state ruble), tenth (five 0.5 RUR value share East), OGRN: 1087760000052, with the nominal tem of the East (JSC RAO Power System of the Sys- Energy RAO Company Stock Joint Open of share uncertified registered privileged one ruble) pershare; in the amount of RUR 0.42 (forty two hundredth registration number of the issue 1-01-55384-E, state ruble), tenth (five 0.5 RUR value share East), OGRN: 1087760000052, with the nominal the of System Energy RAO (JSC East the of Open Joint Stock Company RAO Energy System of share uncertified registered ordinary one ƒ ƒ ƒ ƒ ƒ ƒ

Joint-Stock Energy and Electrification Company of share uncertified registered ordinary one seven pointfivetenthruble)pershare; 2-01-00012-A, in the amount of RUR 67.5 (sixty issue the of number registration state each, with the nominal share value RUR 1 (one ruble) (JSC Bashkirenergo), OGRN: 1020202769146, Bashkirenergo Electrification and Engineering Power Bashkir of Company Stock Joint Open of share uncertified registered privileged one point fivetenthruble)perashare; 00012-A, in the amount of RUR 67.5 (sixty seven 1-01- issue the of number registration state with the nominal share value RUR 1 (one ruble), Sales Company (JSC Petersburg Power Sales Open Joint Stock Company Petersburg Power of share uncertified registered ordinary one hundred andeightyrubles)per share; in the amount of RUR 4 480 (four thousand four registration number of the issue 1-01-13736-A, state rubles), thousand (one 1000 RUR value OGRN: 1097746376793, with the nominal share Company (JSC Unified Power Sales Company), Open Joint Stock Company Unified Power Sales of share uncertified registered ordinary one hundredth rubles)pershare; nineteen point (nine 9.19 RUR of amount the in 1-01-55221-E, issue the of number tration regis- state each, rubles) (sixty 60 RUR value OGRN: 1062309019805, with the nominal share Company (JSC Kuban Generating Company), Open Joint Stock Company Kuban Generating of share uncertified registered ordinary one RUR 0.11(elevenhundredthruble)pershare; of amount the in 2-02-00132-A, issue the of hundred-thousandth), state registration number 0.02113 (two thousand one hundred and thirteen RUR value nominal the with 1026402199636, OGRN: Saratovenergo), (JSC Saratovenergo Joint-Stock Energy and Electrification Company of share uncertified registered privileged one per share; ruble) hundredth (eleven 0.11 RUR of amount the in 1-02-00132-A, issue the of number tion RUR 0.02 (two hundredth ruble), state registra- value share nominal the with 1026402199636, OGRN: Saratovenergo), (JSC Saratovenergo ƒ ƒ ƒ ƒ ƒ ƒ

one ordinary registered uncertified share of share uncertified registered ordinary one thirty sevenhundredthrubles)pershare; 55168-E, in the amount of RUR 4.37 (four point 2-01- issue the of number registration state nominal share value RUR 0.2 (two tenth ruble), the with 1057812496818, OGRN: Company), Sales Company (JSC Petersburg Power Sales Open Joint Stock Company Petersburg Power of share uncertified registered privileged one thirty sevenhundredth)rublespershare; 55168-E, in the amount of RUR 4.37 (four point 1-01- issue the of number registration state nominal share value RUR 0.2 (two tenth ruble), the with 1057812496818, OGRN: Company), OGRN: 1057000128184, with the nominal share Company (JSC Tomsk Power Sales Company), Open Joint Stock Company Tomsk Power Sales of share uncertified registered ordinary one enteen hundredthruble)pershare; 2-01-65100-D, in the amount of RUR 0.17 (sev- issue the of number registration state ruble), nominal share value RUR 0.02 (two hundredth the with 1056882285129, OGRN: Company), Sales Power Tambov (JSC Company Sales Power Tambov Company Stock Joint Open of share uncertified registered privileged one enteen hundredthruble)pershare; 1-01-65100-D, in the amount of RUR 0.17 (sev- issue the of number registration state ruble), nominal share value RUR 0.02 (two hundredth the with 1056882285129, OGRN: Company), Sales Power Tambov (JSC Company Sales Power Tambov Company Stock Joint Open of share uncertified registered ordinary one 0.11 (elevenhundredthruble)pershare; RUR of amount the in 1-01-12302-f, issue the of number registration state ruble), hundredth (one 0.01 RUR value share nominal the with (JSC Altaienergosbyt); OGRN: 1062224065166, Altaienergosbyt Company Stock Joint Open of share uncertified registered ordinary one 0.41 (fortyonehundredthruble)pershare; the issue 1-01-65113-D, in the amount of RUR of number registration state ruble), hundredth (one 0.01 RUR value share nominal the with (JSC Mosenergosbyt), OGRN: 1057746557329, Mosenergosbyt Company Stock Joint Open

21 ANNUAL REPORT JSC RAO UES / 2010 22 ANNUAL REPORT JSC RAO UES / 2010 ƒ ƒ ƒ ƒ ƒ ƒ

RUR 0.0021 (twenty one ten thousands ruble) thousands ten one (twenty 0.0021 RUR value share nominal the with 1057000128107, goremont (JSC Tomskenergoremont), OGRN: Tomskener- Company Stock Joint Open of share uncertified registered privileged one (sixty nine hundred-millionth kopeck) per share; 0.00000069 RUR of amount the in 55088-E, 1-01- issue the of number registration state RUR 0.0021 (twenty one ten-thousandth ruble), value share nominal the with 1057000128107, OGRN: Tomskenergoremont), (JSC mont Tomskenergore- Company Stock Joint Open of share uncertified registered ordinary one 0.12 (twelvehundredthruble)pershare; RUR of amount the in 2-01-55392-E, issue the of number registration state ruble), hundredth (one 0.01 RUR value share nominal the with (JSC TGK-11 holding), OGRN: 1087760000063, holding TGK-11 Company Stock Joint Open of share uncertified registered privileged one 0.12 (twelvehundredthruble)pershare; RUR of amount the in 1-01-55392-E, issue the of number registration state ruble), hundredth (one 0.01 RUR value share nominal the with (JSC TGK-11 holding), OGRN: 1087760000063, holding TGK-11 Company Stock Joint Open of share uncertified registered ordinary one five point sixty eight hundredth rubles) per share; fifty and hundred (one 155.68 RUR of amount tration number of the issue 1-01-55218-E, in the RUR 0.56 (fifty six hundredth ruble), state regis- value share nominal the with 1062309019794, OGRN: Kubanenergosbyt), (JSC Company Open Joint Stock Company Kuban Power Sales of share uncertified registered ordinary one ruble) pershare; thousandth three (fifty 0.53 RUR of amount the in 2-01-50130-A, issue the of number registrationstate ruble), ten-thousandth one (seventy 0.0071 RUR value share nominal Company), OGRN: 1057000128184, with the Sales Power Tomsk (JSC Company Sales of Open Joint Stock Company Tomsk Power share uncertified registered privileged one three hundredthruble)pershare; 1-01-50130-A, in the amount of RUR 0.53 (fifty issue the of number registration state ruble), value RUR 0.0071 (seventy one ten-thousandth ƒ ƒ ƒ ƒ ƒ

hPP-1 (JSC Sangtudinskaya hPP-1) location — Sangtudinskaya Company Stock Joint Open of share uncertified registered ordinary one per share; rubles) hundredth four eighty point (six 6.84 the issue 1-01-10326-A, in the amount of RUR RUR 1 (one ruble), state registration number of value share nominal the with 1055014708297, OGRN: EMAlliance), (OJSC Alliance troitelny EnergoMashinos- Company Stock Joint Open of share uncertified registered ordinary one nine hundred-millionthkopeck)pershare; 2-01-55088-E, in the amount 0.00000069 (sixty issue the of number registration state each, per share; rubles) hundredth three point four ninety and thousand sixteen million ninety and hundred seven billion (three 094.03 016 719 3 RUR of million and ten thousand rubles), in the amount (five 000 010 5 RUR value nominal the with OGRN: 1047796118182, in the amount of 100%, ability Company RN-Energo (LLC RN-Energo), Li- Limited the of capital charter the in shares ) pershare; and fifty three point fifty eight hundredth rubles hundred three thousand (three 353.58 3 RUR of amount the in thousand), (ten 000 10 Lari Georgian value share nominal the with st.,2, location: Georgia, 0159, Tbilisi, Marshal Gelovani tem GruzRosenergo (JSC UES GruzRosenergo), Open Joint Stock Company United Energy Sys- of share uncertified registered ordinary one per share; rubles) hundredth nine ninety point ninety and hundred (three 390.99 RUR of amount the in AMD (Armenian Dram) 10 000 (ten thousand), Razdanskaya TPP, with the nominal share value St., hortzaranain Razdan, Marz, Kotayksky Armenia, of Republic 378550, location: TPP), Raz- (JSC (RazTPP), Company Power skaya Razdan- Company Stock Joint Open of share uncertified registered (common) ordinary one six hundredthruble)pershare; thousand six hundred and twenty point twenty forty two), in the amount of RUR 2 620.26 (two and thousand (three 3042 (somoni) TJS value share nominal the with 2a, st., Shestopalova Dushanbe, 734033, Tajikistan, of Republic the Company. by the of of Board Report Directors Annual this of approval of date preliminary of as the tinues 1-03-33498-E- 01.17.2010 on issue initiated was con- 002D still the and of number registration shares of JSC uncertified INTER RAO UES, state For reference: shares. 370 027 229 2893 amount the in 0.02809767 RUR value share nominal the with shares ordinary into divided was and 81 RUR was UES RAO 287 349.66226643 328 As of 12.31.2010 of the capital charter JSC INTER 03.14.2011. of as Company the of shares placed 2% over owning shareholders other any about formed in- not is management UES RAO INTER JSC has changed. the structure expiry of of the share (date capital of the Company shares of issue Taking into account interim results of additional shares. voting 0.00000000007%ofthe Charter capital i.e. and UES, RAO INTER JSC of shares ordinary 2 12.31.2010owned of as Rosimushchestvo f Russian the The Placement of ordinary registered ederation representedbyederation

— May 17, 2011), 2011), 17, May — ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ Company have the following rights to: rights following have the Company The shareholders holding ordinary shares of the SHAREHOLDERS’ RIGHTS:

sions oftheGeneralMeetingShareholders. deci- and Charter the federation, Russian the exercise other rights stipulated by the Law of the Charter; Company’s the and federation Russia the of posal value) in the order established by the Law possess a part of the Company’s property (dis- public subscription; by Company the by placement their of case in them by held (type) category this of shares of number the to proportional quantity the in shares into convertible securities issuing and preemptive right to purchase additional shares federation; Russian the the of Law the by for provided cases in them by owned stock the of part or all of Company the by purchase the demand pany’s Charter; Law of the the Russian federation and the Com- according to the procedure established by the have an access to documents of the Company Russian federation and the Company’s Charter; the procedure established by the Law of the the to according shareholders among distribution receive a part of net profit (dividends) subject to shareholders andtheCompany; alienate their shares without the consent of other federation andtheCharterofCompany; dure established by the Law of the the Russian bodies of the Company according to the proce- elect and be elected to management and control sonally orthroughrepresentatives; to vote on all issues within its competence per- participate in the General meeting with the right State AtomicEnergyCorporation“Rosatom” Company ”NorilskNickel” Open JointStockCompany“MiningandMetallurgical RUSENERGO fUNDLIMITED Limited LiabilityCompany“GazpromEnergoholding” Closed JointStockCompany“Atomstroyexport” (Rosenergoatom Concern,OJSC) of ElectricandThermalEnergyatNuclearPowerPlants" Open JointStockCompany"ConcernforProduction Eco-nomic Affairs(vNEShECONOMBANK)” State Corporation“TheBankforDevelopmentandforeign MAJOR SHAREHOLDERSASOF03.14.2011 (vNEShECONOMBANK)” and foreignEconomicAffairs State Corporation“TheBankforDevelopment Total Concern, OJSC) at NuclearPowerPlants"(Rosenergoatom for ProductionofElectricandThermalEnergy Open JointStockCompany"Concern and CorporateTechnologies” Limited LiabilityCompany“Depositary Center” Company “theNationalDepositaryClearing Non-for-Profit PartnershipClosedJointStock ing Company” Closed JointStockCompany“DepositaryClear- Closed JointStockCompany“Atomstroyexport” State AtomicEnergyCorporation“Rosatom” OwNING OVER5%VOTINGSHARESOFTHECOMPANYAS12.31.2010: SHAREHOLDERS OFJSCINTERRAOUES, Name Full nameofanindividual/legalentity shareholder 2 Category ofa an Account1 Category of LegalEntity Legal Entity Legal Entity Legal Entity Legal Entity Legal Entity Legal Entity Nominal Nominal Nominal holder holder holder Owner Owner Owner Owner oa hrs(ics %ofplacedshares* Total shares(pieces) 189 347388419 253 650000 337 807520171 529 303482587 712 519615233 61 719353684 90 237584223 shares Quantity ofordinary 3 9 0 4 94.5271 2 734695909846 5 5 0 0 8.7676 24.6289 253 650000 712 519615233 2 0 8 8 18.2958 529 303482587 3 0 2 7 11.6766 337 807520171 10.9089 315 598503797 9 8 6 7 10.1722 10.0770 294 285362170 291 531425888 shares % ofplaced 11.5187 18.0484 24.2957 6.4564 8.6490 2.1045 3.077

23 ANNUAL REPORT JSC RAO UES / 2010 Price in USD Price, RUR Price in USD Price, RUR 0,0014 0,0014 0,035 0,045 0,055 0,065 0,035 0,045 0,055 0,065 0,0017 0,0023 0,0026 0,0017 0,0023 0,0026 0,0011 0,0011 0,04 0,04 0,05 0,06 0,07 0,05 0,06 0,07 0,002 0,002

11 Jan 11 Jan 11 Jan 11 Jan 22 Jan 22 Jan 22 Jan 22 Jan 4 Feb 4 Feb 4 Feb 4 Feb 17 Feb 17 Feb 17 Feb 17 Feb 3 Mar 3 Mar 3 Mar 3 Mar 17 Mar 17 Mar 17 Mar 17 Mar 30 Mar 30 Mar 30 Mar 30 Mar 12 Apr 12 Apr 12 Apr 12 Apr 23 Apr 23 Apr 23 Apr 23 Apr 7 May 7 May 7 May 7 May 21 May 21 May 21 May 21 May 3 Jun 3 Jun 3 Jun 3 Jun Price atRTS-Classica Price atRTS-Classica

17 Jun Price atMICEX 17 Jun 17 Jun Price atMICEX 17 Jun 30 Jun 30 Jun 30 Jun 30 Jun 13 Jul 13 Jul 13 Jul 13 Jul 26 Jul 26 Jul 26 Jul 26 Jul

6 Aug 6 Aug 6 Aug 6 Aug 19 Aug 19 Aug 19 Aug 19 Aug 1 Sep 1 Sep 1 Sep 1 Sep 14 Sep 14 Sep 14 Sep 14 Sep 27 Sep 27 Sep 27 Sep 27 Sep 8 Oct 8 Oct 8 Oct 8 Oct 21 Oct 21 Oct 21 Oct 21 Oct 3 Nov 3 Nov 3 Nov 3 Nov 17 Nov 17 Nov 17 Nov 17 Nov 30 Nov 30 Nov 30 Nov 30 Nov

13 Dec 13 Dec 13 Dec 1324 Dec 24 Dec 24 Dec 24 Dec 24 Dec ANNUAL REPORT JSC RAO UES / 2010

Trade Volume in mln USD Trade Volume,Price mlnTrade in USD RUR Volume in mln USD Price,Trade RUR Volume, mln RUR 0,0014 0,035 0,045 0,055 0,065 0,0017 0,0023 0,0026 Price, RUR 0,0011 Price in USD 0,3 0,6 0,9 1,2 1,5 1,8 2,1 0,3 0,6 0,9 1,2 1,5 1,8 2,1 1000 1250 1500 1750 2000 1000 1250 1500 1750 2000 0,04 0,0014 0,035 0,045 0,055 0,065 0,05 0,06 0,07 0,0017 0,0023 0,0026 0,002 0,0011 250 500 750 250 500 750 0 0 0,04 0,05 0,06 0,07 0,002 0 0 11 Jan 11 Jan 11 Jan 11 Jan 11 Jan 11 Jan 11 Jan 22 Jan 22 Jan 11 Jan 22 Jan 22 Jan 22 Jan 22 Jan 22 Jan 4 Feb 4 Feb 22 Jan 4 Feb 4 Feb 4 Feb 4 Feb 4 Feb 17 Feb 17 Feb 4 Feb 17 Feb 17 Feb 17 Feb 17 Feb 17 Feb 3 Mar 3 Mar 17 Feb 3 Mar 3 Mar 3 Mar 3 Mar 3 Mar 17 Mar 17 Mar 3 Mar 17 Mar 17 Mar 17 Mar 17 Mar 17 Mar 30 Mar 30 Mar 17 Mar 30 Mar 30 Mar 30 Mar 30 Mar 30 Mar 12 Apr 12 Apr 30 Mar 12 Apr 1212 AprApr 12 Apr 12 Apr 23 Apr 23 Apr 12 Apr 23 Apr 2323 AprApr 23 Apr 23 Apr 7 May 7 May 23 Apr 7 May 77 MayMay 7 May 7 May Trade VolumeatRTS-Classica Trade VolumeatRTS-Classica 7 May 21 May 21 May 21 May 2121 MayMay 21 May 21 May Trade VolumeatMICEX 3 Jun Trade VolumeatMICEX 3 Jun 21 May 33 JunJun 3 Jun 3 Jun Price atRTS-Classica 3 Jun 3 Jun 17 Jun 17 Jun Price atRTS-Classica 1717 JunJun Price atMICEX 17 Jun 17 Jun

Price atMICEX 17 Jun 30 Jun 30 Jun 17 Jun 3030 JunJun 30 Jun 30 Jun 30 Jun 30 Jun 13 Jul 13 Jul 1313 JulJul 13 Jul 13 Jul 13 Jul 13 Jul 26 Jul 26 Jul 2626 JulJul 26 Jul 26 Jul 26 Jul 26 Jul

6 Aug 6 Aug 6 Aug 6 Aug 6 Aug 6 Aug 6 Aug 6 Aug 19 Aug 1919 AugAug 19 Aug 19 Aug 19 Aug 19 Aug 19 Aug 1 Sep 11 SepSep 1 Sep 1 Sep 1 Sep 1 Sep 1 Sep 14 Sep 1414 SepSep 14 Sep 14 Sep 14 Sep 14 Sep 14 Sep 27 Sep 2727 SepSep 27 Sep 27 Sep 27 Sep 27 Sep 27 Sep 8 Oct 88 OctOct 8 Oct 8 Oct 8 Oct 8 Oct 8 Oct 21 Oct 2121 OctOct 21 Oct 21 Oct 21 Oct 21 Oct 21 Oct 3 Nov 33 NovNov 3 Nov 3 Nov 3 Nov 3 Nov 3 Nov 17 Nov 17 Nov 17 Nov 17 Nov 17 Nov 17 Nov 17 Nov 17 Nov 30 Nov 30 Nov 30 Nov 30 Nov 30 Nov 30 Nov 30 Nov 30 Nov 13 Dec 13 Dec 13 Dec 13 Dec 13 Dec 13 Dec 13 Dec 13 Dec 24 Dec 24 Dec 24 Dec 24 Dec 24 Dec 24 Dec 24 Dec 24 Dec shares). ordinary Regulation 000 10 = (1 the GDR A. 144 Rule the with and S accordance in program GDR a as acting depositary Mellon, bank, JSC York INTER RAO New UES of launched Bank with Jointly MICE CJSC and Exchange” Stock “RTS JSC of B list quotation in listed are Stock Shares of Exchange. JSC RAO INTER UES MICE CJSC and Exchange” Stock “RTS JSC UES RAO markets stock INTER Russian on traded JSC been of have shares 2008 17, July Since OF JSCINTERRAOUESDURING2010 DYNAMICS OFSHAREPRICES

Trade Volume in mln USD Trade Volume, mln RUR 0,3 0,6 0,9 1,2 1,5 1,8 2,1 1000 1250 Trade1500 Volume1750 in2000 mln USD Trade Volume, mln RUR 0,3 0,6 0,9 1,2 1,5 1,8 2,1 1000 1250 1500 1750 2000 250 500 750 0 250 500 750 0 0 11 Jan 0 11 Jan 11 Jan 22 Jan 11 Jan 22 Jan 22 Jan 4 Feb 22 Jan 4 Feb 4 Feb 17 Feb 4 Feb 17 Feb 17 Feb 3 Mar 17 Feb 3 Mar 3 Mar 17 Mar 3 Mar 17 Mar 17 Mar 30 Mar 17 Mar 30 Mar 30 Mar 30 Mar 12 Apr 12 Apr 12 Apr 12 Apr 23 Apr 23 Apr 23 Apr 23 Apr 7 May 7 May 7 May 7 May Trade VolumeatRTS-Classica

21 May Trade VolumeatRTS-Classica 21 May 21 May 21 May Trade VolumeatMICEX

3 Jun Trade VolumeatMICEX 3 Jun 3 Jun 3x Jun 17 Jun 17 Jun 17 Jun 17 Exchange. Stock Jun 30 Jun 30 Jun 30 Jun 30 Jun 13 Jul 13 Jul 13 Jul 13 Jul 26 Jul 26 Jul 26 Jul 26 Jul 6 Aug 6 Aug 6 Aug 6 Aug 19 Aug 19 Aug 19 Aug 19 Aug 1 Sep 1 Sep 1 Sep 1 Sep 14 Sep 14 Sep 14 Sep 14 Sep 27 Sep 27 Sep 27 Sep 27 Sep 8 Oct 8 Oct 8 Oct 8 Oct 21 Oct 21 Oct — 21 Oct 21 Oct x 3 Nov 3 Nov 3 Nov 3 Nov 17 Nov 17 Nov 17 Nov 17 Nov 30 Nov 30 Nov 30 Nov 30 Nov 13 Dec 13 Dec shares of one share price (marketRUR). thousand 157465 109 was it 12.31.2009 of (as RUR thousand 183 370 138 MICE to according UES RAO INTER JSC of capitalizationMarket 13 Dec 13 Dec 24 Dec 24 Dec 24 Dec 24 Dec

— 2 893 023 370 229 shares). 370 229 023 — 2893 — RUR of 0.048; the quantity placed x data as of 12.31.2010 was Corporate governanCe struCture and prInCIples 3.1 3. 2 3. 3 3. 4 3. 5 3. 6 3. 7 3. 8 PRINCIPLES DISCLOSURE MANAGEMENT AND INfORMATION ABOUT ExECUTIvE ACTUAL MEMBERS REvISION AUDITOR AND Of INfORMATION CONTROL BODIES MEMBERS Of ThE BODIES Of ThE MANAGEMENT COMMISSION 3 DOCUMENTS BOARD Of DIRECTORS BOARD 26 ANNUAL REPORT JSC RAO UES / 2010 violation of their rights. their of violation effectiveredressobtainforto opportunity the tors ensures that all shareholders should have Direc- of Board The them. towards treatment the rights of its shareholders and ensure equal Fairness. Company. the of bodies Executive of activity the over trol exercisingandcon elaboratingdecisionsfor Directors of Board the for guidance as serves and Law applicable with accordance in ers ability of the Board of Directors to all sharehold Accountability. the following principles: on based is and Company, the by approved Code GovernanceCorporate the with ance Corporategovernance isexecuted inaccord capitalization. market increase result a as and pricing loan lowerattractiveness,investment raise to ing allow business in advantagecompetitive a gain to helps concerned parties other and investors,executivebodies,shareholdersits transparentandsystemrelations ofbetween effectivethat acknowledges Company The practice.best world with compliance into it itscorporate governance system by bringing improve to seeking is UES RAO INTER JSC creasing market capitalization. in- and reputationactivity,strengthening its of efficiency enhancing of means a as ment managecorporateconsiders Company The Directors and executive bodies of the Company. clude relations between shareholders, Board of in processes These shareholders.of benefit forthe activitycontrolmanagement itsandof understands a complex of processes ensuring Company thegovernance corporate Under 3.1 The Company is committed to protect The Code stipulates account stipulates Code The PRINCIPLES ANDDOCUMENTS ------and governance of the Company, as well as well Company,as the ofgovernance and structureownership performance,indicators, its financial standing, social and environmental material facts concerning its activities, including timely disclosure of reliable information about all Transparency. Responsibility. concerned. parties all for information tosuch access easy by the Annual General Meeting of the share- the of Meeting General Annual the by The current version of the Charter was approved procedures. Company, their scope of authority and operating the of bodies executive of description and ers of activity, Charter Capital, rights of sharehold Company,the ofstatus legaltypes and goals the aboutinformation includes Company.It the of documentfoundation a is Charter The THE CHARTER Company: the of bodies of ments listed below and activity the regulating docu- internal adopted UES RAO INTER JSC In order to secure the rights of its shareholders Annual Report. this to Annex the in presented is Conduct of themainrequirements of theCorporate Code cial Markets. Information about observance of recommended by the stipulated by the Corporate Code of Conduct, TER RAO UES tries to employ the main principles Within its corporate governance system JSC IN development and financial stability. own its of purpose the for parties such with bythe applicableLaw and seeks cooperation stipulated concerned parties all of rights the The Company shall ensure the The Company acknowledges f ederal Service for f inan - - - Changes in the Charter of the Company associ 23.09.2010. on Russia of by fSfM registered financial report on additional issue of shares was RAO UES and No.3 (Minutes dated 25.06.2009) INTER JSC shareholders of Meting General 11.10.2010on Annual of the decision the upon to changes of the Charter capital were registered Changes in the Charter of the Company relating 28.07.2010. on (Moscow) No.46 Service of in the Inspection f the Interdistrict No.5 (Minutes dated 06.25.2010), and registered of holders JSC RAO INTER UES on 25.06.2010 disclosure. of procedure and dates the and periodicity, its Company, the by disclosed be to mation infor ofcontent the define Regulations The 23.08.2010). No.1dated (Minutes 19.08.2010 on Directors of Board the of decision the by Information Policy Regulations were approved INFORMATION POLICYREGULATIONS governance. corporate due of standards the constant readiness of the Company to abide transpar by greater ency of the Company ensuring management and showing UES, RAO INTER JSC of managementcorporate systematizationof Subjectives of the Code are improvement and 23.04.2008). No.1 dated (Minutes 23.04.2008 on Directors of Board the of decision the by approvedwas Code GovernanceCorporate CORPORATE GOVERNANCECODE 27.20.2010. on made was entity legal the of documentsfoundation into The record of state of registration made changes 04.10.2010).dated No.32 (Minutes 09.30.2010 on UES RAO INTER of JSC of Directors Board the by approved were Ecuador of Republic of territory the in office the establishing with ated ederal Tax - - - of an Extraordinary General Meeting of Share functions the performing BoardManagement of the JSC RAO UES of by Russia decision the Management Board Regulations were approved MANAGEMENT BOARDREGULATIONS Directors. of Board the of Directors and the rights and duties of members of the functions specify the of Chairman Board of Directors, of Board of meetings holding and Regulations define the procedure of preparing share UES RAO The 25.06.2009). dated No.3 (minutes holders INTER JSC of Meeting General Annual the of decision the by 25.06.2009 on approved were Directors of Board the of ings Regulationson Convening and DIRECTORS HOLDING MEETINGSOFTHEBOARD REGULATIONS ONCONVENINGAND Meeting. General the of bodies operating of ers, forms of meetings, and specify the functions ing and holding General Meeting of Sharehold The Regulations define the procedure of prepar on 25.06.2010 No.5 (Minutes dated 25.06.2010). Board of Management JSC RAO UES of Russia the of decision bythe approved were Meeting Regulations on Preparing and HOLDING GENERALMEETINGS REGULATIONS ONPREPARINGAND Company. the of Directors of Board the for prepares a report about the above transaction of the Audit Committee so that the Committee of the Company is presented for consideration analysis of transactions of insiders with shares the Regulations, the ofrequirements the with intereststhe accordanceInparties. of certain of that in is information not accessible generally are The aimed Regulations at preventing the use 23.04.2008). No.1 dated (Minutes 23.04.2008 on Directors of Board the of decision the by Insider Information Regulations were approved INSIDER INFORMATIONREGULATIONS h olding General h oldingMeet - - - - - receive payments from legal entities has been of the Company being persons whose right to ments to the members of the Board of Directors pay and Chairman the of compensation and accordance with the Regulations remuneration In members. Body ExecutiveCollective pany Com theCompanyExecutiveor Sole Bodies Board of exercising the Directors powers of the the of members the to apply not does tions Regula- the of effect The Directors. of Board compensationpayable to themembers of the andremuneration of amount the and cedure pro the define Regulations The 06.25.2009). dated No.3 (Minutes UES RAO INTER JSC of Shareholders the of Meeting General Annual the of decision the by 25.06.2009 on proved ap- were UES RAO INTER JSC of Directors of Boardtheof Members payablethetosations Compen Remunerationsand onRegulations BERS OFBOARDDIRECTORS COMPENSATIONS PAYABLETOTHEMEM- REGULATIONS ONREMUNERATIONSAND absentia. in and presence in Board the of procedure of meetings the Management set Board,andManagement the of members of and mine the the duties responsibility rights, of formation of the Management Board, deter the Management Board, specify the procedure The Regulations contain the main objectives of of the Management Board dated 28.03.2008). (extract from No.1845pr/3Minutes of the meeting of holders JSC TPP Sochinskaya on 28.03.2008 the objectives of Revision Commission, its Commission, Revision ofobjectives the define Regulations The 28.03.2008).dated No.1845pr/3 Board Man-agement the of meeting Minutes the of from (extract 28.03.2008 on TPP Sochinskaya JSC of Shareholders of functions of an Extraordinary General Meeting performing Russia of UES RAO JSC of Board Management the of decision the byproved ap wereRegulations Commission Revision REVISION COMMISSIONREGULATIONS paid. and accrued be not cancelled or annulled by the f ederal Law, shall ------TPP Shareholders on 28.03.2008 (extract from Sochinskaya JSC of Meeting General dinary Russia performing the functions of an Extraor of Board RAO JSC UES of of Management the decision the byapproved were Commission RevisiontheofPayable Memberstions theto Regulations on Remunerations and Compensa BERS OFTHEREVISIONCOMMISSION COMPENSATIONS PAYABLETOTHEMEM- REGULATIONS ONREMUNERATIONSAND inspections. ofprocedure the sets and duties, and rights http://www.interrao.ru /the company/documents/ website of JSC RAO INTER UES in the Internet: of the Company are published on the corporate relationship in the field of corporate governance theregulating documents The Commission. specialists (experts) employed by the Revision to as well as members Commission Revision payment of remuneration and compensation to tions set forth the amount, form and periods of Man the of meeting Board agement The dated Regula- 28.03.2008). the of No.1845pr/3 Minutes - - -

27 ANNUAL REPORT JSC RAO UES / 2010 28 ANNUAL REPORT JSC RAO UES / 2010 and supervision bodies, employees, representa regulatoryshareholders, including Company the of audiences target all that stipulates and based and on principle equal access full-value is Policy This activity. of results the Company’s corporateandactions aboutCompany the of at immediate information of the target audiences Policy of RAO INTER Information UES is aimed Directors. of Board the by approved Regulations the Company are defined in Information Policy The main principles of informational activities of market. domestic the in require public meets ments to and informational of activity of major players aware well is sector, power in the Russian of companies the largest one UES, RAO INTER company. public major developmentforsuccessfulconditionsanyof key the of one transparencyisInformational INFORMATION POLICY finding and obtaining. its guaranteeingprocedures the to pursuant informationsuch obtaining of purposes the holders and concerned parties notwithstanding tion includng ensuring its accessibility to share Regulation stipulating the disclosure of informa Policy Information approved UES RAO INTER JSC of Directors of Board the 2010 August In documents. f approved by Securities the order of the f Equity of Issuers InformationbyofDisclosure and “On Securities Market”, and Regulations on the f of requirements the follows UES RAO INTER JSC information of disclosure of sphere the In 3.2 inancial Markets Service and other regulatory ederal Laws “On Joint-Stock-Companies” DISCLOSURE OfINfORMATION ederal - - - - and in statutory acts of JSC INTER RAO UES. RAO INTER JSC of acts statutory in and dicated in the laws of the the f Russian mation, accessible for all these audiences as in social organizations shall have access to infor and banking and finance media, of mass tives operations of the Company, its goals and objec receive all required information and news about of results the in Company the whole, and timely her personal contribution to development and our employee should evaluate the impact of his/ each that ensure to We strive Company. the in working employees 371 2 are There staff. its is important, equally is Company,which the of policyinformation of elementkey Another and individually. group in both media mass and Company the representativesbetween ofdiscussions open regular and interviews and comments for ers manag of availability ensuring basis, timely and regular a on news all about information providing them, with proactive be to tries and to all questions of mass media representatives answersdetailed gives Company The media. mass relationsconfidentialwith and open ing information policy of the Company is establish Another essential instrument for implementing financial communications. of and the improving quality its and intensifying them to provided information of range the ing investor and shareholder relations byto broaden approach its improving constantly is RAO INTER end, this To Company. the of appeal for growth of shareholder value and investment development strategy is one of essential drivers porate governance and scrupulously elaborated cor high-quality with transparencyalongside informational that convinced is RAO INTER ederation ------this corporate integration in every our employee. of feeling the sustaining and at creating aimed its development; and our information policy as as the integral, strategically vital component of only if any of its employees recognizes oneself achieving absolute success in its develop-ment tives. We believe that the is Company of capable BOARD OFDIRECTORS General Meeting of Shareholders. terms. Candidates for election into Board of Boardinto election forCandidates terms. ofunlimitednumber foranre-elected may be be elected members of the Board of Directors Meeting of Shareholders. Persons proposed to early terminated by the decision of the General of any of member the Board of may Directors be annual General Meeting of Shareholders. Power at General Meeting of Shareholders until the next Members of the Board of Directors are elected of 11 consisting body members. is a collective of Directors Board The of Directors. Board the lations on Convening and Directors is specified in the Charter and Regu of Board the of procedure Operating Charter. ties the within in scope stipulated of the authority decisions on vital issues of the Company’s activi ties is exercised by the Board of taking Directors General management of the Company’s activi PreparingRegulationsonand and eral Law “On Joint-Stock-Companies”, Charter f in the are stipulated of holding forms and holding and preparing ofprocedure periods, ofauthority General Meeting of Shareholders, General Meeting of Shareholders. The Revi scope of and bodies the toaccountable be shall Commission sion executive Directors, of Board ofauthority General Meeting of Shareholders. in pany’s with the accordance activity scope of decisions on the most vital issues of the Com participate in managing the Company by taking to right their to exercise possibility the with ers shareholdprovidesShareholdersof Meeting pany is a supreme management body. General GeneralMeeting of Shareholders of the Com GENERAL MEETINGOFSHAREHOLDERS 3.3 AND CONTROLBODIES MANAGEMENT h olding Meetings of holding of of holding ed ------ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ 01, 2010. 25, June 2010 till Members of the Board of Directors from January underwent changes. In 2010 the Board of of Directors the Company Directors. of Board the of initiative the by and shares, voting 2% least at owning shareholders by submitted be canDirectors was elected at the General Annual Meeting of of Meeting Annual General the at elected was The current Board of Directors of the Company

ergy oftheRussianfederation Shmatko Sergey Ivanovich eral DirectorofMezhregiongaz, LLC Processing Department of Gazprom, JSC; Gen- and Marketing hydrocarbons Liquid and Gas the of head Committee, Management the of Gennadyevich Kirill Seleznyov federal Agency for State Property Management Alexandrovich Yuri Petrov Exchange Mercantile International Petersburg St. CJSC Maslov Sergei Vladimirovich Russian RegionalDevelopmentBank Kurtser Grigory Markovich eral DirectorofLLCRosneft-Energo Kravchenko Vyacheslav Mikhailovich of the Management Board of INTER RAO UES Kovalchuk Boris Yurievich tion Rosatom Corpora- Energy Atomic State the of Director Vladilenovich Sergey Kirienko of theManagementBoardJSCRushydro Vyacheslavovich Evgeny Dod Director ofJSCRussianCommercialBank Alexandrovich Nikolai Anoshko the Russianfederation of Minister Prime Deputy Directors, of Board Ivanovich Igor Sechin — Chairman of the of Chairman — — President of JSC — acting Chairman — Minister of En- — head of the of head — — President of — Chairman — — Member — — General — — General — — Gen- ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ 25, 2010 up to the present day are: day present 201025, to the up BoardoftheofMembersDirectors fromJune 26.06.2010). dated No.5 (Minutes Shareholders of the Company on June 25, 2010

bank) and foreign Economic Affairs (vnesheconom- of the State Corporation Bank for Development Dmitriev Vladimir Alexandrovich of theManagementBoardJSCRushydro Vyacheslavovich Evgeny Dod the Russianfederation of Minister Prime Deputy Directors, of Board Ivanovich Igor Sechin ergy oftheRussianfederation Shmatko Sergey Ivanovich eral DirectorofMezhregiongaz,LLC Processing Department of Gazprom, JSC; Gen- and Marketing hydrocarbons Liquid and Gas the of head Committee, Management the of Gennadyevich Kirill Seleznyov federal Agency for State Property Management Alexandrovich Yuri Petrov Corporation Rosatom Energy Atomic State the of Director General Markovich Alexander Lokshin JSC RussianRegionalDevelopmentBank Markovich Gregory Kurtser eral DirectorofLLCOESK Kravchenko Vyacheslav Mikhailovich Management BoardofJSCINTERRAOUES Kovalchuk Boris Yurievich — Chairman of the of Chairman — — Chairman of the — Minister of En- — head of the of head — — President of President — — Chairman — — Chairman — Member — — Deputy — — Gen-

29 ANNUAL REPORT JSC RAO UES / 2010 30 ANNUAL REPORT JSC RAO UES / 2010 Securities Market ( ƒ ƒ ƒ recommended by the CorporateofAccordingCodeConduct tothe and Compensations Payable to the Members RemunerationsonRegulations topursuant of Directors of the Company were determined and compensations to members of the Board The amount andpayment of remunerations them. of all on made There were 231 issues reviewed and decisions Company.the ofdevelopmentstrategic and to attention the related issues to current activity of RAO UES special JSC paid Directors INTER of Board 2010the In held. not were meet-ings in the form of vote.presence absent Collective In 2010 the Board of held Directors 14 meetings directors: ing persons are acknowledged as independent Anoshko NikolaiAlexandrovich Shmatko SergeyIvanovich Sechin IgorIvanovich Seleznyov KirillGennadyevich Petrov YuriAlexandrovich (BOD membersince25.06.2010) Maslov Sergeivladimirovich (BOD membersince25.06.2010) Lokshin AlexanderMarkovich Kurtser GrigoryMarkovich Kravchenko vyacheslavMikhailovich Kovalchuk BorisYurievich (BOD membersince25.06.2010) Kirienko Sergeyvladilenovich Dod Evgenyvyacheslavovich (BOD membersince25.06.2010) Dmitriev vladimirAlexandrovich DATA ONBODMEMBERS’PARTICIPATIONINMEETINGS Full Name

Seleznyov KirillGennadyevich Kurtser GregoryMarkovich Anoshko NikolaiAlexandrovich f CSM) of Russia the follow the Russia of CSM) f ederal Commission for meetings aBODmembercouldhavetakenpart Number ofmeetingsaBODmembertookpartin/Totalnumber - to the following formula: following to the receiveremuneration calculatedaccording Directors of the Company its members shall f been has entities legal frompayments ing receiv for right whoseDirectors of Board be paid to the Chairman and members of the Remunerations and compensations shall not Company. the of as member of the Collective Executive Body acting as a Sole Executive Body or elected payable to members of the Board of Directors notare compensations and Remuneration sations was carried out in the monetary form. RAO INTER UES. Payment JSC of of remunerations and compen Directors of Board the of cancelled or annulled by the by the annulled or cancelled or participation in activities of the Board of Vmbd = Vbase ×

m f j , ederal Law. 14/14 14/14 14/14 13/14 14/14 14/14 14/14 13/14 14/14 7/7 7/7 7/7 6/7 - - ƒ ƒ the new Board of Directors was elected. was Directors of Board new the General Meeting of the Shareholders at which of until the the date Shareholders of the Annual the date of the Meeting General Annual previous m — part. took Directors of the of Board member this in which Directors of Board the of meetings of number the j — remuneration; the of part basic the Vbase — Company. the of Directors of Board the of member to Vmbd — where: be increased: be amountTheof thepayable remuneration may Shareholders of the Company. the of Meeting General the by determined be shallremuneration additional the of payment rectors.The amount, regulations and terms of Di- of Board the to paid be may remuneration additional the Shareholders of Meeting eral Gen the of decision the with accordance In duties). his of termination of time the to up elected was he (since held meetings of 50% than more in ber of the Board of has Directors not taken part The remuneration shall not be paid if the mem adopted. was Directors of Board anew of the Company at which the decision of election annual general meeting of the shareholders of for meeting, annual a month after the date of the after their the forming duties date of the previous per- been have who Directors of Board the of The remuneration shall be paid to the members 1, 2010. January from as Company year to according acts the of local statutory the basic part of the remuneration is indexed every (vbase) is The 1 of rubles. amount 000 400 the The amount of the basic part of the remuneration

Board ofDirectors; By 15% for Chairmen of the committees of the rectors; Di- of Board the of Chairman the for 30% By

the total number of meetings held as from

theamount of remuneration payable - - ƒ ƒ ƒ ƒ ƒ the decision of the Board of Directors of the Com the of Directors of Board the of decision the Members of the Committee shall be defined by them. for incentives work provide and process is to engage qualified specialists in management Remuneration Committee of the Board of Directors The main of objective the TION COMMITTEE HUMAN RESOURCESANDREMUNERA- three Committees: of of Directors JSC INTER RAO UES established Board the duties, its perform to better order In OF DIRECTORS COMMITTEES OFTHEBOARD the Company). of plan option to pursuant benefits financial account into (taking rubles thousand 131856 Members of the Board of Directors constituted tuted 3472 thousand rubles. Other consti payments Directors to of Board the of work the in participation their for UES RAO INTER JSC of Directors of Board the of members the to In 2010 the total amount of remuneration paid Company. the of Directors of Board the of man sues related to fulfillment of duties of the Chair meals, etc.) the of and making decisions on other is Meeting the in Board of Directors (transport, accommodation, participation his to related be shall Directors of reimbursed for all Board his business travel the of expenses Chairman The

Strategy andInvestmentCommittee Audit Committee mittee Com- Remunerations and Resources human summed up. The stated additions to remunerations shall be he waselected. which of member the Directors, of Board the participation in the work of every committee of the for Directors, of Board the of committee every of work the in participation the for tors By 10% for the members of the Board of Direc- h uman Resources and - - - - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ given for the moment of election): of moment the for given are (positions 16.09.2009 on takenDirectors of Board the of decision to according formed DirectorsofBoard the of Committee neration Members of the Committee was reelected twice. theDirectors of Board the of Committee tion In 2010 the h Company. the of Directors of Board the of Directors from candidates submitted by members the Committee shall be elected by the Board of of 3 and a maximum of 7 members. Members of pany; the Committee shall consist of a minimum ment of election): on 19.08.2010 (positions are given for the mo taken by to the Board of the decision Directors accordingformed Committee Remuneration the of members The

Director ofLLC Rosneft-Energo; General Directors, of Board the of member Mikhailovich Vyacheslav Kravchenko (Rosimushchestvo); federal Agency for State Property Management Nikitin Gleb Sergeevich sian federation(ChairmanoftheCommittee); Board of Directors, Minister of Energy of the Rus- Ivanovich Sergey Smatko porate CenterofJSCINTERRAOUES. Cor- of head Board, Management the of man Mantrov Mikhail Alexeevich (Rosimushchestvo); federal Agency for State Property Management Nikitin Gleb Sergeevich ment ofJSCvTBBank; Board of Directors, head of Resource Manage- Kurtser Grigory Markovich Director ofLLCRosneft-Energo; General Directors, of Board the of member Mikhailovich Vyacheslav Kravchenko the State Atomic Energy Corporation Rosatom; of Director General Directors, of Board the of Vladilenovich Sergey Kirienko sian federation(ChairmanoftheCommittee); Board of Directors, Minister of Energy of the Rus- Shmatko Sergey Ivanovich uman Resources and Remunera h uman Resources and Remu h uman Resources and Resources uman — Deputy head of the — Deputy head of the — member of the of member — — member of the — member of the — Deputy Chair- — member — — — - - - ƒ ƒ ƒ ƒ ƒ ƒ The objective of the Committee is to develop and AUDIT COMMITTEE of election): 06.02.2009 (positions are given for the moment the decision of the Board of Directors taken on Membership of the Audit Committee formed by times: three re-elected was Directors of Board the of Committee Audit the 2010 In the total number of its members. and Committeethe ofmembership the mines The Board of Directors of the Company deter Company. (auditor) the of firm audit an as interaction with the Revision Commission and for selection of an independent audit firm as well of the Committee is to develop recommendations activity of the Company. One of the key functions tors in the control of the financial and economic of Direc Board of the participation the ensures sphere the in of Company audit and the internal of control. The Audit Committee Directors of Board (conclusions)therecommendations to submit

agement ofJSCvTB; Man- Resources of head Directors, of Board the BoardofDirectors,JSCINTERRAOUES. Boris Alexander Gennadyevich Rosatom; Corporation Energy Atomic State the of rector Di- General Deputy Directors, of Board the of Markovich Alexander Lokshin Bank (JSCRRDB); Stock Company Russian Regional Development Joint Open of President Directors, of Board Kurtser Grigory Markovich Kurtser Gregoriy Markovich Gregoriy Kurtser Petersburg International Mercantile Exchange; St. CJSC of President Directors, of Board the Vladimirovich Sergei Maslov the Committee); Russische Kommerzial Bank AG (Chairman of of Director General Directors, of Board the of Alexandrovich Nikolai Anoshko — member of the — member of member — — member of member — — member of — member — — member — - -

31 ANNUAL REPORT JSC RAO UES / 2010 32 ANNUAL REPORT JSC RAO UES / 2010 ƒ ƒ ƒ ƒ ƒ ƒ determining directions,priority strategic goals activity: of areasfollowing the on Company the of Directors of Board the to mendations tee include developing and submitting recom f STRATEGY AND INVESTMENT COMMITTEE B-quotation lists. &A the in included are shares whose issuers the toexchanges stock ofrequirements the meet shall and Directors of Board the of bers mem non-executive and independent from only elected be shall Committee Audit The of election): 30.09.2010 (positions are given for the moment the decision of the Board of Directors taken on Membership of the Audit Committee formed by election): of moment the for given of Directors taken on 19.08.2010 Board of (positions aredecision the by formed Directors of ofMembershipAudittheofCommittee Board

unctions of Investment and Strategy Commit of LLCMezhregiongaz; Department at JSC Gazprom, General Director Liquid hydrocarbons Marketing and Processing the Management Board, head of the Gas and Seleznyov Kirill Gennadyevich Bank (JSCRRDB); Stock Company Russian Regional Development Joint Open of President Directors, of Board Kurtser Grigory Markovich the Committee); Russische Kommerzial Bank AG (Chairman of of Director General Directors, of Board the of Alexandrovich Nikolai Anoshko Bank (JSCRRDB); Stock Company Russian Regional Development Joint Open of President Directors, of Board Kurtser Grigory Markovich Director ofLLCRN-Energo; General Directors, of Board the of member Mikhailovich Vyacheslav Kravchenko the Committee); Russische Kommerzial Bank AG (Chairman of of Director General Directors, of Board the of Alexandrovich Nikolai Anoshko — member of the — member of the — member of — member — member — — - - - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ given for the moment of election): of moment the for given of Directors taken on 16.09.2009 (positions are Committee formed by the decision of the Board Strategyand Investment the of Membership three times: re-elected was Directors of Board the of tee StrategyCommit Investment2010andthe In decisions. activities and approving reasonable investment tiveness of the Company; improving investment of the Company; increasing invest-ment attrac strategicdevelopmentof principles main and given for the moment of election): of moment the for given of Directors taken on 19.08.2010 (positions are Committee formed by the decision of the Board Strategyand Investment the of Membership eral Directorof LLC RN-Energo; Kravchenko Vyacheslav Mikhailovich sheconombank; Management Board, Deputy Chairman of vne- Borisovich Anatoly Ballo sian federation(Chairmanofthe Committee); Board of Directors, Minister of Energy of the Rus- Shmatko Sergey Ivanovich vestment Committee of JSC INTER RAO UES. In- and Strategy of head Board, Management Rizhinashvili George Ilyich bank; porate financing Department of JSB Gazprom- Skribot Wolfgang sheconombank; Management Board, Deputy Chairman of vne- Borisovich Anatoly Ballo Minister of Energy of the the Russian federation; Yuryevich Stanislav Svetlitskiy (Rosimushchestvo); federal Agency for State Property Management Nikitin Gleb Sergeevich Corporation Rosatom; Energy Atomic State the at Development for Director General Deputy Directors, of Board Kovalchuk Boris Yurievich sian federation(ChairmanoftheCommittee); Board of Directors, Minister of Energy of the Rus- Shmatko Sergey Ivanovich — Managing Director of Cor- — Deputy head of the — member of the of member — the of member — — member of the — Member of the — member of the — member of the — Deputy — — Gen- - - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ given for the moment of election): of moment the for given of Directors taken on 24.12.2010 (positions are Committee formed by the decision of the Board Strategyand Investment the of Membership

Nikitin Gleb Sergeevich Investment Committee of JSC INTER RAO UES; the Management Board, head of Strategy and Ilbatyrovich Ilnar Mirsiyapov Rosatom; Corporation Energy Atomic State the of rector Di- General Deputy Directors, of Board the of Markovich Alexander Lokshin ister ofEnergytheRussian federation. Shishkin Andrey Nikolaevich Gazprombank. JSB of Department financing Corporate the federation; Russian the the of Energy of Ministry the of Development Energy Electric for Department Vladislavovich Vasily Nikonov (Rosimushchestvo); federal Agency for State Property Management Skribot Wolfgang Skribot (Rosimushchestvo); federal Agency for State Property Management Nikitin Gleb Sergeevich In-vestment Committee of JSC INTER RAO UES; and Strategy of head Directors, of Board the Ilbatyrovich Ilnar Mirsiyapov Rosatom; Corporation Energy Atomic State the of rector Di- General Deputy Directors, of Board the of Markovich Alexander Lokshin eral DirectorofLLCRN-Energo; Kravchenko Vyacheslav Mikhailovich sheconombank; Management Board, Deputy Chairman of vne- Borisovich Anatoly Ballo sian federation(ChairmanoftheCommittee); Board of Directors, Minister of Energy of the Rus- Shmatko Sergey Ivanovich bank. porate financing Department of JSB Gazprom- Skribot Wolfgang — Managing Director of Cor- — Managing Director of Director Managing — — Deputy head of the — Deputy head of the — member of the of member — — member of the — Deputy Min- — member of member — — member of member — — member — — member — — head of head — — Gen- 3.4 (asofDecember31,2010): Of ThEBOARDDIRECTORS INfORMATION ABOUTMEMBERS 2004 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2004 2008 2009 2008 5years: last the for Positions Citizenship: Economics in Ph.D. Education: birth: of Date UES RAO INTER JSC of Directors of Board the of Chairman IGOR IVANOVICHSECHIN 2006 2008 — till present JSC NC Rosneft, Chairman of the Board of Directors of Board the of Chairman Rosneft, NC JSC present —till

— till present Member of the Government of the the Russian f Russian the the of Government the of Member present —till — till present JSC INTER RAO UES, Chairman of the Board of Directors of Board the of Chairman UES, RAO INTER JSC present —till — till present LLC National Oil Consortium, Chairman of the Board of Directors of Board the of Chairman Consortium, Oil LLC National present —till — till present JSC ROSNEfTEGAZ, Chairman of the Board of Directors of Board the of Chairman ROSNEfTEGAZ, JSC present —till — 2008 2008 — — till present till —

JSC United Shipbuilding Corporation, Chairman of the Board of Direc Prime Minister. Prime f Russian the University State Leningrad the from graduated 1960 Deputy head of of Deputy the the of Administration President the the Russian f tors ederation ederation ederation, Deputy ederation,Deputy -

33 ANNUAL REPORT JSC RAO UES / 2010 34 ANNUAL REPORT JSC RAO UES / 2010 2009 Education: Year birth: of of Member the Board of of Directors JSC RAO INTER of UES, Chairman the Audit Committee NIKOLAI ALEKSANDROVICHANOSHKO 2006 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2009 2010 5years: last the for Positions Citizenship: 01.2003 2008 2009 2003 — till present Advisor to the Chairman of the Board, Gazprombank OJSC Gazprombank Board, the of Chairman to the Advisor present —till — till present present —till — till present JSC INTER RAO UES, member of the Board of Directors of Board the of member UES, RAO INTER JSC present —till — till present present —till f present —till

— till present — 2010 2010 — —2010

1950 Directors JSCRussian Regional Development Bank, member of the Board of f Russian the Berlin of University Russian Commercial Bank, JSC Directors of Board Assistenza (06.07.2006 (23.02.2006 Directors of Board the of Chairman Deputy Directors Investment netet opn ID company Investment graduated from the Moscow financial Institute and the h the and Institute financial Moscow the from graduated inancial Company Private Asset Partners AG, Partners Asset Private Company inancial f — till present) —till fund GOODROCK fUNDS, Chairman of the Board of of Board the of Chairman fUNDS, GOODROCK fund — 03.07.2006), Chairman of the Board of Directors Directors of Board the of Chairman 03.07.2006), — inanziaria and CommercialeinanziariaS.r.l.,and Italy,theof member ederation f, member of the Board of Directors Directors of Board the of member f, — General Director umboldt 06.2010 06.2010 06.2009 06.2009 06.2008 2003 2005 06.2009 06.2009 06.2008 06.2009 06.2010 11.2009 5years: last the for Positions Citizenship: Education: Year birth: of UES RAO INTER JSC of Directors of Board the of Member EVGENY VYACHESLAVOVICHDOD Ordinary shares of JSC INTER RAO UES in ownership, %: 0.1383 ownership, in UES RAO INTER JSC of shares Ordinary %: UES, 0.1383 RAO INTER JSC of capital charter the in Share 1999 1999 04.2007 2007 2007 2007 2008 06.2009 2007 06.2009 06.2010 06.2008 2007 — 2008 —2008 —2008 — 2009 —2009 —2009 —2009 —2010 — 2009 —2009

— 11.2009 JSC INTER RAO UES, Chairman of the Management Board Management the of Chairman UES, RAO INTER JSC —11.2009 — 2009 — — 2009 2009 — — till present JSC Rushydro, Chairman of the Management Board Management the of Chairman Rushydro, JSC present —till — till present NP hydropower of Russia, Member of the Supervisory Board Supervisory the of Member Russia, of hydropower NP Board Supervisory the of Member RRDB, JSC present —till present —till — till present JSC Rushydro, Member of the Board of Directors of Board the of Member Rushydro, JSC present —till — till present CJSC CfR, Member of the Board of Directors of Board the of Member CfR, CJSC present —till — 12.2007 RAO Nordic Oy, Chairman of the Management Board Management the of Oy, Chairman Nordic RAO —12.2007

— till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till — 06.2010 JSC the f the JSC —06.2010 —06.2010

— 2010 JSC Sangtudinskaya hPP-1, Chairman of the Board of Directors of hPP-1, Board the of Chairman Sangtudinskaya JSC —2010 Directors of Board the of GES-1, Member Kambaratinskaya CJSC —03.2010

— 12.2008 — — till present till — — 06.2010 — — till present till — — 2010 2010 —

JSC f JSC

Member of the Board of Directors of Board the of Member Directors of Board SystemoperatorJSCUniformpowersystem,thethe ofof Member the Russian f Russian the Ph.D.Economics in eration, of Public Administration under the President of the the Russian Academy the from graduated Russian the Institute, Aviation Moscow 1973 JSC Interregional Distribution Grid Companies (IDGC) CJSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER CJSC Director General UES, RAO INTER CJSC Board tors Board Management the of Member TGR Enerji, f UES RAO INTER Directors of Board the of Chairman GRES, Moldavskaya CJSC Directors of Board the of Member Company, Energy Eastern JSC Directors of Board the of ber Directors of of the Board of Member of the Board Directors, Chairman Market, Directors of Board the of Member Company, Power Industrial CJSC Board Management the of Member Entrepreneurs, and ists Directors of Board the of Member Company, CJSC Aikakan Atomajin Elektrakayan, Member of the Board of Direc CJSC Electric Networks of Armenia, Member of the Board of Directors Open Joint Stock Company Irkutsk Power Generation and Distribution The All-Russian Association of Employers Russian Union of Industrial UAB Energijos Realizacijos Centras — Chairman of the Management irst Power Generating Company on the Wholesale Energy Wholesale the on CompanyGenerating Power irst ederal Network Company of the Uniform Power System,Power Uniform the of Company Network ederal ederation INANCE LLC, Chairman of the Board of Directors of Board the of LLC,Chairman INANCE h olding, Mem f ed - - - -

35 ANNUAL REPORT JSC RAO UES / 2010 36 ANNUAL REPORT JSC RAO UES / 2010 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2010 12.2010 2010 2010 5years: last the for Positions Citizenship: Education: Year birth: of UES RAO INTER JSC of Directors of Board the of Member VLADIMIR ALEXANDROVICHDMITRIEV 2007 2007 06.2007 2008 2008 2009 2009 2001 2002 2004 2004 2004 2008 2008 2008 2009 — till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till — till present JSC Kamaz, member of the Board of Directors of Board the of member Kamaz, JSC present —till present —till — 2007 —2007 — 2006 —2006 — till present JSC NOvATEK, Member of the Board of Directors of Board the of NOvATEK, JSC Member —2007 —2007 present —till

— till present JSC Aeroflot, Member of the Board of Directors of Board the of Member Aeroflot, JSC —2009 Directors of Board the of Member Corporation, present —till Aircraft United JSC present —till

— till present present —till

— 2010 — — 2009 — — till present till — — till present till — — till present till —

— till present — till present till —

State Corporation Russian Corporation of Nanotechnologies, Member LLC LLC f Russian the f Moscow the from graduated 1953 JSC North Caucasus Development Corporation, Chairman of the of ChairmanCorporation, Development Caucasus North JSC the Associated Member of the Russian Academy of Natural Sciences JSC hotel Budapest, Chairman of the Board of Directors of Board the of Chairman Budapest, hotel JSC Board Supervisory the of AG, Member Donau-Bank Directors of Board the (Cyprus),of BankLtd., Member Commercial Russian Chairman USSR, the of vnesheconombank Board Supervisory the of Board Supervisory the of Member Chairman, (vnesheconombank), Directors Directors of Board the of Member Stroyrtansgaz, JSC tors Board Supervisory the of Chairman Board CJSC GLOBE Directors of Board CJSC Joint Stock Commercial Industrial and Investment Bank, Ukraine, State Corporation Bank for Development and JSC United Shipbuilding Corporation, Member of the Board of Direc JSC International Airport Sheremetievo, Member of the Board of Board the of Sheremetievo,Member Airport International JSC SOOO Minsk-City, the Republic of Belarus, Member of the Supervisory vEB CAPITAL, Chairman of the Supervisory Board Supervisory the of Chairman CAPITAL, vEB ederation x bank, Chairman of the Supervisory Board Supervisory the of Chairman x bank, inance Institute,inance Ph.D. Economics,in f oreign Economic Affairs - 2006 2006 2009 06.2009 11.2009 2010 2010 06.2010 06.2010 06.2010 2010 12.2010 11.2010 06.2010 02.2010 06.2009 06.2010 5years: last the for Positions Citizenship: Education: Year birth: of Board Management the of Chairman UES, RAO INTER JSC of Directors of Board the of Member BORIS YURIEVICHKOVALCHUK No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 12.2010 12.2010 12.2010 11.2010

— till present LLC RSPP, Member of the Management Board LLC RSPP, Management the of Member present —till present —till —11.2009

— 2009 — present till — — 2006 — — till present JSC Altaienergosbyt, Chairman of the Board of Directors of Board the of Chairman Altaienergosbyt, JSC present —till

— till present present —till Directors of Board the of Chairman Saratovenergo, JSC Directors of Board of Chairman Mosenergosbyt, JSC present —till present —till

— till present JSC OGC-1, Chairman of the Board of Directors of Board the of OGC-1, JSC Chairman present —till — till present JSC Irkutskenergo, Member of the Board of Directors of Board the of Member Irkutskenergo, JSC Directors of Board the of Member Rushydro, JSC present Directors of —till Board the of ATS, JSC Member present —till present —till Directors of Board the of Member RAO-WorleyParsons, LLC INTER present —till Board Management the of Chairman UES, RAO INTER JSC present —till present till — — 02.2010 JSC OGK-1, Member of the Management Board OGK-1, Management JSC the of Member —02.2010 Directors of Board the of Member UES, RAO INTER JSC present —till — till present till — — 06.2010 —

CJSC Kambaratinskaya GES for Development State Atomic Energy Corporation Rosatom, Deputy General Director Board alists and Entrepreneurs (OOR RSPP), Member of the Management The All-Russian Association of Employers Russian Union of Industri f Russian the University State Petersburg St. the from graduated 1977 The Government Executive Office, ExecutiveGovernment The JSC Unified Energy Sales Company, Chairman of the Board of Direc Government of the the Russian f Russian the the of Government Deputy Prime Minister Prime Deputy mentation of Priority National Projects Directors of JSCSt. Petersburg Energy SalesCompany, Chairman of theBoard tors tors JSC INTER RAO UES, the acting Chairman of the Management Board Management the of Chairman acting the UES, RAO INTER JSC JSC Tambov Power Sales Company, Chairman of the Board of Direc ederation

— 1, Chairman of the Board of Directors of Board the of Chairman 1, — ederation, assistant to the to assistantederation, h ead of Department for Imple for Department of ead first first - - - -

37 ANNUAL REPORT JSC RAO UES / 2010 38 ANNUAL REPORT JSC RAO UES / 2010 06.2009 06.2009 06.2009 03.2010 05.2010 06.2010 06.2010 06.2010 07.2010 08.2010 5years: last the for Positions Citizenship: Education: Year birth: of UES RAO INTER JSC of Directors of Board the of Member VYACHESLAV MIKHAILOVICHKRAVCHENKO 2004 8 0 07.20 9 0 07.20 10.2007 2008 2008 06.2008 06.2008 8 0 07.20 09.2008 2009 01.2009 03.2009 03.2009 06.2009 72 5 0 07.20 5 0 07.20 5 0 07.20 5 0 07.20 5 0 07.20 5 0 07.20 2006 06.2007 06.2008

— till present JSC Rostopprom, Member of the Board of Directors of Board the of Member Rostopprom, JSC Directors of Board the of Member UES, RAO INTER JSC present —till present —till — till present JSC Tomskelectrosetremont, Member of the Board of Directors of Board the of Member Tomskelectrosetremont, JSC present —till — 2008 —2008 — 07.2008 — till present JSC Tomsk Backbone Grids, Member of the Board of Directors of Board the of Member Grids, Tomsk Backbone JSC present —till — till present NP Market Council, Member of the Supervisory Board Supervisory the of Member Council, Market NP present —till — 06.2009 JSC IDGS of the Urals — Member of the Board of Directors of Board the of —Member Urals the of IDGS JSC Directors of Board the of —Member volga of IDGS JSC Directors of Board the of —Member Siberia of IDGS JSC —06.2009 Directors of Board the of —member North-West the of IDGS JSC —06.2009 Directors of Board the of —Member South of IDGS JSC —06.2009 of —06.2009 Board the of Member Region, volga and Center the of IDGS JSC —06.2009 —06.2009

— 05.2010 JSC TGK-1, Directors of JSC Board the of Member —05.2010 — till present JSC RRDB, Member of the Board of Directors of Board the of Member RRDB, JSC present —till — till present present —till — till present JSC OESK, General Director General OESK, JSC present —till — till present CJSC PEC, Member of the Board of Directors of Board the of PEC, Member CJSC Directors of Board the of ATS, JSC Member present —till present —till — till present CJSC CfR, Member of the Board of Directors of Board the of Member CfR, CJSC present —till — till present JSC Tomskenergoremont, Member of the Board of Directors of Board the of Member Tomskenergoremont, JSC present —till — till present JSC IDGC holding, Member of the Board of Directors of Board the of Member holding, IDGC JSC present —till — 06.2009 JSC Tymenenergo, Member of the Board of Directors of Board the of Member Tymenenergo, JSC —06.2009 — till present present —till — till present Kuban Backbone Grids, Member of the Board of Directors of Board the of Member Grids, Backbone Kuban present —till present —till — till present JSC Kubanenergo, Member of the Board of Directors of Board the of Member Kubanenergo, JSC present —till Directors of Board the of Member TRK, JSC present —till present —till — till present JSC Irkutskenergo, Member of the Board of Directors of Board the of Member Irkutskenergo, JSC Directors of Board the of Member Rosgazifikatsiya, JSC present —till present —till — 06.2009 JSC South Network Company, Member of Board of the Directors the of Board of Member Company, Network South JSC —06.2009

— 12.2008 — — till present till —

JSC Kuban Generating Company, Member of the Board of Directors JSC Tomsk Distributive Company, Member of the Board of Directors the Russian f Russian the University State Moscow Lomonosov from graduated 1967 LLC RN-Energo, General Director JSC Tomsk Distribution Company, Member of the Board of Directors JSC Kuban Power Sales Company, Member of the Board of Directors JSC RAO Energy Systems of the East, Member of the Board of Direc of Board the of Member East, the of Systems Energy RAO JSC Structural and Tariff Policy in Natural Monopolies of Power and Directorof Department Industry, the Policy inIndustry Directors Directors of Board the of Member Energosetproyekt, Institute JSC tors Deputy Director of the Department of Structural and Investmentand Structuralof Department the ofDirector Deputy ederation - 11.2010 10.2003 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 12.2010 12.2010 12.2010 12.2010 11.2010 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 06.2010 06.2010 06.2010 5years: last the for Positions Citizenship: Education: Year birth: of Committee Remuneration and HR the of member and Committee Audit the of member UES, RAO INTER JSC of Directors of Board of Member GRIGORY MARKOVICHKURTSER 01.2007 — 12.2009 — 01.2007 02.2005 — 12.2006 JSC JSC Bank for f —12.2006 02.2005 06.2010 06.2010 — till present JSC Altaienergosbyt, Member of the Board of Directors of Board the of Member Altaienergosbyt, JSC present —till — till present present till — — till present present —till Directors of Board the of Member Saratovenergo, JSC Directors of Board the of Member present Mosenergosbyt, —till JSC present —till present —till — till present present —till — till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till Directors of Board the of Member Rushydro, JSC present —till

— 07.2008 NP Administrator of Trading System of the Wholesale Power Market Market Power Wholesale the of TradingSystem of Administrator NP —07.2008 present till — — till present till —

JSC vTB JSC Bank, h vTB

within the Unified Energy System (NP ATS) —Representative of the the of ATS) —Representative (NP System Energy Unified the within Directors JSC St. Petersburg Power Sales Company, Member of the Board of tors JSC Tambov Power Sales Company, Member of the Board of Direc tors of Government the the f Russian JSC Unified Power Trading Company, Member of the Board of Direc NP f Russian the f Russian the f the from graduated 1980 fixed-income Instruments of the Treasury Treasury the of Instruments fixed-income Department Board Supervisory the of tors JSC RAO Energy Systems of the East, Member of the Board of Direc of Board the of Member East, the of Systems Energy RAO JSC JSC Russian Regional Development Bank (RRDB), President, Member f NEfTGARANT, Member of the Board of Directors of Board the of Member f NEfTGARANT, ederation ederation oreign Trade, Dealer of the Department for Ruble and ead of Treasury Management Division of the inance Academy under the Government of the ederation in the Supervisory Council. finance finance - - -

39 ANNUAL REPORT JSC RAO UES / 2010 40 ANNUAL REPORT JSC RAO UES / 2010 f 07.2007 —06.2008 f 07.2007 —06.2008 8 0 07.20 72 8 0 07.20 10.2008 12.2008 05.2009 06.2009 06.2009 10.2009 Education: Year birth: of Committee Investment and Strategy the of member and Committee Remuneration and HR the of member UES, RAO INTER JCS of Directors of Board the of Member ALEXANDER MARKOVICHLOKSHIN No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 01.2010 06.2010 5years: last the for Positions Citizenship: — till present JSC TvEL, Chairman of the Board of Directors of Board the of Chairman TvEL, JSC present —till — till present present —till — till present present —till — till present OJSC Energoatom Concern, Chairman of the Board of Directors of Board the of Chairman Concern, Energoatom OJSC present —till — till present NP Market Council, Member of the Supervisory Board Supervisory the of Member Council, Market NP present —till — till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till — till present LLC New Composite Materials, Member of the Board of Directors of Board the of Member Materials, Composite LLC New present —till — till present JSC Atomstroyexport, Chairman of the Board of Directors of Board the of Chairman Atomstroyexport, JSC present —till — till present JSC Atomredmetzoloto, Member of the Board of Directors of Board the of Member Atomredmetzoloto, JSC Directors of Board the of Member EGMK-Project, JSC present —till present —till

and Director of the Nuclear Power Complex Directorate Complex Power Nuclear the of Director and State Atomic Energy Corporation Rosatom, Deputy General Director ment Board State Atomic Energy Corporation Rosatom, Member of the Manage 1957 graduated from the Leningrad Polytechnic Institute named after named Institute PolytechnicLeningrad the fromgraduated ment of the the Russian f Russian the the of ment M.I.Kalinin and the Academy of National Economy under the Govern the Russian f Russian the SUE Rosenergatom Concern, the first Deputy General Director Director General Deputy first the Concern, Rosenergatom SUE SUE Rosenergatom Concern, acting General Director ederation ederation - - No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2003 2008 2008 2008 2009 2009 5years: last the for Positions Citizenship: Education: Year birth: of UES RAO INTER JCS of Directors of Board the of Member YURI ALEXANDROVICHPETROV — 2008 —2008 — till present JSC NK Rosneft, Member of the Board of Directors of Board the of Member Rosneft, NK JSC Directors of Board the of Member UES, RAO INTER JSC present —till present —till

— till present JSC United Aircraft Corporation, Member of the Board of Directors of Board the of Member Corporation, Aircraft United JSC present —till present —till — till present till —

f Chairman of the Russian f Russian the of Chairman h tors JSC United Shipbuilding Corporation, Member of the Board of Direc f Russian the Ph.D.Law in University, State Leningrad the from graduated 1947 ederal Agency for State Property Management, ead of the Legal Department, Deputy Chairman, Acting Chairman, ederation ederal Property fund. fund. h ead of the Agency the of ead -

41 ANNUAL REPORT JSC RAO UES / 2010 42 ANNUAL REPORT JSC RAO UES / 2010 Education: Committee Education: Audit the of member UES, Year birth: of RAO INTER JCS of Directors of Board the of Member KIRILL GENNADYEVICHSELEZNYOV 2003 — 2008 2003 2009 — 2006 2003 03.2003 2003 2006 2006 2006 2007 2006 2007 2007 2008 2008 06.2010 5years: last the for Positions Citizenship: No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No —2006 2003 —2007 2003 —2006 2003 —2006 2003 —2010 2003 —2008 2004 —2006 2004 2003 2003 2003 2004 2004 2004 2005 — till present JSC SIBUR holding, Member of the Board of Directors of Board the of Member holding, SIBUR JSC Directors of Board the of Member —2007 Mosenergo, JSC present —till present —till — till present JSC Gazprom Neftekhim Salavat, of Member JSC Neftekhim the Gazprom Board of Directors, present —till — till present JSC Latvias Gaze, Member of the Board of Directors, Chairman of of Chairman Directors, of Board the of Member Gaze, Latvias JSC Directors of Board the of present Member —till vostokgazprom, JSC Board Supervisory the of Member KazRosGaz, LLP present —till present —till

— till present JSC Lietuvos Duyos, Member of the Management Board Management the of Member Duyos, Lietuvos JSC Directors of Board the of Member Gazpromregiongaz, JSC Directors of Board of Member Tomskgazprom, JSC present —till present —till present —till — till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till present —till — till present CJSC Nortgaz, Member of the Board of Directors of Board the of Member Nortgaz, CJSC present —till — till present CJSC fooball Club Zenit, Member of the Board of Directors of Board the of Member Zenit, Club fooball CJSC present —till Directors of Board the of NOvATEK, JSC Member present —till present —till

— till present till — — till present till — — till present JSC Gazprombank, Member of the Board of Directors of Board the of Member Gazprombank, JSC present —till

JSC Gazprom, head of Marketing, Gas & Liquid h Liquid & Gas Marketing, of head Gazprom, JSC present — till

LLC International Gas Transportation Consortium, Member of the of Member TransportationConsortium, GasInternational LLC 1974 the Board of Directors of Board the Board Management the of Chairman Board, Management the of CJSC Kaunasskaya Teplofikatsionnaya Electrostantsiya — Member Directors of Board the of Member Petersburg, Saint SKA CJSC Directors JSCTerritorial Generating Company No.1,Chairman of the Board of f Russian the University State Petersburg St. the CJSC ArmRosgazprom, Chairman of the Board of Directors of Board the of Chairman ArmRosgazprom, CJSC Directors of Board the of Chairman LLC Sevmorneftegaz, Directors of Board the of Member Rosshelf, CJSC Directors of Board the of Chairman Directors, of Board the of Member Gaz-Oil, CJSC Directors of Board the of Chairman Gazenergoprombank, CJSC Participants of Board Directors of Board the of Member Russia, of UES RAO JSC Directors of Board the of Member Centrgaz, JSC Directors of Board the of Member ment Board ProcessingofJSCGazprom,Department ofManage Memberthe Directors of Board the of Chairman BoardSupervisory graduated from the D. the from graduated LLC Gazprom Mezhregiongaz, General Director (on a part-time basis) JSC SIBUR JSC — SIBUR f Mineral Nonprofit Partnership Russian Gas Society (RGS NP), Member of the ederation f . Ustinov Baltic State Technical University and ertilizers, Chairman of the Board of Directors, ydrocarbons - No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2002 01.2005 06.2005 02.2008 08.2008 2008 12.2008 12.2008 12.2008 11.2009 5years: last the for Positions Citizenship: Education: Year birth: of Committee Investment and Strategy the of Chairman Committee, Remuneration and HR the of Chairman UES, RAO INTER JCS of Directors of Board the of Member SERGEY IVANOVICHSHMATKO 05.2008 2009 2009 2009 — 2005 —2005 — till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till — till present JSC Gazprom, Member of the Board of Directors of Board the of Member Gazprom, JSC Directors of Board the of Chairman Transneft, JSC Directors of Board the of Member UES, SO JSC present —till present —till present —till

— 05.2005 CJSC Atomstroyexport, v Atomstroyexport, CJSC —05.2005 — till present JSC IDGC holding, Chairman of the Board of Directors of Board the of Chairman holding, IDGC JSC Directors of Board the of Chairman UES, fGC JSC Directors of Board present the of —till Chairman Rushydro, JSC present —till present —till — 05.2008 —05.2008 — till present Ministry of Energy of the the Russian f Russian the the of Energy of Ministry present —till — till present present —till — 05.2008 —05.2008 — till present till —

The State Conversion JSC ZARUBEZ CJSC Atomstroyexport, President JSC Atomenergoprom, Deputy General Director the Russian f Russian the University State Ural the from graduated 1966 Board State Atomic Energy Corporation Rosatom, Member of the Supervisory ederation h NE fT, Chairman of the Board of Directors of Board the of fT, Chairman fund, Chairman Chairman fund, ice-President ederation, Minister

43 ANNUAL REPORT JSC RAO UES / 2010 44 ANNUAL REPORT JSC RAO UES / 2010 Meeting of Shareholders held on June 25, 2010. RAO INTER UES by of the decision the General the of Chairman Board the of Management JSC elected was he Then 2009. 25, November on Board of of Directors JSC RAO INTER UES held the of Meeting the at taken resolution the by JSC RAO INTER UES 26, since November 2009 of Board Management of the Chairman acting BorisYuryevich Kovalchuk was appointed the Company. the of policy and sponsible for implementation of goals, strategy The Chairman of the Management Board is re meeting. the in participating shares Shareholders of Meeting be elected for the 5 years period by the General The Chairman of the Management Board shall Shareholders. of Meeting General the of resolutionbyaccomplished be shall authority his/her terminationofearly andCompany the of Board Management the of Chairman the of Board of Directors of the Company. The election to the General Meeting of Shareholders and the ment Board of the Company and is accountable Management Board is in charge of the Manage power of without attorney. The of Chairman the Company the of behalf on act to right the has and Company the of body executive sole the is Board Management the of Chairman The Yuryevich. KOv is UES RAO INTER JSC of Board Management the of Chairman The OF THEMANAGEMENTBOARD THE CHAIRMAN 3.5 ExECUTIvE BODIES — owners of voting voting of owners — ALC hUK Boris Boris hUK - - ƒ ƒ ƒ ƒ ƒ ƒ the General Meeting of Shareholders and the the and Shareholders of Meeting General the to accountable is BoardManagement The ties. activi current managing Company the of body executivecollective a is Board Management THE MANAGEMENTBOARD members of Management Board were: the During from period 01.01.2010 till 17.02.2010 changed. was Board Management the of composition 2010the In Directors. of Board by the elected be shall Management Board shall be determined and they the of members of NumberRegulations. Board is regulated by the Charter and the Management the Company. The Management Board’s activity of policy andstrategy goals, of implementation years. The Management Board is responsible for ManagementCompanyBoardforfivetheof(5) the of Chairman the ofrecommendation upon elected by the Board of Directors of the Company areCompany the ofBoard Management the of Company. Members the ofDirectors of Board

29.07.2008). Ilyich George Rizhinashvili 23.05.2008). Valeryevich Alexandr Nikitin Mikalaunas Dangiras 23.05.2008). on (elected Board Management the of man Mantrov Michael Alekseevich, on 23.05.2008). (elected Board Management the of Chairman Yuryevich, Vyacheslav Artamonov 26.11.2009). on (elected Board Management the of man Yuryevich, Boris Kovalchuk (elected on 23.05.2008). Deputy Chair- eetd on (elected acting Chair- acting (elected on (elected Deputy - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ was taken to: taken was decision the No.24) 17.02.2010 (Minutes on held Directors of Board the of session the At was taken to: taken was held on 25.06.2010 No.5) (Minutes the decision At the Annual General Meeting of shareholders to: taken was decision the 26) No. (Minutes 26.04.2010 on held Directors of Board the of Meeting the At

Board ofJSCINTERRAOUES; and the Deputy Chairman of the Management Board Management the of member kseevich, Terminate the authority of Mantrov Michael Ale- on 23.05.2008). (elected Vladimirovich Yuri Sharov on 23.05.2008). Nikolaevich Sergey Tolstoguzov 29.07.2008). Yuryevich Sergey Rumyantsev Board fromJune26,2010. Management UES RAO INTER JSC of man Chair- the as Yuryevich Boris Kovalchuk Elect UES Management Board, from June 25, 2010. acheslavovich, the Chairman of JSC INTER RAO Early terminate the authority of Dod Evgeny vy- of JSCINTERRAOUESManagementBoard. Elect Boris Alexander Gennadyevich as member one member,upto9(nine)members. by be increase shall membership Board ment Determine that JSC INTER RAO UES Manage- 8 (eight)members. of consist shall Board Management UES RAO Determine thatthemembershipofJSCINTER Board ofJSCINTERRAOUES; TER RAO UES as member of the Management IN- JSC of Director finance division, finance of head the Nikolaevich, Dmitry Palunin Elect INTER RAOUES; Ilyich, member the Management Board of JSC Terminate the authority of Rizhinashvili George (elected on (elected (elected ƒ ƒ ƒ ƒ ƒ ƒ ƒ was taken to: taken was decision the No.33) 29.10.2010(Minutes on held Directors of Board the of meeting the At to: taken was decision the No.30) (Minutes 19.08.2010 on held Directors of Board the of Meeting the At

Management Boardfrom29.20.2010. UES RAO INTER JSC of member Nikolaevich, Terminate the authority of Tolstoguzov Sergey UES. Property Relations Division of JSC INTER RAO Governance, porate Cor for Director Borisovich, Oleg Oksuzian and Investment Division of JSC INTER RAO UES; Strategy of head Ilbatyrovich, Ilnar Mirsiyapov RAO UES; INTER JSC of Center Economics and nance fi- of head vladimirovich, Andrey Golovlyov following persons: the Board Management UES RAO INTER JSC of members as 2010 20, August from Elect 11 (eleven)persons. to up increase members Board Management UES RAO INTER JSC of number Determine agement BoardfromAugust19,2010. yevich, member of JSC INTER RAO UES Man- Terminate the authority of Nikitin Alexandr valer- h ead of Corporate and Corporate of ead - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ members: following of the consists UES RAO INTER JSC of Board 31.12.2010Management of the As

Sharov Yuri Vladimirovich, of theTradingBlockJSCINTERRAOUES; head Board, Management the of Chairman Yuryevich, Vyacheslav Artamonov Management Board; Kovalchuk Boris Yuryevich, Board, from30.10.2010. member of JSC INTER RAO UES Management Operations Division of JSC INTER RAO UES, as Elect Okley Pavel Ivanovich, head of Production Property Relations Unit of JSC INTER RAO UES; Management Board, head of the Corporate and Borisovich, Oleg Oksuzian Europe ofJSCINTERRAOUES; ment Board, head of the Geographical Division Mikalaunas Dangiras, and Economics Center of JSC INTER RAO UES; finance the of head Board, Management the Golovlyov Andrey Vladimirovich, JSC INTERRAOUESManagementBoard; Gennadyevich, Alexander Boris of JSCINTERRAOUES; for Engineering and Construction Management of the Management Board, head of the Centre Member of the Manage- Deputy Chairman member of the of member Chairman of the Member of Member of Member Deputy ƒ ƒ ƒ in absentia. in 57 and presence in 26 including held, were In 2010 83 of meetings Board the Management totaling RUR 374 RUR thousand. totaling 734 (payroll, bonuses, allowances, optional program) Board of the Company received remunerations f

or 2010 the members of the Management the of members 2010the or of JSCINTERRAOUES. the Management Board; Director for Economics Rumyantsev Sergey Yuryevich, finance DirectorofJSCINTERRAOUES; Management Board; head of the finance Unit, Palunin Dmitry Nikolaevich, tions UnitofJSCINTERRAOUES; agement Board, head of the Production Opera- Okley Pavel Ivanovich, a member of the Man- a member of the a member of —

45 ANNUAL REPORT JSC RAO UES / 2010 46 ANNUAL REPORT JSC RAO UES / 2010 3.6 (AS Of31/12/2010) ACTIvE MEMBERSOfThEMANAGEMENTBOARD 06.2010 02.2010 06.2009 06.2010 5years: last the for Positions Citizenship: Education: Year birth: of Board Management the of Chairman UES, RAO INTER JSC of Directors of Board the of Member BORIS YURIEVICHKOVALCHUK No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 12.2010 12.2010 12.2010 12.2010 11.2010 11.2010 2006 2006 2009 06.2009 11.2009 2010 2010 06.2010 06.2010 06.2010 2010

— till present LLC RSPP, Member of the Management Board LLC RSPP, Management the of Member present —till present —till —11.2009

— 2009 — present till — — 2006 —

— till present JSC Altaienergosbyt, Chairman of the Board of Directors of Board the of Chairman Altaienergosbyt, JSC present —till — till present JSC Saratovenergo, Chairman of the Board of Directors of Board the of Chairman present Saratovenergo, —till JSC Directors of Board of Chairman Mosenergosbyt, JSC present —till present —till

present till — — till present JSC OGC-1, Chairman of the Board of Directors of Board the of OGC-1, JSC Chairman present —till — till present LLC INTER RAO-WorleyParsons, Member of the Board of Directors of Board the of Member RAO-WorleyParsons, LLC INTER present —till Board Management the of Chairman UES, RAO INTER JSC present —till — till present JSC Irkutskenergo, Member of the Board of Directors of Board the of Member Irkutskenergo, JSC Directors of Board the of Member Rushydro, JSC present Directors of —till Board the of ATS, JSC Member present —till present —till — till present till — — till present JSC INTER RAO UES, Member of the Board of Directors of Board the of Member UES, RAO INTER JSC present —till — 02.2010 JSC OGK-1, Member of the Management Board OGK-1, Management JSC the of Member —02.2010 — 06.2010 —

CJSC Kambaratinskaya GES the Russian f Russian the University State Petersburg St. the from graduated 1977 of Directors of JSCSt. Petersburg Energy SalesCompany, Chairman of theBoard for Development State Atomic Energy Corporation Rosatom, Deputy General Director Board alists and Entrepreneurs (OOR RSPP), Member of the Management The All-Russian Association of Employers Russian Union of Industri The Government Executive Office, ExecutiveGovernment The Government of the the Russian f Russian the the of Government Deputy Prime Minister Prime Deputy mentation of Priority National Projects JSC Unified Energy Sales Company, Chairman of the Board of Directors JSC INTER RAO UES, the acting Chairman of the Management Board Management the of Chairman acting the UES, RAO INTER JSC JSC Tambov Power Sales Company, Chairman of the Board of Directors ederation

— 1, Chairman of the Board of Directors of Board the of Chairman 1, — ederation, assistant to the to assistantederation, h ead of Department for Imple for Department of ead first first - - 11.2009 05.2008 — 12.2008 — 06.2009 06.2008 06.2009 2008 5years: last the for Positions Citizenship: Education: Year birth: of Unit Trading the of Head Board, Management the of Chairman Deputy VYACHESLAV YURYEVICHARTAMONOV Ordinary shares of JSC INTER RAO UES in ownership, %: 0.0691 ownership, in UES RAO INTER JSC of shares Ordinary %: UES, 0.0691 RAO INTER JSC of capital charter the in Share 11.2010 11.2010 Board Management the of Oy, Member Nordic RAO Directors of TPP, Board the of Member North-West JSC —2008 2000 —12.2007 04.2007 Directors of Board the of Member Baltia, UES RAO INTER CJSC —05.2008 06.2007 —06.2009 2006 Board Management the of Member TGREnerji, —06.2009 08.2007 —05.2009 09.2008 06.2010 — — till present JSC INTER RAO UES, Deputy Chairman of the Management Board, Board, Management of the Chairman Deputy UES, RAO INTER JSC present —till — — till present JSC Altaienergosbyt, Member of the Board of Directors of Board the of Member Altaienergosbyt, JSC present —till present —till — — till present JSC OGC-1, Member of the Management Board Management the of OGC-1, JSC Member present —till — — till present JSC Enel OGC-5, Member of the Board of Directors of Board the of Member OGC-5, Enel JSC present —till — — till present present till — —

JSC Ispytatelny Stend Ivanovskoy GRES, Member of the Board of of Board the of Member GRES, Ivanovskoy Stend Ispytatelny JSC Open Joint Stock Company MOSENE head of the Trading Unit the of head f Russian the sciences Ph.D.technical in University), graduatedfrom the Moscow Power Engineering Institute (Technical 1957 UAB Energijos Realizacijos Centras, Member of the Management the of Member Centras,RealizacijosEnergijos UAB tors JSC Unified Energy Sales Company, Member of the Board of Direc Trading Trading for Unit the of Director General Deputy Unit, Trading the of head UES, RAO INTER CJSC Board General Director CJSC Industrial Power Company, Member of the Board of Directors, Directors Directors of Board the of Member ederation (Moscow Energy Exchange), Exchange), Energy x (Moscow -

47 ANNUAL REPORT JSC RAO UES / 2010 48 ANNUAL REPORT JSC RAO UES / 2010 2008 06.2009 06.2009 10.2009 06.2010 07.2010 11.2009 12.2009 2005 — 2007 —2007 2005 —2007 2006 06.2008 — 06.2010 —06.2010 06.2008 08.2010 5years: last the for Positions Citizenship: Education: Year birth: of Division Engineering and Construction the of Head Board, Management the of Chairman Deputy YURI VLADIMIROVICHSHAROV 2005 — 12.2007 TGR Enerji, Member of the Management Board Board Management the of Management the of Member Oy, TGREnerji, Member Nordic RAO Board Supervisory the of Member Ukraine, UES RAO INTER CJSC 2006 — 2004 11.2004 —04.2007 —12.2007 2005 —04.2007 2005 2007 — 2005 — 2008 2006 2008 03.2010 06.2010 06.2010 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2003 Directors of Board the of Member Dalenergosetproyekt, JSC Board Management the of Member Rushydro, JSC 2008 07.2008 —06.2010 11.2009 —04.2010 — till present present —till — till present JSC Sangtudinskaya hPP-1, Member of the Board of Directors of hPP-1, Board the of Member Sangtudinskaya JSC present —till

— 08.2010 JSC INTER RAO UES, Member of the Management Board, head of of head Board, Management the of Member UES, RAO INTER JSC —08.2010 — till present till — — till present LLC UK qUARTZ, Member of the Board of Directors of Board the of Member qUARTZ, LLC UK present —till — till present present —till — till present present —till — till present JSC INTER RAO UES, Deputy Chairman of the Management Board, Board, of Management the Chairman Deputy UES, RAO INTER JSC present —till — till present LLC NP vTI, Member of the Supervisory Board Supervisory the of Member vTI, LLC NP present —till — till present LLC INTER RAO-WorleyParsons, Member of the Board of Directors of Board the of Member RAO-WorleyParsons, LLC INTER present —till

— till present JSC Ekibastuzskaya GRES-2, Chairman of the Board of Directors of Board the of Chairman GRES-2, Ekibastuzskaya JSC present —till — till present present —till — till present JSC ENIN, Member of the Board of Directors of Board the of Member ENIN, JSC Directors of Board the of Member GES, Kambaratinskaya CJSC present —till present —till present till —

National association of engineering companies, President Directors of Board JSC OGC-1, Member of the Management Board and Member of the JSC volzhskaya TGK, Member of the Board of Directors of Board the of Member TGK, volzhskaya JSC Board Supervisory the of Telasi, Member JSC (PGEEK) to China Export Power Electric of Directors JSC NTC of Power Industry, Chairman and Member of the Board of LLC INTERENERGOE Division Engineering and Construction the of head f Russian the 1959 graduated from the Moscow Power Engineering Institute and G. and Institute EngineeringPower Moscow the fromgraduated JSC RAO UES of Russia, Deputy Managing Director, head of the the of head Director, Managing Deputy Russia, of UES RAO JSC Plekhanov Russian Economics Academy, Ph.D. in technical sciences power systems power Moscow Power Engineering Institute in Group ProjectGroup for Development of & f the Construction and Engineering Division, Directors of JSC JSC RAO UES Director, Managing of Deputy Russia, LLC LLC JSC Eastern Energy Company, General Director, Member of the Board CJSC Electric Networks of Armenia, Member of the Board of Directors ar East Geographical Division q UARTZ f oreign Economic Activity of the Networks Business Unit Business Networks the of Activity Economic oreign

ederation — New Technologies, Member of the Board of Directors of Board the of Member Technologies, New — ECT, Chairman of the Board of Directors of Board the of ffECT, Chairman feasibility Study for the Increase Increase the for Study feasibility — head of the Chair of Electric — of of head the Chair Electric head of the Central Asia Asia of head Central the h ead of the Project Project the of ead v. No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2010 2010 2010 2004 — 2006 —2006 2004 —2009 2006 —2010 2009 2009 5years: last the for Positions Citizenship: Education: Year birth: of Board Management the of Member ALEXANDER GENNADYEVICHBORIS — till present present —till — till present JSC h JSC present —till — till present CJSC ELECTROLUCh, Chairman of the Board of Directors of Board the of Chairman ELECTROLUCh, CJSC present —till — till present JSC INTER RAO UES, Member of the Management Board Management the of Member UES, RAO INTER JSC present —till

JSC Utility Directors of Board the of Department of Management and Administration of Capital Projects rial and Technical Supply and Social Security Services, f Department of Priority National Projects f Russian the the of Government ment Center State Atomic Energy Corporation Rosatom, Director of the Develop f Russian the (2002-2005) Petersburg) (Saint (1980-1985), Industry eration service public academyofNorthwest graduatedLeningradTechnologicalRefrigthefrom the of Institute 1959 ederalTax Service ealth and Recreation Resort Complex Lukomorje,ChairmanComplex RecreationResort and ealth v ehicles Department, Chairman of the Board of Directors ederation — Deputy Director of the Department of Mate- of Department the of Director Deputy — ederation, Deputy Director of the ofDirector Deputy ederation, head of the the of head - -

49 ANNUAL REPORT JSC RAO UES / 2010 50 ANNUAL REPORT JSC RAO UES / 2010 09.2003 — 09.2005 JSC Telasi — General Director Director Telasi —General JSC %: 0.0347 ownership, in UES RAO INTER JSC of shares Ordinary %: UES, 0.0347 RAO INTER JSC of capital charter in Share —09.2005 09.2003 2005 2003 2007 06.2008 12.2007 2008 03.2010 5years: last the for Positions Citizenship: Education: Year birth: of Europe Division Geographical the of Head Board, Management the of Member DANGIRAS MIKALAUNAS Education: Education: Year birth: of Board Management the of Member ANDREY VLADIMOROVICHGOLOVLYOV 2006 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2005 2009 2010 5years: last the for Positions Citizenship: — 2007 —2007

— 04.2007 CJSC INTER RAO UES Ukraine, Member of the Supervisory Board Supervisory the of Member Ukraine, UES RAO INTER CJSC —04.2007 — till present JSC INTER RAO UES, Member of the Management Board, head of of head Board, Management the of Member UES, RAO INTER JSC present —till — 2006 —2006 —2010

— till present present —till — 2007 — — 2008 — — till present RAO Nordic Oy, Chairman of the Management Board Management the of Oy, Chairman Nordic RAO present —till — till present UAB INTER RAO Lietuva, Chairman of the Management Board Management the of Chairman Lietuva, RAO INTER UAB present —till — 05.2009 CJSC Moldavskaya GRES, Member of the Board of Directors of Board the of Member GRES, Moldavskaya CJSC —05.2009

JSC fGC UES, Director for Asset Management Asset for Director UES, fGC JSC the Geographical Division Europe Lithuania of Republic the University Technological Kaunas the from graduated 1966 head of the Geographical Division Europe Europe Division Geographical the of head CJSC INTER RAO UES, Asset Manager, Deputy General Director, General Deputy Manager, Asset UES, RAO INTER CJSC 1962 LLC Interbank Trading house, Advisor to General Director Director to General Advisor Trading house, LLC Interbank LLC Well Drilling Corporation, General Director f the JSC INTER RAO UES,Member of the Management Board, f Russian the f Russian the the ofGovernment the under EconomyNational of Academy (PPG graduated from the Novosibirsk Electrotechnical Institute and the and InstituteElectrotechnical Novosibirsk the fromgraduated JSC Priargunsky Production Mining and Chemical Association Chemical and Mining ProductionPriargunsky JSC inance and Economics Center hO), Director for economics and finance and economics for hO), Director ederation ederation head of of head 06.2010 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2005 2007 2009 06.2010 08.2010 06.2010 09.2010 5years: last the for Positions Citizenship: Education: Year birth: of Block Investment and Strategy the of Head Board, Management the of Member ILNAR ILBATYROVICHMIRSIYAPOV 2006 2008 09.2010 09.2010 04.2010 05.2010

— 2006 —2006 — 2009 —2009

— 2007 —2007 — 2008 — — 08.2010 — — till present TGR Enerji, Member of the Management Board Management the of Member TGREnerji, present —till — till present CJSC INTER RAO Capital, Chairman of the Board of Directors of Board the of Chairman Capital, RAO INTER CJSC Board Management the of Member Lietuva, RAO INTER UAB present —till present —till — till present LLC INTER RAO Invest, Chairman of the Board of Directors of Board the of Chairman Invest, RAO LLC INTER present —till — till present JSC TGK-11, JSC Directors of Board the of Member present —till — till present JSC INTER RAO UES, Member of the Management Board, head of of head Board, Management the of Member UES, RAO INTER JSC present —till — till present RAO Nordic Oy, Member of the Management Board Management the of Oy, Member Nordic RAO present —till — till present JSC Eastern Power Company, Member of the Board of Directors of Board the of Member Company, Power Eastern JSC present —till

present till —

JSC INTER RAO UES, head of the Strategy and Investment Unit, Unit, Investment and Strategy the of head UES, RAO INTER JSC the Strategy and Investment Unit Investment and Strategy the manager JSCCenter of Project Management Stroyneft, informationbusiness Administration of head Deputy partment for Corporate Governance and Development, acting JSC Atomic Energy Power Corporation, Director of the Administration the Russian f Russian the Institute Oil State Almetjevsk and eration f of Ministry the of (University) graduated from the Moscow State Institute of International Relations 1982 f Department of the Department, Deputy State Atomic Energy Corporation Rosatom, Deputy Board Management the of to Chairman Advisor tors CJSC Armenian Nuclear Power Plant, Member of the Board of Direc ederal Atomic Energy Agency, Deputy ederation h ead of the Corporate Legal Department oreign Affairs of the the Russian head of the Administration, Administration, the of head h ead of the De the of ead head head f ed - - -

51 ANNUAL REPORT JSC RAO UES / 2010 52 ANNUAL REPORT JSC RAO UES / 2010 12.2005 72 8 0 07.20 10.2010 5years: last the for Positions Citizenship: Education: Year birth: of Unit Operations Production the of Head Board, Management the of Member PAVEL IVANOVICHOKLEY 05.2008 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 12.2010 11.2010 — till present JSC OGC-1, Executive Director OGC-1, JSC Executive present —till — till present JSC OGC-1, Member of the Management Board Board Management the of OGC-1, JSC Member present —till — till present JSC INTER RAO UES, Member of the Management Board, head of of head Board, Management the of Member UES, RAO INTER JSC present —till — 08.2010 JSC holding IDGC, Deputy General Director, Technical Director Director, Technical General Deputy IDGC, holding JSC —08.2010 — 07.2008 JSC fGC UES, Deputy h Deputy UES, fGC JSC —07.2008

— 06.2008 —

JSC JSC RAO UES Director of Managing IDGC of holding Deputy Russia, for management of interregional distribution complexes complexes, Deputy tion the Production Operations Unit f Russian the Engineers. Railway for Institute Omsk the from graduated 1970 Business-Unit (on a part-time basis) (on apart-time Business-Unit ederation h ead of the Center for interregional distribu ead for technical development of Centerdevelopmenttechnicaloffor ead - 2005 — 2008 —2008 2005 —2009 2008 06.2010 — 08.2010 LLC Index of Energy —h Energy of LLC Index —2010 2009 —08.2010 06.2010 1998 — 2005 — 1998 — 2007 2005 Education: Year birth: of Unit Relations Property and Corporate the of Head Board, Management the of Member OLEG BORISOVICHOKSUZIAN 07.2010 5years: last the for Positions Citizenship: No JSC INTER RAO UES shares in ownership. ownership. in shares UES RAO INTER JSC No 12.2010 — till present JSC INTER RAO UES, Member of the Management Board, head of of head Board, Management the of Member UES, RAO INTER JSC present —till — till present CJSC INTER RAO Capital, Member of the Board of Directors Directors of Board the of Member Capital, RAO INTER CJSC present —till

JSC h JSC Board Management the of Member Rushydro, JSC JSC Rush JSC Unit Relations Property and Corporate the 1960 JSC Managing Company Managing JSC the Russian f Russian the f Russian the and the Academy of National Economy under the Government of the h the ofDirector Managing Deputy Department, PolicyCorporate of basis) (on apart-time Governance Corporate JSC JSC RAO UES of head of Russia, head the Policy Corporate Division, graduated graduated from h the Novorossiysk ydrogeneration Business-unit ydroOGC ydro, Managing Director for Corporate Governance ederation ederation — Member of the Management Board Management the of —Member ydroOGC, General Director h ydroOGC, Deputy General Director forDirector General ydroOGC,Deputy igher Engineering Maritime School

53 ANNUAL REPORT JSC RAO UES / 2010 54 ANNUAL REPORT JSC RAO UES / 2010 Ordinary shares of JSC INTER RAO UES in ownership, %: 0.0068 ownership, in UES RAO INTER JSC of shares Ordinary %: UES, 0.0068 RAO INTER JSC of capital charter in Share 02.2009 04.2009 06.2009 11.2009 2002 — 2008 —2008 2002 09.2009 06.2010 06.2010 08.2007 — 04.2009 LLC INTER RAO UES f UES RAO LLC INTER —04.2009 08.2007 2010 03.2010 03.2010 03.2010 04.2010 11.2009 — 03.2010 LLC INTER RAO SERvICE, Chairman of the Board of Directors of Board the of Chairman SERvICE, RAO LLC INTER 11.2009 —03.2010 12.2009 09.2010 09.2010 5years: last the for Positions Citizenship: Education: Year birth: of Director Finance Board, Management the of Member DMITRY NIKOLAEVICHPALUNIN 2008 — 2010 — 2008 08.2007 01.2009 06.2010 04.2010 05.2010 — till present present —till — till present JSC OGC-1, Member of the Management Board Management the of OGC-1, JSC Member present —till — till present JSC Sangtudinskaya hPP-1, Member of the Board of Directors of hPP-1, Board the of Member Sangtudinskaya JSC Board Management the of Member TGREnerji, present —till present —till — till present LLC INTER RAO Invest, Member of the Supervisory Board Supervisory the of Member Invest, RAO LLC INTER present —till — till present LLC INTER RAO SERvICE, Member of the Board of Directors of Board the of Member SERvICE, RAO LLC INTER present —till — till present JSC TGK-11, JSC Directors of Board the of Member present —till — till present CJSC INTER RAO Capital, Member of the Board of Directors of Board the of Member Capital, RAO INTER CJSC Board Management of Member Lietuva, RAO INTER UAB present —till present —till present —till — till present JSC Eastern Power Company, Member of the Board of Directors of Board the of Member Company, Power Eastern JSC present —till JSC h present —till

— 06.2010 CJSC Moldavskaya GRES, Member of the Board of Directors of Board the of Member GRES, Moldavskaya CJSC —06.2010 — till present present —till — till present RAO Nordic Oy, Member of the Management Board Management the of Oy, Member Nordic RAO present —till — till present LLP INTER RAO Central Asia, Member of the Supervisory Board Supervisory the of Member Asia, Central RAO INTER LLP Board Supervisory present the of —till Member ELECTROLUCh, CJSC present —till — till present JSC Stand, Member of the Board of Directors of Board the of Member Stand, JSC present —till — till present till — — till present till —

Director nance, nance, f Deputy UES, RAO INTER CJSC the Board of Directors of Board the JSC INTER RAO UES, Member of the Management Board, LLP Kazenergoresurs, Member of the BoardSupervisory Board of Directors of Board of the & Member Chairman Deputy fINANCE, UES RAO INTER LLC f Russian the versity) graduatedStateAviationMoscowInstitute(Technicalthefrom Uni 1969 CJSC Armenian Nuclear Power Plant, Member of the Board of Direc head of the Treasury Department Treasury the of head tors JSC INTER JSC RAO INTER f UES, Deputy CJSC Electric Networks of Armenia, Member of the Board of Directors ealth and Recreation Resort Complex Lukomorye, Member of head of the Treasury Department Department Treasury the of head ederation INANCE, General Director inance Director for Corporate inance Director for CorporateDirectorfor inance f finance finance inance, inance, fi- - - No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No Directors of hPP-1, Board the of Member Sangtudinskaya JSC —09.2010 06.2010 10.2008 — 05.2009 — 10.2008 06.2010 — 03.2010 06.2009 08.2009 Education: Year birth: of Economics for Director Board; Management the of Member SERGEY YURYEVICHRUMYANTSEV 05.2010 06.2010 06.2010 5years: last the for Positions Citizenship: 2002 — 2005 —2005 2002 —2008 2005 2008 — till present JSC INTER RAO UES, Member of the Management Board; head of of head Board; Management the of Member UES, RAO INTER JSC present —till — till present JSC TGK-11, JSC Directors of Board the of Member present —till — till present JSC RazTPP, Directors of JSC Board the of Member Directors of Board the of Member Company, Power Industrial CJSC present —till present —till

— till present till — present till —

the Economics and Investment Programs Unit Programs Investment and Economics the 1956 CJSC Electric Networks of Armenia, Member of the Board of Directors CJSC Armenian Nuclear Power Plant, Member of the Board of Direc the Russian f Russian the Ordzhonikidze, S. after named Institute ment Board for Settlements and finance finance and Settlements for Board ment within the Unified Energy System, Deputy Chairman of the Manage Market Power Wholesale the of TradingSystem of Administrator NP Management Board the ofDirector, SalesMember General Deputy Economics,for tor JSC of Power and Electrification Mosenergo, Deputy General Direc tors tors Directors of Board the of JSC OGC-1, Member of the Management Board JSC OGC-1, Member graduated from the Moscow Order of Red Banner Labor Management CJSC International Power Corporation, Member of the Board of Direc ederation - - - -

55 ANNUAL REPORT JSC RAO UES / 2010 56 ANNUAL REPORT JSC RAO UES / 2010 MEMBERS OFTHEREVISIONCOMMISSION(asof31.12.2010) Commission. erned by the Charter and Regulations on Revision The activity of the Revision Commission is gov is a collective body consisting of five members. activities of the Company. Revision Commission economic and financialcontrolling of purpose by the General Meeting of Shareholders for the Revision Commission of the Company is elected 3.7 REvISION COMMISSION - 2008 5years: last the for Positions 2004 2006 Education: Year birth: of VASILYEV VLADIMIRANATOLYEVICH No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No of 14 788 thousand rubles. 14of thousand 788 nuses, allowances, remunerations) in the amount bo wages,(includingremuneration received In 2010 the members of the Revision Commission Annual General Meeting of shareholders of JSC the byelected working been has Commission Revision the25.06.2010 till 25.06.2009 Since — 2006 —2006 — till present present —till

— 2008 —

Programs of Assurance of Nuclear and Radiation Safety Radiation and Nuclear of Assurance of Programs Department, Accounting and Stare Atomic Energy Corporation Rosatom, Deputy f f graduatedStateInstitute Distance-Learning offromAll-Russian the 1961 Accounting, Settlements and Audit Department f SUE Mining-Chemical Complex, Deputy General Director for ederalAtomic Energy Agency Rosatom, Deputy inance and Economics - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ mission: Com Revision the of members following the shareholdersof JSC INTER RAO UES elected of Meeting General Annual the 25.06.2010 On the following members: of consisting 25.06.2010, on UES RAO INTER

Zakharov AlexeyMikhailovich Vasilyev VladimirAnatolyevich Chigirin IvanIvanovich Ryzhkova ElenaGennadyevna Vorobjeva TamaraBorisovna Ananjeva NataliaAleksandrovna Peshkov MaximEvgenyevich Chigirin IvanIvanovich Ryzhkova ElenaGennadyevna Ivanova ElenaFyodorovna h ead of the Division for Implementing head of f of head head head of finance f inance, inance, inance - No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2006 2007 5years: last the for Positions Education: Year birth: of IVANOVA ELENAFYODOROVNA ownership. in shares UES RAO INTER JSC No 2005 2006 2007 2009 5years: last the for Positions Education: Year birth: of ZAKHAROV ALEXEYMIKHAILIVOCH — till present JSC INTER RAO UES, head of the Directorate of f of Directorate the of head UES, RAO INTER JSC present —till

— 2006 —2006

— 2007 —2007 — 2007 —2007 — 2009 — — till present till —

Director Director LLC Atomenergo- and Audit, Chief Expert on finance Control and Audit and Control finance on Expert Chief Audit, and and finance finance and graduatedfrom theSaint Petersburg State Universityof Economics 1978 TRUST, specialist Bank Investment JSC analyst (Eurasia), assistant Bank ING CJSC graduated from the Lomonosov Moscow State University University State Moscow Lomonosov the from graduated 1984 head of Directorate Directorate of head and Corporate State Atomic Energy Corporation Rosatom, Deputy JSC Siberian Coal Energy Company,Energy Coal Siberian JSC f inance Directorate inance h olding, Saint Petersburg, head of Directorate, Deputy Deputy Directorate, of head f irst Deputy of General head head of Treasury inancial Controlinancial

57 ANNUAL REPORT JSC RAO UES / 2010 58 ANNUAL REPORT JSC RAO UES / 2010 2009 5years: last the for Positions 2004 2006 2006 2009 2010 5years: last the for Positions Education: Year birth: of CHIGIRIN IVANIVANOVICH ownership. in shares UES RAO INTER JSC No Education: Year birth: of RYZHKOVA ELENAGENNADYEVNA 2007 No JSC INTER RAO UES shares in ownership. in shares UES RAO INTER JSC No 2005 — till present present —till

— 2006 —2006 — till present JSC INTER RAO UES, h UES, RAO INTER JSC present —till — 2007 —2007 — till present JSC INTER RAO Invest, General Director (on a part-time basis) (on apart-time Director General Invest, RAO INTER JSC present —till — 2008 —2008 —2007 — 2010 —

Economics and JSC Bryansk Energy Sales Company, Deputy Executive Director for Department Audit Internal the within Audit and Control f of Directorate the of Expert Chief UES, RAO INTER СJSC Department Audit Internal the within Audit and Control f of Directorate the of Expert Chief UES, RAO INTER OJSC of the Revision Commission theBlock of Internal Audit, Control and Risk Management, member Internal Audit Department. Rus JSC Statistics and Economics of Institute Moscow the from graduated 1975 1978 1978 graduated from the Bryansk State University, Ph.D. in Economic University,Ph.D.in State Bryansk the fromgraduated JSC INTER JSC RAO INTER UES, h Russia (certified ofProfessionalAccountants of Institute The of member Sciences, Department of Internal Audit of Group’s Corporate Center. Corporate Group’s of Audit Internal of Department TeleSystems,Mobile MTS, OJSC,Auditor,Chief LeadingAuditorat Control and Corporate Governance Audit andRisk Management, ofChief the Expert Directorate for Business Internalthe ofAuditofBlocktheDepartmentInternal Audit,Control h ydro, ydro, head of the Operational Audit Directorate within the the within Directorate Audit Operational of the head finance finance f inancial Director) ead of the Operational Audit Directorate within eadof the Internal Audit withinDepartment inancial inancial Ernst &Young 2010 in was: Ernst LLC Auditor, the of services the for UES RAO The actual of amount wages paid by JSC INTER Company. the of Auditor &Young the as Ernst 25.06.2009) approved Limited Liability Company dated No.3 (Minutes UES RAO INTER JSC of Shareholdersof Meeting General Annual The basis. contractual of the legislation the f Russian the of requirements the with accordance in financial and economic activity of the Company Company shall carry out the examination of the the ofAuditor Company. The the of Directors of Board the by determined be shall services Auditor’sforpayable wages of amount The f Russian Company according to legal regulations of the check financial and economic activities of the the General Meeting of Shareholders in order to Auditor of the Company is approved annually by 3.8 ederation on the contractual basis.contractual the on ederation AUDITOR ederation on the Total: Audit ofRASannualreportsJSCINTERRAOUESas31.12.2010 Audit ofannualIfRSfinancialstatementsINTERRAOUESGroupas31.12.2010 Audit ofInterimIfRSfinancialstatementsINTERRAOUESGroupas30.06.2010 excluded VAT Paid in2010,thousandRUR 4016124 34 021 2522252 12 512 0593692 20 509 1000 included VAT 180

59 ANNUAL REPORT JSC RAO UES / 2010 60 ANNUAL REPORT JSC RAO UES / 2010 hEAD OfUNIT

PERSPECTIvE PROJECTS hEAD OfUNIT AGEMENT BOARD, MEMBER OfMAN- STRATEGY AND INvESTMENT UNIT DEvELOPMENT UNIT Structure Capital of Target Department Analysis forecasting and of Investment Department Projects (M&A) of Investment Department Projects and Strategic of Strategy Department Ecuador lic of of theRepub- the Territory Office in Cuba lic of of theRepub- in theTerritory Office Activity of Project Department Activity Economic of foreign Department UNIT BOARD, hEADOf MANAGEMENT MEMBER Of PRODUCTION ACTIvITIES UNIT Branch Sochinskaya TPP Affiliate hPP North-West Branch hPP-2 Kaliningradskaya Branch Ivanovskie PGU Companies Generating with Territorial for Cooperation Department Development of Production Department Gas Market and Operationsat for Dispatching Department Deputy head of Unit of Unit head Deputy Policy of Technical Department Department of Production Efficiency Operational Analysis of and Planning Chief Engineer

Department of Department Occupational of Operational Industrial Management of Safety Production Romania Moldova< Ukraine, Geographic Division DIvISION Of GEOGRAPhIC hEAD DIvISION Of GEOGRAPhIC hEAD DIvISION Of GEOGRAPhIC hEAD Ph hEAD O GEMENT BOARD, M

Geographic Division Geographic Division for Geographic EMBER O

Central Asia South Caucasus, Turkey Division Europe IC DIv and Middle East Amur Region in the Office Operations Economic of foreign Department Development and Management Department of Operations Economic of foreign Department Development Management and Department of f GEOGRA- ISION Operations Economic of foreign Department ment and Develop- Management Department of f MANA- ORGANIGRAM Of far East Division Geographic Division of Geographic head BOARD, hEADOfUNIT Of MANAGEMENT DEPUTY ChAIRMAN CONSTRUCTION AND ENGINEERING UNIT GE Gas TurbinePlant Project Group NPP Group Baltiyskaya Project Deputy head of Unit for Construction Deputy head of Unit Deputy and Reequipment and Reconstruction for Engineering and Innovations head of Unit Projects of f Direction Department Construction Implementation and Reporting for Projects Department Development Engineering Group of Project plex Building Com- Machine ment ofPower for Develop- Department Technologies and Transferof of Innovations Department

oreign oreign Energy Efficiency

Direction CHAIRMAN OFTHE

MANAGEMENT BOARD CHAIRMAN OFTHE MANAGEMENT BOARD Of UNIT hEAD Of UNIT BOARD, hEAD MANAGEMENT ChAIRMAN Of DEPUTY UNIT PROCUREMENT Deputy head of Unit TRADING UNIT JSC INTERRAOUES(asfor31.12.2010) Department Controlling Activity Trade Department Analysis Markets Energy Activities of Trade Support and Technical for Operational Department Activities of Trade Department Department Procedures Tender Activities of Procurement and Regulation Methodology Department of Provision Resources of fueland Department Affiliate Orel Affiliate Omsk hEAD OfCENTER GEMENT BOARD, MEMBER OfMANA- fINANCE AND ECONOMICS CENTER

Chief Accountant Investments Member of Management Member of Management Board, Director of Economics Director Board, finance Director Reporting Accounting and Department for Department Implementation Contract Reporting of IfRS Department Accountant Chief Deputy Controlling Analysis and for Economic Direction Direction Pricing Management Expenditures Department for Department Investments Insurance and Modeling f for Analysis, Department of Treasury Department f of Corporate Department Deputy Director of inance inance inance Economics

Budget Economic Management Planning

Department Department hEAD O A f D hEAD OfUNIT GEMENT BOARD, MEMBER OfMANA- OR INTERNAL UDIT, INTERNAL AUDIT, IRECTOR UNIT Of CORPORATE AND CONTROLLING AND PROPERTY RELATIONS sidiaries andAffiliates Management ofSub- Direction ofStructure RISK MANAGEMENT Management of Property Department Transactions of Corporate Department Relations of Corporate Department gement ofAffiliates Corporate Mana- Department for f UNIT agement Risk Man- Control and of Internal Department Department Audit Internal of Unit head Deputy

DEPARTMENT hEAD Of RELATIONS, fOR PUBLIC DIRECTOR Of DEPARTMENT RELATIONS hEAD AND GOvERNMENT COOPERATION INTERNATIONAL DIRECTOR fOR DEPARTMENT hEAD Of INSPECTOR, TEChNICAL ChIEf BOARD MANAGEMENT MEMBER Of Department Information Policy Department Technical Inspection Department Organizational Support Department Technologies Department human Resources Development Department Organization Relations Markets andInvestors Department ofCapital Department Administration Management Relations and Government Cooperation for International Department REGIME SAfETY AND fOR DIRECTOR hEAD OfUNIT WORK, fOR LEGAL DIRECTOR SAfETY LEGAL WORK AND REGIME UNIT UNIT Support for Regulatory Department Activities International of Projectand Support for Legal Department Activities of Operational Support for Legal Department Direction Management gency Situations and Emer- Civil Defense Direction Special Protection of Resource Department Security of Economic Department

61 ANNUAL REPORT JSC RAO UES / 2010 maIn Issues of Company strategIC development

5.1 5. 2 5. 3 5. 4 MISSION vISION (2020) STRATEGIC OBJECTIvES MAIN TRENDS Of DEvEL- 4 OPMENT ƒ ƒ lowing challenges: fol- the meet to efforts ongoing to due market energy world the in players key the of one be We think that by 2020 JSC INTER RAO UES shall in all regions of Company presence by means population of life of quality the improving and developmenteconomic sustainable porting The Mission of JSC INTER RAO UES is in sup in is UES RAO INTER JSC of Mission The 4.2 4.1

ƒ ƒ holders andRussia’sEnergyPolicy: portfolio of assets, realizing the goals of share- diversified a manages UES RAO INTER JSC major power-generationcompanies; world’s of partner equal an and volume, ness power suppliers by installed capacity and busi- electric major world’s the of one company, global a become shall UES RAO INTER JSC ments in the sphere of environment protection; require- the observes strictly and protection sponsible position in the field of environmental re- a occupying assets, generation efficient of portfolio balanced a has company The synergetic effects; tion and sales to end users, reaching multiple from production and supply of fuel to distribu- of the energy value chain in the energy sector: The Company operates in various segments vISION (2020) MISSION - ƒ in power efficiency and power savings sphere. menting innovation technologies and solutions growing demand for electric power, and imple thesupply, powermeeting stable ensuring of

ƒ ƒ ƒ holder valueoverthelongterm. The company provides a steady growth in share-

innovative developmentofRussia. the task of upgrading the electricity base and tion and efficiency, contribute meaningfully to conserva- energy in as well as engineering, and equipment energy of production the of field the in solutions and projects Company by volumeoftradetransactions; the largest global energy trading companies between the energy market, and is also one of links strengthening and unions ternational in- in systems power national of integration the in role important an plays company The among domesticandforeignmarkets; The company’s business is equally distributed -

63 ANNUAL REPORT JSC RAO UES / 2010 64 ANNUAL REPORT JSC RAO UES / 2010 ƒ ƒ strategic initiatives in the following areas: areas: following the in initiatives strategic through done be will goals these Achieving ƒ ƒ state of the company are: company the of state future the define which objectivesStrategic 4.4 4.3

with this, it is planned to purchase stakes in stakes purchase to planned is it this, with Alongside participation. state with companies shares of electricity state-owned companies and of blocks consolidate to plans company The sector inRussia generation thermal the in growth Further Russian companies. leading positions in operating efficiency among achieve and energy thermal and electric of will take steps to improve the energy efficiency and safety of industrial facilities. The company will be priority measures to ensure the reliability programs on modernization and reconstruction long-term and company the for policy nical Developing and implementing a common tech- tional efficiencyofexistingassets opera- and safety reliability, the Ensuring federation. Russian the the of interests strategic suring Creating conditions of energy security and en- Russian practicesandindustrysolutions. kets, as well as promotion to foreign markets of Expanding its presence in target overseas mar- Of DEvELOPMENT MAIN TRENDS STRATEGIC OBJECTIvES ƒ ƒ ƒ ƒ ƒ

on expanding its presence in foreign markets foreign in presence its expanding on focused is company the of policy foreign The Build-up of foreign assets and their structure tion generatingfacilitiesstipulated bycontracts. is implementing investment projects of construc players is also envisioned. Another major objective enterprises from adjacent sectors owned by others blocks of shares in electric power enterprises and purchasing this, with Alongside share. state with Russian the the by owned companies power electric of shares of blocks consolidate to planning is Company The eration intheRussianFederation Further growth of the sector of thermal gen- of generatingfacilities contracts of investment projects for construction supply capacity of implementation the is task ing to other market players. Another important belong- industries related and utilities electric energy efficiency. of energy assets with a focus on innovation and companies in the area of effective management power Russian among leadership Providing sector. energy Russian the in leadership Achieving The growthofshareholdervalue. f ederation and companies companies and ederation - ƒ ƒ ƒ the regions on the principle of a one-stop shop formation of integrated multiproduct clusters in the retail market in Russia, including through the The Company shall obtain leading positions in The developmentofretailactivity of renewableandnuclearenergy. state-owned companies operating in the fields ity should be cooperation with Russia’s largest environment. An important aspect of this activ- technological and corporate regulatory, the in strategic task that requires appropriate changes a is generation company total in generation providing an increased percentage of non-fuel as well as markets foreign and domestic for energy nuclear and renewable the of ments seg- the in presence company increased An Company the of balance fuel the of Diversification product linemovingforward. its expand to plans also company The trade. of areas cost-effective of expansion the and Russia in produced electricity in trade foreign of growth the are direction this in tasks Key ening linksbetweenenergymarkets Development of foreign trade and strength- assets whileincreasingyieldonthem. and ensuring the economic efficiency of foreign ƒ ƒ

and conservation. efficiency energy of field the in market service of the retail market for the company will be the for the consumer. One of the priority segments tion projects. The company will make efforts make will company The projects. tion construc- new of cost and time the of zation optimi- the be will complex engineering the of competitive on world markets. The internal task to operation of various types of energy facilities, providing power facilities services from design of capable engineering in cycle production complete a create to is priority important An for newtypesofenergyequipment transfer and launching production facilities technology engineering, of Development the valuechain. of parts other with synergies ensure shall and own fuel base look promising for the company the of development and segment supply and production fuel the in presence increased An 2020. in remain will company the of balance The predominance of fuel generation in the fuel Development offuelbusiness ƒ

energy efficienttechnologiesinRussia. and achieving leading positions in the market of cies on energy efficiency, promoting innovation poli- public of implementation the for platform corporate a creating at aims Company The tion, energyefficiencyandinnovation Development activities in energy conserva- including for the transfer of technologies abroad. energy, thermal of field the in solutions nology engineering and the creation of standard tech- to promote the development of Russian power

65 ANNUAL REPORT JSC RAO UES / 2010 aCtIvIty

5.1 5. 2 5. 3 5. 4 5. 5 5. 6 PRODUCTION TRADING AND SALES. fOREIGN fOREIGN ASSETS INvESTMENT MAIN fINANCIAL ACTIvITIES TRADING-PURChASING ECONOMIC MANAGEMENT ACTIvITIES Of JSC RESULTS fOR 2010 ACTIvITY BY MARKET ACTIvITY INTER RAO UES IN 2010 5 SECTORS ACTIvITY ƒ ƒ ƒ ƒ ƒ ƒ ƒ JSC OGK-1 additional shares OGK-1JSC additional of JSC OGK-1 of by the framework issue within shares % 29.0263 of owner an became UES In in 2010 addition, December JSC RAO INTER OGK-1,JSC of disposition. right the for except UES received all tothe rights attached shares of same renewal period. Besides, JSC INTER RAO the with years five of period the for agement JSCOGK-1 were transferred under trust man of shares to attached rights UES, RAO INTER and Rushydro JSC UES, fGC JSC between signedagreements the with accordance In all 61.9 toof % amounting Rushydro JSC and JSC INTERRAOUES production assetsof Information about ENERGY PRODUCTION ANDSALESOFHEATING ity include: The Company’s main types of production activ RAO UES. RAO ferredtrustmanagementunderof INTERJSC trans- were Company, the in shares voting the 5.1

electric supplyactivity. domestic wholesalemarket; the in power electric of sales and purchase Kaliningrad region; the in supply for power electric of purchase sales ofimportedelectricpower; purchase of electric power for its further export; of theRussianfederationincluding: (capacity) power electric of market wholesale the in activity sales and purchase and trade production ofelectricpowerandcapacity ACTIvITIES PRODUCTION by JSC fGC UES UES fGC JSC by of JSC OGK-1 owned shares ordinary 912 151 628 27 2009 In - - In November 2003 for the purpose of develop PGU Ivanovskiye engineering equipment. power-domestic of use the with technology but also create, adjust and master a gas-steam plant power electrical new a build to just not was implementationproject PGUIvanovskiye tasksduringment.ofmostimportantthe One develop industry power-engineeringthe in trends perspective most the as world the over gies during recent decades are considered all plants with application of gas-steam technolo existing the of modernization and equipment re- cycle, gas-steam combined a on based plants power electrical new of Construction Russian enterprises. by produced was itself unit gas-steam cycle ver,all the equipment including the combined production based on gas-steam cycle. Moreo energy thermal and electrical of technology industry power-engineering Russian for new a ofapplication with built being isstation The MW. 650 of capacity total the with units power cycle combined PGU-325 two of installation plant at JSC Ivanovskiye PGU started with the f In project. the of implementation of pose pur- the for Company established was PGU Joint-Stock Ivanovskiye Open 2004 July In GRES. Ivanovskaya the of building main new the in MW 650 of capacity total the with units construction of two PGU-325 power generating of the project to took start a of Russia decision UES RAO solutions technologic new of ment ebruary, 2005 the construction of power of construction the 2005 ebruary, - - - - which has a well-developed economic and economic well-developed a has which administrative center of the Kaliningrad region the in located is TPP-2 Kaliningradskaya The Kaliningradskaya TPP-2 2008. 20, May on commissioned was pacity The first power-generating unit of 325 MW ca Saturn. NPO JSC by made is which of manufacturing and ment GTE-110,units gas-turbine of developbasis of on units building PGU-325 the two gas-steam Reconstruction of Ivanovskaya GRES stipulates Mezhregionenergostroi undertakes to provide JSC project the of framework the Within unit. power-generatingsecond the ofconstruction of way by TPP-2 Kaliningradskaya the of sion investmentmentationtheof project expan of tember, 2008. The agreement started the imple Sep- in signed was UES RAO INTER JSC and gionenergostroy (part of LLC Mezhregiongaz) An investment agreement between JSC Mezhre power. electrical in need 10, and up ensures 2005 to 70% of the region’s Novemberon commissioned was MW 450 of capacity the with TPP-2 Kaliningrad of the unit power supply of the region. The first generating Lithuanian territory due to historically low electric the across power electric Russian of transit of for power has electric been met at the expense gradskaya TPP-2, 95% of the demand regional of the first power generating unit of the Kalinin traffic arteries go to the region. Before the start across of the Belarus, territories which the main of f the the Russian liningrad region is separated from the main part Due to its specific geographic location the Ka fuel. reserve fuel, and diesel fuel as the emergency The plant uses natural gas as and the principal industry. of branches various in ment have wide opportunities for dynamic develop transport infrastructure. The city and the region ederation by Lithuania and ------

67 ANNUAL REPORT JSC RAO UES / 2010 68 ANNUAL REPORT JSC RAO UES / 2010 in the beginning of the 1990s. In 1992 the Gov the 1992 In 1990s. the of beginning the in The history of construction of the plant started regulating authority. governmental the by set price the at market regional the in sold is power thermal market, sold in the electric power (capacity) wholesale are types product two power. first The thermal types of products: electric power, capacity and the three plant Since has 2008 been delivering cycle). binary combined production of electric and thermal power (with efficient and environmentally safe technology of power plant of the new generation with a highly TPP The is Severo-Zapadnaya the first Russian far from the border between Russia and cated on the of seashore the Gulf of f f Russian the the of city largest Primorsky District of St. Petersburg, the the second in located is TPP Severo-Zapadnaya The TPP Severo-Zapadnaya was signed. TPP-2 Kaliningradskaya the of unit generating agreement on gas supply for the second power- 1,a of long-term gas supply. On January 2008 issue the of resolution the was unit generating power-second the of construction of tation The most important condition of the implemen region. the in supply energy of of power supply to consumers and the security reliabilityincreased the anddeficiency power to power supply the the reduced region, risk of enabled the solving MW of the 450 problem of of full capacity electric same the with unit ating power-genersecondthe constructionof The 21, 2010.cember De on commissioned wasTPP-2gradskaya Kalinin atpower-generating unitsecond The the obligation to build the power-generating unit. undertakes UES RAO INTER JSC and funding ederation, lo ederation, inland, not f inland. ------The Severo-Zapadnaya TPP The of Severo-Zapadnaya St. Petersburg mode. heating the TPP the operates in Severo-Zapadnaya 2006, Octoberfrom starting addition, In operation. into put also was MW 450 of capacity same the with plant power the of unit generating power- second the 2006 November In 2000. December as soon as started MW 450 of ity the first power-generating unit with the capac productionpilotatlaid.Thepower wasplant the of foundation the 1994 October In Units”. Organization of Production of Combined-Cycle Severo-Zapadnaya TPP in St. Petersburg and of the Construction “On Resolution the a new of ernment the the Russian skaya TPP were put into operation. Nominal Nominal operation. into put were TPP skaya Sochin- the of phase 1st the of PGU-39 units In December 2004 two main power generating resort. Russian of the All- prosperity and further the success promoteshall consumers city the to supply powerelectric reliable A Olympics. Winter 2014 the of city host the is Sochi of city The Range. Mountain Caucasus Greater the mountain system the of of the south-westernfoot slopethe of at Sea, Black the of coast the of the federal resort city, 4 kilometres away from TPP in is located the territory The Sochinskaya TPP Sochinskaya fuel. reserve fuel, and diesel fuel as the emergency The plant uses natural gas as and the principal ones. outdated of modernization and plants powernew ofconstruction ofexample good Russian the the in advanced most the of one is plant power this tors and the level of environmental protection According to its technical and economic indica new generation of the the Russian of power plant industry. power first the unit, cycle bined com binary a with plant power thermal a is f ederation and serves a serves and ederation f ederation adopted - - - manufacturers is used in order to reach maximum foreign and domestic from equipment primary Modern cycle. combined on operating plant power thermal modern a is TPP Sochinskaya power). (thermal /h Gcal to 50 up to twice, 158 power), MW (electrical and up increased capacity Totaloperation.installed phase second of TPP Sochinskaya was put into the of MW 80 of capacity the with 3 No. unit OnDecember the 25,power 2009 generating capac ity thermal MW, 78 is plant the of capacity ity the shall of the branch Severo-Zapadnaya Severo-Zapadnaya branch the of shall the ity In the general structure of the installed capac cal unit No 2 at TPP-2 the (electri- Kaliningradskaya the of up start the with connected is capacity increase of the installed electrical and thermal power thermal MW, 283 Rus of 2 was Company capacity the of assets productive sian installed the 2010 of end the By is natural gas, emergency fuel plant power the for fuel reserve and Primary fall. also will city resort the of atmosphere units the volume of hazardous emissions into the ef more a to Due ficient process of fuel reduced. burning in be combined-cycle will city the by gas natural of consumption and operation, peak to municipal heating boiler house will be transferred fuel for production of electric power. A part of the heating mode will reduce specific consumption of activity of type using combined cycles allows carrying out another Composition of the main technological equipment MW in 2013 293 to up and stage 2nd the of commissioning crease of installed capacity up to 160 MW upon in an with plant power the expand to decided was it 2014 Olympics the for preparation and Sochi ofdevelopment active of conditions the environmental indicators.In high and efficiency Transfer of operation of steam turbines into the the into turbines steam of operation of Transfer — 25 Gcal. —25 — 450 MW, thermal — 340 Gcal/h). —340 MW, thermal —450

— after construction of the third stage.

— distribution of thermal power.thermal ofdistribution — — 1 509,1 The Gcal/h. — diesel fuel. - - - - - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ Branch Ivanovskiye PGU PGU Ivanovskiye Branch TPP Severo-Zapadnaya Branch Branch Kaliningradskaya TPP-2 Season restrictions: TPP” “Sochinskaya Branch reasons: following the by caused be might 2009 in branches the by capacity installed the of Underutilization PGU TPP-2 Kaliningradskaya branch the 39,4%, is TPP TPP

operation under90MW. GTU for 2,) No GTD-100, of resource the striction has been implemented (to increase re recommendation, manufacturer the By tions intheoperationofgas-turbineunits; Season restrictions due to temperature restric- peculiarities oftheflowsheet). Increased heat consumption (due to technical tions intheoperationofgas-turbineunits; Season restrictions due to temperature restric- Season restrictionsintheinstalledcapacity: tions intheoperationofgas-turbineunits; Season restrictions due to temperature restric- temperatures). low to due CU of capacity steam (reduced classifier the into included not reasons, Other characteristics ofancillaryequipment); nominal adequate (providing input capacitor the on increase temperature water Cooling tions intheoperationofgas-turbine; Season restrictions due to temperature restric- — 6,9%.

— 14, 2% and the branch Sochinskaya Sochinskaya branch 14,— the and 2%

3,% te rnh Ivanovskiye branch the 39,4%, — - ƒ ƒ TPP TPP may be by explained the reasons: following The reduced production at Severo-Zapadnaya by control orders. by the fact, that has the been equipment loaded at KTPP (17.13%), pro at plants IvPGU — it might be caused power took place: increase at duction STPP (43.16%), electric the of rest the at While PGU Ivanovskiye at and 23.19% by Severo-ZapadnayaTPPat reduction duction end of2010 Installed electriccapacityasofthe power in2008-2010: of electricandheat Production dynamics utilization, % Coefficient ofinstalledcapacity Operating electriccapacity,MW MW Average availableelectriccapacity, Installed thermalcapacity,Gcal/h OF JSCINTERRAOUESIN2010 STRUCTURE OFINSTALLEDCAPACITY Name ofindicator

MW, andin2009—696.08MW. 546.7 made 2010 in load electrical Average 0.8 MW). repair unscheduled including MW, 83.4 was 3.3 MW (in 2009 capacity reduction due to repair — repair unscheduled including MW, 220.8 to In 2010 the capacity was reduced due to repair It is caused by pro- by caused is It 2009. to compared tion reduced by 7.9% produc- the 2010 In assets Total forplant 7, 7, 16494100,0 79,1 277,7 409,4 680 453,0 91,6 900 50 105,4 578,7 160 847,3 700 1 179,7 900 1 683,4 1 509,1 2 283,0 — by 3.7%. 70 075, 4721,1 74,7 57,4 60,7 57,0% - TPP Zapadnaya Severo- ƒ ƒ The reasons of the thermal energy increase are: increase energy thermal the of reasons The YOY. higher 24% i.e. distributed, were power heat 1 272of 724 Gkal plants. thou power to electric proximity close in are which localities inhabited INTER the JSC for at out carried mostly is energy plants UES’s RAO thermal of distribution The

Severo-Zapadnaya TPPin2010. at increase season heating and load heat heat distributioninOctober2010; gradskaya TPP-2 and correspondingly start of Kalinin- at main heating the of Commissioning kaya TPP Sochins- TPP-2 gradskaya Kalinin- PGU Ivanovskiye 325

69 ANNUAL REPORT JSC RAO UES / 2010 70 ANNUAL REPORT JSC RAO UES / 2010 Ivanovskiye PGU ELECTRIC POwERDISTRIBUTIONFROMCOLLECTORS SPECIFIC FUELEQUIVALENTCONSUMPTIONFORDISTRIBUTED HEATPOwER Ivanovskiye PGU Ivanovskiye PGU Ivanovskiye PGU Ivanovskiye PGU ELECTRIC POwERGENERATION TOTAL Sochinskaya TPP Severo-Zapadnaya TPP Kaliningradskaya TPP-2 TOTAL Sochinskaya TPP Severo-Zapadnaya TPP Kaliningradskaya TPP-2 FOR DISTRIBUTEDELECTRICPOwER SPECIFIC FUELEQUIVALENTCONSUMPTION TOTAL Sochinskaya TPP Severo-Zapadnaya TPP Kaliningradskaya TPP-2 TOTAL Sochinskaya TPP Severo-Zapadnaya TPP Kaliningradskaya TPP-2 TOTAL Sochinskaya TPP Severo-Zapadnaya TPP Kaliningradskaya TPP-2 Branch Branch Branch Branch Branch Measuring unit Measuring unit Measuring unit Measuring unit hukl10683106431272.724 1026.413 1036.893 thouGkal l.W 4.6 5.7 9219.773 9750.971 8141.560 mln.kWh hukl947498761093.427 115.300 908.736 117.677 934.754 thouGkal 102.139 thouGkal thouGkal thouGkal l.W 3.2 3.4 795.065 4788.872 534.440 600.741 3035.095 6097.680 433.721 2528.890 589.962 4366.025 2688.906 mln.kWh 652.908 mln.kWh mln.kWh mln.kWh gkWh gkWh gkWh gkWh gkWh kg/Gkal kg/Gkal kg/Gkal kg/Gkal kg/Gkal 2008 2008 2008 Measuring unit 2008 248.7 266.9 234.5 263.7 269.7 5. 5. 141.8 151.7 155.4 5. 5. 140.7 167.8 150.0 165.3 153.3 174.6 0 0 Gkal/h Gkal/h Gkal/h Gkal/h Gkal/h 0 0 2009 2009 2009 2009 246.2 Installed thermalcapacity 268.4 237.3 258.4 266.6 63.997 0 0 115.0 0 0 2010 2010 2010 2010 1 509.1 245.3 267.3 231.6 256.1 271.3 79.1 680 700 50 0 0 the expense the of expense the average heat loads increase at Gkal kg/ 9.9 by reduced distribution power heatfor consumptionequivalent fuel Specific and-heat generation cycle. average electrical power generation by of power- increase to due and increase load thermal tion indicators by 5,7 at g/kWh the expense of greatly contributed to reduce specific consump average electric loads. Severo-Zapadnaya TPP by 0.9 YoYg/kWh at the of expense of increase and diversification of the load distribution mode. fuel consumption Dynamics ofspecific tric power reduced reduced power tric elec for sumption con fuel Specific - - - RAO UESin2009-2010 branches ofJSCINTER for Russianproduction Gas CostDynamics Fuel Supplies Natural GasandDiesel Sochinskaya TPP Weighted averagepriceofgassupply Severo-Zapadnaya TPP Weighted averagepriceofgassupply Ivanovskiye PGU Weighted averagepriceofgassupply Kaliningradskaya TPP-2 TOTAL Kaliningradskaya TPP-2 Severo-Zapadnaya TPP Ivanovskiye PGU TOTAL Ivanovskiye PGU Severo-Zapadnaya TPP Sochinskaya TPP Kaliningradskaya TPP-2 Weighted averagepriceofgassupply Sochinskaya TPP Indicator Branches JSC INTERRAOUES Branches of Name ofSupplier L rsoargogz176.64 LLC Krasnodarregiongaz S eebrrgogz684.65 JSC Peterburgregiongaz Name ofSupplier L vnvrgogz154.06 LLC Ivanovoregiongaz esrn nt20 2010 2009 Measuring unit rub./thou m rub./thou m rub./thou m rub/thou m S OAEh1083.51 JSC NOvATECh Tatneft-AZS-zapad LLC 3 3 3 3 496 648 7.77.07 175.27 20.23 2654.88 494.33 2479.61 23.46 2937.68 580.78 2443.35 28.83 3056.81 719.41 2476.03 3214.49 2495.08 2010, mln.m of gassupplyin Annual volume - - - 9.62475.16 2 098.86 thoutn fuel supplyin2010, Annual volumeofdiesel 3 thoum rub./ Change gas, mln.m annual volumeof Contractual 3 1 234.86 250.30 714.00 276.00 3 % 4.443 4.443 - - -

71 ANNUAL REPORT JSC RAO UES / 2010 72 ANNUAL REPORT JSC RAO UES / 2010 UES in2010 by JSCINTERRAO energy sourcesusage Information about Gas Ivanovskiye PGU Diesel fuel Severo-Zapadnaya TPP Sochinskaya TPP Kaliningradskaya TPP-2 Ivanovskiye PGU Total amount Severo-Zapadnaya TPP Sochinskaya TPP Kaliningradskaya TPP-2 Ivanovskiye PGU Power, purchased Severo-Zapadnaya TPP Sochinskaya TPP Kaliningradskaya TPP-2 Ivanovskiye PGU Electrical energypurchased/own Ivanovskiye PGU Residual fueloil Severo-Zapadnaya TPP Sochinskaya TPP Kaliningradskaya TPP-2 OF JSCINTERRAOUESIN2010 FUEL USEDATPRODUCTIONBRANCHES technological Type offuel Severo-Zapadnaya TPP Sochinskaya TPP Kaliningradskaya TPP-2 Ivanovskiye PGU fuels POL andothernon-technological non-technological measuring unit huWh104973.912 ThoukW*h ThoukW*h ThoukW*h ThoukW*h ThoukW*h Thou m Thou m Thou m Thou m Thou m MW MW MW MW Ton Ton Ton Ton Ton Ton Ton 3 3 3 3 3 1083556.890 2098961.967 176722.077 684614.000 154069.000 29946.058 72931.993 31146.435 166071.41 679.248 551.148 Quantity 43.710 48.710 54.770 64.000 44.944 17.156 62.099 9.330 rubles, w/oVAT Value, thou 6123442 2876554 5989534 2092468 567922 452590 101823 10069 10752 11081 58013 21376 48933 22434 4598 1161 2594 1716 8996 8086 2995 144 183 183 655 957 (RA) regulated agreements electric powerunder Purchase andsalesof OF ELECTRICPOwER PURCHASE ANDSALES works campaign Results of2010repair ƒ ƒ ƒ ƒ in 2010 compared to 2009 is related to: related is to 2009 2010in compared remarkableAincrease repairof worksexpenses via: out carried were optimization cost my of In the addition, tasks equipment. of repair ment of reliability, safety and operational econo Repair works program results are in enhance branches. UES RAO INTER JSC billion rubles which is which 1.438 rubles kWh billion and 0.523 bil- 3.525 kWh were billion to sold amounting 1.860 to by 0.270 rubles branch).billion the Orlovskiy amounting kWh billion 0.440 (including 2009 in than less rubles 2.101billion is which ket, 5.2

the change of accounting policies at the branch: increase of expenses at KTPP-2 connected with No 3equipment. repair-recovery works at power-generating unit increase of expenses at STPP for unscheduled and serviceorganizations. system with involvement of manufacturing plants maintenance service the of implementation and result; condition to according repair equipment to switchover from preventive maintenance system ACTIvITY ACCORDINGTOMARKETSECTORS TRADING ANDSALES.TRADING-PURChASING 7 capital, 5 mediumcapital,57 the wholesale mar wholesale the in purchased 2010 in were rubles billion 2.631 to amounting kWh billion 4.691 at held were pairs re- ordinary 25 and - - - liberalization. WEM Rf by caused is RA under power trical Reduced volume of purchase and sales of elec office). Executive the to 0.185kWh amounting billion by rubles billion 0.868 (including 2009 in than less rubles lion kWh andkWh 7.720 more rubles billion than in 2009 5.118is 18.221billionwhich ofrubles amount tomorrow market(TM) electric powerinthe Purchase andsalesof 2011. in fulfillment Program Repair the for rubles We thousand 955 to plan 896 spend rubles for the Repair Program fulfillment. In 2011 it is to planned spend 896 955 thousand “Repair services”. item the to related are they 2010 beginning “Works and services of production character”, expense of item to related were 12 and 11 No maintenance of gas turbines of GTE-160 at st. technical long-term for expenses the earlier purchased for the the for purchased been have bil kWh lion the 20.984 on WEM 2010 In - - 2010 2009 2010 2009 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008 billions ofkwh power inRAsector Structure ofpurchase/saleselectrical (fact) DYNAMICS OFREPAIREXPENSES 9 8 7 6 5 4 3 2 1 0 Sales Purchase 0 200 100 0 Executiveoffice(FIA) Executive office(FIA) 300 Production branches Orlovskiy branch 400 SZTPP IvPGU K TPP S TPP

73 ANNUAL REPORT JSC RAO UES / 2010 74 ANNUAL REPORT JSC RAO UES / 2010 6 822 billion rubles more than in 2009 (includ 2009 in than more rubles billion 822 6 15 of and kWh amount billion 891 4 is the what rubles 511 for billion sold were kWh billion 710 17 R by caused is TM in Increase in the volume of electrical power purchase increase of export contracts scopes of supply. of scopes contracts export of increase rubles purchased by Orlovskiy branch). by Orlovskiy purchased rubles billion of for kWh 0.295 the amount billion 0.340 and rubles billion 0.548 of amount the for kWh (including by production branches 0.613 billion billions ofkwh ELECTRICAL POw VOLUME OFPURCHASE/SALES CAL POw VOLUME OFPURCHASE/SALESELECTRI- 2010 2009 2010 2009 2010 2009 2010 2009 5 4 3 2 1 0 Sales Purchase Sales Purchase 01 20 15 10 5 0 ER INTMSECTOR,billionsofkwh f ER INBMSECTOR, WEM liberalization and by Executive office(FIA) Executive office(FIA) Executive office(FIA) Executive office(FIA) Production branches Production branches Production branches Production branches Orlovskiy branch Orlovskiy branch -

billion kWh and 0.209 billion rubles less than in less rubles billion kWh and 0.209 billion 0.507 is which rubles billion 2.219 of amount rubles by Orlovskiy branch). by Orlovskiy rubles kWh for billion 0.006 the of amount billion 0,005 kWh for the amount of 0.074 billion rubles and 0.127by branches (including production billion 2009 in than less rubles billion 0.242 and kWh billion 0.785 is which rubles billion 1.698 of The were sales 3.776 kWh for billion the amount ply deviations from deliverytypical schedules. resulted from reduction of electrical power sup performance on behalf of the contractual parties regulator of by enhancement caused is BM the Reduce of electrical power purchase volume on of by 0.049 branch).purchased rubles Orlovskiy and kWh for branches 0.044 billion the amount of 0.125 by purchased rubles billion production 0.128(including 2009 kWh for billion the amount balancing market(BM) electric powerinthe Purchase andsalesof ments in sectors NRBA and and NRBA sectors in ments purchase due to non-regulated bilateral agree power electrical by caused is volume sales of increase the general, In branch). Orlovskiy by rubles billion 0.5 of amount the for kWh billion 0.001 and 4113 of rubles amount the billion for kWh billion 855 3 branches production by ing of of 0.191 which is kWh rubles billion billion 0.229 The were sales 0.218 kWh for billion the amount feasibility. economic and behavior market the by caused is volume purchase the in Increase rubles). billion 0.093 of chasedbyproduction branchesfor amountthe pur kWh 0.126billion (including 2009 in than (NRBA andFEPA) bilateral agreements electric powerunderfree Purchase andsalesof 4.518 billion kWh and 3.868 billion rubles more rubles billion 3.868 and 4.518kWh billion purchased for the the for been purchased have kWh the billion 4.108 on WEM 2010 In billion rubles what is is what rubles billion 5.253 of amount the for purchased been have kWh billion 6.417 WEM the on 2010 In f EPA. - - - 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 SECTOR, billionsofkwh ELECTRICAL POwERINNRB/FEPA VOLUME OFPURCHASE/SALES CAPACITY INHEPS(RD)SECTOR,Mw VOLUME OFPURCHASE/SALES billions ofkwh POwER INKALININGRADREGION, VOLUME OFSALESELECTRICAL 2010 2009 CAPACITY INHEPS(DDM)SECTOR,Mw VOLUME OFPURCHASE/SALES 6 5 4 3 2 1 0 4 3 2 1 0 01 4thou 14 12 10 8 6 4 2 0 Sales Purchase Sales Purchase 0 Purchase 0,5 1 1,5 2 2,5 43 4,53,5 Executive office(FIA) Executive office(FIA) Executive office(FIA) Executive office(FIA) Executive office(FIA) Production branches Production branches Production branches Production branches Executive office(FIA) thou MW Orlovskiy branch Orlovskiy branch than in 2009. in than which is 5 less MW 432 and 1.407rubles billion rubles)billion 0.225 of amount the for office 1 (including 876rubles billion MW by Executive 1.696 of amount the for MW 949 7 sold Were 2010. in than less rubles billion branch) Orlovskiy which is 6.923 MW and 0.396 by rubles billion 0.100 of amount the for MW (RA) regulated agreements of capacityunder Purchase andsales PURCHASE ANDSALESOFCAPACITY rubles). 0.485 of amount the for office Executive by kWh billion 0.915 (including 2009 of wEM united intopricezones constituent entitiesnot agreements withRF side purchase/sales power underfour- Sales ofelectrical billion kWh for the amount of 0.167 billion rubles). cluding sales by production branches (in- 2009 in than less rubles 0.105billion and 2010 2009 2010 2009 CAPACITY INCSPSECTOR,Mw VOLUME OFPURCHASE/SALES 01 025 20 15 10 5 0 Sales Purchase WEM (including 1240WEM (including chased in 2010 in the lion rubles were pur bil- 0,804 of amount the for MW 972 7 in than more rubles billion 0.549 and kWh 0.191billion is which 2.591ofrubles billion amount the for sold 3.877 billion kWh were region non-price zone In 2010 in Kaliningrad Executive office(FIA) Executive office(FIA) Production branches thou Orlovskiy branch — 0.188 - 2.210 billion rubles less than in 2009. 2009. in than less rubles 2.210 billion 15 is which rubles) 0.011billion of and 62 MW by production branches for the amount power take-off(CPT) results ofcompetitive Contracts basedon Sale andPurchase Commission andPower and salecontracts Capacity purchase sector). DdM in volumes purchase hPP of NPP redistribution and RA with simultaneous WEM liberalization (reduction of volumes under by caused is volume purchase the in Increase 2009. in than more rubles billion 0.674 and MW 2042 is which branch) Orlovskiy by purchased rubles billion 0.072 of amount HPP (DdM) equipment ofNPPand produced atgenerating agreements ofcapacity under purchaseandsale Purchase ofcapacity liberalization. by WEM caused is volumes sales and purchase the in Decrease 2010 2009 IN FEPA/СДЭМSECTOR,Mw VOLUME OFPURCHASECAPACITY 01 025 20 15 10 5 0 Purchase ing 212 MW for the the for MW 212 ing (includ rubles lion 1.547bil- of amount the for purchased been have MW 665 Rf on 4 market wholesale 2010 In of 0.130 billion rubles rubles 0.130billion of branch for the amount Orlovskiy by chased pur MW 718 cluding 1.807 billion of rubles (in amount the for have been purchased 10 2010 In Executive office(FIA) thou

120

042 MW MW 042 MW and and MW - - - WEM liberalization. byR caused is sales of increase The 2009. in than more rubles billion 2.045 and MW 243 8 is which 3 office Executiveby sales (including rubles lion 3.307 of amount the for MW 451 13 were sales in purchase of increase by caused is volume purchase the of reduction The (FEPA) bilateral agreements under non-regulated Purchase ofcapacity office for the amount of 0.483 rubles). 0.483 of amount the for office 1 than in (including 762 2009 MW by Executive of wEM united intopricezones constituent entities,not in theterritoryofRF sales agreements four-side purchase/ Sales ofcapacityunder and economic feasibility. chase volume is bycaused the market behavior rubles more than Increase in 2009. of the pur billion 1.933 and MW 149 16 which is branch) Orlovskiy by purchased rubles 0.011 of billion billion rubles (including 99 MW for the amount 408 2010 2009 KALININGRAD REGION,Mw VOLUME OFSALESCAPACITYIN

63 5 4 2 1 0 MW for the amount of 0.565 billion rubles) rubles) billion 0.565 of amount the for MW Sales

thou f EPA/СДЭМ sector. The The sector. EPA/СДЭМ ilo rbe less rubles billion 0.287 and MW 685 whichrubles is lion 1.816bil- of amount the for realized was price area 7 162 MW non- region grad Kalinin in 2010 In 2.727 of amount the for purchased been have MW 440 23 Rf market wholesale on 2010 In Executive office(FIA) Production branches bil f - - -

75 ANNUAL REPORT JSC RAO UES / 2010 76 ANNUAL REPORT JSC RAO UES / 2010 were the electric systems of Kazakhstan and Kazakhstan of systemselectric the were 2009, and 2008 in as well as purchase, power electric imported of source main the 2010 In IMPORT OFELECTRICALPOwER YOY. by 0.130 kWh increase billion i.e. kWh, billion 0.983 was power electric of In 2010of RAO UES. export volume the INTER ried out by JSC vEK is of which an JSC affiliate China YOY. more rubles 6.761 billion YOY. cost The increase was supplies 29.017 i.e.rubles, billion kWh 1.875 — kWh billion 17.647 The total volume of in supplies 2010export was Latvia. and Azerbaijan, Belarus, Ukraine, Ossetia, South Mongolia, also exported to Kazakhstan (7.8%), Georgia, line].transmissionwaspowerpower Electric k 750 Belarus NPP- Smolenskaya the of year whole the during repairing and 2010 in service from (Lithuania) NPP linskaya nected with two main factors [removal of Igna con volumeissupplies Redistributiontheof weredirections main the 2009 and 2008 In supplies. export all of 88.6%take countries These Lithuania. and The main areas of in 2010activity were EXPORT OFELECTRICPOwER 5.3 f ACTIvITY fOREIGN ECONOMIC inland and Belarus. and inland ply to China is car- is China to ply sup power Electric v (Belarus) f inland - - - significantly from the volume of import in 2008 differ not does which kWh, billion 2.923 was In 2010 the total volume of electric power import Lithuania. and Mongolia, Ukraine, tric power was also imported from Azerbaijan, Elec- import. total the of 89.5% i.e. Georgia, STRUCTURE OFIMPORTSUPPLIESIN2010,% STRUCTURE OFEXPORTSUPPLIESIN2010,% Kazakhstan finland Belarus 2010 2009 2008 billions ofkwh DYNAMICS OFEXPORTSUPPLIES, 01 214 12 11 10 0.2 / 59.7 51.3 Azerbaijan / Lithuania /Georgia 13 0.1 / 28.9 38.2 51 718 17 16 15 Latvia /Azerbaijan / Kazakhstan 0.0 6.9 7.8 /Ukraine 17.65 15.77 18.22 / Georgia 2.8 100% 100% /Mongolia 1.2 respectively. in 2009 rubles 1.944 billion and in 2008 rubles cost was The purchase 1.977 and 2009. billion 2010 2009 2008 billions ofkwh DYNAMICS OFIMPORTSUPPLIES, / Mongolia 4 3 2 1 0.7 /Lithuania 1.2 / South Ossetia South 0.1 0.7 / Ukraine 2.92 3.02 3.05 0.2 / JSC SangtudinskayaGES-1 International EnergyCorporation(Sevan-Razdan hydroelectricsystem,Armenia) Khrami GES-2(Georgia) Khrami GES-1(Georgia) Mtkvari TPP(Georgia) Moldavian GRES(Moldavia) Ekibastuz GRES-2(Kazakhstan) Armenian NPP(Armenia) FOREIGH ASSETSINTHEGENERATINGSEGMENT ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ the following areas: areas: following the in export/import energyelectrical the out ries car- UES RAO INTER JSC segment trading In world. the of countries 27 in activities its develop effectively to UES RAO INTER JSC for possible it makes operationstradeforeign in experienceRich several segments of international energy market: in activities company the 2015considers till The JSC RAO INTER strategy UES development 5.4

China (deliveryonagencyagreements Azerbaijan, Belarus) Georgia, Kazakhstan, (Ukraine, countries CIS Baltic countries(Lithuania,Latvia) direction main the — pool) (finland/Nord Scandinavia Engineering Sales activities Electricity supplynetworkfacilities Generating Trading MANAGEMENT ACTIvITY fOREIGN ASSETS In 2010 the total volume of export-import op thousand km). Georgia of networks power as well as km), thousand 30 about of length (the Armenia of networks electrical the owns UES RAO INTER facilities In the segment of the electricity supply network overseas plants amounted to 12.047 billion kWh. 2010, electricity generation by INTER RAO UES Kazakhstan, Moldova, Georgia and Armenia. In Geographyof thegeneration facilities includes 6402.2 of the foreign assets of the total installed capacity In generating segment INTER RAO UES controls Central Asia. and East Middle America, Latin as regions such in activities trade ofdevelopment the at aimed are UES RAO INTER of efforts ther fur The kWh. billion 21exceeded erations — JSC Telasi (a length of about 3.6 3.6 about of length (a Telasi JSC — 114.4 MW 112.8 MW 2 520MW 1 000MW 670 MW 561 MW 600 MW 815 MW - - A promising direction of the INTER RAO UES UES RAO INTER the of direction promising A Armenia. to1.4about millioncustomers Georgiain and RAOUESGroup companiesprovide services In the electrical powers sales segment the INTER operations. increasedelevatedforeignand tradesecurity for alliancessupranational in systemspower of national integration the as well as networks, aimed at ensuring efficient operation of electrical manage in UES RAO ment of the electricity INTER supply network JSC facilities of is strategy The value, are taken into account. into taken are value, provide the growth of the company shareholder the of assets balancing RAO INTER UES, which the hedge of the world’s market risks, as well as synergies with existing assets, the prospects for extracting niche, attractive new into to expand market of such each factors country as the ability In the study of development opportunities in the region. European the of kets Middle East, and the already established mar the and America Latin Africa, Asia, of markets dynamic the at both directed be will interests comingyears,Invector the ofCompany’sthe are actively implemented. WorleyParsons and — industry the of segment this in leaders the RAO INTER UES. projects with The international Group of Companies, within the control loop of number of initiatives in conjunction with out for a the is this company purpose carrying international energy market. transfer)the technologyin the (including ices development is to provide the engineering serv f enice (ED f ) companies quartz quartz — - - -

77 ANNUAL REPORT JSC RAO UES / 2010 78 ANNUAL REPORT JSC RAO UES / 2010 Asofthe dateoftheapproval Annual ReportbytheBoardofDirectors JSCINTERRAOUESGroups donotownCJSCIPCshares. * owns IPC CJSC complexes Armenia. of seven in hydroelectric power elec plants all produced of 10-12% power tric about produces annually IPC) (CJSCCorporation PowerInternational CJSC years. five next the for management trust agreement new for a shares of CJSC Armianskaya signed AES UES RAO INTER and the Republic of Armenia) Armenia and JSC Cooperation between the the Russian the Intergovernmental Commission for Economic mutual interests and in pursuance of decisions of parties the accountinto (taking 2008 cember De In AES. Armianskaya CJSC of shares with concluded UES a RAO five-year trust management INTER agreement secured CJSC and Armenia of Republic the 2003 In kWh. million 2.290 was In 2010 the volume of electric power produced Armenia. ofGovernment the of decisions with is in a long-term closedown mode in accordance is operating. The second power-generating unit generating unit with installed capacity 407.5 MW units of the power is station 815 MW. One power- The installed capacity of two power-generating tric power produced in the Republic of Armenia. elec- all of 46-48% about produces annually Armenia RAO UES Group. UES RAO regulations and standards applicable to in INTER local the ofrequirements the meeting as well electric power systems of foreign countries as national the in role and place their and assets with account of the specifics of corresponding which these assets are located, and is arranged tional legislation of the states in the territory of na the ofrequirements the with accordance f PRODUCTION ASSETS BREIF CHARACTERISTICOFFOREIGN oreign assets management is performed in performed is management assets oreign la pwr plant) power clear nu (Armenian NPP Armianskaya CJSC f ederation - - - - Capital of CJSC IPC.* CJSC of Capital Charter the forming shares of 90% owns Group UES RAO 31.12.2010INTER of JSC As kWh. crease electricity production millionto 800-900 to in- future in the make it possible would which done, was Sevan Lake on dam a increasing of work the 2010 summer In years. 10 last the for the planned total and annual energy generated 62% by exceeds which kWh million 727 was power electricgenerated of volume 2010the cascade the of plants areoperable. Inaccordance power withtheresults of hydroelectric All MW. of power plants of hydroelectric CJSC IPC is 561 of Sevan to Yerevan. The total installed capacity Lake thefrom RiverRazdan the alonglocated Georgia of Erevan power supplies, the capital of Armenia. 110/35/6k carried out the reconstruction of 16 substations successfully has Armenia of NetworksElectric CJSC CJSC 2010 of In Armenia. of shares of Networks Electric 100% all consolidated Group UES RAO INTER 2009 March In kilowatt-hours. CJSC by sold power ElectricNetworks of Armenia was 5.372 million electric of volume the 2010 of results the with accordance In substations. transformer and lines, power cable and head 0.4-110k voltage with networks (owns) possesses It country. the of territory whole the 13locatedthroughouthascompanybranches the country (over 940 thousand customers). The and sale of 100% of electric power consumed in and na sales of electric only power. the It ensures is distribution Armenia of tional company in Armenia dealing in Networks distribution Electric CJSC gia, Tbilisi, and its suburbs selling about 80% of of 80% about selling electric power suburbs consumed by its the capital and region. Tbilisi, gia, Telasi provides services to the capital of Geor gia distributing and selling electric power. JSC v which allowedwhich increasing reliability companies in Geor network largest the of one is Telasi JSC v , over , - - - - JSC Telasi has 5 branches serving over 454 454 over serving branches 5 has Telasi JSC power plant in Georgia and annually produces LLC Mtkvari Energy is the most modern thermal 25% about Telasi, by Georgia. owned are JSC shares of of Capital Charter shares 75% the of owns Group UES RAO INTER JSC volume the 2010 of of sold electric power was 1.645 results million kWh. the with accordance power coming from the Russian stations. In particular, JSC Telasi sells electric sub transformerand lines power cable and 0.4-110k voltage with networks owns company The subscribers. thousand reconstruction was completed. Shares forming program of the Khrami the thus and completed,was №2 generator 2010 the reconstruction of the water-powered In kWh. 874million was power electric ated gener of volume the 2010 of results the with ment concluded with JSC Telasi. In accordance agree an under sold is poweryear. Electric andare operating duringthecalendarwhole Both hydroelectric power plants are functional MW.227.2 is plants power hydroelectric two in Georgia. The total installed capacity of the producedpower electric all of5% about for account they Annually River. Khrami the on form the cascade of hydroelectric power plants JSC Khrami Energy. owns Mtkvari Group LLC of Capital Charter UES the of 100% RAO INTER JSC kWh. million the 2010 of results generatedofvolume579powerwaselectric the with accordance In gia. mercial operator of the power market of Geor concluded with JSC Telasi and with the com agreementsunder sold is station power the capacity 600 MW. Electric power supplied by unitsoperating ongasthewithtotal installed repub the in power lic. The company owns two power-generating electric the all of 11% about h PP-1 and JSC Khramhesi h PP-2 main equipment PP-2 main equipment f v ederation. In , overhead , hPP-2 hPP-2 ------JSC INTERRAO UESGroupCompanyGardabani B.v. Asofthedate of theapprovalAnnualReport bytheBoardofDirectors100% ofstockJSCKhramiGEC-1 andKhramiGEC-2wasconsolidated bythe ** GRES. Moldavskaya CJSC 100% of shares forming the Charter Capital of owns Group UES RAO INTER 4,619JSC kWh. was power electricgenerated of volume the 2010 of results the with accordance In mania. is supplied to consumers in Moldavia and Ro oil. power byElectric generated the power plant types of fuel: natural gas, thermal coal and fuel is able to produce electric power using various installed capacity 2,520 MW. The power station sessing 12 power-generating units with the total Moldavia Kazakhstan Khramhesi JSC h manage to right the has Group by Georgia 31.12.2010. JSC INTER RAO UES Charter Capitals of the companies are owned up to 2024**.up exercised by JSC Samruk Energo. Energo. Samruk by JSC exercised areshares these of rights the Kazakhstan, of Republic by the are owned of shares 50% Stantsiya Ekibastuzskaya GRES-2. The other of shares 50% forming the Charter owns Capital of JSC Group UES RAO INTER JSC kWh. million 5438 wasgenerated power electric of volume the 2010 of results the with ance Russian the the to particularly,sold,be khstan;howevercan it Kaza in sold is plant power the by supplied close in mine Bogatyr proximity of the power plants. Electric power open-cast the from coal thermal is fuel Primary operable.are units power-generatingBothMW. 1,000 capacity power-generating units with the total installed Kazakhstan. The power plant possesses two of Republic the in produced power electric 8% of all about produces annually and plant PP -1 JSC and Khrami f ederation. In accord In ederation. h oe pat pos plant power thermal a is GRES Moldavskaya CJSC power thermal a is 2 bastuzskaya GRES- Eki Stantsiya JSC PP -2 for the period - - - - - Tajikistan to the project level (mark) water. of level project to the reservoir the filling of possibility the provided which completed,were station’s dam the on operator of the In station. 2010, the basic works in the Charter Capital, and the Company is the JSC RAO INTER UES owns 2.18% of the shares kWh. to million 1,633 2010of amounted volume of electric power generated by the The end 15.97%. is share Tajikistan’s of Republic the and 84.03% is GES-1 Sangtudin-skaya Rus JSCof Capital Charter the the in companies sian of share the 2010 31, December of As Tajikistan. of Republic the in station power the bygenerated capacity installed of terms in hPP) Nurekskaya (after second the is plant of a capacity 670total installed MW. The power Sangtuda includes four hydro-generators with Tajikistan. in river vakhsh the on plant struction and ongoing operation of hydropower with the purpose of2005 completing the con venture — was established on february 16, february on established was — sian GES-1 JSC Sangtudinskaya — Tajik joint joint Tajik — a Rus- a — - -

79 ANNUAL REPORT JSC RAO UES / 2010 80 ANNUAL REPORT JSC RAO UES / 2010 The project of construction of the with 2nd unit of project The construction 7,December 2001). ƒ ƒ the participation of the strategic investor JSC JSC investor strategic the of participation the with out carried is MW 450 of capacity the Russian the ofGovernment the of (Resolution 2014 to up Period the for gram of Development of the Kaliningrad Region the of implementation of plant is being carried out within the framework of The unit construction No.2 2005. of the power was The put first unit into PGU-450 in operation 2012. for scheduled is commissioning MW. The 650 make will plant of capacity installed installed The project. capacity of the commissioning unit is 325 construction the in used is 51% to up of basis efficiency the the with units being PGU-325 the and of SATURN NPO JSC by factured h 2004. in out carried was commissioning unit first The RUSSIA. of UES RAO JSC by started the Ivanovskaya GRES reconstruction program The unit № is of 2 the continuation construction were: volume, total tering Company, which amounted to 88% the of of the masprojects investment main the 2010 In the environmental effects of production. reducingand efficiency power itsincreasing equipment,existing the of functionality and reliability the ensuring technologies,ficient ef highly up-to-date of use the with facilities new of commissioning the on focused is UES RAO INTER JSC of program investment The 5.5

ome-produced ome-produced gas-turbine plant GTE-110 manu liningradskaya TPP-2. Ka- the at PGU-450 No.2 unit of Construction plant withtheunitNo.2PGU-325installation. Reconstruction of the Ivanovskaya GRES power INTER RAOUESIN2010 INvESTMENT ACTIvITYOfJSC f ederal TargetederalPro f ederation datedederation

MW. The - - - - ƒ ƒ ƒ ƒ Ivanovskiye PGU In 2010 the total value of the assimilation invest assimilation ment program of the the JSC RAO INTER UES of was value total the 2010 In tion after the made MW.900 unit second start-up cember 2010. The installed capacity of the sta De in commissioned was 2 № Unit Gazprom. INVESTMENT ASSIMILATION, % funding: program investment the of Sources rubles. 11342010 million made ininvestment other andreconstruction and re-equipment technical the for Expenditures program, including: or 88% of the total fulfillment of the investment units in 2010 amounted to 8 480 million rubles, new the of construction the for Expenditures vAT rubles, 9 614 exclusive. million JSC INTERRAOUES Severo-Zapadnaya TPP Kaliningradskaya TPP Sev.-Zapad. TPP Branch

depreciation assignments — 2 559 million rubles; Other newconstructions the gaspipeline)—1219millionrubles. Ivanovskiye PGU, unit No.2 PGU-325 (including of 7 (PGU-450) No.2 unit TPP-2, Kaliningradskaya 039 millionrubles; 76.0 /KaliningradskayaTPP — 222millionrubles. 8. 6. 5 1. 16. 79% 1360.9 715.2 65% 963.1 1 482.2 9. 3. 1 3. 7858.6% 77.8 132.6 61% 733.5 1 198.7 siiain ilo frbe Financing,millionofrubles Assimilation, millionofrubles 947. 53 698. 91% 101.6% 88.2 105.1 96.9 106.7 111.6% 95.3% 100.4 75.6 90.0 79.4 lnfact* plan 10.0 /IvanovskiyePGU — - - - 100% ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ (INRETOOLINGANDMODERNIZATION) INVESTMENT ACTIVITY INTER RAO UES RaM program in 2010 in are: program RaM UES RAO INTER JSC the of(significant) largestactivities The

zation (RaM) in 2010 (without taking into account performing of program of retooling and moderni investment program of JSC INTER RAO UES the the of implementation of framework the Within The RaMprogramfulfillment attracted creditassets—58millionrubles; foreign investorassets—5814millionrubles; 1 182millionrubles. — reorganization its at transferred Russia of other own sources including funds of RAO UES process of the hydraulic part of the PT-10 the of part hydraulic the of process reconstruction the in system control the of and hardware complex of the electrical annex ic-hydraulic one. Modernization of the software «Replacement of CAP PT-10 with the electron- sand rubles; thou- 500 125 — SZTPP works», adjustment fuel liquid the out carrying and reconditioning «Gas turbines liquid fuel gas systems equipment sand kvh», SZTPP — 358 284 thousand rubles; thou- 66 of time operating the achieving after modernization 12 and GT-11 turbines «Gas Omsk branches),seethegraph. RaM on the executive bodies of the Orlovsk and 8.0 plan % /SochinskayaTPP 6.0 fact % - billion rubles in 2009). in rubles billion amounted to 34.6 billion rubles, as against 25.4 market (buying power in the domestic market Russian the on prices electricity in increase consequently,and, anprices increasinggas byjustified is which rubles, 49.6billionto up to revenue by growth 10.5 (26,8%),rubles billion respectively. Cost of sales 50% for 2010 and increased 47% in to proportion amounted 2010 31atunchanged,asand December virtually year,lastwas period same the tocompared Russia, in sales and export for electricity of sales from of share proceeds of ratio the The Russia. in volume trade the Rus on sian prices and international markets and increase higher of both to due is revenue in (31.1%)rubles more YoY. increase The resulting 61.4amountedto14.6 or rubles,billion 2010 for UES RAO INTER JSC of Revenue RESULTS THE ANALYSISOFFINANCIAL ƒ ƒ 5.6

13 485thousandrubles. the boiler monitor and control system», IPGU — of modernization and 12-529-03 PB systems” consumption and distribution gas the of rules burners of E-50 type in accordance with “Safety gas 6 № station boiler the of Modernization boiler», KTPP-2—14454thousandrubles; superheater of the KU-12 waste heat recovery steam pressure high the of «Reconstruction rubles; control system.», SZTPP — 20 684 (AccordingtotheRussianstandardsofaccounting) Of ThEYEAR2010 Of ThECOMPANY’SACTIvITYASEND fUNDAMENTAL fINANCIALRESULTS

thousand - UES fGC system services due to increase in in increase to due services system fGC UES stipu is rubles billion lated by mainly the for payment growth 5.6 the JSC against 2010 in rubles billion 8.7 to up rubles 3.1by billion expenses The increase of commercial and administrative 2009). in (7.7 rubles billion YoY (34%)rubles 4.1by billion increased it i.e. Total profit value resulted in 11.8 billion rubles, Revenue FOR 2009-2010,mlnrubles AGGREGATE PROFITANDLOSSSTATEMENTS Net profit Pre-tax profit Sales profit Cross profit Production cost Name ofindicator (VATEXCLUSIVE),/g/kwh RAM PROGRAMASSIMILATION plan plan plan plan fact fact fact fact 0 400 200 0 600 800 1000 201400 1200 SZ.TPP Iv.PGU K.TPP S.TPP - Balance of other income and expenses by the the by expenses and income other of Balance OGK-1. JSC of body performingthefunctions of asingleexecutive of executive offices the as Company a result of the of number the in increase as well as tariff, value at a rate of (-3.25) billion rubles. Positive Positive rubles. billion (-3.25) rate of a at value negative a reached balance the 2009 in while rubles, 0.17billion to amounted 2010 of end (VATEXCLUSIVE),/g/kwh RAM PROGRAMFINANCING plan plan plan plan fact fact fact fact 0 400 200 0 for 2010 11 801 49 593 61 393 2 704 3 319 3 147 600 800 1000 201400 1200 SZ.TPP Iv.PGU K.TPP S.TPP for 2009 (1 248) (1 103) 39 103 46 831 7 728 2 145

81 ANNUAL REPORT JSC RAO UES / 2010 82 ANNUAL REPORT JSC RAO UES / 2010 (1 Akkuyu PlantPower Nuclear Generation,Power the Turkish design company Joint stock company of capital charter the to contributionrubles), the (1.9 Capital UES RAO INTER JSC of capital thorized au the to investment to due increased account 2010in AlsoLong-term investmentsfinancialthe investments account). OGK-1Long-term JSC(the of issue additional the in UES RAO INTER JSC of participation the OGK-1)through projectinvestmentconstruction (JSK GRES Urengoy the financing todirected The proceeds from the additional share issue are account), commissioned in December 2010]. Construction(Uncompleted TPP-2Kaliningrad of unit second a of construction the [including implementation programinvestmentCompany’s the as well as rubles, billion 3.6 of amount the to execution of the pre-emptive rights of shareholders State Concern in the amount of 21.3 billion rubles, the additional issue in favor of placing by explained is growth assets company’s cember 2010 amounted to 135.3 billion rubles. The creased by 31.8 (30.7%)rubles billion and on 31 in De- 2010 in UES RAO INTER JSC of assets Total AND LIABILITIES ANALYSIS OFCHANGESINASSETS rubles. 1.2 of billion loss a net RAO UES JSC received INTER in 2009, period index profit net and rubles billion 3.3 toamounted tax before profit the year the of result a As rates. exchange of volatility the reducingrevaluationby liabilities and assets company’sthe of cost reduction others)and and Oy Nordic RAO GRES-2, Station bastuz (JSCEki organizationsother involvementin company’s the from income of receipt the to due is expenses and income other of balance St. Petersburg Energy Sales Company (1.4 billion

billion rubles).

billion rubles), the acquisition of shares in JSC — 2.7 the while during rubles, same billion v nesheconombank nesheconombank - - - 2008 AGGREGATE BALANCE,thousandsrubles I. Non-circulatingassets JSC INTERRAOUESASSETSANDLIABILITIESSTRUCTURE IN2010,% TOTAL SHAREHOLDERS’FUNDS v. Short-termliabilities Iv. Long-termliabilities III. Shareholders’funds TOTAL ASSETS II. Circulatingassets short-term investments / Otherlongtermliabilities Own capital Own Fixed assets Name DYNAMICS OFASSETSIN2008—2010 Current assets Long-term financialinvestments Fixed assets 68.0 33.0 / Long-term loans and credits and loans Long-term / / Long-term financial investments 25.0 0.0 /Others 8.0 15.0 8 9 3 0 7 9 3 7 3 100.00% 135276836 103473796 86792233 67223134376 52686100.00% 35276836 103473796 86 792233 323633 7 0 0497715.10% 68.29% 20429747 17.43% 31771908 92376727 82.57% 64791976 13 213623 23582395 63 897311 27303595 111694441 76170201 30 127870 56 664363 8 9 0 1 2 7 6 16.61% 22470362 6909912 9 681299 17.0 11.083.220 31.12.2010 31.12.2009 31.12.2008 / Short-term loans and credits and loans Short-term / Unfinished construction 2009 100% 100% Other long-termliabilities Unfinished construction 8.0 0.0 / Short-term receivables / Payables / 5.0 / Other liabilities Other / on 31.12.2010 9.0 / Cash and in assets Share 12.0 2010

Reducing the volatility of exchange rates and and rates exchange of volatility the Reducing crisis. financial the of phase acute the from economiesworld’s leadingthe of emergence as as well sales, and profit of gross growth the reflectedinmarkets, electricity in conditions externalfactorsto part in Increas ing substantially. the profitability in the reporting period increased is due 2009 to pared The main indicators of profitability in 2010 com PROFITABILITY INDICATORS under leasing contracts are taken into account. sheetobligationsoff-balancetheassessment fied as non-current assets and during the debt In particular, long-term receivables are reclassi sets in accordance with urgency was performed. balance All financial indexes are based on transformed CONDITION ANALYSIS OFTHECOMPANY’SFINANCIAL lion a rubles to at the urgency of not less than 3 maintained years. is lines sufficient level to provide credit liquidity open of volume The ing activities. operat from received funds the of expens the at scheduled maturity or early redemption of loans of the Company is justified by of the a necessity at 13% and 87% the beginning of against 2010. Reducing 2010 the loan portfolio December 31 on as in changed favor debt: of 97% long-term and 3% whilethe ratio of andlong- short-term loans has by decreased 19% from 25.2 to 20.4 rubles, billion 2010 in UES RAO INTER JSC of load debt The issue of shares), the as well was as funds from 2010 operations. in funds of shareholders borrowings, of the were Company (additional invest- financing of in ment source main activity, the when 2009 to investment contrast financing of source main The AND LIABILITIESSTRUCTUREIN2010 JSC INTERRAOUESASSETS

— the standard reclassification of as

— favorable— market

— at least 24 bil 24 least at — ------home equityprofitability(ROE) Profitability ofassets(ROА) EBITDA profitability EBIT profitability Cash atthestartofyear KEY PROFITABILITYINDICATORS ** EBIT—Profitbeforetaxandinterestpayable * EBITDA—Profitbeforetaxes,interestexpense,depreciationandamortization Net cashfromfinancialactivities,including Net cashfrominvestmentactivities Net cashfromoperatingactivities AGGREGATE CASHFLOwSTATEMENT,thousandrubles Net income(loss)forreportingperiod EBIT** Cash attheendofyear Proceeds fromshareissuing Receipts minusrepaymentofloansandcredits PERFORMANCE INDICATORS,thousandrubles EBITDA* Indicator Indicator Indicator 11.09 31.12.2010 31.12.2009 19 3.8% 2.2% -1.9% -1.3% .%14.0% 9.4% 8.7% 2.8% (netprofit)/(periodaveragevalueofequity) (netprofit)/(periodaveragevalueofassets) zation) /(salesrevenue) (Profitbeforetaxes,interestpayableandamorti- (sales revenue) (earningsbeforetaxesandinterestexpense)/ 2 5 1 -9848254 -22 750612 12841 2704427 -1 248461 24 880324 9329144 19 378056 -4 815393 9 1 5782809 8588447 1 296611 4 089831 31.12.2009 6 0 3959142 4 062807 7 7 -27056 4505308 3 572477 3 862886 For 2010 Calculation methodandnotes 31.12.2010 9 671235 For 2009

83 ANNUAL REPORT JSC RAO UES / 2010 84 ANNUAL REPORT JSC RAO UES / 2010 formation. positive influence on the a Company’s had cash which flows funds, of release the in resulted liabilities current in increase simultaneous a to the of decrease the item, “prepayments” and ards.Reductionofcurrent assets,duemainly stand- trade within are years two past the for Turnover indicators of the working capital items TURNOVER INDICATORS capital. and assets of profitability expected in increase gradual a in vestments will create economic returns, resulting term the implementation of the shareholder in medium the in 2010, however in Company the not result in receiving an additional income by equity which happened by the end of 2010in increase could an that noted be should It capital. reflectedopmentis profitabilitytheinindex of The positive dynamics of the Company’s devel KEY PROFITABILITYINDICATORS 2010. in performance the on differences rate exchange of impact negative management led to a significant reduction of the the internal instruments relating to currency risk - - * aftermakingadjustmentsforthereclassificationof“Targetedfunding” account. EBITDA/Outstanding interest * aftermakingadjustmentsforthereclassificationof“Targetedfunding”account Absolute liquidityratio including thetradecreditorstimeofturnover,days including thetradedebtorstimeofturnover,days Net debt/EBITDA LIQUIDITY RATIOS THE TURNOVERTIMEOFCIRCULATINGCAPITAL Current liquidityratio Time ofturnoverreceivables,days Net debt,millionrubles The assetstimeofturnover,days Accounts payabletimeofturnover,days The shareofequityinliabilities (Interest+Short-termfinancialliabilities)/EBITDA SOLVENCY ANDFINANCIALSTABILITYINDEX 11.0931.12.2010 31.12.2009 31.12.2010 31.12.2009 11.0931.12.2010 31.12.2009 2.0 80.10 121.90 21319064 22 113 19 20.79 37.81 26.52 21.93 28.52 27.18 ,20,67 0,62 .95.60 6.09 ,70,50* 2,63* 0,57 3,82 , 0,4 3,5 1,4 1,7 . 2.2 5.4 (equity)/(totalliabilities) amortization) interests, depreciation& before taxes,outstanding net ofcash)/(profit (financialobligations, (cash)/(currentliabilities) liabilities) (currentassets)/ Cost) balance sheetitem)*360/ (periodaveragevalueof (Sales) balance sheetitem)*360/ (periodaveragevalueof of cash financial obligations,net Calculation methodand Calculation methodand Calculation methodand notes notes notes further further organic growth. for and projects investment financing for ings maintains possibility to raise additional borrow ratio, which, in turn, suggests that the Company on improving the solvency and financial stability operational efficiency had a significant impact of increase and portfolio loan the Reducing non-current assets. 2010 of rubles), end while the the investments (by were recorded as liabilities rent received targeted funding was reflected in cur TPP-2 of 2 Unit Kaliningrad the commissioning of approach the with connection in 2010 in In particular, in the accounting. of transactions tion of the Company but due to the peculiarities was not due to the deteriorating financial condi decrease this however place, took indexes ity During the reporting period a decrease in liquid INDEXES LIQUIDITY ANDFINANCIALSTABILITY — 14.4 billion - - - - gram and further development of the Company. investmentimplementationofsuccessful pro cash flow operating in 2010 form the basis for the indexesprofitabilityinand growth the capital, equity perspective.termIncreaseinlong and short the inCompany the of stability financial high show indicatorsstrategy. financial Key Company, aimed at implementing its long-term the ofdevelopment sustainable the indicate evaluation of operating performance efficiency of the Company’s activities financing, as wellsources asand liabilities and assets of structure the in changes of analysis the whole the On -

85 ANNUAL REPORT JSC RAO UES / 2010 sustaInable development (Corporate social responsibility)

6.1 6 2 6.3 6 hR AND SOCIAL POLICY ChARITY ENvIRONMENT PROTECTION ƒ ƒ ƒ ƒ ƒ measures to attract young professionals, training Company The staff. total the of 19% is old years 50 above group Age old. 28% 50, to 31 the total staff consists of employees aged from Company’s the the age of following includes groups: staff 53% of structure the 31.12.2010 at As place. took specialists, workers and managers categories experts/ of proportions of change 2010the categoriesaffiliates’inofunifiedofpositions ment system optimization and the introduction Company’sthemanageaccordance withIn Company. the of activities of RAO the UES INTER Group and the expansion the for new of managing assets ment solutions imple to need the to due is staff in growth The the following priorities were identified: 2010 in policy hR Company’s the of part a As HUMAN RESOURCESPOLICY 6.1

the employees. a continuous exchange of knowledge between in the Company and developing the ideology of knowledge of environment actual the forming man capitalprinciples; implementation ofstrategicinvestmentsinhu- and development resources human Providing minimizing insocialandlaborrelations; ees, labor collectives and trade unions and risk Ensuring responsibility of the position of employ- fective systemofmotivation; ef- and conditions labor competitive Ensuring fulfilling the strategic objectives of the Company; of capable experts qualified highly Attracting — employees under 30 years 30 under employees — h R policy aims to implement to aims policy R hR ANDSOCIALPOLICY - - Russian Government, etc. by 49% by YoY49% of use distance to due is intensive of number in Increased employees trained 2010 Gu RSU Gubkin of federation, Russian Oil and Gas, leadinginRussianuniversities AN and of the organizations as industry, training well as Institute of Power University, Institute of Labor, Civil Service CorporatetheProfessional Development, of Institute Energy Petersburg St. the Institute, Engineering Power Moscow the of centers ing train specialized in training professional with provided were staff) of number actual the of In 2010 2,112 of (89% the employees Company higher education. has staff Company’sthe of 70%employed. areworkers and managersspecialists, perts, ex- qualified highly UES RAO INTER JSC In held. was category 1st the of rate wage monthly the of indexation quarterly a prices consumer of index growth the with accordance in 2010, During full. in and promptly paid were wages the 2010, In the implementation of the objectives of the UES subsidiaries, ensuring their participation in tion with trade union organizations of INTER RAO 2010 as of part the h An important aspect of the Company’s work in group. age older of specialists the bytaken positions forreserve staffinternal of ness schools under the Government of the the the Government under schools ness staff. 24%was Company the of whoare membersof trade unionorganization of employees number 2010, In total policy. the vshE, MSE MSU, f MSU, MSE vshE, f urther urther Training and in other regional R Policy was active interac active was Policy R inancial university of the busi h hR hR - - - 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008 2010 2009 2008 CATEGORIES asof31.12.2010 DYNAMICS OFTHESTAFFGROwTHBY RAO UESasof31.12.201 DYNAMICS OFSTAFFJSCINTER EDUCATION LEVELasof31.12.2010 DYNAMICS OFCHANGESINTHESTAFF 0 0 002000 1000 500 0 0 0 800 400 200 0 0 0 800 400 200 600 600 502500 1500 1000 2016001400 1800 1200 001400 1000 1200 Secondary education Higher education Specialists workers Experts, Officers 2371 2242 1912

87 ANNUAL REPORT JSC RAO UES / 2010 88 ANNUAL REPORT JSC RAO UES / 2010 DISTRIBUTION OFCOSTSFORSOCIALPROGRAMMES IN 2010,% DIRECTION OFSTAFFTRAININGANDDEVELOPMENTIN2010,% THE COMPANYSTRUCTUREBYAGEasof31.12.2010 governance, law RAO UES RAO Health and activity of employees of activity and Health 1.0 Labor safety, fire and industrial safety to 30yearsold internationalperformanceworks ofmentation training related to improving the quality of imple sector, improvement of managerial training and and forums on the development of the energy quirements of the law, participation re- in the seminars with train accordance in employees for ing mandatory were: 2010 in UES RAO INTER JSC ofdevelopment and training in Priorities employee. per training of cost average the reduce and of costs us the training to optimize f Russian the the of legislation and regulationsmarket munications, current changes in the electricity accounting and tax accounting, corporate com policy,social andresources human cluding in development,staff ofprograms corporate of implementation and technologies learning welfare ofworkersandsupportforyoung families integrated systems / Energy efficiency and saving 2.0 ederation, etc. This approach allows / Professional career and young professionals young and career Professional / 673 /28% 2.0 1.0 /Traininginthecivildefenseandemergenciestraining,emergencyresponse / Economics and Finance. Audit /From31to50yearsold 25.0 1.0 41.0 / Operational dispatch management of company / Life and labor safety of workers of safety labor and Life / / Maintenance and repairing of power plant equipment 9.0 1244 /53% 4.0 / Management and Human Resources Management - - - - 100% 100% 100% 4.0 Priority social objectives in 2010 were: the im SOCIAL POLICY approved. was RAO UES of INTER JSC for em-ployees Ethics of Code the of version new a development culture corporate the of program the Within the higher education. recommendedinstitutions industry-specific of of list a and Office Executive the and staff for developed a comprehensive training program has UES RAO INTER JSC efficiency energy the improving and programs saving energy of etc.).foreign languages, studying On the basis standards (getting international certificates, the plementation of corporate social programs con / Culture of INTER RAO UES RAO INTER of Culture / /over50yearsold 28.0 / Other social programs social Other / 1.0 454 /19% / Sale of electricity 43.0 2.0 1.0 / Environmental protection / Decent pension Decent / 1.0 / Children of INTER of Children / 2.0 3.0 / Software of / Corporate 14.0 / - - retirees of the Company. the of retirees young families, taking care about children and of professional knowledge and skills, supporting development of their careers and improvement ployeeshealthcare welfareand improvement, em- the employees, of safety labor and life of agreements signed in January 2010: ensuring policy are on founded the basis of the collective social Company’s the of principles main The and efficiency evaluation. implementation their monitoring subsidiaries, tained in collective agreements of the Company working places in the process of certification. of process the in places working theworking conditions were improved on 356 certified workplaces totaled 1890; in this case Company was completed. The total number of workingconditionsin all structural unitsof the on workplaces of certification the 2010, In and retirement age was implemented. on social support for workers close to retirement program of non-state pension (NGOs) focused the unified for the executive office and branches Company in the field of private pensions in 2010 the of policy uniform a implement to order In 2010. since agreement collective the of programs social 12 of tation social reporting for branches on the implemen corporateoffieldthe activities.social inprogress about stakeholdersinformto and of corporate social programs, their effectiveness port preparation in order to measure the results of implementing the project of public social re 2012 provided the Company with the possibility 2010- of agreements collective of format New Company. the of indicators key performance toemployees are tiedtotheimplementation of bonuses awardingof Indicators effectiveness. anddetermining thecriteria for evaluating their financial incentives for the Company’s employees Collective agreements are developing a system of purpose, the Company introduced a quarterly for this this for - - wascomposed,recommendationsthethe on report analytical an events the of result a As branchestechnology.forcombined-cyclethe ofprofessional skills of operational staff of the thefirst time organized corporate competition for Company the UES” RAO INTER of ployee em- best “The program social the of part As allocated. were treatment preventive and region, the vouchers for medical rehabilitation, the in organizations sports best the in training sports regularfor opportunity the givenwere insubsidiaries, events, sports and employees and tournaments in various sports, sports days reational activities were being held: competitions the During year, lifestyles. team and rec- sports working conditions, and form a culture of healthy and the sonal minimize diseases risk of harmful sea of risk the reduce to measures preventive untary health insurance, and implementation of qualified medical care on the programs of vol providing on work continued Company the “ 2010”in employees UES RAO INTER of the ity program social the of part As h ealth and Activ - - - ACTIVITIES” PROGRAM,% AND HEALTH “EMPLOYEES’ UES RAO INTER THE OF IMPLEMENTATION OF DIRECTIONS social programs. un trade of ion branches involvement in the process of implementing active the practices, accountabilitypublic socialdevelopmentof Company,thethe ofsystem management of corporate social responsibility in corporate Company and the integration of the concept the ofdevelopment sustainable long-term providingsystem,integratedinnovation an as activities socialcorporate of velopment de the on focus will policy 2011,Social In developed. were training simulator and staff development of a training system for production medical rehabilitation,andpreventivetreatment ance Material assistance payment for the annually paid vacation 22.0 / Additional leave for employees with special regime of work / special conditions 7.0 /Compensationfortemporarydisability 27.0 - - 100% / Voluntary medical insurance 6.0 13.0 / Sports and recreational activities, 25.0

/ Compulsory medical insur-

89 ANNUAL REPORT JSC RAO UES / 2010 90 ANNUAL REPORT JSC RAO UES / 2010 the mass and youth sports, the implementa facilities. Special attention is paid to support organizations, educational institutions, health activities, supporting public and government TheCompany carries out diverse charitable Company’s sustainable development. UES and are one of the fundamental factors of RAO of INTER JSC responsibility social porate ofcorareof part charityActivitiesfield thein decrease in the unfavorable effects on the en the on effects unfavorable the in decrease The Company plans to achieve a considerable plants. power of pollutants formed during the operation of its plies measures of neutralization and utilization monitoring of environmental situations and ap continuous the out carries Company the tion Realizing the importance of environment protec situations and accidents. emergencyof risk minimizing andemployees its forenvironment healthy and safe a ating cre- of purpose the with methods production up-to-date most and technologies advanced the uses Company law.internationalThe the of provisions the and legislation Russian the of requirements the follows UES RAO INTER JSC protection environment of sphere the In 6.3 6.2 ENvIRONMENT PROTECTION ChARITY - - - - - Patriotic War. Great the of invalids and veterans war ans, veter industry of care the to dedicated are of cultural values. Special support programs tion of scholarship programs, and the revival sults: JSC INTER RAO UES not only provides provides only financial not assistance to the UES abovementioned RAO INTER JSC sults: re on focused and nature in systemic are The Company’s activities in the field of charity tions of licensing agreements in the field of field the inagreements licensing of tions The company strictly complies with the condi and environmental protection rules. regulatory documents, environmental standards sian f requirements of Water Code 373- the as well as 1998, 24, June dated waste” No.89- 1999; 04, May dated air” atmospheric the of protection “On No.96-fZ 2002; 10, January No.7- the laws following of the the f Russian vironment protection follow the requirements of en- of sphere the in specialists activity their In program. investment its of andsolutionsinthecourse of implementation vironment by using the promising technologies f ederation dated June 03, 2006 and other Z “On environmental protection”environmentaldated“On Z f Z “On production and consumption and production “On Z f Z of the Rus- the of Z ederation: - - - the development of corporate accountability in the of field is strategic, charity as it promotes We are confident that each project implemented future generations of Russian citizens. concrete results for the benefit of present and but small to achieve people different of efforts the development of our country, to consolidate RAO INTER UES aims to make to a contribution JSC activities, charitable in engaged Being effective. most the sistance as this makes that system a builds also but or other categories of citizens or institutions, one of the main qualities of any large company. ƒ ƒ ƒ ƒ JSC INTER RAO UES, the main of which are: which of main the UES, RAO INTER JSC of branches the in out carried were measures 2010In ofnumberenvironmentalа protection PROTECTION MEASURESDURING2010 MOST SIGNIFICANTENVIRONMENTAL purposes. protection nature for areas are invited to out carry the works intended to-date technologies for restoring the disturbed up- most the usingorganizations Specialized for further involvement in the economic turnover. land reclamation, transfer of land to the landlord attention to protection and rational use of land, environmental protection. Subsidiaries pay great

tification ofwasteattheSochi TPP. cer- placement, their on limits and production waste for standards of development Project naya TPP; Ground water monitoring in the Severo-Zapad- stationary sources (MPE) in Kaliningrad TPP-2; missible emissions of pollutants into the air from Coordination and approval of standards of per- in theKaliningradTPP-2; able discharges of pollutants into water bodies Coordination and approval of standards of allow- — - wATER CONSUMPTIONBYJSCINTERRAOUESIN2010,thousandm Kaliningradskaya TPP-2 TOTAL: Severo-Zapadnaya TPP Ivanovskiye PGU Sochinskaya TPP Underground water from townwatersupply from surfacewaters TOTAL EMISSIONSOFJSCINTERRAOUESIN2009-2010,tons ing facilities. effect on the environment for power engineer Total IMPACT ONTHEENVIRONMENT to 33.156rubles. 2010 amounted year million the for whole a as measures protection ment Russian subsidiaries of the scheduled environ by implementation the for costsTotal actual emissions Dynamics ofpollutant Branches Source Pollutant emissions Pollutant have a predominant into the atmosphere 14903 31. 517228 56326 42. 601 455.38 600.1 4528.3 2.60 5586.3 282.8 511.7 3310.1 0.36 4104.9 2.1 7928 864074.430 7866.470 7753.32 7962.87 8 011.560 8 221.110 39200 9. 492 . 31523 6. 4480.09 444.93 102.3 454.8 2724.1 864.3 0.01 2.34 3271.3 1321.5 271.4 0.1 44.3 439.2 1669.0 899.9 0.30 0.00 1985.1 1339.2 withdrawal 40 .53. 451. 9302 312. 10.36 0.00 25.6 17.5 63.1 876.8 0.25 0.00 99.3 894.2 11.2 0.00 14.5 13.6 38.3 702.9 0.05 0.00 64.04 716.5 2009 2.7 120.870 120.870 Total 86088.68 88.680 Water SO2 Water used - - Total of water use for domestic needs. domestic for use water of decrease in electricity generation and reduction a by caused is YoY.decrease The thousand 8 in RAO 2010 UES subsidiaries Russian is about waterINTERTheconsumptionvolumeJSC of cycleof heat and electrical power production. Water is a necessary resource in the technologic IMPACT ONwATERBODIES 221.11 thousand m NO2 for production Including needs CO 3 , i.e. the is decrease 829.32 3

pollutant Other for drinking Including needs 2010 Total Including for other 21.970 needs SO2 Transferred by without usage NO2 enterprise 5.4 605.660 258.240 CO enterprise after Transferred by pollutant usage Other

91 ANNUAL REPORT JSC RAO UES / 2010 92 ANNUAL REPORT JSC RAO UES / 2010 TOTAL wATERwITHDRAwALBYSOURCEIN2009—2010,thousandm TOTAL INJSCINTERRAOUES Underground resources Town watersupply Surface sources Ivanovskiye PGU Underground resources Town watersupply Surface sources Severo-Zapadnaya TPP Underground resources Town watersupply Surface sources Sochinskaya TPP Underground resources Town watersupply Surface sources Kaliningradskaya TPP-2 Kaliningradskaya TPP-2 TOTAL INJSCINTERRAOUES Ivanovskiye PGU Severo-Zapadnaya TPP Sochinskaya TPP IN 2009—2010,thousandm wATER FLOwRATEINTHESYSTEMSOFREVERSEANDRECYCLINGSUPPLY Source Branch 3 supply water reverse Volume of 2009 7 0.33085 3 6.3 335.520 432962.630 350.845 471 102.,3 231 775.0 7870200 6 7. 284.0 167176.0 290.0 177847.0 61 480.3 13.845 0 supply water recycling Volume of 70 4916034.580 74 921.630 47.0 190865.0 0 2009 Volumes ofwithdrawal 5.2 8221.110 9 050.428 9.5 3302.020 4 396.55 5. 3590.960 3623.660 3 557.2 3 592.1 6. 3220.780 4 267.6 supply water reverse Volume of 2010 65.378 65.378 9. 1199.820 1203.080 992.8 996.4 128.8 0.150 33.6 1.3 3.6 0 0 0 3 16.940 0 2010 supply water recycling Volume of 92.350 92.350 25.130 81.110 7.570 3.260 0.130 0 0 0 0 policy environment protection Financing ofthe ƒ ENVIRONMENT PROTECTIONEXPENSES UES. RAO INTER JSC of branches by the out carried arewastes consumption pro of and duction disposal and utilization of activities The REDUCTION OFTHEIMPACTONSOIL UES. RAO INTER JSC of stations the at sumption on impact water resourses the and ensure rational water reduce con to order in applied are ply The systems of reverse and recycling water sup wATER SUPPLY REVERSE ANDRECYCLING

ment (environmentalpayments). environ- the on impact negative for Payments ment protectionexpenditures; ƒ policy includes: vironment protection en- the of financing

urn environ- Current - - - ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ consists of: consists The payment for negative environmental impact costs: the of consist Current expenses for the environment protection Under thefifthclass Under thefourthhazardclass Under thethirdhazardclass Under thesecondhazardclass Under thefirsthazardclass BY JSCINTERRAOUESBRANCHESIN2009AND2010 GENERATION ANDDISPOSALOFTHEPRODUCTIONCONSUMPTIONwASTES TOTAL Waste

environment protectionlegislation of violations the by caused damage of sation funds (claims, penalties) collected as compen- ing) ofcontaminators,placementwastes; the payment for above-level emissions (dump- ing) ofcontaminators,placementwastes; the payment for the allowable emissions (dump- on theenvironmentalprotection average annual cost of basic production assets assets ontheenvironmentalprotection production basic of repairing capital the for for thelandsrecultivation the productionandconsumptionwastes; protection of enviroment (land resources) from the for air atmospheric of protection the for resources for the protective and efficient utilisation of water 2009 year generation per Wastes 4.8 2146.743 2 148.586 2 560.883 386.894 23.532 0.206 1,665 2009 per year Utilized wastes,tons 1 Currentenvironmentprotectionexpenses—total(020+030+040+050) 010 7 Includingatmosphericair protection 074 Includingwater-resources conservationandwater-useefficiency 072 071 Plants,facilitiesandequipmentforwastedisposal andneutralization 070 063 062 061 frompage010:expensesonlandrestoration 060 050 041 frompage010:expensesonatmosphericairprotection 040 030 021 020 OPERATING COSTSANDMAJOROVERHAULIN2009-2010,thousandrubles No. Line Environment protectionagainstproduction andconsumptionwastes protection (071+072+073) Average annualvalueofbasicproductionassetsforenvironment ing agentswhichpolluteatmosphericair. Plants, facilitiesandequipmentfordetectingprocessingofpollut- sound wateruse Including: sewagedisposalplantsandwastetreatmentfacilities ment protection(061+062+063) Expenses oncompleteoverhaulofbasicproductionassetsforenviron- tion, storageanddisposalofproductionconsumptionwastes Including expensespaidtootherenterprises(organizations)forcollec- against productionandconsumptionwastes from page010:expensesonenvironmentprotection(landresources) waste watercollectionandtreating Including expenditurespaidtootherenterprises(organizations)for efficiency from thepage010:expensesonwaterconservationandwater-use 2 564.167 Name ofexpenses 392.21 23.343 0.206 1.665 2009 year end Availability for .1 5.8 2052.504 2053.380 5.113 .6 5.6 2654.127 2655.767 5.163 .58.2 81.022 81.129 0.05 1.1 515.656 516.313 0 0 0 2010 year generation per Wastes 3.493 1.452 2010 tons peryear Utilized wastes, 2009 9 3.8 272 928.,0 2 395932.586 3.493 1.452 2 7. 200465.0 2 323171.4 9350720493.280 39 355.097 37775.942 61 821.497 254072463.0 72 594.0 3883.2 10 471.5 14268.730 27 387.7 212.186 03213298.362 1013.2 2010 year end Availability for 0 0 0 101.1 0 0 9758.362 0 2010 2.978 3.688 6.646 0 0 0 0

93 ANNUAL REPORT JSC RAO UES / 2010 proCurement 7 aCtIvItIes ƒ ƒ ƒ tasks of the CTC are: the of tasks approvalprocurementofthe policy. mainThe has been formed and acts as from the time of The Central Tender Commission of the Company 24.12.2010). dated 35 No. Minutes No. 24.06.2008, 3 dated (Minutes approvedby the Company Board of Directors 0.5 mln which is rubles stated in the Regulation of amount the in subsidiariesCompany’s the ( rubles mln 2.5 of amount the in determined was UES RAO INTER JSC of body executive the for procurements lated The threshold value for the application of regu Regulation. the with pliance and administrative documents adopted in com as well as by other regulatory and organizational referred UES to(hereinafter as the Regulation), for works goods, and JSC services RAO INTER regulatedprocurementof forarrangements the Russian of legislation effective the by governed is UES RAO INTER JSC of activity procurement The activity. of goods, works, services, which is a priority area systempurchasenon-tendertenderofandof the of improvement the at aimed activity of area the created has UES RAO INTER JSC expenditurejustified economically obtaining as well as funds, cash of spending effective and targeted the ensuring of purpose the for (GOODS, wORKSANDSERVICES) PROCUREMENT OFPRODUCTS curement, objectivity, impartiality and trans- and impartiality objectivity, curement, Ensuring adequate levels of competition in pro- course of the regulatory basis of procurement; Ensuring the development and approval in due works, andservicessuppliers; goods, the of offers of competitiveness the ensuring by created environment competitive The implementation of procurement policy in a f ederation, the Regulation on the vAT exclusive), for for vATexclusive), - - ment Program (hereinafter referred to as the as referred(hereinafterProgramto ment ment”. A copy of the Annual Complex Procure responding subsection in the section “Procure TheCompany’s corporate site contains a cor “Procurement” www.interrao.ru. section UES, RAO INTER JSC of internet-site corporate the www.b2b-energo.ru, industry operational system of procurement in the energy includes: the information-analytical and trading- informationoftionofficial procurementtheon publica the for Company the ofDirectors of Board by the approved media of mass list The ACTIVITY OFTHECOMPANY PUBLICITY OFTHEPROCUREMENT Company’s and branches’ subdivisions. theofinvolvement dedicated expertswithof orderfor each separate regulated procedure Com the and pany’s subsidiaries Body approved by an individual Executive the of missions Tender(Procurement)of competenceCom regulated procedures are within the scope of of winner a of selection the and ranking of requirementsthe meet which offers petitive of consideration, evaluation and rating of com f Procurement Unit. the by out carried is CTC, the of meetings at taken decisions the of implementation of monitoring as CTC,well as the of support cal methodologi and technicalOrganizational, 24.12.2010). dated 35 No. (Minutes Directors of Board Company mission of the Company was approved by the Directors. The permanent Central Tender Com ofBoard exceptionalthe prerogative ofright the is members СTС the of appointment The or the purpose of out carrying the functions equitable treatmentofallsuppliers. and fair procedures, procurement of parency ------ACTIVITIES INTHECOMPANY ORGANIZATION OFTHEPROCUREMENT energo.ru. www.b2b- industry energy the in procurement ofsystem trading-operational and analytical information- the of subsectioncorresponding ance of open procedures are published in the publicationsperform ofthecopiesonofficial for works and JSC services RAO INTER UES” all rangements for regulated procurement of goods, ar required the on “Regulation the of ments In accordance with the guidelines and require http://www.b2b- Trading Platform: Electronic the http://www.interrao.ru/on and site Company’s the on published was ACPP) TER RAO UES” and the approval of the order order the of approval the and UES” RAO TER IN- JSC of needs the for services and works procedure of regulated procurement of goods, the on “Regulations the of adoption the Since etc. way procurement, of the of a separate lot from procurement, changing of names lots, of planning of the lots’ change prices, the INTER the allocation JSC of including “, UES needs RAO the for services and works procedure of regulated procurement of goods, the on “Regulations of basis the on Program IntegratedPurchasing Annual the to ditions 2010, During the CTC and ad made changes procurement. regulated the for training and education staff of Rules the of provisions the positions has been trained in accordance with com PDZK the of body main The Company. the of branches all and office executive the (PDZK)createdinProcurement Committee ment procedures are assigned to the Standing procure the of winner a of choice and ence prefer of degree the by bids competitive of evaluation and ranking of relevant requirements examination,of functions of Implementation energo.ru. ------

95 ANNUAL REPORT JSC RAO UES / 2010 96 ANNUAL REPORT JSC RAO UES / 2010 of the Board (Minutes № 209 of 04/08/2010)]. of №209 (Minutes Board the of meeting a at approved OR.BZ.83, passport of affiliates the JSC INTER RAO UES [the project executive office, branches and subsidiaries, the and of needs the for procurement centralized and develop a specialized company, providing In 2010, the works were out carried to establish THE SUPPLYSYSTEM CENTRALISATION OF purchases of amount / № 2)26 total of the for 26.04.2010 (Minutes Directors of Board Company the by approved and 2010 for plan business draft a of year 2010on the basis formulated has been the for (consolidated) Company the of ACPP (ACPP) IN2010 COMPLEX PURCHASINGPROGRAM IMPLEMENTATION OFTHEANNUAL Company, no complaints have been received. the of CTC the by procurement regulated for procedures the to related litigation pretrial of — 3 822 046 thousand rubles. thousand 046 —3822 procurement activities of the Group. the of activities procurement create a single locally-regulatory framework for ment activities is being implemented in order to the existing documents regulating the procure a comprehensive plan to make amendments to Group to the system, supply currently centralized system in companies of JSC INTER RAO UES the transition from a decentralized procurement tionof procurement policies of the Group and special of group a ized companies, responsible for the establish implementa to UES RAO INTER In connection with the decision adopted by JSC - - - faCtors and rIsKs that have a negatIve ImpaCt on 8 the7.1 Company7. 2 7. ’s3 aCtIvI7. 4 ty 7. 5 TheCompany carries out its activitywith regard activities. its of set by the shareholders and the implementation faced by the Company in implementing the tasks tions had a significant impact on the risk profile of the Company are largely volatile. These condi complex structure of assets; the financial results a has UES RAO INTER JSC conservation. and efficiency energy of field the in solutions and innovativetechnologies of application the and installed capacity, diversification of its business of increase the to due developmentrapid the at course the continuedCompany 2010 the in which to according 2015, to up of period the for The guide of is the a activities Company strategy RAOfocusedUESisidentificationtimelya on INTER JSC of system management risk The concerned. all of intereststhebalancing Company’s whilevalue the of growth and objectives strategic of ment management are aimed at ensuring the achieve ment the Company’s activities in the field of risk manage risk on Regulation the toAccording approved. been (ERC) havemanagement risk financial Lietuva on LNA the RAO INTER and Oy NORDIC RAO as well assubsidiaries,production main the in In order to improve risk management procedures management. corporaterisk on policy adeveloped also and all departments and branches of the Company, for mandatory UES, RAO INTER JSC of ment manage risk on Regulations the ofapproval DirectorsofBoardprocedures,the resultingin risk-managementof development the to ment commit its increasedCompany 2010,the In UES. RAO INTER JSC of projects investment scale investmentformlarge- ofcapitalin wellas as electric power, the implementation Russian of investment the on activity foreign markets,and andthermal productionof trade segments: business key the with connected profile risks wide a to - - - - - 98 ANNUAL REPORT JSC RAO UES / 2010 improve the electricity markets by converting bymarkets electricity theimprove ƒ ƒ ƒ ƒ ƒ supply to consumers. energy reliableensure tomarkets electricity electricity market and to form an efficient retail market into a full-fledged competitive wholesale power and electricity wholesale existing the f sec Russian the power the of of reform tor areas important most the of One 2010 were: in developmentpower electric the of trends the with connection in UES RAO INTER JSC of ity Themost significant factors influencing theactiv OF THEPOwERINDUSTRY FACTORS RELATINGTOTHEREFORM risks. Company’s the of field the forming and UES RAO INTER JSC of activity the affecting factors risk key following the fies At the end of the year 2010, the identi- Company via: levels all on activity management is integrated into the Company’s of all risk potential factors and The sources. risk

tric power market (EPWM) according to which elec- domestic the of liberalization including continuing reforms of the electric power industry ogy ofriskmanagement. rate integrated policy, regulations and methodol- Development and implementation of the corpo- agement strategy; Development and implementation of risk man- erating companies. begun work on systematizing the PDC of gen- been concluded. The Russian government has have (PDC) supply power for contracts new 2011 hasbeensigned; for contracts delivery Power market. power long-term the on signed been has resolution Government Rf The (LTPM). market power the activation of works to launch the long-term population; the to suppliers guaranteed the by supplied 2011 made 100% except for the electric energy January from EPWM the of segment free the ederation is to is ederation - - commodity commodity (electricity). one only exports power),and and(electricity JSC Thus, RAO INTER UES buys two products systems energyforeign in and commodity, a is Russia in power which Under present conditions there is a situation in risks. these to reduce tools new seek market risks and encourages the Company to the increases which WMEP, of segment free the in import/export forCompany the by sold / purchased being electricity of amount the increases(WMEP) power and electricity for market wholesale ofliberalization Continued Rf WMEP. trical energy and power in the free segment of impacton the condition of prices for the elec have turn their in which industry of spheres ofelectricityandpower consumption insome economy development rate results in decrease in decrease the The RG post-crisis mentioned. be can spherecreditsinvestments and the in confidence mutual oflevel the influenced ing Asan example, the global financial crisis hav Company carries out its activity (country risks). economic conditions in the countries where the and political the on dependfactors External products. its of negatively influence the sales by the Company to be in included the scope of factors which may Along with the above factors, external factors are EXTERNAL FACTORS(COUNTRYRISKS) f the of activity economic foreignof nomenclature Commodity Activities,services, productsand Economic of Classification(National services and goods activities, of list a describes that frameworkregulatory the in commodity a as power include to as well as markets, energy internationalthe on commodity a as power of concept the introduce to steps taking is Company the deadlock the break to order In ederal Customs Service). — a service (a right). (a service a — - - ƒ ƒ ƒ include the following: the include as operates, well as risks, the which associated it which in regions and countries of features The Company takes into account geographical energy markets. overseasin competition fierceexperiencing the Russian and retail electricity and power markets of the wholesale the in operatingproducers power Wholesale Electricity Market (OGK) and other panies (TGK) and generating companies of the competition from the territorial generating com the future, the Company may experience strong market of Russia and neighboring markets. In liberalizing the wholesale electricity and power while enhanced is WMEP.competition This producers, engaged in trading activity on the The Company competes with other electricity Russia. in business supply and generation in the industry, including the field of electricity competitioncreate to is industry power sian Rus the reforming of objectives the of One TRADE ACTIVITY HAVING IMPACTONTHECOMPANY FACTORS ANDRISKS supply of electricity. theWMEP, in riskssignificant to leads which taken into account, including non-payments to implementation of the Company’s activities is of impact the Russian energy transiter countries on the negative possible a risks, similar As

increased risk of natural disasters, the possible including region, the and country the of tures fea- geographical the with associated Risks and theregion; country the in strikes and emergency of state the conflicts, possible with associated Risks or carriesoutitscoreactivities; and/ taxpayer a as registered is company the situation in the country and the region in which economic and political with associated Risks and/or inaccessibility. termination of transportation due to remoteness f ederation. The Company is also - - ƒ of electricity, including through: enhance the competitiveness of exports/imports to order in marketsforeign and domestic the the Company manages the trading portfolio in risk price to exposure reduce to measures As import operations. export-implementationoftheof specifics the Decree of into the taking Government, account of WMEP, a including toof part amendments the changing the regulatory framework and model controls the situation and initiates proposals for with the cooperating NP actively Market Council, is Issuer the problems, these solve to order In states. adjacent and Russia ing the parallel operation of power systems of govern documents offramework regulatory imbalanced WMEP, sector free a of pricing the influence to opportunity nohave porters real costs of wholesale market, exporters, im theignoreand model WMEPreflected the in weakly are aid) mutual emergency of vision of systems (provision the power reserves, pro paralleloperationtheofpowerof issues tion commercializaproblems:unresolved some activities in the electricity sector we encounter tradeforeign out carrying while present,At gas. exchange-traded for prices and supplementary agreements for above-limit fuel may arise out of long-term contracts for limit fuel, which risks as well exchange,as commodity the at risks price (GPSC), consumption and at points the (GPSG)supply time of generation of groups the in prices purchase-sale DAM of volatility the to due appear risks (price) Trade TRADE (PRICE)RISKS and foreign partners. organized system of cooperation with Russian pany is the experience of foreign trade and the A significant competitive advantage of the Com

WMEP for exporting, including through the use by purchased electricity of cost the reducing - - - - - ƒ ƒ ƒ ƒ management of power systems and observance reliable a ensuresUES)(SO System Energy Unified the ofOperator System theCurrently parallel. in running systems energy ensures the reliable functioning of the operating The system existing interchanges. of joint actions capacity and frequencyof regulation modes, of control,planningoperating coordinationof setting forth the main rules of organization and operationparallel the on agreementsinvolve them with cooperationprerequisitesof The to f delivered is directcurrentelectricitythe of insertion the through Also, Russia. of UES to way parallel a TajikistanoperateUzbekistaningyzstan, and KyrUkraine, Mongolia, Moldova,zakhstan, Ka Azerbaijan, Georgia, Lithuania, Latvia, Estonia, of Belarus, Todaysystems energy the of neighboring countries. ergy System of and Russia the energy systems UES is the parallel operations of the Unified En out carried by supplies JSC import RAO INTER export/ of conditions technological essential energy systems of other countries. One of the ing of the Energy System of Unified and Russia connected with technological risks of function Trading operations in electric power markets are AND TECHNOLOGICALRISKS INFRASTRUCTURAL

electricity. of delivery physical hedge to markets energy using derivative financial instruments in foreign foreign energymarkets; in exported electricity of value the increasing contracts forelectricitysales; free of use the through including WMEP, on increasing the value of imported electricity sold order toimportitinforeignenergymarkets; in electricity purchased of cost the reducing and power; of free contracts for the purchase of electricity inland. - - - - restrictions at a power plant. In 2010, in the the in 2010, In plant. power a at restrictions technologicalto due or supply capacity of scheme external the in change the to due arise may risks technological and Process PROCESS ANDTECHNOLOGICALRISKS low. as valued be obligationsunderforeign trade contracts may JSC INTER RAO UES from the fulfillment of its system, the risk of a which may situation prevent energy the of reliability the ensureto order in done work of volume enormous the account into Taking parameters. system preset the of major funds, the reconstruction of existing and ofreconstruction and modernization include of The actions to the Company risk this reduce stations.generating power in reduction bility tions in electricity production, as well as capa age, including loss of supply security, interrup Operational risks following: the are UES RAO INTER JSC for risks industry significant to According the the estimate Company’s most RISKS OFPRODUCTIONACTIVITY Policy section. in hR Social the and are described risks these minimizingofCompany’sfield the in activities The regions. the in located Company the of personnel from the manufacturing enterprises They are connected with the outflow of qualified RISKS OFPRODUCTIONMAINTENANCE states. Baltic of UES Operator System by the limiting export -import capabilities of the Issuer, maximum allowable power flow downward, the thusof revision toward trend a also is There on financial impact performance. de negative a had and short to led electricity of which livery lines power disabling of section “Russia

— Georgia” there were cases cases were there Georgia” — associated with failure/dam - - - -

99 ANNUAL REPORT JSC RAO UES / 2010 100 ANNUAL REPORT JSC RAO UES / 2010 RAO RAO UES rights toor licensing use the objects, to requirements of the main JSC activity INTER licensing in changes duties, and regulations customs laws, tax regulation, currency in es activities, include risks associated with chang The legal risks that could affect the Company’s mandatory pre-legal examination. a through go Company the of operations all foreign countries. To minimize legal risks almost f Russian the the of territory the operatinginentities business mostfor typical ness in domestic and foreign markets, which is busi implementing when arising risks legal Company’s activities are related to the possible LEGAL RISKS reduced. be will UES RAO WME share the impact of this risk on JSC INTER of segment free of the increase the with Along WME. of the segment regulated the in of sales in fuel prices that could reduce the profitability rate for electricity, compared with growth rates justified level, as well as the likely lower growth establishment of tariff below the economically rate growth tariff electricity of slowdown The regions. and by industries diversification of free electricity supply contracts and supply electricity forcontracts long-term reducing the production costs and concluding managementstepsatareriskofBasicaimed category. significant most the of to be risk this demand for electricity, the Company considers ofrecovery the of moment theenvironment currentthe inforecasting of difficulties and tricity. Due to the large number of uncertainties elec fordemandreduction infromthe arises volumes. production in Decrease damages. for insurance property as construction of new generating facilities, as well . This risk is associated with the possible possible the with associated is risk This . ederation and The risk risk The - - - Assessmentof financial risks, development of FINANCIAL RISKS ACTIVITY OFTHECOMPANYINTERMS FACTORS ANDRISKSIMPACTINGTHE adopted. changes the account into taking planned be will subject the of activities JSC INTER RAO UES, financial and economic of business the to relating matters on practice judicial in change a of case In activity. its on changes of such impact of possible the extent thepredicts and assesses legislation, tax the The Company continually monitors changes to practice. judicial in resources), natural as well as cluding changes (in- limited is circulation in which of presence sible losses the Company manages credit risk to fulfill their obligations and to minimize pos contractors by failure of risks the prevent To (CREDITRISK) DEFAULT BYCOUNTERPARTIES RISK OFOBLIGATIONS risk. credit and risk) liquidity (including pay of loss of risk risk),rate interest and currency (including risk market of tem governs the assessment and management Regulations on financial risk management sys which govern the management of financial risks. regulatoryinstrumentscorrespondingoflocal nancial risk management system and a package The Company has approved Regulations on fi f CfA and cates confirmedby international professional certifi is risk financial the manage to unit operating q units. business core Company’s the by basis regular a on conducted are control and toring measures for financial risk management, moni ualification of employees of the Company’sthe of employees of ualification RM. - - - - - Company carries out preventive measures: an the losses minimize to order In major. a as sia defaults in carrying out trade activities in Rus the Company continues to evaluate the risk of casts for the economy. Russian In this regard, does not allow to build reliable and positive fore economies world’smajor the ofdevelopment nancial crisis, uncertainty regardingfi- the the further of phase acute the of end the Despite insurance companies. and banks includinginstitutions, financial as implementation intra-group financing), as well (thesubsidiaries its suppliers),with and ers interactionin(custom externalpartners with to the given risk is within the controlled limits. limits. controlled the within is risk given to the exposure Company’s the risk credit the age As a result of the undertaken activities to man place. take limits these with compliance of monitoringregular tions with counterparty banks and subsequent internal credit ratings of banks, limits on transac to the adopted methodology, the assignment of the structural units of the Company according by out carried banks, of ratings credit the on Based banks. counterparty the of risks credit to Company the by paid is attention Special minimal. transactions are estimated by the Company as and budgeting. Risks of defaults in intercompany ized through the processes of business planning The solvency control of its subsidiaries is real well. as process activities are carried out during the procurement credit, bank guarantees and warranties). Similar risks (the the advance payments, use of of letters the Company uses mechanisms reducing credit agreementsthe concluding whenaddition, In eral, regular monitoring of accounts receivable. creditworthinessand financial stabilityin gen for of parties the analysis contracting solvency, ------currency loans. ruble outflows to repay the borrowed foreign eign currency liabilities will result in reducing for of revaluation the case, this In markets. decrease of competitiveness of on international filling some and ruble Company the of earnings the export in decrease a to lead could end of 2010. thesincecurrency formed national Russian the and YoY, the ofstrengthening gradual a of dynamics volatility rate exchange reducing U.S.dollar. trendsMajorwere manifested in movementof the ruble against the Euro and multidirectionala was there2010, During derivatives. financial using hedging exchange transactions, as well as implementing currenciesto optimize the volume of currency tains a sufficient stock of liquid assets in foreign exposureto currency risk the Company main reduceto addition, Company.In the of risks earnings, which naturally reduces the currency liabilitiesandthe size of theforeign exchange encebetween the amount of foreign currency the Company strives to ensure the correspond activities its planning offramework the Within dollar/Euro. rate US exchange the of exchange rate volatility, as well as the change ruble the areCompany the forsources risk main The increase. or decrease profit the in resultsCompany, which the of liabilities and holdingsexchange foreignother and assets exchange commitments of the Company, cash of readjustment the to lead rates exchange of foreign currency revenue. In addition changes a result of in changes of the ruble equivalent the can by be activity influenced exchange rates as The performance indicators of the Company’s (CURRENCY RISK) OF FOREIGNCURRENCIES OF EXCHANGERATE RISK OFFLUCTUATIONS f urther urther strengthening of the ruble - - - and stress testing. stress and techniques as GAP-analysis, scenario modeling such of basis the on rates interest of changes and of forecasting loss due potential to adverse ment the Company carries out regular analyzing interestframeworkmanageoftherisk Within activities. Company’sthe affect2011 adversely could financ debt of in risks these cost ofimplementation Possible ing. the in increase gradual a of the most for likely scenario 2011 is the scenario and that the rates in 2010 were at lows, historic inflation in rise global the account into Taking Company. the of 2010 had a impact on positive the performance bid. In of the general, dynamics interest rates in ofpreviously borrowed dollar loans under this cost the in reduction a to led has LIBOR rates expenses. In addition, the reduction in Interbank substantialreductioninterestainmadetions, obliga financial its refinancedhaving partly Reacting to the market situation, the Company, rate. refinancing CBR the and LIBOR, Rate Offered Interbank London in changes to sensitive is Company the ofmaintenance obligations financial tain cer- of cost the particular, In risk. interest the raised at floating interest rates are exposed to refinancing. Also the Company’s loan proceeds of moment the at rates interest loan of revision The main interest risk for the is Company due to (INTEREST RISK) OF INTERESTRATES RISK OFCHANGE obligations. its to of perform the Company the ability affect to reduce it, at the moment can not significantly rency risk, taking into account the actions taken According to the Company’s estimates, a cur - - - - ƒ ƒ ƒ ƒ (INFLATION RISK) RATES CHANGES RISK OFINFLATION to fulfill its obligations. influ not could risk Companyofthe ability considerablyencethe interest current the contracts hedging relevant by covered not are which ratesinterestfloating with credits of number and a limited term in credits the portfolio credit of long predomination Taking the into account risk hedging. interestfor instruments financialderivative early loan repayment in contracts, and uses ofoptions providesrevision,ratesinterest term of loans, reduces the frequency the of loanincreases Company the risk interest to f rate. rate. growth inflation the to growth revenue of rate ures to costs optimize and the increase reaction levels of inflation the Company will take meas In the case of excess a of significant forecasted below: listed risks other of number the reduces and resources, credit of cost the reduce to helps it since Company, the of operations the on impact positive a has Decline in inflation compared with previous years 6-7%. to reach Eco of Ministry the of nomic Development inflation in 2011 forecast is the expected to According

or the purpose of limiting of its exposure exposure its of limiting of purpose the or program. investment the of cost the increasing of risk portation costs,wages,etc. services due to increasing energy prices, trans- and works goods, of cost increased of risk risk ofincreasedinterestexpense; ponement ordelayinpayment; post- significant a at receivables of value fair the in losses with associated losses of risk the - - -

101 ANNUAL REPORT JSC RAO UES / 2010 102 ANNUAL REPORT JSC RAO UES / 2010 ƒ ƒ ƒ ƒ the policy of trading activity and the Regula and approves local regulations. In particular and risk management the Company develops activitiestrading organize to order pany.In direct a have that Com the of results financial the on activities impact of directions priority the of one as accepted are risks trade The areas. functional of risks cific instruments is determined by the specific Combination of methods and selection of spe niques: applies the following risk management tech Management approved in 2010 the Risk Company on Regulation the with accordance In versa. vice and producedbygeneratingownits equipment, the sale of imported electricity and electricity fromrevenues increased by compensated is electricity, purchased of costs rising with decline in revenues from exports, price associated when Thus, increases on risks. the domestic the Russian of market the part decreases activities export-import theconjunction with in assetsgenerating own its at electricity of production the i.e. Russia, in unique is which structure(diversified) business balanced has a Company the that noted be should It

Reduction (minimizing) of risk of (minimizing) Reduction risk transfer (insurance, hedging, outsourcing). Transfer (redistribution) of risk setpoint) levelofrisk. work, accompanied by unacceptable (above risk of (avoidance) Denial cover lossesatitsownexpense. to ready is and situations risky of onset the of consequences possible the of elimination Acceptance of risk of risk, diversification of risk, prevention, etc.). / or minimize possible damage (containment to reduce the likelihood of the risk event and

— the Company assumes

— the refusal of refusal the —

— counterparty

— measures — - - - - ƒ ƒ ƒ ƒ ƒ ƒ ƒ the Company uses various methods, including: activities trading in risks manage to order In ment have been developed. manage risk of field the in regulations and methods the approved; already been have activity trading in management risk on tion their prevention: for measures preventive basic of set a uses UES RAO INTER JSC management, risk of In addition to the above-described methods

transaction or trade operation which results in avoidance of risk, that is, the rejection of the management; pany. This method is the usual practice of risk Com the of services and products of price the in risk expected the from losses nancial fi accounting is, that risks, of redistribution spective contractorsandpartners; pro of indexes performance and reputation assessment of financial status, credit history, of starting operation of JSC INTER RAO UES; for business contacts to assess the possibility framework to regulate markets and information analysis of new markets, including the legislative RAO UESworks; work regulating the markets in which JSC INTER analysis of markets, including the legal frame ing the specified parameters of financial losses. tions of the Company in order to avoid exceed limitation, i.e. the restrictions on trading opera energy markets; as derivative financial instruments on foreign well as WMEM, to capacity and electricity of use of free agreements of purchase and sale tic and foreign energy markets, including the domes- the on hedging conducts Company The risk. to exposure reducing or hedging that mayinflictdamage; decisions arbitrary take not does and trade risk-reward the evaluates Company the ties a risk. When making decisions in trading activi------ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ UES concerning insurance are: insurance concerning UES RAO INTER JSC of missions strategic The RISKS INSURANCE

developing scenarios of future work condi work future of scenarios developing INTER RAOUES; JSC of obligations and opportunities of set tracts portfolio in order to balance the strategic periodic inventory of the investment and con diversification ofactivitiesandinvestments; assessment; efficient strategies for foreign investments risk business; its conduct to plans or conducts Company ties, large companies in the states where the organizing the cooperation with public authori market withthecompetentorganizations; consalting on the risks of entering into a new against industrialaccidentsandillnesses. insurance of agreements and agreements of conclusion of voluntary medical insurance ees, their life and health protection by means level of motivation of the Company’s employ Increase of the social protection level and the the insurancemechanism; ofexpense the at events adverse other and quences of natural and technogenic accidents conse- the of liquidation the for designated Minimizing the Company’s financial resources claim settlement. of process the of optimization and ments agree- insurance of quality the improving of means by events unforeseen other and ures, natural disasters, actions of third parties fail technological of result a as Company for loss and reduction of damage caused to Ensuring reliable guarantees of reimbursement of theirchanges. dynamics the and factors technological and political economic, of forecast global a on based activity of areas strategic the in tions - - - - - the following types: property insurance “against v owners. vehicle of liability public of engineering structures, mandatory insurance oforganizationsliability operating hydraulic ardous industrial facilities, insurance of public public liability of organizations operating haz Obligatoryinsurance includes: insurance of basis. a voluntary on andlegislation) the ofrequirements the to (according basis obligatory an on both Company the by out carried is Insurance oluntary insurance is carried out according to - requirements. and standards high Company’s the to ing offoreign assetswere insuredalso accord Group of companies was done. The majority UES RAO INTER JSC the of protection ance stand the with ardization, structuring, and increase connection of in insur work the 2010 In transport vehicles. cal insurance of personnel, insurance of some vehicles, employees against accidents, medi all risks” and equipment against breakdown, - - - -

103 ANNUAL REPORT JSC RAO UES / 2010 profIt dIstrIbutIon 9 and dIvIdend polICy In accordance with the Charter the Companythe Charter the accordancewith In decision. such of date the after days (60) sixty within Shareholders of the Company but not later than of Meeting General the by specified term the within paidare shares. Dividends ordinary on pany not may to take a pay decision dividends GeneralMeeting of Shareholders of the Com Meeting of Shareholders of the Company. The of (class)each category is taken by the General formtheanddividendsof payment shareson of amount the on decisions including dends paymenttheon(declaration)Decision ofdivi respective period. may be taken the three within following months year fiscal (or) and whole year the fiscal of the of the first quarter, six and months nine months (declaration) of dividends based on the results the whole fiscal year. Decisions on the payment (or)year and of the fiscal months nine months, six quarter, first the of results the on based shares placed on dividends of payment the (declare)decisions ontake to right the has - - that dividends on privileged shares of JSC IN JSC of shares privileged on dividends that stipulate Regulations 41). The No. 03.05.2011 of (Minutes UES RAO INTER JSC of rectors Di- of Board the by approved were UES RAO INTER JSC of Policy Dividend on Regulations full. in Company the bywerepaid dividends share. ordinaryThe 1 per rubles to 0.000056758 equivalent is which of 2 341 750.24 rubles, amount the in 2006 for took a of to decision 08.06.2007 pay dividends activ Company’s the of ity for 2006 the General Meeting results of Shareholders the to According dividends. of payment and accrual the on decisions take not did Company the 2009 2007,2008, 2005, 2004, 2003, 2002, In purpose. this for formed previously Company of the funds special from the may paid be also Dividends on preferred shares of Com certain types the is pany’s dividends profit of after tax (net profit payment of the the Company). of Source - - - ment strategy approved by the Board of Direc of 24.12.2010. on tors Board the by approved strategy ment RAO UES, as well as the Company’s develop INTER JSC of Policy Dividend on Regulations gets set by the shareholders for the Company, willbe determined in accordance with the tar In the future the Dividend Policy of the Company UES. RAO General Meeting of Shareholders of JSC INTER the by discussed be will 2010 of results the of basis the on payment dividends of matter The purpose. this for formed intoaccount) shall bepaid from special funds revaluation of financial investments will be taken the of amount the case this (in UES RAO TER - - -

105 ANNUAL REPORT JSC RAO UES / 2010 10 anneX Deputy Director of Rosatom State Corporation Corporate finance Treasury Treasury finance Corporate Corporation State Rosatom of Director Deputy Committee Audit UES RAO INTER JSC the of Chairman Rush JSC of administration audit operational of chief The Committee: Audit UES RAO INTER JSC the of Members report. annual the in contained data the of ability The Audit Commission notes that the Company’s financial statements for the year 2010 in all material respects are true and also confirms the reli 2010. year the for Company the of 31.12.2010, at as performance liabilities financial and the and assets of tion b) we have not noted deficiencies in the requirements; reflection internal or of external the financial significant performance with of the Company’s non-compliance apparent of activities, cases which a) observed could havenot we lead to a significant distor that: reports Commission Audit the results audit the on Based deed. attached the in forth set are examination of results overall The conclusions. According to the Audit Commission, the obtained data, information and documents provide a reasonable basis for the preparation of findings and verification. for submitted documents and data information, all of analysis sufficient and objective most the on based are conclusions the and ofResponsibility the Audit Commissionwas to obtain by conducting audits reasonable assurance that the following basic objectives of the audit f Russian the the of tions Responsibility for the preparation of reliable financial reporting and compliance with accounting procedures and other requirements of the regula f Russian the the of tions are reliable, b) in the implementation of financial and economic activities the Company followed the order of accounting Themain objectives and of theaudit werecomplied to withensure that regulaa) key financial indicators of theCompany’s activity, asreflected inthe financial statements, 2010. year the for Company the of activities economic and financial the of examination the out carried 61.95№28- 208 № 26.12.1995 (hereinafter UES RAO INTER JSC of Charter the with accordance In 2011 20, April Chief accountant Directors of Board UES RAO INTER JSC the of Chairman report: the understood and Read Unit Audit Internal UES RAO INTER JSC of Department management risk and controlling audit, Internal the of audit assets generating for Directorate of head Department, Audit Internal of head Deputy unit internal management risk and controlling audit, internal UES RAO INTER JSC of Department the of head

fZ, and its own decision № fZ, and its 1 own decision from from 2011the 22.03. 22.03.2011,period during Committee Audit the to Company’s 20.4.2011 INTER RAOUESAUDITCOMMISSION REPORT OfThEJOINTSTOCKCOMPANY ederation rests with its leadership. ederation. ydro Internal Audit Department, — the Company),Russianthe — f ederal Law on Joint Stock Companies dated Companies Stock Joint on Law ederal I. I. Chygyryn I. I. A. O. Chesnokova A. Zakharov M. A. B. Yu.B. Kovalchuk E. f. Ivanova Ryzhkova E. G. Moscow - - - -

107 ANNUAL REPORT JSC RAO UES / 2010 108 ANNUAL REPORT JSC RAO UES / 2010 www.interrao.ru/investors/funds/. interrao.ru in f section www. website corporate UES RAO INTER JSC refers to explanatory note, which is available on 1, 2010.January since same The is applicable auditor’sreport Company.This the of Report the documents not included in the given Annual in note information the are explanatory related to andstatements” accounting “attached the to referencesthereforeall Report, Annual given accounting statements are not included in the mentioned The follows. as presented is 2010 periodfrom 1,January 2010 till December 31, RAO UES (hereinafter — the Company) for the audit of INTER Company the Open Joint-Stock statements accounting the of results the on The auditor’s by report Ernst & Young LLC based inancial Information http:// INDEPENDENT AUDITOR’SREPORT tion entry number 10201017420. number entry tion registra- principal the under organization audit and of auditors of register copy the into check the is and included of No. NP 3028, ACR under organizations audit and auditors of register the in of registered is Young” Chamber and “Audit “Ernst LLC ACR). (NP partnership Russia” non-profit of member is Young” and “Ernst LLC 77, Nab. 1 bld. Sadovnicheskaya Moscow, 115035, Russia, Location: 10277397707203 number registration state Principal Young” and “Ernst LLC Name: Auditor information 7, 123610 Russia entrance Moscow, Nab., Krasnopresnenskaya Location:12 1, 2002). November on District) Centralny for (Ter- 2320 Area section ritorial Krasnodar the for 7 No. Russia of IfTS of Inspectorate Inter-district by issued 1022302933630 No. under Entity of Legal Registration of State (Certificate entity legala ofStateEntitiesRegisterregistration Unifiedlegalof onthe Data in UES” RAO “INTER JSC Name: audit under entity the of Information UES” RAO “INTER JSC of To Shareholders the OKPO 59002827 OKPO www.ey.com 9701 755 +7(495) fax: 9700 755 + 7(495) 9700 705 Tel.: +7(495) Russia 115035, 1, Moscow, bld. Nab., Sadovnicheskaya 77 &Young” “Ernst LLC auditor’s report Independent with the accounting statement regulations established in the the Russian results of its financial and business operations and cash flow in 2010 as ing of RAO of 31,inUES” respects in JSC “INTER all material December accordance2010, the give a statements true and fair stand- view the In of accounting our financial opinion, Opinion opinion. our of basis expression for proper and sufficient provides evidence audit obtained the that believe We awhole. as taken presentation ments of validity and policies estimatesaccounting obtained by the applied management, andthe assessment ofof the accounting adequacy state of assessment the audit adequate choose to The also includes audit view but not efficiency. control to the procedures internal assess the with statements accounting the of reliability and preparation secures which system, control internal the considers auditor the risk of the specified statements by or fraud error. of caused assessment In the course whether accounting the in misstatement material of risk of assessment the on based judgment out of mattersubject a proceduresis audit ofSelection ments. stateaccountingthe indisclosures and amounts the supporting evidenceaudit of obtaining for intended procedures audit of performance the includes audit The are free statements of misstatement. the material accounting whether about surance as- reasonable to obtain audit the perform and we that plan and principles, ethical tional Auditing Standards. Those standards require the compliance with applicable f with We our in audit accordance conducted statements, these of reliability audit. the our on based on opinion an express to is responsibility Our Auditor’s responsibility error. or fraud by caused whether free misstatement, from material statements of for accounting required preparation regulations established in the the Russian of the specified accounting statements in accordance with accounting statements and reliability of for RAO preparation JSC UES” “INTER is Management responsible statements accounting the for audit under entity the of Responsibility to and notes of them. and loss, profit and statement sheet to the balance plements sup- other 2010, year the for statement flow cash equity, in changes of statement of as sheet 31,the of balance consisting December 2010, and profit statement, loss of RAO JSC statements UES” “INTER accounting We have the accompanying audited federation, for system control the internal federation, ederal Auditing Standards and Interna f ederation. - - -

109 ANNUAL REPORT JSC RAO UES / 2010 110 ANNUAL REPORT JSC RAO UES / 2010 “Ernst and Young”, Limited Liability Company, Moscow Moscow Company, Liability Young”, and Limited “Ernst Seal: 14, 2010 March Young” and “Ernst LLC Partner D.E. Lobachev f Russian the the in practiced methods and procedures principles, of aware accounting are not who persons, the for intended the Russian generally applicable in the countries and other political subdivisions other than the standing and performance in accordance with of financial the accountingpresentation for intended principlesnot are or statements practices accounting attached The 1, 2009. January of as assets fixed of ablock of revaluation the reflectionresultofoftheconcerning2010, 22, opinion modifiedexpressing their De- on on 31, March ended opinion cember their were who by issued audited year 2009 auditors, other the for UES” RAO “INTER JSC of statements accounting The Miscellaneous f ederation. Respectively the attached accounting statements are not ederation. audited complete set of Russian statements. Russian of set complete audited which are given below. You may rewiew the shortened version along with changes in equity, cash flow statement and annex to the balance sheet, version of the balance sheet, the profit and loss statement, statement of is not in included in this document full and does not cover the shortened is issued for the complete set of Russian accounting statements, which by Ernst & Young LLC. Presented in report auditors’ the section preceding UES as a of part set complete audited statements of accounting Russian below is of by presented The information JSC management RAO INTER AS Of31.12.2010 Of JSCINTERRAOUES ACCOUNTING STATEMENTS Information http://www.interrao.ru/investors/funds/. f section in interrao.ru www. website corporate Company’s the on found be may statements accounting the to note explanatory The inancial

111 ANNUAL REPORT JSC RAO UES / 2010 112 ANNUAL REPORT JSC RAO UES / 2010 Location (address) Unit: Legal status/ownership Type activity of Taxpayer Identification Number Organization BALANCE TOTAL forsection II funds Short-term investments other debtors advances paid buyers andcustomers the reportingdate),including Accounts receivable(paymentsareexpectedmorethanduring12monthafter including otherdebtors the reportingdate) Accounts receivable(paymentsareexpectedmorethanduring12monthafter Intangible assets I. NONCURRENTASSETS value-added taxonacquiredvalues deferred expenses raw materials,suppliesandothersimilarvalues including: Stock II. CURRENTASSETS TOTAL forsectionI Other non-currentassets Deferred non-currentassets Long-term investments Interest bearinginvestmentsintotangibleproperty Incomplete construction fixed assets ASSET

12 thousand Open and resale Open

Krasnopresnenskaya Joint-Stock Joint-Stock ruble production

Company/private Company of

Naberezhnaya., electric RAO INTER power property as of December 31, 2010 December of as BALANCE SHEET BALANCE

Entrance UES ne oeA ftebgnigo h eotn erAsoftheendreportingperiod Asofthebeginningreportingyear Index code 300 290 260 250 243 242 241 240 231 230 220 216 211 210 190 150 145 140 135 130 120 110

7,

Moscow,

123610,

Russia 103,473,796 No. 67nNo. 22.07.2003 of the Rf Ministry of f of Ministry Rf the by Order to the Appendix 27,303,595 15,959,097 76,170,201 19,086,442 16,512,908 38,849,524 Date (yy/mm/dd) form No.1acc.toOKUD Dispatch (adoption)date Approval date acc. toOKEI acc. toOKOPf/OKfS acc. toOKvED INN acc. toOKPO 3,959,142 5,212,667 6,934,936 5,092,133 3,932,028 1,580,416 830,264 830,264 653,990 142,809 545,626 688,435 134,903 6,008 — inance 001 31 12 2010

40.10.11; 51.56.4 47 2320109650 33741102 0710001 CODES 384 135,276,836 111,694,411 23,582,395 11,362,312 46,454,407 22,490,528 39,431,218 4,062,822 4,020,736 4,031,780 2,217,901 5,112,631 2,274,818 2,274,818 1,078,983 2,826,205 41 125,573 657,151 782,724 470,704 17,846 3,533 March 14, 2011 March h Securing obligationsandpaymentsissued Securing obligationsandpaymentsreceived including leasing Leased assets Reference onthevaluesrecordedoff-balancesheetaccounts BALANCE TOTAL forsectionv target financing payments toshareholdersfortheadditionalissue including: Other currentliabilities Provisions forfutureexpenses advances received other creditors arrears oftaxesandduties debt tothestateoff-budgetfunds payable tostaffofthecompany Authorized capital III. CAPITALANDRESERvES suppliers andcontractors including: Borrowings andcredits v. CURRENTLIABILITIES Deferred taxliabilities Account payable TOTAL forsectionIv Other long-termliabilities Borrowings andcredits Iv. LONG-TERMLIABILITIES TOTAL forsectionIII retained earningsfromthisyear retained earningsfrompreviousyears Retained earnings(uncoveredloss),including: reserves formedincompliancewithlaws including: Reserve capital Additional capital LIABILITIES ead

B.Yu.Kovalchuk

ne oeA ftebgnigo h eotn erAsoftheendreportingperiod Asofthebeginningreportingyear Index code 960 950 911 910 700 690 662 661 660 650 626 625 624 623 622 621 490 620 610 590 520 515 510 470 431 430 420 410 Chief Accountant Accountant Chief A.O.Chesnokova 64,791,976 31,771,908 21,884,688 20,392,221 63,897,300 3,086,254 5,104,123 1,659,633 6,909,912 2,807,205 3,605,961 3,303,951 9,402,278 883,072 229,737 488,577 484,942 161,118 161,118 53,303 26,517 700 622 — — — — — (19,953,277) (19,657,704) 103,473,796 41,583,600 17,847,310 22,470,362 14,429,645 14,429,645 92,376,727 20,429,747 19,731,635 27,881,558 81,287,328 2,734,141 3,592,350 2,864,565 2,919,632 2,704,427 6,811,969 615,434 567,956 406,080 660,792 698,112 161,118 161,118 6,258 — — —

113 ANNUAL REPORT JSC RAO UES / 2010 114 ANNUAL REPORT JSC RAO UES / 2010 Unit: Legal status/ownership Type activity of Taxpayer Identification Number Organization Other incomes Income fromparticipationinotherorganizations Interest due Interest income Other incomeandexpenses Profit (loss)onsales Management expenses Selling expenses Gross profit other sale ofelectricpowerwithoutdeliverytothecustomsterritoryRussia import ofelectricpower production ofelectricity(power) purchase ofelectricity(power)inthedomesticmarket Prime costofsoldgoods,output,worksandservices other sale ofelectricpowerwithoutdeliverytothecustomsterritoryRussia sale ofelectricity(power)inthedomesticmarket electric powerexport ties andsimilarobligatorypayments),including: Revenues (net)fromsaleofgoods,products,worksandservices(netvalueaddedtax,excisedu- Income andexpensesfromordinaryactivities name Index

thousand Open and resale Open Joint-Stock Joint-Stock ruble production

Company/private Company over the period from January 1 to December 31, 2010 1to December January from period the over of electric RAO INTER PROFIT AND LOSS STATEMENT LOSS AND PROFIT power property UES code 090 080 070 060 050 040 030 029 025 024 023 022 021 020 014 013 012 011 010 o h conigpro Sameperiodlastyear For theaccountingperiod by 18.09.2006) by 18.09.2006) 115n No. finance of d/d. Ministry Rf by the 67n Order of 22.07.2003 of (version No. finance of Ministry Rf by the Order to the Appendix Date (yy/mm/dd) form No.1acc.toOKUD acc. toOKEI acc. toOKOPf/OKfS acc. toOKvED INN acc. toOKPO (11,789,018) (34,622,258) (49,592,567) (2,464,042) (3,513,825) (5,139,517) (1,204,621) (1,976,670) 60,097,025 11,800,745 30,765,097 29,016,605 61,393,312

1,716,199 3,147,403 1,611,610 904,432 — — — 001 31 12 2010 40.10.11; 51.56.4 741 47 2320109650 33741102 CODES 710002 384 (10,740,378) (25,396,168) (39,103,164) (2,486,214) (1,948,877) (3,634,203) (1,944,249) 68,499,482 23,502,049 22,255,710 46,831,335 (702,547) (319,822) 1,304,579 2,145,091 7,728,171 172,255 567,712 505,864 ITEMIZED PROFITSANDLOSSES Diluted earnings(loss)pershare(kop) Basic earnings(loss)pershare(kop) Diluted earnings(loss)pershare(kop) Basic earnings(loss)pershare(kop) fixed taxliabilities fOR REfERENCE Net income(loss)fortheaccountingperiod Other similarpayments Current profittax Deferred taxliabilities Deferred taxassets Profit (loss)beforetaxes March 14, 2011 March h tion ofaction Relief ofaccountsreceivableandpayablewithexpiredperiodlimita- foreign exchangedifferenceontransactionsincurrency Indemnification causedbynon-fulfilmentorimproperfulfilmentofobligations Profit (loss)ofpreviousyears their recovery fines, forfeitsandpenaltiesrecognizedorawardedbyacourt(arbitrationcourt)on Other expenses name Index name Index ead

B.Yu.Kovalchuk

code 1 2,2 (235,803) 126,824 230 220 210 4 ,4,4 (,4,0)86882(10,267,483) 8,678,882 (3,440,108) 3,042,449 250 240 Chief Accountant Accountant Chief code 200 190 151 150 142 141 140 100 202 201 202 201 112(83,887) 11,152 242(807) 22,482 For theaccountingperiod profit o h conigpro Same periodlastyear For theaccountingperiod A.O.Chesnokova (60,082,250) loss (696,880) (174,835) 2,704,427 3,318,767 (78,426) 335,801 53,047 0,102 0,102 0,119 0,119 986(140,045) 29,866 907(22,208) 29,087 profit Same periodlastyear — (70,738,142) (1,248,461) (1,102,949) (62,919) (53,175) (79,449) 337,634 (0,053) (0,053) 50,031 0,083 0,083 loss —

115 ANNUAL REPORT JSC RAO UES / 2010 116 ANNUAL REPORT JSC RAO UES / 2010 Unit: Legal status/ownership Type activity of Taxpayer Identification Number Organization I. CHANGEOFCAPITAL Changes inaccountingpolicy (previous year) 2009 Balance asofDecember31thepreviousyear Other Reduction incapitalvaluedueto: Net profit Results offixedassetsrevaluation Balance asofJanuary1thepreviousyear Changes inaccountingpolicy (previous year) 2009 share denominationdecrease legal entityreorganization Increase incapitalvaluedueto: Realized earlierevaluatedfixedassets Deductions tothereservefund Dividends previous Balance asofDecember31theyearpreceding Index name

thousand Open and resale Open Joint-Stock Joint-Stock rubles production

Company/private Company of code electric 1 2,1,8 830381475 119917 63,897,311 (181,929,167) 104,705 18,310,338 227,411,385 010 8 6,9,0 2,9,2 6,1 (96863 64,791,976 (19,658,663) 161,118 20,392,221 63,897,300 080 63,950,533 079 (181,875,945) 075 104,705 18,310,388 030 227,411,385 025 020 7 (163,514,085) 076 071 070 060 050 040 STATEMENT OF CHANGES IN EQUITY IN STATEMENT CHANGES OF RAO INTER Х uhrzdcptlAdtoa aia eev aia Retainedprofit Reservecapital Additionalcapital Authorized capital power property for the year 2010 year the for UES — — — Х Х 2,081,873 Х Х Х Х Х Х (40) — — Х x x x x x x Х No. 67nNo. 22.07.2003 of finance of Ministry Rf by the Order to the Appendix Date (yy/mm/dd) form No.1acc.toOKUD acc. toOKEI acc. toOKOPf/OKfS acc. toOKvED INN acc. toOKPO 643(56,413) 56,413 — 163,514,085 — — Х x (1,248,461) (1,248,461) x x x x x Х

(uncovered loss) ,3 2,089,906 8,033 001 31 12 2010 (2) 40 40.10.11; 51.56.4 — — 53222 Х x x 741 47 2320109650 — 33741102 CODES 710002 384 Total (2) — — — — — — Х II. RESERVES data fortheaccountingyear data forthepreviousyear (name ofreserve) Reserve forcoststobeincurred data fortheaccountingyear data forthepreviousyear (name ofreserve) Reserve fordoubtfuldebts data fortheaccountingyear data forthepreviousyear (name ofreserve) Reserve forfinancialinvestmentslossinvalue data fortheaccountingyear data forthepreviousyear (name ofreserve) Reserve fortangibleslossinvalue Estimated reserves: data fortheaccountingyear data forthepreviousyear (name ofreserve) reserve fund laws: Balance asofDecember31theaccountingyear Other share denominationdecrease Reduction incapitalvaluedueto: additional sharesissue Increase incapitalvaluedueto: Realized earlierevaluatedfixedassets Deductions tothereservefund Dividends Net profit Results offixedassetsrevaluation Reserves formedincompliancewith Balance asofJanuary1theaccountingyear Index Index name name code 8 8 8 2 2,8,5 6,1 (69327 92,376,727 (16,953,277) 161,118 27,881,558 81287328 180 5 1,9,2 1,9,2 7,490,296 17,390,028 170 161 17,390,028 160 151 150 140 0 6,9,0 2,9,2 6,1 (96863 64,791,976 (19,658,663) 161,118 130 20,392,221 120 110 63,897,300 101 100 uhrzdcptlAdtoa aia eev aia Retainedprofit Reservecapital Additionalcapital Authorized capital code 9 6,9 2,6 (169 810,892 (71,669) 621,267 199 261,294 190,689 198 197 474,503 196 195 194 193 161,118 192 104,705 191 190 — — — Х Х Х Х Х Х Balance 14,479 ,9 474,503 1,093 (959) 540 567,956 — — 261,294 — — — x x x x x x Received 13,939 56,413 ,4 (12,645) 5,146 — — — — — x x x ,0,2 2,704,427 2,704,427 x x x (uncovered loss) (1,093) Used 959 — 161,118 — 567,956 — — 261,294 665,192 — — — 161,118 — — — — — — — x x 474,503 Balance 14,479 6,980 Total — — — — — — — — — — Х

117 ANNUAL REPORT JSC RAO UES / 2010 118 ANNUAL REPORT JSC RAO UES / 2010 Proceeds ofthesecuritiessaleandother financialinvestments Proceeds ofthefixedassetsandother non-currentassetssale Cash flowsfrominvestingactivities Net cashfromoperatingactivities other expenses currency purchase taxes anddutiespayment payments fordividends,interest remuneration oflabour payment ofpurchasedgoods,worksandservices,rawmaterialsother current assets funds allocatedfor: Other income Proceeds ofthecurrencysale funds receivedfromcustomers,clients Cash flowfromoperatingactivities Unit: Legal status/ownership Type activity of Taxpayer Identification Number Organization Demand balanceasofthebeginningyear March 14, 2011 March h REFERENCES 1) Netassets name Index name Index ead

B.Yu.Kovalchuk thousand Open and resale Open

Joint-Stock Joint-Stock rubles production

Company/private Company of electric RAO INTER power CASH FLOW STATEMENTCASH code property 200 for the year 2010 year the for UES Chief Accountant Accountant Chief Balance asofthebeginning code 220 210 200 190 180 170 160 150 140 130 120 110 010 of accountingyear 64,791,976 o h conigpro Sameperiodlastyear For theaccountingperiod A.O.Chesnokova Date (yy/mm/dd) form No.1acc.toOKUD acc. toOKEI acc. toOKOPf/OKfS acc. toOKvED INN acc. toOKPO (33,064,170) (60,905,740) (1,897,411) (1,628,763) (2,405,384) (2,208,925) 20,662,637 32,766,565 3,572,477 6,805,064 6,111,241 3,862,886 3,653 001 31 12 2010 40.10.11; 51.56.4 741 47 of accountingperiod 2320109650 33741102 Balance oftheend CODES 710002 384 (46,196,789) (47,083,111) (1,836,398) (2,451,661) (1,457,498) 92,376,727 10,236,117 46,054,207 50,377,011 (681,726) 3,248,909 4,505,308 (27,056) 2,606 March 14, 2011 March h Magnitude oftheimpactfromchangeinforeigncurrencyratesagainstrouble Demand balanceattheendofaccountingperiod Net increase(decrease)incashandequivalents Net cashfromfinancialactivities Repayment offinanceleaseliabilities Repayment ofloansandcredits(withoutinterests) Income fromsharesissuing Income fromloansandcreditstootherorganizations Cash flowfromthefinancialactivities Net cashfromtheinvestingactivities Acquisition offixedassetsfromthetrustfunding Deposits withcreditinstitutions Loans giventootherentities Acquisition ofsecuritiesandotherfinancialinvestments Acquisition offixedassets,profitableinvestmenteintangibleandintangibleassets Acquisition ofsubsidiaries Reimbursement ofdepositswithcreditinstitutions Reimbursement ofdeposits Receipt ofearmarkedfundingforconstruction Proceeds fromrepaymentofloanstootherorganizations,purchasereceivables Interests received Dividends received name Index ead

B.Yu.Kovalchuk

Chief Accountant Accountant Chief code 310 300 290 280 270 260 250 240 230 410 400 390 380 370 360 351 350 340 330 320 o h conigpro Sameperiodlastyear For theaccountingperiod A.O.Chesnokova (10,076,179) (41,123,625) (17,667,656) (22,750,612) (83,608,000) (3,978,001) (2,172,612) (5,029,874) 85,158,000 11,039,390 19,378,056 24,880,324 12,852,263 (330,135) (686,875) 5,027,367 4,062,807 877,224 469,408 199,921 (339,789,136) (10,203,288) (17,603,627) 342,889,136 (9,014,600) (6,023,540) (4,547,667) (9,848,254) (4,513,052) 27,274,862 (246,548) (546,166) (342,091) 5,408,215 4,656,427 9,329,144 3,959,142 901,526 149,002 —

119 ANNUAL REPORT JSC RAO UES / 2010 120 ANNUAL REPORT JSC RAO UES / 2010 Unit: Legal status/ownership Type activity of Taxpayer Identification Number Organization FIXED ASSETS Buildings erty) Intellectual property(exclusiverightsforintellectualprop- of goods owner fortrademarkandservicemark,appellationoforigin including: softwareandtrademark Total Land andnaturalresources Other fixedassets Production andhouseholdequipment vehicles Machinery andequipment Structures andtransmissiondevices copyright holderforsoftware,databases including: INTANGIBLE ASSETS Amortization ofintangibleassets—total Index Index name name Index name

thousand Open and resale Open Joint-Stock Joint-Stock ruble production

Company/private Company code of electric 070 110 100 090 085 080 075 RAO INTER code 014 012 011 010 ANNEX TO BALANCE SHEET BALANCE TO ANNEX Availability atthebeginning power property of thereportingyear for the year 2010 year the for UES Availability atthebeginning 10,568,697 020871,451,131 30,290,807 932363,476,761 49,302,396 ,2,6 1,717,783 8,223,762 127,642 84,960 of thereportingyear 5,928 600 code 051 050 8,376 8,521 145 — Received 249,423 41,047 10,127 7,089 As atthebeginningof 161 Received nance No. 115n No. nance 18.09.2006) of fi- of Ministry Rf by the Order of (version 67nNo. 22.07.2003 of finance of Ministry Rf by the Order to the Appendix Date (yy/mm/dd) form No.1acc.toOKUD acc. toOKEI acc. toOKOPf/OKfS acc. toOKvED INN acc. toOKPO — — 86 86 reporting year

(10,625) (22,258) 2,513 2,513 (9,303) (1,962) Retired Retired (368) (-) — — — — — — As attheendofreporting end ofthereportingperiod 001 31 12 2010 40.10.11; 51.56.4 of thereportingperiod 741 47 Availability attheend 2320109650 33741102 CODES 710002 Availability atthe 384 10,818,120 31,732,635 52 756899 9,939,583 127,144 91 681 41 647 period 6 089 5,074 5,074 8,376 8,607 231 — INTEREST-BEARING INVESTMENTSINTOTANGIBLEPROPERTY Amortization ofinterest-bearinginvestmentsintotangibleproperty Transfer oflivingquartersintorent Total partial dismantlement Change offixedassetsvalueasaresultcompletion,additionalequipping,reconstructionor depreciation initial (replacement)cost The resultoffixedassetsrevaluation Real estatereceivedinoperationandbeingprocessofstateregistration other vehicles, equipmentandmachinery buildings andstructures including: Rented fixedassets fixed assetstransferredforconservation other vehicles, equipmentandmachinery buildings andstructures including: other vehicles, equipmentandmachinery Leased fixedassets—total buildings andstructures including: Amortization ofintangibleassets—total Index Index name Index name code 210 200 Availability atthebeginning of thereportingyear oeA ttebgnigo h eotn erAsattheendofreportingperiod As at the beginning of the reporting year code 211 — — code 180 172 171 165 164 163 162 161 143 160 153 152 151 150 142 141 140 Received 18,408 18,408 of thereportingyear As atthebeginning 10,452,872 1,371,101 1,659,633 2,196,404 1,152,236 8,417,644 1,978,521 314,996 740,875 883,106 166,607 983,857 35,652 56,707 — 1,772 eie Availability attheendof Retired — — - - of thereportingperiod reporting period As attheend 10,673,806 13,325,681 1,931,549 2,771,311 3,592,350 3,092,457 1,628,435 1,780,627 2,583,086 986,099 817,512 147,960 18,408 18,408 68,789 3,527 4,232 562 - -

121 ANNUAL REPORT JSC RAO UES / 2010 122 ANNUAL REPORT JSC RAO UES / 2010 Total companies —total Deposits intoauthorized(share)capitalsofother Reliability enhancementofheat-recoveryboiler including: EXPENDITURE ONRESEARCH,DEVELOPMENTANDENGINEERINGwORKS of assessment value: changeofvalueresultingfromadjustment for financialinvestmentswithcurrentmarket for reference. other organizations,total —investmentsinauthorized(share)capitalsof current marketvalue: Of thetotalamountoffinancialinvestmentswith Total Other Deposits Loans granted including debtsecurities(promissorynotes) Securities ofothercompanies—total including subsidiariesandassociatedcompanies FINANCIAL INVESTMENTS Cost ofuncompletedresearch,developmentandengineeringworks results, classifiedas‘otherexpenses’ Amount ofexpensesforresearch,developmentandengineeringworksthatdidnotyieldpositive name Type ofworks name Index code 542 541 540 535 530 525 516 515 511 510 code 311 310 Availability atthebeginning the accountingyear At thebeginningof Long-term of theaccountingyear 19,086,442 11,581,648 11,581,648 2,179,974 5,241,781 83,039 — — — — 1,111 — accounting period At theendof 46,454,407 39,016,881 39,016,881 22,878,645 1,446,812, 2,196,657 4,882,654 code 330 358,215 code 320 Received ,6 (1,319) 4,263 5,763 — — As atthebeginningof As atthebeginningof the accountingyear the accountingyear At thebeginningof Short-term accounting year rte f Availabilityattheendof Written off 5,212,667 3,639,611 1,550,000 136,735 23,056 — — — — — — — — accounting period At theendof As attheendof As attheendof accounting period accounting period accounting period 4,020,736, 3,102,650, 918,086, 918,086, 150,379 4,263 5,555 — — — — — — — short-term, total Accounts receivable Total earmarked funding loans credits including: long-term, total other earmarked funding provisions forfutureexpenses loans credits taxes andleviessettlements advances received settlements withsuppliersandcontractors including: short-term, total Accounts payable other advances issued settlements withbuyersandcustomers including: long-term, total other advances issued settlements withbuyersandcustomers including: ACCOUNTS RECEIVABLEANDPAYABLE name Index code 620 613 612 611 610 660 653 652 651 650 647 646 645 645 644 643 642 641 640 623 622 621 Balance atthebeginningof the accountingyear 15,959,097 38,196,878 21,884,688 31,286,966 6,934,936 5,092,133 3,932,028 9,402,278 3,303,951 2,807,205 6,909,912 830,264 515,716 229,737 830,264 53,303 — — — — — — Balance attheendof accounting period 11,362,312 42,201,997 19,731,635 19,731,635 22,470,362 14,429,645 4,031,780 2,217,901 5,112,631 2,274,818 2,919,632 2,870,823 2,274,818 660,792 406,080 567,956 615,434 — — — — —

123 ANNUAL REPORT JSC RAO UES / 2010 124 ANNUAL REPORT JSC RAO UES / 2010 SECURITIES Received —total Material expenditures March 14, 2011 March h other securities andotherfinancialinvestments among it: property transferredtopledge liabilities forforwarddealscurrencypurchase including: Issued —total other securities andotherfinancialinvestments fixed assetsobjects among it: property inpledge liabilities forforwarddealscurrencypurchase including: provisions forfutureexpenses deferred expenditures work-in-process Change inbalances(increase[+],reduction[-]): Total expenditureselements Other Depreciation fringe benefitexpenses Expenditures forremunerationoflabour EXPENDITURES ONORDINARYACTIVITIES(BYEXPENDITUREELEMENTS) Index name name Index ead

B.Yu.Kovalchuk

Chief Accountant Accountant Chief code code 765 760 750 740 730 720 710 827 826 825 821 820 809 807 806 805 801 800 767 766 Balance atthebeginningof For theaccountingperiod A.O.Chesnokova accounting year 58,245,909 43,320,409 3,086,254, 3,850,386, 8,676,736 2,805,638 3,211,799 3,086,254 1,085,089 1,253,737 5,104,123 (17,236) 231,327 168,648 — — — — — — Balance attheendof Same periodlastyear accounting period 44,686,244 33,712,164 26,735,985 13,632,588 41,583,600 14,131,608 17,847,310 6,365,328 2,794,220 1,623,886 1,215,027 1,215,027 2,461,965 1,085,089 1,253,737 190,646 168,648 35,961 — — Observance of the Corporate Code of conduct. doc.” conduct. of Code Corporate the of Observance port of the Company see files “The Annex “The files see Company the of port UES shall be attached to the printed version of the Annual Report of the Company in electronic format. (In the electronic version of the Annual Re List of major and interested transactions for party 2010 and information of observance about the Corporate Code of conduct by JSC RAO INTER Conduct Code in Annual Reports of Joint-Stock Companies” Joint-Stock of Reports Annual in Code Conduct “On Methodological Recommendations Concerning the Composition and The information was prepared in accordance with Instruction № 03-849/r of f the № 03-849/r Instruction with in accordance was prepared information The Obligatory presenceofcandidatesattheGeneralMeetingShareholders while 6 AvailabilityintheCharterorinternaldocuments ofajointstockcompanythere- 5 Opportunityforshareholdertoputanissueon theagendaofGeneralMeeting 4 Opportunityforshareholderstobecomeacquaintedwiththeinformation(materi- 3 Opportunityforshareholderstobecomeacquaintedwiththelistofpersonsentitled 2 NotificationtoshareholdersaboutaGeneralMeetingofShareholdersnotlaterthan 1 General meetingofShareholders ProvisionoftheCorporateConductCode № joint-stock companyauditor. tor, membersofManagementBoard, layauditorsandtheissueaboutapprovalof considering issuesaboutelectionofmembers ofBoardDirectors,GeneralDirec- General MeetingofShareholders. of Directors,auditorsandthejoint-stockcompanyauditorareobligedtoattend the quirement that General Director, members of Management Board, members of Board aforementioned rights. on adepoaccount,statementfromtheaccountissufficientforexercising the listed intheshareregistrysystem,andcaseofholdingone’srightsfor shares provision ofanextractfromtheshareholdersregister,ifone’srightsforshares are Shareholders ordemandthecallingofaGeneralMeeting without Shareholders, throughelectroniccommunicationfacilitiesincludingInternet. als) subjecttosubmissionduringthetimeofpreparationforGeneralMeeting acceptance ofballotpapers. holders takingplaceintheformofabsenteevoting,uptodatetermination the GeneralMeetingofShareholders,andincaseShare- notification abouttheGeneralMeetingofShareholdersanduptoconclusion to participateintheGeneralMeetingofShareholdersstartingfromdate tion providesforalongerperiod. 30 dayspriortoitsdatenotwithstandingtheissuesonagenda,unlesslegisla- BY JSCINTERRAOUES Of ThECORPORATECODECONDUCT INfORMATION ABOUTOBSERvANCE — major and interested party transactions for 2010. doc.” report transactions “ and — Annex The Annual party interested and — major f Observed Not observed TherearenoprovisionsintheCharterandinternaldocumentsof Partially observed Observed Observed Observed observed Observed ornot orm of Submission of Information about Observance of the Corporate ederal Commission of the Securities Market dated April 30, 2003 Comments presence attheGeneralMeetingofShareholders. internal documentsoftheCompanycovering theirobligatory fulfilled inpractice.Therearenoprovisions intheCharterand shareholders’ questions." General MeetingofShareholdersand authorizesthemtoanswer Internal AuditCommissionandtheCompany auditoratthe presence ofmembersBoardDirectors,executivebodies, Conduct Code:"AsfaraspossibletheCompanyprovides In accordancewithparagraph3ofclause5.2.2theCorporate shareholder’s rights. statement fromthedepoaccountissufficientforexercising the caseofholdingone’srightsforsharesinadepoaccount, independently theconfirmationinshareholdersregister.In the Companycoveringobligationoftorequire ers). for themeetingheldinformofjointpresencesharehold- to thedateofGeneralMeetingShareholders...”(validonly Company isontheagenda—notlaterthan30(thirty)daysprior the GeneralMeetingofShareholders;ifreorganization Internet not later than 20 (twenty) days, and in the case of holding Shareholders isplacedonthewebsiteofCompany (materials) relatingtotheagendaofGeneralMeeting In accordancewithclause11.7oftheCharter“...Information at leastonepercentofvotes. pany attherequestofpersonsincludedinlistandhaving General MeetingofShareholdersshallbeprovidedbytheCom- Joint-Stock Companiesthelistofpersonsentitledtoattend In accordancewithclause4ofarticle51thefederalLawon Companies”. unless otherwiseisprovidedbythefederalLawonJoint-Stock on theInternetnotlaterthan30(thirty)dayspriortoitsdate pany inIzvestiaDailyandisplacedontheCompany'swebsite the GeneralMeetingofShareholdersispublishedbyCom- The Chartercontainsaprovisionasfollows:“11.5Noticeabout — 2010 — — -

125 ANNUAL REPORT JSC RAO UES / 2010 126 ANNUAL REPORT JSC RAO UES / 2010 3Availabilityinthejoint-stockcompany’sCharter orinternaldocumentsoftherequire- 13 Availabilityinthejoint-stock company’sCharteroftherightforBoardDirectors 12 Availabilityinthejoint-stockcompany’sCharterofrightforBoardDirec- 11 Availabilityinthejoint-stockcompany’sCharterofrightforBoardDirectors 10 Availabilityoftheprocedureriskmanagementinajoint-stockcompany,approved 9 Availabilityinthejoint-stockcompany’sCharterofauthorityBoardDirectors 8 Board ofDirectors Availabilityinthejoint-stockcompany’sinternaldocumentsofaprocedureforregis- 7 ProvisionoftheCorporateConductCode № while countingthevotes. Director andmembersoftheManagement Board,shouldnotbetakenintoaccount agement Board,thevotesofmembers ofBoardDirectorswhoaretheGeneral the General Director (management organization, manager) and members of the Man- ment concerningthatduringapproval oftermsandconditionscontractswith of theManagementBoard. to approvetermsandconditionsofcontractswiththeGeneralDirector members joint-stock company. Director, membersoftheManagementBoardandheadsmainstructuralunitsa tors tosetrequirementsqualificationandamountofremunerationtheGeneral by theGeneralMeetingofShareholders. to makeadecisionaboutsuspensionofauthoritytheGeneralDirectorappointed by theBoardofDirectors. to annuallyapprovethefinancialandeconomicplanofajoint-stockcompany. tration oftheGeneralMeetingShareholders’participants. Not observed Observed Inaccordancewithclause15.1 oftheChartercompetence Partially observed Not observed Observed Observed Observed observed Observed ornot Comments these requirements. The Company’sCharterandinternaldocumentsdonotcover of Directorstosigntheemploymentcontract...” are determinedbyapersonauthorizedtheCompany’sBoard of Directors.Termsandconditionstheemploymentcontract Management BoarduponauthorizationoftheCompany’s on behalfoftheCompanybyChairmanCompany’s with themembersofCompany’sManagementBoardissigned the Company’sBoardofDirectors.Theemploymentcontract Company’s BoardofDirectorsorbyapersonauthorized Board issignedonbehalfoftheCompanybyChairman ment contractwiththeChairmanofCompany’sManagement In accordancewithclause20.4oftheCharter“Theemploy- the joint-stockcompany’smainstructuralunits. towards qualificationandamountofremunerationtheheads not covertherightforBoardofDirectorstosetrequirements of Directorstosigntheemploymentcontract...”TheCharterdoes are determinedbyapersonauthorizedtheCompany’sBoard of Directors.Termsandconditionstheemploymentcontract Management BoarduponauthorizationoftheCompany’s on behalfoftheCompanybyChairmanCompany’s with themembersofCompany’sManagementBoardissigned the Company’sBoardofDirectors.Theemploymentcontract of Company’sBoardDirectorsorbyapersonauthorized ment BoardissignedonbehalfoftheCompanybyChairman employment contractwiththeChairmanofCompany’sManage- ment Board”.Inaccordancewithclause20.4oftheCharter“The paid totheChairmanandmembersofCompany'sManage- determination oftheamountremunerationandcompensation Board includingearlyterminationoftheiremploymentcontracts; early terminationofauthoritythemembersManagement of membersintheCompany'sManagementBoard,electionand of theBoardDirectorsincludes“determinationnumber termination ofauthoritytheChairmanManagementBoard”. the GeneralMeetingofShareholdersincludes“electionandearly In accordancewithclause10.1oftheChartercompetence No.33 dated01.11.2010) RAO UESGroup’sBoardofDirectorsat29.10.2010(Minutes Provision ofriskmanagementisapprovedbytheJSCINTER achievement thereof”. performance indicators(KPI)oftheCompanyandreportson approval ofbusinesstargetvalues(correctedvalues)key (revised businessplan)andthereportonexecutionthereof; of theBoardDirectorsincludes“approvalbusinessplan In accordancewithclause15.1oftheChartercompetence participants. procedure ofregistrationtheGeneralMeetingShareholders’ the meeting.Clauses5.1.2-5.1.6ofRegulationsspecify the GeneralMeetingofShareholdersstatedinanoticeabout person functioningasareturningboard,attheplaceofholding Shareholders iscarriedoutbytheReturningBoardorother of personsentitledtoparticipateintheGeneralMeeting ration andholdingRegulations:Clause5.1.1Registration In accordancewithclause5.1oftheGeneralMeetingPrepa- 2Availabilityinthejoint-stockcompany’sinternal documentsoftheprocedure 22 holding meetingsofthejoint-stockcompany’sBoardDirectorsatleastonceinsix 21 Availabilityinthejoint-stock company’sinternaldocumentsoftherequirementtohold 20 Availabilityinthejoint-stockcompany’sinternaldocumentsofobligationthat 19 Availabilityinthejoint-stockcompany’sinternaldocumentsofobligationthat 18 Availabilityinthejoint-stockcompany’sCharterofrequirementtoelectBoard 17 Absenceinthejoint-stockcompany’sBoardofDirectorspersonswhoarepartici- 16 Absenceinthejoint-stockcompany’sBoardofDirectorspersonswhohave 15 Availabilityinthejoint-stockcompany’sBoardofDirectorsatleast3independent 14 ProvisionoftheCorporateConductCode № Board ofDirectorsmeetings. weeks duringtheyearforwhichannualreportofcompanyisexecuted. meetings oftheBoardDirectorsatleastonceinsixweeks. securities. ies (affiliates),andtodiscloseinformationaboutcompletedtransactionswithsuch pany themembersofBoardDirectorswhichtheyare,oritssubsidiar- about theirintentiontocarryouttransactionswithsecuritiesofthejoint-stockcom- members oftheBoardDirectorsaretonotifyinwriting case ofoccurrencesuchconflict. company, andtodiscloseinformationaboutthisconflicttheBoardofDirectorsin potentially resultinaconflictbetweentheirinterestsandofthisjoint-stock members ofBoardDirectorsaretorefrainfromactionswhichwillresultormay of Directorsbymeanscumulativevoting. a legalentitycompetingwiththejoint-stockcompany. pants, directorsgeneral(managers),membersofmanagingbodiesoremployees of entrepreneurship orinthesphereoffinance,taxesandleviessecuritiesmarket. government serviceandlocalauthorities,orwhohavebeenpunishedforoffencein been foundguiltyofeconomiccrimesoragainststateauthority,interests directors complyingwiththerequirementsofCorporateConductCode. Observed from01.01.2010to31.12.201014meetingsofthe Company’s Mainly observed Not observed Observed Observed Observed Not observed Observed Observed observed Observed ornot Comments tions. Board ofDirectorsMeetingConvocation andholdingRegula- is determinedbyArticle18oftheCompany’s Charterandinthe The procedureoftheCompany’sBoard ofDirectorsmeetings to 19.08.2010theintervalexceededsixweeks) Board ofDirectorswereheld.(duringtheperiodfrom23.06.2010 once aquarter,unlessotherwisesetoutintheseRegulations. Activities oftheBoardDirectorsandasnecessarybutatleast of DirectorsareheldinaccordancewiththeapprovedPlan Convocation andholdingRegulations“MeetingsoftheBoard In accordancewithclause5.1oftheBoardDirectorsMeeting performed duringtheaccountingperiod. securities oftheCompanyand/oritssubsidiariesoraffiliates, information, withawrittendeclarationabouttransactions are obligedtoprovidetheUnitthatcontrolsuseofinsider the 3rddayofmonthfollowingreportinginsiders the Company’sInsiderInformationRegulations,notlaterthan sion ofCompany’ssecurities.Inaccordancewithclause4.2 Company’s BoardofDirectorstheinformationaboutposses- Directors areobligedtodisclosetheAuditCommitteeof mation RegulationsthemembersofCompany’sBoard In accordancewithclause4.1oftheCompany’sInsiderInfor- refrain fromvotingforcorrespondingissues. Directors istoinformothermembersoftheBoardaboutitand Company. InthecaseofsuchconflictmemberBoard in aconflictbetweentheirinterestsandtheof Board ofDirectorsaretorefrainfromactionswhichmayresult Clause 4.1.6oftheCorporateConductCode:“Members date ordistributethembetweentwomorecandidates”. of Directorsandashareholdermayuseallvotesforonecandi- by thenumberofpersonstobeelectedCompany'sBoard the numberofvotesbelongingtoeachshareholderismultiplied Company's BoardofDirectors.Thecumulativevotingimpliesthat principle exceptcumulativevotingonelectionofmemberstothe Shareholders isbasedonthe“onevotingshare—onevote” Clause 10.7oftheCharter:“votinginGeneralMeeting Energy Systems; of theBoardDirectorsinJSCRushydroandRJSCEast JSC fGCUES;KurtserGrigoryMarkovichisapart-time-member Directors inJSCRushydro,memberoftheBoard Chairman oftheManagementBoardand JSC holdingIDGC;DodGennadiyvyacheslavovichisapart-time of theBoardDirectorsandinJSCRushydro,fGCUES, Mosenergo; ShmatkoSergeyIvanovichisapart-time-Chairman part-time-Chairman oftheBoarddirectorsinJSCTGK-1, Energy SystemsoftheEast;SeleznyovKirillGennadyevichisa ergo, JSCIrkutskenergo,Kuzbassenergo,RJSC a part-time-memberoftheBoardDirectorsinJSCTyumenen- dro’s Boardofdirectors;KravchenkovyacheslavMikhailovichis Kovalchuk BorisYuryevichisapart-time-memberofJSCRushy- It ispracticed. nadyevich. ich; —KurtserGrigoryMarkovich;SeleznyovKirillGen- Independent directorsare:—AnoshkoNikolayAlexandrov-

127 ANNUAL REPORT JSC RAO UES / 2010 128 ANNUAL REPORT JSC RAO UES / 2010 8Theaudit committeeshouldbechairedbyanindependentdirector. 28 Onlyindependentandnon-executive directorsmaybemembersoftheAuditCom- 27 AvailabilityoftheBoardDirectorscommittee(AuditCommittee)whichshouldrec- 26 AvailabilityoftheBoardDirectorscommitteeforstrategicplanningorassign- 25 Availabilityinthejoint-stockcompany’sinternaldocumentsofrightformembers 24 Availabilityinthejoint-stockcompany’sinternaldocumentsofaprovisionthat 23 ProvisionoftheCorporateConductCode № mittee. with itandtheInternalAuditCommissionofthisjoint-stockcompany. ommend totheBoardofDirectorsanauditorajoint-stockcompanyandinteract Remuneration Committee). ment ofitsfunctionstoanothercommittee(excepttheAuditCommitteeandhR tions, aswellresponsibilityfornon-provisionofsuchinformation. heads ofmainstructuralunitsinformationthatisnecessaryforperformingone’sfunc- of BoardDirectorstoreceivefromthejoint-stockcompany’sexecutivebodiesand course ofbusiness. cent fromthecostofcompanyassetsexcepttransactionsexecutedinnormal Board ofDirectorsshouldapprovethetransactionsamountingto10andmoreper- Observed Observed Observed Observed Partially observed Observed observed Observed ornot Comments director) INTER RJSCUESisNikolaiAlexandrovichAnoshko(independent Chairman oftheBoardDirectorsAuditCommitteeJSC — K.G.Seleznyov(independentandnonexecutivedirector). — G.M.Kurtser(independentandnonexecutivedirector); ent andnon-executivedirector); — N.A.AnoshkoChairmanoftheAuditCommittee(independ- (Minutes No.32dated04.10.2010): determined bythedecisionofBoardDirectorsin2010 The membershipoftheBoardDirectorsAuditCommitteewas — K.G.Seleznyov(independentandnonexecutivedirector). — G.M.Kurtser(independentandnonexecutivedirector); ent andnon-executivedirector); — N.A.AnoshkoChairmanoftheAuditCommittee(independ- Directors (MinutesNo.32dated04.10.2010): Audit CommitteewasdeterminedbythedecisionofBoard Audit Committee.ThemembershipoftheBoardDirectors 23.04.2008) tookthedecisiontoestablishBoardofDirectors On 23.04.2008theBoardofDirectors(MinutesNo.1dated — A.N.Shyshkin. — WolfgangScribot; — G.S.Nikitin; — I.I.Mirsiyapov; — A.M.Lokshyn; — v.M.Kravchenko; — A.B.Ballo; — B.Yu.Kovalchuk; Committee; — S.I.ShmatkoChairmanoftheStrategyandInvestment (Minutes No.18dated21.09.2009): Directors wasdefinedbythedecisionofBoard ship oftheStrategyandInvestmentCommitteeBoard Investment CommitteeoftheBoardDirectors.Themember- 23.04.2008) tookthedecisiontoestablishStrategyand On 23.04.2008theBoardofDirectors(MinutesNo.1dated within thecompetenceofBoardDirectors...”. ments andinformationnecessaryfortakingdecisionsonissues the BoardofDirectorsmaysendawrittenrequesttoobtaindocu- tors MeetingConvocationandh Company”. Inaccordancewithclause3.2oftheBoardDirec- Law oftheRussianf contract andotherCompany’sdocumentsinaccordancewiththe all documentsofincorporation,regulatory,accounting,reporting, commercial secretsoftheCompany,tobecomeacquaintedwith receive informationaboutactivitiesoftheCompanyincluding the competenceofBoardDirectorsareentitled:1)to h Clause 3.1oftheBoardDirectorsMeetingConvocationand to theaccountingdataasoflastreportdate.” exceeding 5%oftheCompany’sbalancesheetassetsaccording or mayresultintheCompanyliabilitiestoamountequal any transactions(includingfewrelatedtransactions)thatresult the competenceofBoardDirectorsincludes:“approval In accordancewithsub-clause28ofclause15.1theCharter olding Regulations: “Members of the Board of Directors within olding Regulations:“MembersoftheBoardDirectorswithin ederation and internal documents of the ederation andinternaldocumentsofthe olding Regulations: “A member of olding Regulations:“Amemberof 9Availabilityofacollective executive body(ManagementBoard)ofajoint-stock 39 Executive bodies Availabilityinthejoint-stock company’sCharterofaprocedurethatdetermines 38 Availabilityofapprovedby theBoardofDirectorsjoint-stockcompany’sinternal 37 TheCommittee forSettlementofCorporateConflictsshouldbechairedbyaninde- 36 Absenceofthejoint-stockcompanyofficersinCommitteeforSettlement 35 EstablishmentoftheBoardDirectorsCommitteeforSettlementCorporateCon- 34 EstablishmentoftheBoardDirectorsRiskCommitteeorassignmentitsfunc- 33 Notobserved Absenceofthejoint-stockcompanyofficersinhRandRemunerationCommittee. 32 Notobserved ThehRandRemunerationCommitteeshouldbechairedbyanindependentdirector. 31 EstablishmentoftheBoardDirectorscommittee(hRandRemunerationCommit- 30 Availabilityinthejoint-stockcompany’sinternaldocumentsofrightaccessto 29 ProvisionoftheCorporateConductCode № company directors intheBoardofDirectorsmeetings. quorum oftheBoardDirectors,ensuringobligatoryparticipationindependent tors committees. documents, envisagingtheprocedureofformationandactivityBoard ofDirec- pendent director. Corporate Conflicts. and hRRemunerationCommittee). flicts orassignmentofitsfunctionstoanothercommittee(exceptAuditCommittee Committee). tions toanothercommittee(exceptAuditCommitteeandhRRemuneration Board ofDirectorsanddevelopthejoint-stockcompanypolicyonremuneration. tee) whichshoulddeterminethecriteriaforselectingcandidatestomembersof Committee providingcompliancewithnon-disclosureagreement. any documentsandinformationofajoint-stockcompanyforallmemberstheAudit Observed Not observed Observed Not observed Not observed Not observed Not observed Observed Observed observed Observed ornot Comments Article 21(ManagementBoard)oftheCharter. the Company’sBoardofDirectors”. meeting isatleastahalfofthenumberelectedmembers Clause 18.11oftheCharter:“quorumforBoardDirectors — StrategyandInvestmentCommitteeRegulations. — hRandRemunerationCommitteeRegulations; — AuditCommitteeRegulations; No.18 dated21.09.2009)approved: Decision oftheBoardDirectorsdated21.09.2009(Minutes for SettlementofCorporateConflicts The CompanydoesnothavetheBoardofDirectorsCommittee for SettlementofCorporateConflicts The CompanydoesnothavetheBoardofDirectorsCommittee for SettlementofCorporateConflicts The CompanydoesnothavetheBoardofDirectorsCommittee mittee. The CompanydoesnothavetheBoardofDirectorsRiskCom- member oftheManagementBoardJSCINTERRAOUES. mittee ofJSCINTERRAOUESBorisAlexanderGennadievichis Member oftheBoardDirectorshRandRemunerationCom- an independentdirector. mittee ofJSCINTERRAOUESSergeiIvanovichShmatkoisnot Chairman oftheBoardDirectorshRandRemunerationCom- — A.G.Boris. — A.M.Lokshyn; — G.M.Kurtser; — v.M.Kravchenko; — G.S.Nikitin; mittee; — S.I.ShmatkoChairmanofthehRandRemunerationCom- 23.08.2010): by thedecisionofBoardDirectors(MinutesNo.30dated of DirectorshRandRemunerationCommitteewasdetermined hR andRemunerationCommittee.ThemembershipoftheBoard 23.04.2008) tookthedecisiontoestablishBoardofDirectors On 23.04.2008theBoardofDirectors(MinutesNo.1dated observe confidentiality. of theBoardDirectorsAuditCommitteemust accordance withsub-clause4ofclause5.1theRegulations and membersoftheManagementBoardCompany...”In comments tothemfromtheChairmanofManagementBoard request andtoreceivenecessaryinformation,documents clause 4.1oftheRegulationsCommitteehasrights“to ing No.1dated23.04.2008).Inaccordancewithsub-clause2of approved on 23.04.2008 (Minutes of the Board of Directors meet- The RegulationsoftheBoardDirectorsAuditCommitteewere

129 ANNUAL REPORT JSC RAO UES / 2010 130 ANNUAL REPORT JSC RAO UES / 2010 8Stipulatingliabilityforviolation ofprovisionsrelatingtotheuseconfidentialand 48 Submission byexecutivebodiesofthejoint-stockcompanymonthlyreports 47 Availabilityinthejoint-stockcompany’sCharterorinternaldocumentsofcriteriafor 46 Availabilityinthejoint-stockcompany’sinternaldocumentsofobligationthat 45 Availabilityinthejoint-stockcompany’sCharterorinternaldocumentsprohibitingto a 44 Absenceinthejoint-stockcompany’sexecutivebodiesofpersonswhohavebeen 43 Absenceinexecutivebodiesofpersonswhoareparticipants,directorsgeneral 42 Availabilityinthejoint-stockcompany’sinternaldocumentsofaprocedureforap- 41 Availabilityinthejoint-stockcompany’sCharterorinternaldocumentsofaprovision 40 ProvisionoftheCorporateConductCode № Management Board. the GeneralDirector(managementorganization,manager)andmembersof the proprietary informationinagreementsconcludedbythejoint-stockcompany with activities totheBoardofDirectors. selecting managementcompany(manager). case ofsuchconflictshouldinformtheBoardDirectors. in aconflictbetweentheirinterestsandofthejoint-stockcompany, executive bodiesshouldrefrainfromactionswhichwillresultormaypotentially except deliveryofservicesamanagementcompany(manager). ing companyandhavinganyotherownershiprelationswiththisjoint-stock management organization(manager)fromperformingsimilarfunctionsinacompet- Management Board. requirements forthejoint-stockcompany’sGeneralDirectorandmembersof of theManagementBoardmanagementcompanyormanagerwith ment companyoramanager,thecomplianceofGeneralDirectorandmembers In thecasewhenfunctionsofasoleexecutivebodyareperformedbymanage- entrepreneurship orinthesphereoffinance,taxesandleviessecuritiesmarket. government serviceandlocalauthorities,orwhohavebeenpunishedforoffencein found guiltyofeconomiccrimesoragainststateauthority,interests with thejoint-stockcompany. (managers), membersofmanagingbodiesoremployeesalegalentitycompeting of ajoint-stockcompany. proving theoperationswhicharebeyondscopeoffinancialandeconomicplan of businessinthejoint-stockcompany. the loansifsuchtransactionsarenotmajoranddobelongtonormalcourse that the Management Board should approve transactions with real property, receiving Observed ReportsoftheChairmanManagementBoardaboutCom- Partially observed Not observed Observed Not observed Observed Observed Observed Inaccordancewithclause21.2.6oftheChartercompetence Partially observed observed Observed ornot Comments accordance withtheexistinglegislation”. ing legislation,andadministrativelyorcriminallyanswerablein terms andconditionsofagreementswiththeCompanyexist- disciplinary and/orciviltermsanswerableinaccordancewith of insiderinformationtheCompany’sinsidersmaybemadein Insider InformationRegulations“forillegaldisclosureand/oruse guilty activity(inactivity)…”Inaccordancewithclause5.1ofthe to theCompanyforlossescausedwiththeir lations, “MembersoftheManagementBoardhaveresponsibility In accordance with clause 3.1.6 of the Management Board Regu- with theManagementBoardRegulations.” terly reportsontheManagementBoardactivitiesinaccordance Management BoardprovidestheofDirectorswithquar- accordance withclause4.3oftheCorporateConductCode“The a quarterlybasis(sub-clause2ofclause21.2theCharter).In pany activitiesshouldbesubmittedtotheBoardofDirectorson agement company(manager). The Company’sCharterdoesnotenvisageregulationsforman- responding issues.” the BoardofDirectorsaboutitandtorefrainfromvotingforcor- Chairman andmembersofManagementBoardshouldinform the interestsofCompany.Incasesuchconflict actions whichmayresultinaconflictbetweentheirinterestsand and themembersofManagementBoardaretorefrainfrom Clause 4.2.7oftheCorporateConductCode:“TheChairman agement company(manager). The Company’sCharterdoesnotprovideregulationsforaman- tion ofCompany'sparticipationinotherorganizations”. shares, interest),encumbranceofshares(interest)andtermina- tions, changesinparticipatoryinterest(numberofshares,size “decisions ontheCompany'sparticipationinotherorganiza- Charter thecompetenceofBoardDirectorsincludes In accordancewithsub-clause15.1.29ofclause15.1the ing dataasofthelastreportdate. the Company’sbalancesheetassetsaccordingtoaccount- Company liabilitiesamountingfrom2(two)to5(five)percentof (including fewrelatedtransactions)thatresultormayinthe of theManagementBoardincludes“approvalanytransactions 9Availability inthejoint-stockcompany’sinternaldocumentsofrequirementthat 59 Availability ofaninternaldocumentapprovedbytheBoardDirectors,that 58 Information disclosure Availabilityinthejoint-stockcompany’sCharterorinternaldocumentsofrequire- 57 Absenceinthejoint-stockcompany’sCharterofanopportunitythatacquirercanbe 56 Availabilityinthejoint-stockcompany’sCharterofrequirementthatanindepend- 55 Availabilityinthejoint-stockcompany’sCharterofprohibitioncase 54 Obligatoryuseofanindependentappraiserforassessmentthemarketvalue 53 Availabilityinthejoint-stockcompany’sCharterorinternaldocumentsofarequire- 52 Essential corporateactivities Availabilityinthejoint-stockcompany’sCharterofrequirementsforcandidacy 51 Availabilityinthejoint-stockcompany’sCharterorinternaldocumentsofaprocedure 50 Availabilityinthejoint-stockcompanyofaspecialofficer(secretarycompany) 49 Secretary oftheCompany ProvisionoftheCorporateConductCode № chief officialsinpurchaseofthecompanysharestobeplaced. shareholdings, aswellaboutpossibleparticipationofthejoint-stockcompany’s placement, aboutpeopleintendingtopurchasesharesbeplacedincluding large the followinginformationshouldbedisclosed:anaboutgoal ofshares disclosure (InformationPolicyRegulations). determine rulesandapproachesofajoint-stockcompanytowardstheinformation ratio ofsharesconversionduringreorganization. ment thatanindependentappraisershouldbeobligatoryengagedtodeterminethe (issuing securitiesconvertibleintoequities)ownedbythem,duringacquisition. released fromtheobligationtooffershareholderssellequitiesofthiscompany shares anditspossiblechangesintheresultofacquisition. ent appraisershouldbeobligatoryengagedtoestimatethefairmarketvalueof this company,evenifithassuchrightinaccordancewiththeCharter). of securitiesconvertibleintosharesorentitlingtothepurchase of estimated periodofsharespurchase,abouttheissueadditionalshares, lar, prohibitionfortheBoardofDirectorstomakedecisionsbeforetermination tions indisfavorofshareholderscomparisonwiththeexistingsituation(inparticu- bodies) andmembersofthejoint-stockcompany’sBoardDirectors,aswellac- actions aimedatprotectionoftheinterestsexecutivebodies(membersthese purchase ofalargeshareholdingjoint-stockcompany(acquisition),todoany property whichisthesubjectofamajortransaction. ment toapproveamajortransactionbeforeitsexecution. the companysecretary. secretary. for appointment(election)ofthecompanysecretaryandduties shareholders. with proceduralrequirementssafeguardingtherightsandinterestsofcompany's whose soleobjectiveshouldbetoensurethatcorporatebodiesandofficerscomply Not observed Observed Not observed Observed Not observed Not observed Not observed TheCompany’sCharterandinternaldocumentsdonotenvisage Observed inpractice Not observed Not observed Not observed observed Observed ornot Comments tion PolicyRegulationsofJSCINTERRAOUES. requirements oftheRussianfederationLawandInforma- Information disclosureisperformedinaccordancewiththe dated 23.08.2010,MinutesNo.30). (approved bythedecisionofCompany’sBoardDirectors The InformationPolicyRegulationsofJSCINTERRAOUES engaged todetermineswapratio. ternal documents,butinpracticeanindependentappraiserwas This requirementisnotdefinedintheCompany’sCharterorin- where theirfairmarketvalueisdetermined. stock exchangesofRussia:RTSandMICExStockExchange, Since July2008theCompanysharesaretradedonleading is carriedaccordingtorequirementsoftheLaw. ecuted. Theapprovingofamajortransactionbeforeitsexecution the requirementtoapproveamajortransactionbeforeitisex- These requirementsarenotdefinedintheCharter. and internaldocuments. These requirementsarenotdefinedintheCompany’sCharter such anofficer(corporatesecretary)intheCompany. The Company’sCharterandinternaldocumentsdonotenvisage

131 ANNUAL REPORT JSC RAO UES / 2010 132 ANNUAL REPORT JSC RAO UES / 2010 9Absence inthesupervisionandauditingserviceofpersonswhoaremembers 69 Absenceinthesupervision andauditingserviceofpersonswhohavebeenfound 68 Availability inthejoint-stockcompany’sinternaldocumentsofarequirementthat 67 Availabilityofthejoint-stock company’sspecialunitthatensurestheobservanceof 66 Availability oftheprocedures(approvedbyBoardDirectors)thatdetermine 65 Control offinancialandeconomicactivities AvailabilityofinternaldocumentsapprovedbytheBoardDirectorsthatstipulate 64 Availabilityinthejoint-stockcompany’sinternaldocumentsofrequirementto 63 Availabilityinthejoint-stockcompany’sinternaldocumentsofrequirementthat 62 AvailabilityoftheInternetwebsiteajoint-stockcompanyandregulardisclosure of 61 Availabilityinthejoint-stockcompany’sinternaldocumentsoflistinformation, 60 ProvisionoftheCorporateConductCode № entity competingwiththejoint-stockcompany. directors general(managers),membersofmanagingbodiesoremployees ofalegal joint-stock company’sexecutivebodies,aswellpersonswhoareparticipants, ship orinthesphereoffinance,taxesandleviessecuritiesmarket. service andlocalauthorities,orwhohavebeenpunishedforoffenceinentrepreneur- guilty ofeconomiccrimesoragainststateauthority,interestsgovernment and auditingserviceofthejoint-stockcompany. Board ofDirectorsshoulddeterminethestructureandmembershipsupervision the internalauditprocedures(supervisionandauditingservice). internal auditoffinancialandeconomicactivitiesthejoint-stockcompany. and othersecuritiesofthejoint-stockcompany. sible anddisclosureofwhichmayhaveagreatimpactonthemarketpriceshares shares andothersecuritiestransactionswiththem,whichisnotgenerallyacces- the useofimportantinformationaboutjoint-stockcompanyactivities, the joint-stockcompanyshares. disclose informationaboutalltransactionswhichmayinfluencethemarketvalueof people mayinfluenceessentiallyinotherways. own atleast20percentofchartercapitalthejoint-stockcompany,orwhomsuch organizations inwhichthejoint-stockcompany’schiefofficersdirectlyorindirectly ficers ofthecompany,aswellabouttransactionsthisjoint-stockcompanywith pany’s transactionswithpersonsaffiliatedinaccordancetheChartertochiefof- the followinginformationshouldbedisclosed:aboutjoint-stockcom- information aboutthisjoint-stockcompanyonwebsite. sions onissuesproposedfortheGeneralMeetingofShareholders. documents andmaterialswhichshouldbeprovidedtoshareholdersfortakingdeci- Observed Observed Not observed Observed Observed Observed Observed Observed Observed Not observed observed Observed ornot Comments It ispracticed. It ispracticed. documents. This requirementisnotenvisagedintheCompany’sinternal (minutes No.28dated22.06.2010). are approvedbytheBoardofDirectorsJSCINTERRAOUES Internal Audit,ControllingandRiskManagementUnitRegulations dated 03.05.2011). the BoardofDirectorsJSCINTERRAOUES(minutesNo.41 The InternalAuditPolicyofJSCINTERRAOUESisapprovedby dated 23.04.2008,MinutesNo.1). (approved bythedecisionofCompany’sBoardDirectors The InsiderInformationRegulationsofJSCINTERRAOUES messages aboutessentialfacts). disclosure insecurityprospectus,quarterlyreport,theformof Clause 5.1oftheInformationPolicyRegulations(information corporate Internetwebsite. and theCompany(therehavebeennosuchtransactions)onits mation abouttransactionsbetweentheabovementionedpeople (type) ofshares;(inquarterlyreportsandlistsaffiliates)infor- by chiefofficersandtheiraffiliates,statingquantitycategory the Companysharesandofitssubsidiariesaffiliates pany disclosesonthewebsiteinformationaboutownershipof In accordancewiththeInformationPolicyRegulationsCom- interrao.ru inclusively. information distributionbymeansofthecorporatewebsitewww. disclosure ofinformationaboutCompanyisperformedthrough ance withclause5.1oftheInformationPolicyRegulations The corporatewebsitewww.interrao.ruisinoperation.Inaccord- list ofinformationprovidedtotheshareholders. of theseRegulations,makeadecisionaboutdeterminationthe of Directorsandotherpersonsincasesenvisagedclause3.1 preparation totheGeneralMeetingofShareholders,Board General MeetingPreparationandholdingRegulations,during Company”. Inaccordancewithsub-clausee)ofclause2.2the shall bespecifiedbyadecisionoftheBoardDirectors Meeting ofShareholdersandlistsuchinformation(materials) Shareholders bythepeopleentitledtoparticipateinGeneral tion (materials)onissuesintheagendaofGeneralMeeting clause 11.7oftheCharter“theprocedurereviewinginforma- in anyinternaldocumentsoftheCompany.Inaccordancewith proposed fortheGeneralMeetingofShareholders,wasnotset are providedtoshareholdersformakingdecisionsonissues A completelistofinformation,documentsandmaterialswhich 8Publication ofinformationaboutthejoint-stockcompany’sdividendpolicyandits 78 Availability intheDividendPolicyRegulationsofaprocedurethatdetermineshe 77 Availability oftheinternaldocumentapprovedbyBoardDirectors,which 76 Dividends TheAuditCommitteeevaluatesanauditreportbeforepresentingittoshareholdersat 75 AvailabilityoftheinternaldocumentsapprovedbyBoardDirectors,thatdeter- 74 Availabilityinthejoint-stockcompany’sinternaldocumentsofaprocedurethat 73 Availabilityinthejoint-stockcompany’sCharterofarequirementthatsupervision 72 Availabilityinthejoint-stockcompany’sinternaldocumentsofstatementthat 71 Availabilityinthejoint-stockcompany’sinternaldocumentsofarequirementto 70 ProvisionoftheCorporateConductCode № of thisinformationontheInternetwebsitejoint-stockcompany publishing informationaboutGeneralMeetingsofShareholdersaswellplacement amendments inaperiodicalenvisagedbythejoint-stockcompany’sCharter usedfor company’s Charter. preferred shares,theamountofdividendsonwhichwasdeterminedin joint-stock as termsandconditionsunderwhichdividendsshouldbepaidorpartially on joint-stock company’sminimumshareofnetprofitforpaymentdividends, aswell amount ofdividends(DividendPolicyRegulations). is usedbytheBoardofDirectorswhilemakingrecommendationsrelatingto the the GeneralMeetingofShareholders. company bytheInternalAuditCommission. mine theprocedureoffinancialandeconomicactivitiesinspectionsajoint-stock defines adjustmentofanirregulartransactionwiththeBoardDirectors financial andeconomicplanofthejoint-stockcompany(irregulartransaction). and auditingserviceshouldstudyfeasibilityofanytransactionnotenvisagedinthe of thejoint-stockcompany. violations, andincaseofabsencetheAuditCommittee—BoardDirectors supervision andauditingservicearetoinformtheAuditCommitteeaboutrevealed and materialsinthestatedperiod. joint-stock company’sofficialsandemployeesfornon-provisionofthesedocuments ation ofperformedfinancialandeconomicoperation,aswellresponsibilitythe provide thesupervisionandauditingservicewithdocumentsmaterialsforevalu- atal bevdInaccordancewiththeInformationPolicyRegulations,informa- Partially observed Observed Observed Observed Observed Observed Not observed Observed Not observed observed Observed ornot Comments quarterly reportsontheCompany’swebsite. should bedisclosedinasecurityprospectusandannual tion abouttheCompany’sdividendpolicyanditsamendments UES. Clause 4.4oftheDividendPolicyRegulationsJSCINTERRAO tors ofJSCINTERRAOUES(minutesNo.41dated03.05.2011). Dividend Policy Regulations was approved by the Board of Direc- proved bytheBoardofDirectors. The CompanyhasInternalAuditCommissionRegulationsap- third parties. rendering ofservices(executionwork)bytheCompanyfor or thirdparty;approvaloftransactionsrelatedtouncompensated related toliberationfrompropertyresponsibilityowedoneself (claims) tooneselforthethirdparty;approvaloftransactions pensated transferoftheCompany’spropertyorrights 15.1 oftheCharter:approvaltransactionsrelatedtouncom- last reportdate”.—inaccordancewithsub-clause30ofclause balance sheetassetsaccordingtotheaccountingdataasof amount ofequalorexceeding5(five)percenttheCompany’s tions) thatresultormayintheCompanyliabilities ter: “approvalofanytransaction(includingfewrelatedtransac- accordance withsub-clause15.1.28ofclause15.1theChar- transfer, dispatchinganddistributionofelectricityheat”.—in tion projects,whichmaybeusedforthepurposeofproduction, comprise mainfacilities,intangibleassets,incompleteconstruc- tion relatedtodispositionorpossibleofpropertythat 15.1.26 ofclause15.1theCharter:“approvalanytransac- of thefollowingtransactions:—inaccordancewithsub-clause The competenceoftheBoardDirectorsincludesapproval ment UnitRegulationsofJSCINTERRAOUES. Clause 7.2oftheInternalAudit,ControllingandRiskManage-

133 ANNUAL REPORT JSC RAO UES / 2010 134 ANNUAL REPORT JSC RAO UES / 2010 1 Transactions approvedattheGeneralMeetingofShareholders CreditagreementsbetweenJSCINTERRAOUESandRussianCommer- 1 3 2 RELATED PARTYTRANSACTIONS approved: were Board, Management the of Meetings the at proved In 2010 at the Meetings of the Board of Directors and General Meetings of Shareholders the following related party transactions, preliminarily ap No. rial Se- No. rial Se- essential terms) Transactions (subjectmatteroftransactionandits is obligedtoacceptitandpayforit. (provide) forBuyerelectricalenergyand power,andBuyer JSC TGK-1.SubjectoftheTransaction:Sellerisobligedtotransfer between JSCINTERRAOUESandWGC-1,Rushydro, Transactions ofpurchaseandsaleelectricalenergyand/orpower conclusion till31.12.2012. and payfortheseservices.TermofTransaction:sincethedate Russian federation,andJSCINTERRAOUESisobligedtoaccept (all-Russian) electricnetworkthroughthecustomborderof vide servicesofelectricpowertransmissiononthesinglenational network. SubjectoftheTransaction:JSCfGCUESisobligedtopro- power transmissionthroughthesinglenational(all-Russian)electric RAO UESandJSCfGConservicesprovisionofelectric Transaction (severalrelatedtransactions)betweenJSCINTER year —1307,371;20141287,847;2015283,162. 400,000; 2011year—1325,849;2012255,238;2013 to provideBuyerwithgasinthefollowingamount:2010year—1 vATEK. SubjectoftheAdditionalAgreement:Supplierisobliged SZ d/d28.09.2009betweenJSCINTERRAOUESandNO- Additional AgreementtotheGasSupplyContractNo.2009438-M/ credit provision.Goaloffinancingprovision—replenishworkingcapital. 0,02% ofcreditsum.TermAgreements:upto180daysfromthedate of 180days.Interestrate:upto5%thecreditsum.Arrangementfee: on Trustee’swrittenapplications.Creditfundsareprovidedfortheperiod ments. MonetaryfundswithinAgreementsareprovidedtoTrusteebased stated byAgreementsandpayinterestsintheamountAgree- tion, andTrusteeisobligedtoreturnthesameamountofmoneyinperiod total amountofnomorethan60000rublestheRussianfedera- or fewsingle-typeagreementsprovidesTrusteewithcreditfundsinthe cial Bank(Cyprus)Limited.Subjectoftheagreements:Trustorwithinone Parties Transactions (subjectmatteroftransactionanditsessentialterms) Of ThEBOARDDIRECTORSIN2010 WERE APPROvEDATThEMEETINGS ThE fOLLOWINGMAJORTRANSACTIONS Rushydro, JSCTGK-1. Seller orBuyer—JSC INTER RAOUES Seller orBuyer—JSC JSC INTERRAOUES fGC UESCustomer— Contractor —JSC JSC NOvATEK RAO UES;Supplier— Buyer —JSCINTER Parties (Cyprus) Limited sian CommercialBank RAO UES;Trustor—Rus- Trustee —JSCINTER Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation Rosatom State Corporation NOvATEK) Board ofDirectorsJSC time —thememberof RAO UES(atthesame Directors ofJSCINTER member ofBoard Seleznyov K.G.—the ate ocre Price Parties concerned 60 000RUB Price including vAT transaction’s conclusion:10512000 rubles transaction’s conclusion.Ceilingamountof electrical energyandpowerasonthedate of settled onthepurchaseandsalemarketof transaction isdefinedaccordingtoprices or electricalenergyandpowerwithineach Price ofpurchaseandsaleelectricalenergy of Russia). tariff ratesstatedbyfederalTariffService(fTS Price ofTransactionisdefinedaccordingtothe vAT No morethan34497512400rublesincluding 27.12.2010 Minutes No.36d/d. approving thetransaction No. oftheminutesBD d/d 25.06.2010 Shareholders eral Meetingof the annualGen- Minutes No.5of transaction roving the minutes app- GMS/BD No. of - 4 7 6 5 No. rial Se- essential terms) Transactions (subjectmatteroftransactionandits JSC INTERRAOUESterminate. invalid atthemomentwhenallobligations ofJSCOGK-1owedto comes validfromthedateofitssigningby thepartiesandbecomes a designatedaccount.TermofAgreements:eachAgreementbe- demands ofJSCINTERRAOUESandtransfermonetaryfundsto corresponding Bankandisobligedtofulfillproducedpayment monetary fundsfromCustomer’ssettlementaccountplacedin commits Banktowriteoffundisputedlyandacceptance-freelythe d/d 24.11.2009(hereinafterreferredtoasAgreement),Customer RAO UESobligationswithintheLoanAgreementNo.ShTK-005154 of Agreements:InordertoguaranteetheperformingJSCINTER concluded betweenJSCINTERRAOUESandOGK-1.Subject the LoanAgreementNo.ShTK-005154d/d24.11.2009,thatwas order toguaranteetheperformingofJSCOGK-1obligationswithin in JSCBPERESvET(CJSC)andJSCSavingsBankofRussia debiting ofmonetaryfundsfromJSCOGK-1accountsplaced Agreement thatJSCINTERRAOUEShastherightfordirect fee intheamountof40000(fortymillion)rubles. within LoanAgreementBorrowerrepaytoLenderthecommission Subject ofAgreement:inthecasepre-termreturnloanamount between JSCINTERRAOUESandOGK-1d/d24.11.2009. Additional AgreementtoLoanNo.ShTK-005154 unit. of JSCEkibastuzGRES-2PowerStation’sthirdpower-generation Agreement aspartofrealizationfinancingprojectforconstruction and foreignEconomicAffairs(foreignTradeBank)withintheCredit Development BankandStateCorporationof GRES-2 PowerStationwillperformitsobligationsowedtoEurasian Goal ofIndemnityContract:TheguaranteethatJSCEkibastuz performs completelyitsobligationsundertheIndemnityContract. of IndemnityContract:untilJSCEkibastuzGRES-2PowerStation the liabilitiesreturnfromJSCEkibastuzGRES-2PowerStation.Term and inthecaseofobligationsdefaultGuarantorisresponsiblefor of 50%thetotalamountliabilitieswithinCreditAgreement Ekibastuz GRES-2PowerStationitsobligationsrelatedtorepayment ally andirrevocablyobligedtoberesponsibleforperformingbyJSC velopment Bank.SubjectoftheContract:Guarantorisuncondition- Indemnity ContractbetweenJSCINTERRAOUESandEurasianDe- and Buyerisobligedtoacceptpayforit. transfer (provide)forBuyerelectricalenergyandpower, hPP II,TGREnerji.SubjectoftheTransaction:Sellerisobligedto tika, CJSCArmeniaelectricnetworks,JSCKhramihPPI,hrami Asia Ltd.,KazenergoresursJSCTelasi,LLCMtkwarienerge- INTER RAOUESandUABLietuva,Central Transactions ofpurchaseandsaleelectricalenergybetweenJSC Bank ofRussia Bank —JSCSavings tomer —JSCOGK-1, INTER RAOUESCus- 2. Lender—JSC PERESvET (CJSC); OGK-1, Bank—JSCB Customer —JSC INTER RAOUES, 1. Lender—JSC JSC OGK-1 RAO UESBorrower— Lender —JSCINTER Development Bank ity Agent—Eurasian INTER RAOUESfacil- Guarantor —JSC II, TGREnerji hPP I,JSChrami networks, JSChrami CJSC Armeniaelectric Mtkwari energetika, Ltd., JSCTelasi,LLC Ltd., Kazenergoresurs RAO CentralAsia RAO Lietuva,INTER or Seller—UABINTER INTER RAOUESBuyer Buyer orSeller—JSC Parties Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation ate ocre Price Parties concerned 20% perannum. commission feesinthetotalaccountofupto rubles andthesumofinterestpayments Agreement butnomorethan8000 The priceisequaltodebtsoccurringwithin exceed 1,25%perannumofthecreditsum. annum. Theamountofcreditusefeedoesnot no lessthan11%andmore17%per Republic ofKazakhstanplus4%perannumbut equal toinflationindexofconsumercostsinthe per annumofKazakhstantenge—floatingrate dollars —floatingrateequaltoLibor3m+8,5% of theBankRussia+2,5%perannumUS make floatingrateequaltoofficialbank ment. herewithinterestratesonRussianrubles not performitsliabilitieswithintheCreditAgree- if JSCEkibastuzGRES-2PowerStationdoes foreign EconomicAffairs(foreignTradeBank) State CorporationBankofDevelopmentand incurred byEurasianDevelopmentBankand tenge —50%ofaccruedinterestsandcharges federation rublesorRepublicofKazakhstan US dollarsoritscountervalueintheRussian 000 (threehundredandeightyfivemillion) 12 000(twelvebillion)rublesand385 debt undertwocreditlimits:intheamountof Agreement namely:—50%withintheprincipal the totalamountofliabilitieswithinCredit The amountofIndemnityContractis50% rubles. Totalamount:11500000 JSC hramihPPII,TGREnerji—1600000 Armenia electricnetworks,JSChramihPPI, JSC Telasi,LLCMtkwarienergetika,CJSC goresurs Ltd.—1200000rubles;for for INTERRAOCentralAsiaLtd.andKazener- INTER RAOLietuva—8700000rubles; amount oftransaction’sconclusion:—forUAB infrastructural organizations’servicefee.Ceiling custom feesandexpendituresconnectedwith as onthedateoftransaction’sconclusion, energy atthecorrespondingmarket (target) priceforpurchaseandsaleofelectrical Price isdefinedaccordingtoweightedaverage transaction roving the minutes app- GMS/BD No. of

135 ANNUAL REPORT JSC RAO UES / 2010 136 ANNUAL REPORT JSC RAO UES / 2010 8 10 9 No. rial Se- essential terms) Transactions (subjectmatteroftransactionandits vTB Bank,JSCSavingsBankofRussia. count ofJSCINTERRAOUESintheoperationdepartment resulted fromforeigncurrencyandrublessaleintosettlementac- Bank, JSCSavingsBankofRussiaincludingenrollmentincome INTER RAOUESaccountsintheoperationdepartmentofJSCvTB monetary fundsand/orsellforeigncurrencyandrublesfromtheJSC vTB Bank,JSCSavingsBankofRussiahavetherighttowrite-off ments) intheoperationdepartmentofcorrespondingBank,JSC pointed intheacceptance-freeagreement(acceptance-freeagree- the JSCINTERRAOUESsettlementaccount(settlementaccounts) has beenalreadymatured.Inthecaseoflackmonetaryfundsin for usingofcredit,forfeits,otherpayments),whichpaybackperiod Bank ofRussia(includingthesumprincipaldebt,interest between JSCINTERRAOUES,andvTBBank,Savings of repaymentdebtsresultedfromcreditagreementsconcluded vTB Bank,JSCSavingsBankofRussiarespectively,forthepurpose ment account(settlementaccounts)inoperationdepartmentofJSC INTER RAOUESwrite-offanymonetaryfundsincomingtosettle- acceptance-freely andwithoutanyadditionalinstructionsfromJSC Bank andJSCSavingsofRussiaareentitledtoundisputedly, and JSCSavingsBankofRussia.SubjectAgreement:vTB from JSCINTERRAOUESaccounts,placedinvTBBank to undisputedlyandacceptance-freelywrite-offthemonetaryfunds Agreement thatletJSCvTBBankandSavingsofRussia annum. by correspondingagreement.Interestratenomorethan12%per pay interestsforusingthemontermsandconditions,prescribed rubles, andBorrowerisobligedtoreturnLenderreceivedcredit limit ofindebtednessinamountupto10000(tenbillion) rower monetaryfundsontermsofrevolvinglinecreditwiththe RUSSIA. SubjectoftheTransaction:LenderisobligedtogiveBor- Credit transactionsbetweenJSCINTERRAOUESandJSCB more than12%perannum. tions, prescribedbycorrespondingagreement.Interestrateisno received creditandpayinterestsforusingthemontermscondi- 000 (tenbillion)rubles,andBorrowerisobligedtoreturnLender line ofcreditwiththelimitindebtednessinamountupto10000 is obligedtogiveBorrowermonetaryfundsontermsofrevolving Bank, JSCSavingsBankofRussia.SubjectTransactions:Lender Credit transactionsbetweenJSCINTERRAOUESandvTB each individually ings BankofRussia— vTB Bank,JSCSav- RAO UESBank—JSC Client —JSCINTER RUSSIA Lender —JSCJSCB INTER RAOUES Borrower —JSC individually Bank of Russia — each Bank, JSCSavings Lender —JSCvTB INTER RAOUES Borrower —JSC Parties Rosatom State Corporation JSCB RUSSIA). Board ofDirectorsJSC relative istheChairmanof chuk B.Y.(hisimmediate INTER RAOUESKoval- agement BoardofJSC Acting ChairmanofMan- Rosatom State Corporation ate ocre Price Parties concerned responding transaction’sconclusion. of Russiaexchangerateatthedatecor- equivalent inUSdollarsorEuroattheBank 20,000,000,000 (twentybillion)rublesorits Ceiling amountoftransaction’sconclusion: in thetotalamountofupto12%perannum. sum ofinterestpaymentsandcommissionfee transaction’s conclusionandnomorethan exchange rateatthedateofcorresponding in USdollarsorEuroattheBankofRussia than 10000rublesoritsequivalent Bank, JSCSavingsBankofRussia,butnomore between JSCINTERRAOUESandvTB resulted fromcreditagreementsconcluded The priceofeachagreementequalstodebt responding transaction’sconclusion. of Russiaexchangerateatthedatecor- equivalent inUSdollarsorEuroattheBank sion: 10,000,000,000(tenbillion)rublesorits Euro. Ceilingamountoftransaction’sconclu- billion) rublesoritsequivalentinUSdollars Amount ofcreditlimit:upto10000(ten transaction’s conclusion. exchange rateatthedateofcorresponding lent inUSdollarsorEuroattheBankofRussia conclusion: 20000rublesoritsequiva- each ofLendersCeilingamounttransaction’s rubles oritsequivalentinUSdollarsEurowith Amount ofcreditlimit:upto10000 transaction roving the minutes app- GMS/BD No. of 11 14 13 12 No. rial Se- essential terms) Transactions (subjectmatteroftransactionandits with power,andBuyerisobligedtoacceptpayforit. Subject ofTransactions:Sellerisobligedtoprovide(supply)Buyer ity (power)market,NPOMarketCouncil,JSCATS,SOUES. JSC INTERRAOUESandparticipantsofthewholesaleelectric- Transactions ofpurchaseandsale(supply)powerbetween of charging. plus vATinaccordancewithremunerationratevalidatthemoment period ofAgreementintheamount60000rublespermonth, service costofthemanagementorganizationforremainedvalidity Subject ofAgreement:todeterminetheconstantcomponent d/d 06.07.2009betweenJSCINTERRAOUESandOGK-1. single executivebodyofJSCOGK-1tomanagementorganization Additional AgreementtotheonTransferofAuthority obligations withinOptionAgreement. the Agreement:untilSilverteriaholdingsLtd.completelyperformsits and Creditor(hereinafterreferredtoasOptionAgreement).Termof (put option)concludedbetweenSilverteriaholdingsLtd.Company teria holdingsLtd.itspaymentobligationswithinoptionagreement and severallyresponsibletotheCreditorforfulfillmentbySilver- (vnesheconombank). SubjectoftheAgreement:Guarantorisjointly Corporation BankofDevelopmentandforeignEconomicAffairs Suretyship AgreementbetweenJSCINTERRAOUESandState UES intheoperationdepartmentofJSCJSCBRUSSIA. currency andrublessaleintosettlementaccountofJSCINTERRAO of theBankincludingenrollmentincomeresultedfromforeign from the JSC INTER RAO UES accounts in the operation department to write-offmonetaryfundsand/orsellforeigncurrencyandrubles operation departmentoftheBank,JSCJSCBRUSSIAhasright acceptance-free agreement(acceptance-freeagreements)inthe RAO UESsettlementaccount(settlementaccounts)pointedinthe matured. InthecaseoflackmonetaryfundsinJSCINTER credit, forfeits,otherpayments),whichpaybackperiodhasalready (including thesumofprincipaldebt,interestforusing concluded betweenJSCINTERRAOUESandJSCBRUSSIA purpose ofrepaymentdebtsresultedfromcreditagreements (settlement accounts)inoperationdepartmentoftheBankfor UES write-offanymonetaryfundsincomingtosettlementaccount freely andwithoutanyadditionalinstructionsfromJSCINTERRAO ment: JSCJSCBRUSSIAisentitledtoundisputedly,acceptance- RAO UESaccounts,placedinJSCJSCBRUSSIA.SubjectofAgree- acceptance-freely write-offthemonetaryfundsfromJSCINTER Agreement thatletsJSCJSCBRUSSIAtoundisputedlyand Market Council. Market council—NPO UES; ATS—JSCATS; operator —JSCSO market; System pant ofthewholesale or Buyer—partici- INTER RAO UES; Seller Seller orBuyer—JSC JSC OGK-1 RAO UESCompany— tion —JSCINTER Management organiza- (vnesheconombank) eign EconomicAffairs Development andfor- Corporation Bankof Creditor —State INTER RAOUES Guarantor —JSC JSCB RUSSIA RAO UESBank—JSC Client —JSCINTER Parties Rosatom State Corporation Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation Capital 3. CJSCINTERRAO goatom 2. JSCConcernRosener- Rosatom 1. StateCorporation JSCB RUSSIA) Board ofDirectorsJSC relative istheChairmanof chuk B.Y.(hisimmediate INTER RAOUESKoval- agement BoardofJSC Acting ChairmanofMan- ate ocre Price Parties concerned transaction’s conclusion:60,000,000,000rubles. of transaction’sconclusion.Ceilingamount federation No.643d/d24.10.2003,atthedate Decree oftheGovernmentRussian Regulations intransitionperiodapprovedby ance withWholesaleElectricity(Power)Market defined accordingtoprices,setinaccord- The priceofpowerwithineachtransactionis 60 000permonth,vATexclusive. accumulated interests. Option Agreementwithannualcapitalizationof sum ofputoptionexerciseinaccordancewith and tothedateofreceptionbyCreditor of pointedJSCINTERRAOUESblockshares annually fromthedateofpurchasebyCreditor charging plusonepercentperannum, the BankofRussia,operatingondateits interest rateintheamountofofficialbank amount of21278000rublesincreasedby shares underdirectedplacementinthetotal placement ofJSCINTERRAOUESsupplement Creditor fromJSCINTERRAOUESintermsof number of529303482587shares,boughtby shares belongingtoJSCINTERRAOUESinthe from Creditorofordinarypersonaluncertified ment (putoption)inthepartofredemption ria holdingsLtd.obligationwithinOptionAgree- Obligation guarantiedbysuretyship—Silverte- transaction’s conclusion. exchange rateatthedateofcorresponding lent inUSdollarsorEuroattheBankofRussia 20,000,000,000 (tenbillion)rublesoritsequiva- Ceiling amountoftransaction’sconclusion: fee inthetotalamountofupto12%perannum. than sumofinterestpaymentsandcommission sponding transaction’sconclusionandnomore of Russiaexchangerateatthedatecorre- its equivalentinUSdollarsorEuroattheBank SIA, butnomorethan10000rublesor between JSCINTERRAOUESJSCBRUS- resulted fromcreditagreementsconcluded The priceoftheagreementequalstodebt transaction roving the minutes app- GMS/BD No. of

137 ANNUAL REPORT JSC RAO UES / 2010 138 ANNUAL REPORT JSC RAO UES / 2010 16 Transactions approvedattheMeetingsofBoardDirectors 18 17 No. rial Se- essential terms) Transactions (subjectmatteroftransactionandits within Contract.Offer priceofshares—1200rublespereach. remains validuntilcompleteperformance ofallparties’obligations Contract becomesvalidfromthedateofits signingbypartiesand with nominalvalueof1000rublespereach. TermofContract:The placed underprivateplacementintheamount of1600000shares equity privateuncertifiedsharesofCJSC INTER RAOUESBaltic pass andBuyerisobligedtoacceptpay followingsecurities: INTER RAOUESBaltic.SubjectofContract: Sellerisobligedto of 1600000shares,betweenJSCINTER RAOUESandCJSC RAO UESBalticplacedunderprivateplacement intheamount Contract ofpurchaseandsalesupplementsharesCJSCINTER from thedateofContractconclusion. the dateofContractconclusion.TermAgreements:until3years in amountofupto1,2billionrublesfortheperioduntil3yearsfrom RAO UESBalticdelayinpaymentofsharesboughtwithinContract Baltic (Contract). Subject of Agreement: to establish for CJSC INTER cessionary isJSCINTERRAOUES)andCJSCUES d/d 10.04.2008unnumb.betweenCJSCINTERRAOUES(which Additional AgreementtoContractofpurchaseandsaleshares Euro. TermofSuretyship:unlimited. maximum amountofBankguaranteeisnomorethan30000 guarantee isRAONordicOy,termofBankunlimited, antee isNASDAqOMxStockholmAB(Norway),principalofBank conditions ofBankguarantee.herewith:Beneficiaryguar- other paymentsandcommissionfeeinaccordancewithterms in theamountof30000Euroaswellreimbursementany Nordic Oy’sobligationsofcompensationthesumBankguarantee is obligedtoberesponsibleCreditorforperformanceofRAO UES andNordeaBankfinlandPlc.SubjectofSuretyship:Guarantor Suretyship ContractforRAONordicOybetweenJSCINTER Baltic CJSC INTERRAOUES RAO UES;Seller— Buyer —JSCINTER Baltic CJSC INTERRAOUES RAO UESBuyer— Seller —JSCINTER Bank finlandPlc. Creditor —Nordea INTER RAOUES, Guarantor —JSC Parties UES) shares ofJSCINTERRAO more than20%ofvoting ated personsjointlyown agreement). beingaffili- UES Baltic(partyunder 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC UES) shares ofJSCINTERRAO more than20%ofvoting ated personsjointlyown agreement). beingaffili- UES Baltia(partyunder 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC Board ofRAONordicOy) Chairman ofManagement D. (atthesametime of DirectorsMikalayunas 2.1. theMemberofBoard of JSCINTERRAOUES). than 20%ofvotingshares persons jointlyownover UES Baltic (being affiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUESState 1.1. ShareholdersofJSC ate ocre Price Parties concerned 1,920,000,000 rubles. Up to1200000rubles guarantee. of 0,2%chargingonmaximumsumBank month. Nonrecurrentcommissionfeeinamount sum isnotpossiblemoreoftenthanonceper each change.ThechangeofBankguarantee guarantee sumisintheamountof250Europer annum. CommissionfeeofchangeBank clause 15.4.1.2cannotbemorethan2%per increase ofcommissionfeeinaccordancewith on financialmarkets.herewithnonrecurrent fee amount.Inthecaseofchangesituation creased bymorethan2,5%offixedcommission accordance withclause15.4.1.1cannotbein- herewith commissionfeeforBankguaranteein commission feeincreasesby2%perannum. own equitytototalassetsislessthan30%— fee increasesby2%perannum,Proportionof coverage rationislessthan3,5—commission sion feeincreasesby2,5%perannum,Interest debt toEBITDAismorethan4,5—commis- fee increasesby2%perannum,Proportionof than 4.2butlessorequalto4.5—commission annum, ProportionofdebttoEBITDAismore to 4,2—commissionfeeincreasesby1%per to EBITDAismorethan3,5butlessorequal IfRS reportingofGuarantor:Proportiondebt estimated onthebasisofconsolidatedannual by Guarantorofthefollowingfinancialindicators lowing cases:—inaccordancewithfulfillment commission feeatmostonceperyearinthefol- Bank isentitledtoreconsidertheamountof annum chargingontheBankguaranteesum. Bank guaranteeintheamountofupto1,5%per fee paidregularlyduringthevalidityperiodof of thefollowingcommissionfee:— Nordic OyinfavorofNordeaBankfinlandPlc well asobligationsonreimbursementbyRAO guarantee intheamountof30000Euroas Bank ofmonetaryfundssumpaidwithin Plc. includingobligationsoncompensationto of RAO Nordic Oy owed to Nordea Bank finland guaranteed comprehensivelycounterobligation Suretyship ofJSCINTERRAOUESwillbe d/d 01.02.2010 Minutes No.23 d/d 01.02.2010 Minutes No.23 d/d 01.02.2010 Minutes No.23 transaction roving the minutes app- GMS/BD No. of 19 No. rial Se- 2009 November-December December 2010. conclusion ofcorrespondingtransactiontill of electricenergysupply:fromthedate energy sipply:500000kWh—Period nolessthan1.4 Maximum plannedquantityofelectric Kazakhstan totheRussianfederation:— of electricenergyfromtheRepublic nolessthan0,65 for transactionsofpurchaseandsale nolessthan1.31 nolessthan1.74 Second pricingzone first pricingzone January-December 2010 first pricingzone November-December 2009 2010 January-December Supply period federation (P)M oftheRussian Pricing ZonesWE essential terms) Transactions (subjectmatteroftransactionandits ing thetransferperiodandBuyerisobligedtoacceptpayforit. Seller isobligedtotransfer(provide)forBuyerelectricalenergydur- INTER RAOUESandKazenergoresursLtd.SubjectofTransactions: Transactions ofpurchaseandsaleelectricenergybetweenJSC the purposeofexportandmustamountto: sian federation,wherepurchaseofelectricenergyisperformedfor zone ofwholesaleelectricity(power)market(WE(P)M)theRus- kWh —Priceofelectricenergyisdefineddependingonpricing electric energysipply:460000(fourhundredandsixtymillion) ing transactiontillDecember2010.—Maximumplannedquantityof electric energysupply:fromthedateofconclusioncorrespond- Russian federationtotheRepublicofKazakhstan.—Period for transactionsofpurchaseandsaleelectricenergyfromthe riod (within trans- actions specified structure ofelectricitysupply electricity during period ofcalen- accounting pe- corresponding of transitreplacedlogistic fixed priceof fixed priceof electricity for formed underrealization Within transactionsper- dar year no morethan0.78 no morethan1.00 - Electricity Price,rubles/kWh Electricity Price,rubles/kWh JSC INTERRAOUES Seller —KazenergoresursLtd.Buyer each houroftwenty- of priceelectricity (within transactions specified squaring Electricity priceon accounting period by thehourorder) four hoursduring price ofelectricityforcorrespond- within transactionsspecifiedfixed ing periodofcalendaryear nolessthan 1.3 - INTER RAOUES). voting sharesofJSC over than20%of persons jointlyown Baltia (beingaffiliated CJSC INTERRAOUES Rosenergoatom 1.3. 1.2. JSCConcern Rosatom shareholder State Corporation JSC INTERRAOUES: 1.1. Shareholdersof zenergoresurs Ltd. RAO UESBuyer—Ka- Seller —JSCINTER Parties of transitreplaced Price ofelectricity during realization no morethan1.20 logistic structure - 01.02.2010 Minutes No.23d/d ate ocre Price Parties concerned is 121000rublesincludingvAT. proximate priceofthetransactiontill30.06.2010 (18%) —1677rubles97kopeck.Thetotalap- ment is11000rubles00kopeckincludingvAT Monthly sumofpaymentforusageequip- 000 rublesatthepriceof1kWh. pointed supplyperiodcannotexceed400000 of KazakhstantotheRussianfederationduring and saleofelectricenergyfromtheRepublic The totalamountoftransactionspurchase rubles December 2010cannotexceed600000 ing thesupplyperiodfromNovember2009till federation totheRepublicofKazakhstandur- and saleofelectricenergyfromtheRussian The totalamountoftransactionspurchase d/d 01.02.2010 Minutes No.23 transaction roving the minutes app- GMS/BD No. of

139 ANNUAL REPORT JSC RAO UES / 2010 140 ANNUAL REPORT JSC RAO UES / 2010 22 25 24 23 No. rial Se- 416 661,57USDrespectively. Belarus forJuneandOctober2009inthe amountof59907,53and energy transmissionviaInterconnectedPower SystemofRepublic the Russianfederationlegislation;—topay forservicesofelectric 3,36017 USD/ths.kWhandplusvATcalculated inaccordancewith of thepricefortransmissionwithinContractor Contractinamountof the RepublicofBelarusinamount105(onehundredandfive)% price forelectricenergytransmissionviasystemof Agreement No.22willenablethefollowing:—tosetservices conditions accordingtotheSupplement.TheconclusionofAdditional as transactioninwhichoccursagreementonessentialandother february 19,2004betweenJSCINTERRAOUESandfGC sion viaelectricenergysystemnetworksofforeigncountriesd/d Contract No.1055fortheorganizationofelectricenergytransmis- approve theconclusionofAdditionalAgreementNo.22toService concluded betweenJSCINTERRAOUESandfGCUES.To system networksofforeigncountriesd/dfebruary19,2004, the organizationofelectricenergytransmissionvia Additional AgreementNo.22totheServiceContractNo.1055for and twentymillion)kWh.Termofsupply:untilDecember31,2011. quantity ofsuppliedelectricenergy—720000(sevenhundred and Buyerisobligedtoacceptpayforit.Maximumplanned transfer (supply)forBuyerelectricalenergyduringtheperiod and MtkwariEnergeticLtd.SubjectofContract:Sellerisobligedto Contract ofsupplyelectricenergybetweenJSCINTERRAOUES (return) Act. ceptance ActtothedatewhenPartiessignDeliveryandAcceptance defined fromthedatewhenPartiessignEquipmentTransferandAc- of Contract:untilApril30,2010Thetermequipmentusageis for usagebythirdpersonswithoutLessor’swrittenpermission.Term the equipment.Lesseedoesnothaverighttopassequipment purposes inaccordancewithconstructionalandoperationaldataof to asequipment).EquipmentisprovidedLesseeforproduction Rostelecom (Tejkovo,PershynskayaSt.,48-a)(hereinafterreferred JSC INTERRAOUES(Komsomolsk,KomsomolskayaSt.,1)— (Komsomolsk, SovetskayaSt.,7)—IvanovohRSGbranchofficeof fiber-optic communicationlineonthesegmentofJSCCentrTelecom hRSG branchofficeofJSCINTERRAOUES(LetterA1-A2)and pernail multiplexerplacedinareamaintenancebuildingofIvanovo with E1,E&M,Rs232boards;—Transportmultiplexer32*30;-Su- for temporaryusethefollowingequipment:—Accessmultiplexer JSC Stend.SubjectofContract:LessorisobligedtoassignLessee Contract ofleaseequipmentbetweenJSCINTERRAOUESand date whenPartiessignDeliveryandAcceptance(return)Act. when PartiessignEquipmentTransferandAcceptanceActtothe June 30,2010Thetermofequipmentusageisdefinedfromthedate persons withoutLessor’swrittenpermission.TermofContract:until does nothavetherighttopassequipmentforusagebythird with constructionalandoperationaldataoftheequipment.Lessee ment isprovidedtoLesseeforproductionpurposesinaccordance amount of2boards(hereinafterreferredtoasequipment).Equip- Pershynskaya St.,48-a)andTransport-32x30-4E1subsetboardin tions centerofinstrumentalworkshopJSCRostelecom(Tejkovo, RAO UES(Komsomolsk,KomsomolskayaSt.,1)tothecommunica- building (LetterA2,A3)ofIvanovohRSGbranchofficeJSCINTER center ofIvanovoGRESmainbuilding(LetterA3),areamaintenance telecommunication cableonthesegmentfromcommunications obliged toassignLesseefortemporaryuseonestrandoffiber-optic JSC INTERRAOUESandStand.SubjectofContract:Lessoris Contract ofleasefiber-optictelecommunicationcablebetween essential terms) Transactions (subjectmatteroftransactionandits fGC UES Contractor —JSC INTER RAOUES Customer —JSC Mtkwari Energetic Ltd. RAO UESBuyer— Seller —JSCINTER Lessee —JSCStand hRSG branchoffice) RAO UES(Ivanovo Lessor —JSCINTER Lessee —JSCStand hRSG branchoffice); RAO UES(Ivanovo Lessor —JSCINTER Parties UES) of DirectorsJSCfGC the membersofBoard the sametimeactingas and —S.I.Shmatko(at Dod, —S.v.Maslov INTER RAOUES:—E.v. of DirectorsJSC The membersofBoard of JSCINTERRAOUES) than 20%ofvotingshares persons jointlyownover UES Baltia (being affiliated 1.3. CJSCINTERRAO Concern Rosenergoatom share holder1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC of JSCINTERRAOUES) than 20%ofvotingshares persons jointlyownover UES Baltia (being affiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC of JSCINTERRAOUES) than 20%ofvotingshares persons jointlyownover UES Baltic (being affiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC ate ocre Price Parties concerned thousand kWhwithoutvAT. of Baltiathatequals3,36017USdollarsperone UES andthirdpartiesinIPSofBelarusPS electric energyconcludedbetweenJSCfGC Contract ofpurchaseandsale(supply) 105% ofthepricefortransmissionunder 0,075 USdollarsper1kWh. lion) USdollarsunderthepriceofnomorethan amount ofnomorethan54000(fiftyfourmil- the wholevalidityperiodofContractin of transferred(supplied)electricenergyduring The priceoftheContractequalstototalcost till 30.04.2010is415,000rublesincludingvAT. Act. ThetotalapproximatepriceoftheContract return accordingtoTransferandAcceptance equipment transfertothedayof Rental paymentsarechargedfromthedayof including vAT18%—4576rubles27kopecks. tion withequipmentinamountof30000rubles obliged todepositasinglepaymentforconnec- 5,338 rubles98kopecks.MoreoverLesseeis 35,000 rublespermonthincludingvAT(18%)— Monthly sumofpaymentforequipmentusageis d/d 01.02.2010 Minutes No.23 d/d 01.02.2010 Minutes No.23 d/d 01.02.2010 Minutes No.23 d/d 01.02.2010 Minutes No.23 transaction the approving BD minutes No. ofGMS/ 26 30 29 28 27 No. rial Se- Contract: until28.02.2010. electric powerundertheContract:nomorethan100MW.Termof under theContract:nomorethan1000MWhDeliveryquantityof is obligedtoacceptandpayforit.Deliveryquantityofelectricenergy to ownershipofBuyerelectricenergyandpower, Rushydro. SubjectofContract:Sellerisobligedtotransfer(supply) electric energyandpowerbetweenJSCINTERRAOUES Non-stock, non-regulated,bilateralcontractofpurchaseandsale plement. agreement onessentialandotherconditionsaccordingtotheSup- JSC ATSandINTERRAOUESastransactionsinwhichoccurs electric energyandpowerbetweenJSCEnergosbytRostovenergo, additional agreementtoregulatedcontractofpurchaseandsale JSC ATSandINTERRAOUES.Toapprovetheconclusionof electric energyandpowerbetweenJSCEnergosbytRostovenergo, Additional Agreementtoregulatedcontractofpurchaseandsale plements. agreement onessentialandotherconditionsaccordingtotheSup- INTER RAOUESasfewinter-relatedtransactionsinwhichoccurs energy andpowerbetweenDonenergosbytLtd.,JSCATS agreements toregulatedcontractsofpurchaseandsaleelectric and JSCINTERRAOUES.Toapprovetheconclusionofadditional of electricenergyandpowerbetweenDonenergosbytLtd.,JSCATS Additional agreementstoregulatedcontractsofpurchaseandsale all parties’obligationswithinContract. its signingbypartiesandremainsvaliduntilcompleteperformanceof Term ofAgreement:TheAgreementbecomesvalidfromthedate unnumb. d/d10.11.2009intheamountof127209919,73rubles. same kindasCessionary’stoCedantresultedfromLoanAgreement Assignment Agreementterminatesbyreceivingcounterclaimsofthe ary’s obligationtopayforcostoftheclaimrightwithinClaim that equalto2,792%ofJSCTGK-11authorizedcapital.Cession- 1055406226237) atthenominalamountof0,01rublespereach, one) ofequitypersonaluncertifiedsharesJSCTGK-11(PSRN million fivehundredandtwentytwothousandssixninety Cedant:14 318522691(forteenbillionthreehundredandeighteen that RescavaCompanytransfersthefollowingtoownershipof b) RescavaCompanyandc)DonalinkCompany,totheextent INTER RAOCapital(previousname—CJSCUESBaltic), contract unnumb.d/d11.11.2009concludedbetweena)CJSC accepts therightofclaimfromRescavaCompanywithinswap Baltia) SubjectofAgreement:CedantsurrendersandCessionary CJSC INTERRAOCapital(previousname—UES Claim AssignmentAgreementbetweenJSCINTERRAOUESand conditions accordingtotheSupplement. Kubanenergo astransactioninwhichoccursagreementonessential for technologicalconnectionbetweenJSCINTERRAOUESand and JSCKubanenergo.ToapprovetheconclusionofContract Contract fortechnologicalconnectionbetweenJSCINTERRAOUES essential terms) Transactions (subjectmatteroftransactionandits INTER RAOUES dro Buyer—JSC Seller —JSCRushy- tor —JSCATS system administra- RAO UESTrading Seller —JSCINTER gosbyt Rostovenergo Buyer —JSCEner- ATS administrator —JSC UES Tradingsystem JSC INTERRAO gosbyt Ltd.Seller— Buyer —Donener- INTER RAOUES Cessionary —JSC INTER RAOCapital. Cedant —CJSC Kubanenergo Contractor —JSC INTER RAOUES Applicant —JSC Parties JSC Rushydro) Management Boardof (being thememberof RAO UES—Y.v.Sharov ment BoardofJSCINTER the memberofManage- Board ofJSCRushydro); chairman ofManagement (holding thepostof RAO UES—E.v.Dod Directors ofJSCINTER the memberofBoard rectors ofJSCRushydro); members ofBoardDi- same timebeingthe and S.v.Maslov(atthe RAO UES—S.I.Shmatko Directors ofJSCINTER The membersofBoard of JSCATS) bers ofBoardDirectors the sametimemem- v.M. andMaslovS.v.(at RAO UES—Kravchenko Directors ofJSCINTER The membersofBoard of JSCATS) bers ofBoardDirectors the sametimemem- v.M. andMaslovS.v.(at RAO UES—Kravchenko Directors ofJSCINTER The membersofBoard of JSCINTERRAOUES) over 20%ofvotingshares ated personsjointlyown agreement) (beingaffili- Capital (partyunder 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC RAO UES) of DirectorsJSCINTER time thememberofBoard Kravchenko. (atthesame Kubanenergo —v.M. of DirectorsJSC The memberofBoard ate ocre Price Parties concerned accordance withwholesalemarketregulations. vat andpublishedbyCommercialoperatorin nary weightedaveragepricewasdefinedwithout in correspondingaccountingperiod.Theprelimi- power for2010yearwithinthefirstpricingzone resulted fromCompetitiveprocedureofelectric weighted averagepriceofelectricpower responding accountingperiodandpreliminary Russia, togetherwithseasonalityindexincor- in 2010,approvedbyfederalTariffServiceof tion togroupofdeliverypointsJSCRushydro basis ofdividingbytwosumhPPrateinrela- without vATand—powercostdefinedonthe on thefollowing:—700,00rublesper1MWh (supplied) electricenergyandpowerbased The Contractpriceequalsthecostoftransferred MinutesNo.24 16,899,414 rubles62kopecksincludingvAT. MinutesNo.24 9 031399rubles84kopecksincludingvAT. rubles. Assignment ofclaimscost:127,209,919.73 der offTSRussiaNo.201-e/1d/d21.08.2009. connection toelectricnetworksconfirmedbyOr- Definition ofchargeamountfortechnological individual project,isdefinedinaccordancewith logical connectiontoelectricnetworkunder The appropriateamountofchargefortechno- d/d 24.02.2010 Minutes No.24 d/d 24.02.2010 d/d 24.02.2010 d/d 24.02.2010 Minutes No.24 d/d 01.02.2010 Minutes No.23 transaction the approving BD minutes No. ofGMS/

141 ANNUAL REPORT JSC RAO UES / 2010 142 ANNUAL REPORT JSC RAO UES / 2010 31 32 No. rial Se- 31.12.2010. pay forit.Termofsupply:fromthedatecontract’sconclusiontill energy andelectricpower,Buyerisobligedtoaccept of Contracts:Sellerisobligedtotransfer(supply)forBuyerelectric Contracts ofpurchaseandsaleelectricenergypowerSubject conditions accordingtotheSupplement. JSC fGCUESasparty-interestedtransactiononessentialandother system d/dDecember25,2003betweenJSCINTERRAOUESand transmission vianetworksofsinglefederal(all-Russia)electricenergy the ServiceContractNo.968fororganizationofelectricenergy UES. ToapprovetheconclusionofAdditionalAgreementNo.25to 25, 2003,concludedbetweenJSCINTERRAOUESandfGC federal (all-Russia)electricenergysystem(SfEES)d/dDecember organization ofelectricenergytransmissionvianetworkssingle Additional AgreementNo.25totheServiceContractNo.968for essential terms) Transactions (subjectmatteroftransactionandits TGK-1 Irkutskenergo; JSC pricing zone:JSC Concern. Second JSC Energoatom Stand; JSCTGK-1; JSC Rushydro; GRES; JSCOGK-1; JSC Nijnevartov JSC Mosenergo; Generating Company; TGK; JSCKurgan zone: JSCvolga Buyer: firstpricing RAO UESSelleror Buyer: JSCINTER parties: Selleror Company. forthe Tomsk PowerSupply Chemical Plant;JSC zone: JSCSiberian Second pricing ergoSbyt North-West. goSbyt; JSCAtomEn- Ltd.; JSCAtomEner- Company; RN-Energo Kuban PowerSupply pricing zone:JSC RAO UESBuyer:first Seller —JSCINTER for theparties: fGC UES Contractor —JSC INTER RAOUES Customer —JSC Parties pricing zones party infirstorsecond Depending oncounter UES) of DirectorsJSCfGC the membersofBoard (at thesametimebeing Maslov andS.I.Shmatko RAO UESE.v.Dod,S.v. Directors ofJSCINTER The membersofBoard ate ocre Price Parties concerned 1,700,000,000 rublesincludingvAT. and power,concludedbyJSCINTERRAOUES: tracts) ofpurchaseandsaleelectricenergy The priceofeachcontract(fewrelatedcon- legislation. paid asstipulatedbytheRussianfederation ance withtheContract.Moreover,vatshouldbe losses ofelectricpowerarecalculatedinaccord- by federallawbasis.Thestandardprocess the rightofownershiporonotherprovided the powersupplyfacilitiesthatbelongtofGCon SfEES occurwhenelectricenergytransmitsto process lossesofelectricenergy(power)within ance withtheContract.—costofstandard for servicescalculations,estimatedinaccord- within allexportdirections,acceptedbyParties fTS ofRussia;paidpowerquantitysupply supply facilitiesincludedinSfEESaffirmedby transmission’s servicecostinsupportofpower multiply tariffratebythefollowing:electricenergy ties includedinSfEES,definedonthebasisof transmission insupportofpowersupplyfacili- the following:—servicecostofelectricenergy The priceisdefinedonthebasisofaddition d/d 26.04.2010 Minutes No.26 d/d 26.04.2010 Minutes No.26 transaction the approving BD minutes No. ofGMS/ 33 35 34 No. rial Se- of JSCINTERRAOUES credit disbursementperiod.Goalofcredit:replenishworkingcapital change. Planofcreditredemption:nolaterthanthelastday of thebankRussiachangesinamountnomorethansuch issued tranchescanbeunilaterallychangedbyCreditorifofficialrate credit. Interestratewithinbalanceoftheeffectivedebtornewly annum includingthesumofinterestpaymentsandfeesunder till 3yearsInterestrateundertheContract:nomorethan10,5%per terms andconditions,prescribedbytheContract.TermofContract: return Creditorreceivedcreditandpayinterestsforusingthemon (one billionfivehundredmillion)rubles,andBorrowerisobligedto with thelimitofindebtednessinamountupto1,500,000,000 to giveBorrowermonetaryfundsontermsofrevolvinglinecredit UES andJSCJSCBRUSSIA.SubjectofContract:Creditorisobliged Contract onopeningofrevolvingcreditlinebetweenJSCINTERRAO the ContractonrevolvingcreditlineconcludedwithJSCvTBBank. of allJSCINTERRAOUESobligationsowedtovTBBankwithin ing bythePartiesandbecomesinvalidatmomentoftermination matured. TheAgreementbecomesvalidfromthemomentofitssign- forfeits, otherpayments),whichpaybackperiodhasbeenalready (including thesumofprincipaldebt,interestforcreditusage, concluded betweenJSCINTERRAOUESandvTBBank amount of1500000(onebillionfivehundredmillion)rubles, Contract onrevolvingcreditlinewithlimitofindebtednessinthe vTB Bankforthepurposeofrepaymentdebtsresultedfrom monetary fundsincomingtothesettlementaccountplacedinJSC any additionalinstructionsfromJSCINTERRAOUESwrite-off vTB Bankisentitledtoundisputedly,acceptance-freelyandwithout UES accountsplacedinJSCvTBBank.SubjectofAgreement: acceptance-freely writeoffthemonetaryfundsfromJSCINTERRAO Agreement thatJSCvTBBankisentitledtoundisputedlyand indebtedness withinprincipaldebtforpreviouscalendarquarter. JSC Alfa-bank)intheamountof50%weightedaveragesum performed onaccountsinJSCvTBBank(includingcashinflowsfrom tal liabilitiesofBorrower:maintenancequarterlyturnovers(profits) ties includingpurchaseofsharesatsecondarymarkets.Supplemen- deposits placement;investmentsinauthorizedcapitalsofthirdenti- loans; replenishmentofaccounts,openedinotherbanksexcluding ment) ofcurrentliabilitiesowedtothirdpersonswithincreditsand acquisition, repairs,modernizationoffixedassets;refunding(repay- current activityincludingthefollowing:replenishworkingcapital; credit disbursementperiod.Goalofcredit:financingBorrower’s change. Planofcreditredemption:nolaterthanthelastday of thebankRussiachangesinamountnomorethansuch issued tranchescanbeunilaterallychangedbyCreditorifofficialrate credit. Interestratewithinbalanceoftheeffectivedebtornewly annum includingthesumofinterestpaymentsandfeesunder 3 yearsInterestrateundertheContract:nomorethan10,5%per and conditions,prescribedbytheContract.TermofAgreement:till Creditor receivedcreditandpayinterestsforusingthemonterms billion fivehundredmillion)rubles,andBorrowerisobligedtoreturn the limitofindebtednessinamountupto1,500,000,000(one give Borrowermonetaryfundsontermsofrevolvinglinecreditwith UES andJSCvTBBank.SubjectofContract:Creditorisobligedto Contract onopeningofrevolvingcreditlinebetweenJSCINTERRAO essential terms) Transactions (subjectmatteroftransactionandits RUSSIA Creditor —JSCJSCB INTER RAOUES Borrower —JSC JSC vTBBank RAO UESBank— Client —JSCINTER Bank Creditor —JSCvTB INTER RAOUES Borrower —JSC Parties RUSSIA) of DirectorsJSCJSCB ing theChairmanofBoard JSC INTERRAOUES(be- of BoardDirectors father ofactingChairman board ofJSCvTBBank) member ofSupervisory same timebeingthe Dvorkovich A.v.(atthe Corporation Rosatom— visory boardofState The memberofSuper- board ofJSCvTBBank) member ofSupervisory same timebeingthe Dvorkovich A.v.(atthe Corporation Rosatom— sory boardoftheState The memberofSupervi- ate ocre Price Parties concerned 10,5% perannum. payments andfeesinthetotalamountofupto 1 500000rublesandthesumofinterest 10,5% perannum. payments andfeesinthetotalamountofupto 1 500000rublesandthesumofinterest 10,5% perannum. payments andfeesinthetotalamountofupto 1 500000rublesandthesumofinterest d/d 26.04.2010 Minutes No.26 d/d 26.04.2010 Minutes No.26 d/d 26.04.2010 Minutes No.26 transaction the approving BD minutes No. ofGMS/

143 ANNUAL REPORT JSC RAO UES / 2010 144 ANNUAL REPORT JSC RAO UES / 2010 36 37 No. rial Se- by thePartiesandremainsvaliduntilOctober30,2010. of Contract:TheContractbecomesvalidfromthedateitssigning 7.800 m.lineA/01-A/1ofaxis5-6withatotalarea156sq.m.Term GTC BlockNo.2ofhRSG-325(premisesNo.301-309)atthemark letter A4withatotalareaof152sq.m.;—partmainbuilding’s a totalareaof1579,5sq.m.;)—partwatchmanlodgebuilding, building atthemark0,00oflineB/A-G/Aaxis8,5-9),letterA8with axis 7till10(42m.)andfromlineBtoB/A(36m.),aswell of machineroominmainbuilding’sblockNo.2—6m.fromaxisto with atotalareaof77,04sq.m.;—partmainbuildingGTC(1/3 by petrochemicals,aliquid(diesel)fuelpumpstation,letterA26-A30, part ofbuildingforgatheringandtreatmentsewagewaterpolluted city, KomsomolskayaSt.,1(hereinafterreferredtoasPremises):—a idential premiseshavinganaddressatIvanovoregion,Komsomolsk temporary possessionandusetoLesseewiththefollowingnon-res- and JSCStend.SubjectofContract:Lessorisobligedtoprovidein Contract ofleaseimmovableestatebetweenJSCINTERRAOUES RUSSIA. within theContractonrevolvingcreditlineconcludedwithJSCJSCB of allJSCINTERRAOUESobligationsowedtoJSCBRUSSIA ing bythePartiesandbecomesinvalidatmomentoftermination matured. TheAgreementbecomesvalidfromthemomentofitssign- forfeits, otherpayments),whichpaybackperiodhasbeenalready (including thesumofprincipaldebt,interestforcreditusage, concluded betweenJSCINTERRAOUESandJSCBRUSSIA the amountof1500000(onebillionfivehundredmillion)rubles, from theContractonrevolvingcreditlinewithlimitofindebtednessin JSC JSCBRUSSIAforthepurposeofrepaymentdebtsresulted any monetaryfundsincomingtothesettlementaccountplacedin without anyadditionalinstructionsfromJSCINTERRAOUESwrite-off JSC JSCBRUSSIAisentitledtoundisputedly,acceptance-freelyand UES accountsplacedinJSCJSCBRUSSIA.SubjectofAgreement: acceptance-freely writeoffthemonetaryfundsfromJSCINTERRAO Agreement thatJSCJSCBRUSSIAisentitledtoundisputedlyand essential terms) Transactions (subjectmatteroftransactionandits Lessee —JSCStand hRSG branchoffice) RAO UES(Ivanovo Lessor —JSCINTER JSC JSCBRUSSIA RAO UESBank— Client —JSCINTER Parties JSC INTERRAOUES) 20% ofvotingshares persons jointlyownover Capital (beingaffiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC RUSSIA) of DirectorsJSCJSCB ing theChairmanofBoard JSC INTERRAOUES(be- of ManagementBoard father ofactingChairman ate ocre Price Parties concerned 3 4 uls2 oek nldn A.MinutesNo.26 3 438544rubles21kopecksincludingvAT. 10,5% perannum. payments andfeesinthetotalamountofupto 1 500000rublesandthesumofinterest d/d 26.04.2010 d/d 26.04.2010 Minutes No.26 transaction the approving BD minutes No. ofGMS/ 38 No. rial Se- istration number1- and seventy-five)ofordinarypersonalsharesJSCOGK-4(statereg- 1- of ordinarypersonalsharesJSCOGK-3(stateregistrationnumber 236,454 (twohundredandthirty-sixthousandfourfifty-four) personal sharesofJSCOGK-2(stateregistrationnumber1- hundred andeighty-seventhousandeightthirty)ofordinary JSC Rush fifty-four thousandtwohundredandfive)ofordinarypersonalshares beneficially ownedbyTrustor:2354205(twomillionthreehundredand INTER RAOUES(Trustee)allrightscertifiedbythefollowingsecurities RAO UES.SubjectofAgreement:JSCf Trust AgreementconcludedbetweenJSCf 1- nine) ofordinarypersonalsharesJSCOGK-6(stateregistrationnumber million threehundredandfifty-fivethousandnineseventy- istration number1- and twenty-seven)ofordinarypersonalsharesJSCTGK-11(statereg seventy-four millionthreehundredandfifteenthousandseven 140,774,315,727 (onehundredandfortybillionseven personal sharesofJSCf number 1- and fifty-eight)ofordinarypersonalsharesJSCTGK-9(stateregistration (thirty-eight millionsixtyhundredandninety-ninethousandnine of JSCv and seventy-onethousandeighthundred)ofordinarypersonalshares (state registrationnumber1- thousand fivehundredandfive)ofordinarypersonalsharesJSCTGK-6 hundred andthirty-ninebilliontwotwenty-sixmillionseventy TGK-4 (stateregistrationnumber1- thousand fivehundredandtwenty-six)ofordinarypersonalsharesJSC number 1- five) ofordinarypersonalsharesJSCMosenergo(stateregistration million sevenhundredandthirty-twothousandfifty- 1- of ordinarypersonalsharesJSCTGK-2(stateregistrationnumber million fourhundredandsixty-onethousandseveneighty) JSC TGK-1(stateregistrationnumber1- four thousandonehundredandfourty-one)ofordinarypersonalshares 1- dinary personalsharesofJSCTGK-11holding(stateregistrationnumber JSC Bashkirenergo(stateregistrationnumber1-01-00012-A). eight thousandthreehundredandsixty-six)ofordinarypersonalshares 232 448366(twohundredandthirty-twomillionfourforty- personal sharesofJSCTGK-14(stateregistrationnumber1- hundred andeighty-twothousandeighteight)ofordinary (state registrationnumber1- and thirty-five)ofordinarypersonalsharesJSCYeniseiTGK(TGK-13) 1-02-00064-A); 990,435(ninehundredandninetythousandfour ordinary personalsharesofJSCKuzbasenergo(stateregistrationnumber 401 803(fourhundredandonethousandeightthree)of shares ofJSCTGK-11holding(stateregistrationnumber2- essential terms) Transactions (subjectmatteroftransactionandits 01- 02- 01- 01- 50079- 65106- 10420- 55392- olga TGK(stateregistrationnumber1- ydro (stateregistrationnumber1- 01- 01- A); 590,475 (five hundred and ninety thousand four hundred A); 590,475(fivehundredandninetythousandfour D); 21974141(twenty-onemillionninehundredandseventy- A); 1 338 732 755 (one billion three hundred and thirty-eight A); 1338732755(onebillionthreehundredandthirty-eight Е); 300,000 (three hundred thousand) of preferred personal Е); 300,000(threehundredthousand)ofpreferredpersonal 56741- 00085- 02- 01- D); 5,093 (five thousand and ninety-three) of ordinary D); 5,093(fivethousandandninety-three)ofordinary А); 9,118,526(ninemilliononehundredandeighteen 65104- 12087-f); 300,000(threehundredthousand)ofor- ortum (stateregistrationnumber1- 01- 02- D); 3,098,355,979 (three billion ninety-eight D); 3,098,355,979(threebillionninety-eight 55091- 55093- 01- A); 9 000 071 800 (nine billion A); 9000071800(ninebillion E); 5,582,808 (five million five E); 5,582,808(fivemillionfive 43069- 01- GC UES (Trustor) convey JSC GC UES(Trustor)conveyJSC 03388- 01- GC UES and JSC INTER GC UESandJSCINTER A); 439,226,070,505 (four A); 439,226,070,505(four 55038- 01- 55113- D); 7,461,780 (seven D); 7,461,780(seven E); 287 830 (two E); 287830(two Е); 38,699,958 Е); 38,699,958 01- 02- 01- 01- 55392- 65105- 55090- 22451-f); 22451-f); Е); Е); D); D); Е); Е); - fGC UES Contractor —JSC INTER RAOUES Customer —JSC Parties UES) of DirectorsJSCfGC the membersofBoard (at thesametimebeing Maslov andS.I.Shmatko RAO UESE.v.Dod,S.v. Directors ofJSCINTER The membersofBoard ate ocre Price Parties concerned ruble perquarter. Sum ofremunerationTrusteeAmountsto3000 d/d 20.05.2010 Minutes No.27 transaction the approving BD minutes No. ofGMS/

145 ANNUAL REPORT JSC RAO UES / 2010 146 ANNUAL REPORT JSC RAO UES / 2010 39 41 40 No. rial Se- becomes validfromthemomentofreceivingacceptance. such acceptanceisnotreceived,concerningsharesAgreement of RussiaisneededandbythetimesigningAgreementParties specified byAgreementtheacceptanceoff period fortrustagreementsestablishedbylegislation.Ifofshares of Agreementincludingextensionscannotbemorethanthevalidity month priortothedateofAgreementtermination.Thetotalvalidityperiod tion orifTrustordoesnotprovideTrusteewithsuchnoticeatleast1(one) on suchextentionatleast3(three)monthspriortothedateofitstermina- analogical periodifTrusteedoesnotprovideTrustorwithrejectionnotice remains valid during 1 (one) year. Agreement is automatically extended for agement bodyofPartiesfromthemomentitssigningbyand Agreement becomesvalidafteritsapprovingbythelastauthorizedman- JSC Bashkirenergo,Sangtudinskayah 11 holding,JSCKuzbasenergo,YeniseiTGK(TGK-13),TGK-14, TGK-6, JSCv JSC OGK-6,TGK-1,TGK-2,Mosenergo,TGK-4, perform completelytheirobligations. framework andstructuredesign.TermofContract:untilParties Project onthepartofInvestors;3.managementProject’sfinancial elaborating documentationjustifyingusefulnessofinvestmentsinthe following cooperationwithpotentialinvestors;2.managementon 2 ofBalticNPP,includingthefollowing:1.searchmanagementand recruitment ofinvestorsinprojectconstructionpowerblocks1, in ordertoperformgroupofactionsondesigningfinancialmodeland for remunerationisoperatinginitsownnamebutatPrincipal’scost goatom Concern.SubjectofContract:AgentbytheorderPrincipal Agency ContractbetweenJSCINTERRAOUESandRosener- Contract: until30thofDecember2010. volume ofadditionallyprovidedgasisbeingsenttoPrincipal.Term ply period.WhileAgentisagreeingontheclaim,noticespecifying Principal toAgentnotlaterthan20dateofmonthprecedingthesup- transmission andgasdistributionsystems;Theclaimisdeliveredby ability offreeresourcesgas;availabilitytechnicalabilitiesgas fax, telephonedmessageshavingallstatedbelowconditions:avail- volumes ofgasshouldbelegalizedbymeansexchangeletters, claim additionalvolumesofgascanbesupplied.The UES. 2.BymutualconsentofPartiesinaccordancewithPrincipal’s concluded betweenIvanovoregiongasLtd.andJSCINTERRAO Agent withinGasSupplyAgreementNo.13-5-4444Ivd/d01.11.2009 for Principal’sneedsisperformedunderrightsandobligationsof cu.m. Totalamountin2010—1,4mln.cu.m.GaspurchasebyAgent III quarterof2010—0,6mln.cu.m.,Iv0,8mln. purchase forPrincipal’sneedsnaturalgasinthefollowingvolume: tion isoperatinginitsownnamebutatPrincipal’scostorderto Subject ofContract:1.AgentbytheorderPrincipalforremunera- Agency ContractbetweenJSCINTERRAOUESandStand. tee onSharesofJSCRush f enforced onShares.TrustoractsasbeneficiarypartyunderAgreement. rights onShares.Trustee’srecoveryundercommitmentcannotbe ment’s conclusiondoesnotinvolveterminationofTrustor’sownership validity periodforremunerationtohandlerightscertifiedbyShares.Agree to asSharesandTrusteeonbehalfofTrustorisobligedduringAgreement number 997E-1250R),aforementionedsecuritiesarehereinafterreferred ordinary personalsharesofJSCSangtudinskayah 120 780(onehundredandtwentythousandseveneighty)of essential terms) Transactions (subjectmatteroftransactionandits iduciary managementisconnectedonlywithexerciseofrightsbyTrus olga TGK,JSCTGK-9,f ydro, JSC OGK-2, JSC OGK-3, JSC OGK-4, ydro, JSCOGK-2,OGK-3,OGK-4, ortum, JSCTGK-11,TGK- PP-1. Term of Agreement: PP-1. TermofAgreement: ederal Antimonopoly Service ederal AntimonopolyService PP-1 (state registration PP-1 (stateregistration - - Concern JSC Rosenergoatom RAO UESPrincipal— Agent —JSCINTER JSC Stand RAO UESPrincipal— Agent —JSCINTER Parties INTER RAOUES) voting sharesofJSC jointly ownover20%of (being affiliatedpersons CJSC INTERRAOCapital (party totransaction)1.3. Rosenergoatom Concern shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC JSC INTERRAOUES). 20% ofvotingshares persons jointlyownover Capital (beingaffiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC ate ocre Price Parties concerned power blocks1,2ofBalticNPP. ment ofinvestorsinprojectconstruction actions ondesigningfinancialmodelandrecruit- the latterbecauseofperformancegroup Principal refundsAgent’sexpensesincurredby rubles monthly(includingvAT).Moreover, in the amount of 500 000 (five hundred thousand) JSC INTERRAOUESwithinContractisdefined The amountofAgent’sremunerationprovidedby payment ofgastransportationservices. Ltd aswellexpensesincurredbecauseof logistics supportservicesofIvanovoregiongas the latterbecauseofpaymentdistributionand Principal refundsAgent’sexpensesincurredby consumers oftheRussianfederation”.Moreover ated personssalabletoconsumersintheRf of gasextractedbyJSCGaspromanditsaffili- No.440-e/2 d/d18.12.2009“Onwholesaleprices stated byOrderofRussianfederalTariffService needs isexecutedbyPrincipalattheprice chased byAgentnaturalgasforthePrincipal’s of remunerationincludesvAT.Paymentpur- report providedbyAgent.Theaboveamount settlement accountofAgentontheground Principal bymeansoffundstransferonthe needs. Theremunerationispaidmonthlyby of gaspurchasedbyAgentforthePrincipal's of 20rublesperonethousandcubicmeters JSC StandwithinContractisdefinedonthebasis The amountofagentremunerationprovidedby d/d 22.06.2010 Minutes No.28 d/d 22.06.2010 Minutes No.28 transaction the approving BD minutes No. ofGMS/ 42 43 No. rial Se- until Partiesperformcompletelytheirobligations. (one millionandfivehundredthousand)shares.TermofTransaction: ordinary sharesplacedbysubscriptionintheamountof1500000 to acceptandpayforJSCEkibastuzskayaGRES-2PowerStation’s ownership ofordinarysharestoTransferee,andTransfereeisobliged Station. SubjectoftheTransaction:Emitterisobligedtotransfer tween JSCINTERRAOUESandEkibastuzskayaGRES-2Power Station’s supplementsharesplacedbysubscriptionconcludedbe- Transaction onacquisitionofJSCEkibastuzskayaGRES-2Power and SilverteriaholdingsLimited. period ofoptionagreementconcludedbetweenvnesheconombank and SilverteriaholdingsLimited.TermofAgreement:duringvalidity agreement plannedtobeconcludedbetweenvnesheconombank of businesscorrespondenceaddressedtoPrincipalunderoption 2. Agentguaranteesexerciseofdocumentflowincludingreceiving referred toasvnesheconombank)andSilverteriaholdingsLimited. and foreignEconomicAffairs(vnesheconombank)(hereinafter to beconcludedbetweenStateCorporationBankofDevelopment tions ofPrincipal’sprocessagentunderoptionagreementplanned 1. AgentbytheorderofPrincipalforremunerationexercisesfunc- holdings limited(ProcessAgentAgreement).SubjectofAgreement: Agency AgreementbetweenJSCINTERRAOUESandSilverteria essential terms) Transactions (subjectmatteroftransactionandits JSC INTERRAOUES Station; Transferee— bastuz GRES-2Power Emitter —JSCEki- Limited. Silverteria holdings RAO UESPrincipal— Agent —JSCINTER Parties Station) Ekibastuz GRES-2Power Board ofDirectorsJSC time beingthememberof Y.v. Sharov(atthesame JSC INTERRAOUES Management Boardof 2.1. Thememberof JSC INTERRAOUES). 20% ofvotingshares persons jointlyownover Capital (beingaffiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC JSC INTERRAOUES) 20% ofvotingshares persons jointlyownover Capital (beingaffiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC ate ocre Price Parties concerned 1 500000Kazakhstantenge. Silverteria holdingsLimited. concluded betweenvnesheconombankand ity periodofoptionagreementplannedtobe hundred) USdollarsannuallyduringvalid- The amountofAgent’sremuneration:100(one d/d 22.06.2010 Minutes No.28 d/d 22.06.2010 Minutes No.28 transaction the approving BD minutes No. ofGMS/

147 ANNUAL REPORT JSC RAO UES / 2010 148 ANNUAL REPORT JSC RAO UES / 2010 44 45 No. rial Se- accordance withtermsandconditionsof corresponding agreement. preparation (accordingtopreviousparagraph) willshifttoLenderin on repaymentofloan,allrightsresults of worksondocumentsset ments inProject.IfBorrowerfailstoproperlyperformitsobligations ments inbanksorotherfinancialinstitutionsordertoattractinvest- to asProject)forthepurposesoffollowingdeliverythesedocu- facilities placedinMarielcity(RepublicofCuba)(hereinafterreferred of currentandprojectonconstructionnewTPPMaximoGomes property complex,bankfeasibilityreportofprojectonmodernization conclusion onmarketpriceappraisalofTPPMaximoGomes on technicalappraisalofTPPMaximoGomespropertycomplex, pay forworksonpreparationofdocumentssetaspartconclusion annum. TermofLoan:till2yearsTargetpurposeinorderto specified bythisAgreement.Interestrate:11(eleven)percentsper loan aswellpayinterestforuseonthetermsandconditions this decisionandBorrowerisobligedtoreturnLendertheamountof geted interest-bearingloanonthetermsandconditionsspecifiedby Mariel S.A.SubjectofAgreement:LenderprovidesBorrowerwithtar- Loan AgreementbetweenJSCINTERRAOUESandGeneracion completely itsobligationswithinCreditAgreement. valid untilJSCEkibastuzskayaGRES-2PowerStationperforms becomes validfromthemomentofitssigningbyPartiesandremains and useofJSCINTERRAOUES;TermAgreement:Agreement pledge: sharesbeingthesubjectofpledgeremaininpossession sion ofPledger;Allowabilityuseassetsbeingthesubject Agreement; Pledged assets (subject of the pledge) are in the posses- Power StationperformscompletelyitsobligationsundertheCredit obligation guaranteedbypledge:untilJSCEkibastuzskayaGRES-2 1,25% perannumofthecreditsum.Deadlineforfulfillment than 17%perannum.Theamountofcreditusefeedoesnotexceed Kazakhstan plus4%perannumbutnolessthan11%andmore rate equalstoinflationindexofconsumercostintheRepublic to Libor3m+8,5%perannum;—inKazakhstantengefloating of Russia+2,5%perannum;—inUSdollarsfloatingrateequals Russian rubles—floatingrateequalstoofficialbankoftheBank the CreditAgreement.herewithinterestratesareasfollowing:—in Ekibastuz GRES-2PowerStationdoesnotperformitsliabilitieswithin velopment andforeignEconomicAffairs(vnesheconombank)ifJSC by EurasianDevelopmentBankandStateCorporationofDe- Kazakhstan tenge—50%ofaccruedinterestsandchargesincurred lars oritsequivalentintheRussianfederationrublesRepublicof bles and385000(threehundredeightyfivemillion)USdol- two creditlimits:intheamountof12000(twelvebillion)ru- the CreditAgreementnamely:—50%withinprincipaldebtunder by pledge:50%(fiftypercent)ofthetotalamountliabilitieswithin referred toasCreditAgreement).Amountofobligationguaranteed khstan excludinginterests,commissionfeesandtaxes(hereinafter in rublesoftheRussianfederationortengeRepublicKaza- 000 (threehundredandeighty-fivemillion)USdollarsoritsequivalent the total amount of 12 000 000 000 (twelve billion) rubles and 385 000 foreign EconomicAffairs(vnesheconombank),ontheotherhand,in Development BankandStateCorporationof bastuzskaya GRES-2PowerStation,ontheonehand,andEurasian Station obligationsaroseoutofcreditagreementbetweenJSCEki- guaranteed bypledge:50%ofJSCEkibastuzslkayaGRES-2Power by PledgerwithinAgreementtoPledgees.Essenceofobligation emission stateregistrationnumberA4838d/d10.07.2009pledged of ordinarysharesJSCEkibastuzskayaGRES-2PowerStation, pledge: 6059026(sixmillionandfifty-ninethousandtwenty-six) and foreignEconomicAffairs(vnesheconombank).Subjectofthe Development Bankand/orStateCorporationof tion’s sharesconcludedbetweenJSCINTERRAOUES,Eurasian Share PledgeAgreementofJSCEkibastuzGRES-2PowerSta- essential terms) Transactions (subjectmatteroftransactionandits (vnesheconombank) Economic Affairs ment andforeign Bank ofDevelop- State Corporation ment Bankand/or Eurasian Develop- Pledgees (jointly)— (each byitself)and RAO UES;Pledgee Pledger — JSC INTER of Cuba) Mariel S.A.(Republic rower —Generacion INTER RAOUESBor- Lender —JSC Parties JSC INTERRAOUES) 20% ofvotingshares persons jointlyownover Capital (beingaffiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC JSC INTERRAOUES) 20% ofvotingshares persons jointlyownover Capital (beingaffiliated 1.3. CJSCINTERRAO Concern Rosenergoatom shareholder 1.2.JSC Corporation Rosatom INTER RAOUES:State 1.1. ShareholdersofJSC ate ocre Price Parties concerned 396 500000USdollars. muto on pt 0 0 Sdlas MinutesNo.28 Amount ofloan:upto3000USdollars. d/d 22.06.2010 Minutes No.28 d/d 22.06.2010 transaction the approving BD minutes No. ofGMS/ 46 48 47 No. rial Se- the Agreement:unlimited. Settlement andcashservicesintheRussianrubles.Terminationof Bank opensasettlementaccountfortheCustomerandperforms RAO UES–the“Organization”.SubjectmatteroftheAgreement: bank forregionaldevelopmentJSCRBRR—the“Bank”;INTER Account agreementbetweenJSCINTERRAOUESandRussian granting thenon-exclusiverighttousesoftwareisterminated. within 14calendardaystillexpirationoftheContractorifcontract extended forthenext5yearsifneitherPartyannouncesitscessation Parties andisvalidduringthe5years.TheContractautomatically The contractcomesintoeffectfromthedateofitssigningby also providingtheservicesonsoftwarefunctioning.Contractterm: and tocontroltenders(hereinafterreferredastheSoftware) the programsoftware,allowingstockexchangetoorganize system ofthemarketfuturescontractsandoptions,providing participant nonexclusiveright(sublicense)forthetradeandclearing of thecompletedcontract.Theexchangeisalsoprovidingtender organize thetradeinSectorofurgentmarketandexecution and providingthecooperationwithClearingcenterinorderto documents ofthestockexchange.—Theexchangeinformation ments oftheLawRussianfederationandinternalnormative make urgentcontractsduringthetenderaccordingtorequire- the stockexchange,regulatingtender;grantingabilityto ance withthetradingrules,specificationsandotherdocumentsof to thestockexchangerulesandspecifications—controlofcompli- urgent agreements,concludedinthemarketsectoraccording tender participant:organizationsoftheandregistration ices. Theexchangeisobligedtorenderthefollowingservices tender participantisobligedtoacceptandpayfortherenderedserv- according totherules,specifiedbystockexchangeand tenders intheurgentmarket(hereinafterreferredtoasServices) services toatenderparticipantonorganizationandcontrolof of theagreement:accordingtoagreementexchangerenders JSC INTERRAOUESandMosenergoExchange.Subjectmatter The agreementforrenderingservicesintheurgentmarketbetween Kaliningrad Regionfrom(in)IPSofRussia. transmission ofelectricenergyon(from)theterritory(territories)of systems ofEstonia,LatviaandLithuania,servicefeeconnectedwith of Belarus,InterconnectedPowerSystemUkraineandpower energy transmissionviaInterconnectedPowerSystemofRepublic No.23 enablestoexcludefrompaymentforservicesonelectric according totheSupplement.ConclusionofAdditionalAgreement tion inwhichoccursagreementonessentialandotherconditions 2004 betweenJSCINTERRAOUESandfGCastransac- electric energysystemnetworksofforeigncountriesd/dfebruary19, No.1055 fortheorganizationofelectricenergytransmissionvia conclusion ofAdditionalAgreementNo.23totheServiceContract between JSCINTERRAOUESandfGCUES.Toapprovethe tem networksofforeigncountriesd/dfebruary19,2004,concluded organization ofelectricenergytransmissionviasys- Additional AgreementNo.23totheServiceContractNo.1055for essential terms) Transactions (subjectmatteroftransactionandits Customer” RAO UES—“the Bank”; JSCINTER JSC vBRR-“the –Exchange Mosenergo Exchange of thetender;JSC RAO UES-participant company) INTER JSC (jointstock fGC UES Performer —JSC INTER RAOUES Customer —JSC Parties development) Russian Bankforregional President oftheJSCAll- (at thesametimeheis the Boardofdirectors Kurzer G.M.,memberof ergo exchange) directors ofJSCMosen- member oftheBoard the sametimeheis JSC INTERRAOUES(at chief executiveofficer Artamonov v.U.Deputy UES) of DirectorsJSCfGC the membersofBoard (at thesametimebeing Maslov andS.I.Shmatko RAO UESE.v.Dod,S.v. Directors ofJSCINTER The membersofBoard ate ocre Price Parties concerned of thecertainbankoperation). by thebankchargeratesforcompletiondate Bank accordingtotheagreementisdetermined inclusive. (Priceofthespecifiedservices No morethan1500000rublesayear,vAT the dateofservicerendering. Is determinedaccordingtotheexchangerateon ary 19. system networksofforeigncountriesd/dfebru- electric energytransmissionvia Service ContractNo.1055fortheorganizationof tional AgreementNo.23arenotprovidedforthe financial relationsbetweenPartiesofAddi- defined bytheBoardofDirectorsaslong acquirable propertiesorservicescannotbe Companies, price(moneyvalue)ofalienateor and article77offederalLawOnJoint-Stock According todemandsinclause7ofarticle83 d/d. 22.06.2010 Minutes No.28 d/d. 22.06.2010 Minutes No.28 d/d 22.06.2010 Minutes No.28 transaction the approving BD minutes No. ofGMS/

149 ANNUAL REPORT JSC RAO UES / 2010 150 ANNUAL REPORT JSC RAO UES / 2010 49 52. 51 50 No. rial Se- is approximately9%ofauthorizedcapitalJSCОGK-1. allow toreturn4017887363stocksfromthetrustmanagement,that are accordingtotheannex.Theadditionalagreementconclusionwill the interest-partytransaction,materialandotherprovisionsofwhich 2009 №82531betweenJSCUESandINTERRAOas of thetrustcontrolstockrightsJSCОGK-1fromMarch11, the conclusionofadditionalagreement№11to 82531 betweenJSCfSKUECandINTERRAOUES.Toapprove control ofthestockrightsJSCОGK-1fromMarch11,2009№ The additionalagreement№1totheofconfidential from themomentofitssigninguptoMay31,2011. reserve coefficientinthepricezone.validityperiodofcontract: results ofthecompetitivecapacityselectionandactual ing export&importsection,purchasepriceofcapacityaccordingto the balancingexportandimportmarket,recordedatcorrespond- day-ahead bidselection.Priceparametersindeliverypointclusterof counting ofexport&importtransactionsbymeansthecompetitive parameters inexport&importsector,estimatedfortheaimsofac- to rendertheCustomermonthlyinformationsupport,including:price JSC ATS.Subjectmatterofthecontract:TheContractorisobliged Contract onservicesrenderingbetweenJSCINTERRAOUESand to 700000mvh.validityperiodofthecontract:till31.12.2010. energy deliveryvolumeaccordingtothecontract:from468 according tothetermsandconditionsofcontract.Theelectrical ownership (supply),andtheBuyerisobligedtoacceptitpay tract: theSellerisobligedtotransferelectricalenergyBuyer’s transmission lineBlagoveshchensk-Ajgun).Subjectmatterofthecon- the 110kvtransmissionlineBlagoveshchensk-hejheand220 zone (purchaseoftheelectricalenergyforexportinChinathrough RAO EESandJSCRushydroontheterritoryofsecondnonprice Bilateral ContractforSaleofElectricalPowerbetweenJSCINTER organization. validityperiodofthecontract:unlimited. organization paymentlistincompliancewiththeorders,issuedby Bank transfersthepaymentstoholders’accountsaccording provided bythemortgage(hereinafterreferredtoas“Payments”). kinds ofpayments,connectedtotheirdutyperformancesandloans, transfers intotheBanksalaryofholders,socialandother tion employees(withintheframesofsalaryprojects).Organization issue andservicingofthevISAInternationalcardsfororganiza- vBRR andalsochargescommissionattheratesofJSCfor ing tothetermsofissue,servicingandusepaymentcardsJSC forms servicing, opening and keeping of accounts of holders accord- vISA International(hereinafterreferredtoasthe“Cards”)andper- payment cardsofJSCvBRRundertheinternationalsystem ployees oftheOrganization(hereinafterreferredtoas“holders”) ment (JSCvBRR)Subjectmatterofthecontract:Bankissuesforem- JSC INTERRAOUESandAll-RussianBankforRegionalDevelop- Contract onissueandserviceofinternationalbankcardsbetween essential terms) Transactions (subjectmatteroftransactionandits manager RAO UES—Trust Trustee; JSCITER JSC fSKUES— ATS —theConractor the Customer,JSC JSC INTERRAOUES “Purchaser” Inter RAOEES—the the “Seller“”,JSC JSC Rushydro— “Organization”. RAO UES—the “Bank”; JSCINTER JSC vBRR”–the Parties UES ) of directorsinJSCfSK member oftheBoard the sametimeheis JSC INTERRAOUES(at of theBoardedirectors Shmatko S.I.,themember directors ofJSCATS) members oftheBoard the sametimetheyare v.M. andMaslovS.v.(at RAO UESKravchenko ment boardofJSCINTER Members oftheManage- Rushydro) ment BoardoftheJSC (Chairman oftheManage- Rys hydro),DodE.v. Board ofdirectorsJSC are themembersof (at thesametimethey the Boardofdirectors S.v. arethemembersof Shmatko S.I.andMaslov Development ) Russian BankforRegional President oftheJSCAll- the sametimeheis the Boardofdirectors(at Kurzer G.M.,memberof ate ocre Price Parties concerned JSC INTERRAOUES. 11, 2009№82531betweenJSCfSKUESand rights stockscontrolinJSCОGK-1fromMarch, ditional agreement№1totheAgreementoftrust financial relationsarenotprovidedbythead- not determinedtheBoardofdirectors,because act article77«Onjointstockcompanies»,is requirements ofitem7inarticle83andfederal acquired propertyorservices,accordingtothe The price(monetaryestimation)alienatedor MinutesNo.28 225 000Rublesperaquarter,vATinclusive rubles per1mvth,vATexclusive. the electricalenergycost335,00—491,00 cal energyduringthedeliveryperiodconsidering It isthecostoftransferred(supplied)electri- certain bankoperation). bank chargeratesforthecompletiondateof Bank underthecontractisdeterminedby inclusive (Costofthespecifiedservices No morethan5000rublesayear,vAT d/d. 19.08.2010 Minutes No.30 d/d. 22.06.2010 d/d. 22.06.2010 Minutes No.28 d/d. 22.06.2010 Minutes No.28 transaction the approving BD minutes No. ofGMS/ 53. 54. No. rial Se- CJSC INTERRAOCAPITALarenotchanged. loan agreementfrom17/06/2009betweenJSCINTERRAOUESand RAO CAPITALforaperiodof1year.Othermaterialprovisionsthe ment from17/06/2009betweenJSCINTERRAOUESand of theadditionalagreement:extensiontermaloanagree- tween JSCINTERRAOUESandCAPITAL.Subject The additionalagreementtotheloanfrom6/17/2009be- termination theagreement. other aboutitsterminationnolessthaninamonthperiodbeforethe tion forthenextyearonsameconditions,ifnopartynotifies 4/15/1995 №333)andisvalidwithinoneyearwithannualprolonga- tection (stipulatedbytheDecreeofRussianGobvernementd/d. fulfillment and(or)servicerenderingregardingthestatesecretpro- secret andJSCINTERRAOUESreceiveslicensesfortheevents for thefulfillmentofworkusinginformation,thatcontainsstate following conditionsbecomeactual:JSCОGC-1recieveslicenses Term oftheagreement:agreementisvalidfromdate scale andaccordingtotheconditionsspecifiedinagreement. is obligedtorenderservicesinthestatesecretprotectionfull ment: theCustomerreceivesserviceandpayforit;contractor tween JSCINTERRAOUESandОGK-1.Subjectoftheagree- The serviceagreementregardingthestateSecretprotectionbe- essential terms) Transactions (subjectmatteroftransactionandits Capital —“Mutuary” CJSC INTERRAO UES —“Loaner”, JSC INTERRAO tomer” JSC OGK-—“Cus- UES —“Executor”; JSC INTERRAO Agreement sides: Parties JSC INTERRAOUES of thevotingstocks together morethan20% ated persons,theyhold RAO Capital(beingaffili- goatom 1.3.CJSCINTER JSC ConcernRosener- Corporation Rosatom; 1.2. stockholder theState JSC INTERRAOUES: 1.1. Stockholdersof in JSC“OGK-1”) members ofthemanagers (at thesametimeare S.N. andSharovYu.v. antsev S.Yu.,Tolstogyzov A.v Artamonov v of JSCINTERRAOUES of theManagementboard OGK Board ofdirectorsJSC Yu.v Rumyantsev S.Yu.,Sharov board TolstoguzovS.N., of theManagement B.U. andothermembers RAO UESKovalchyk ment boardofJSC“NTER Chairman oftheManage- INTER RAOUES).2.1.The of thevotingstocksJSC together morethan20% filiated persons,theyhold RAO Capital”(beingaf- goatom; CJSC“INTER JSC ConcernRosener- Corporation Rosatom; stockholder theState INTER RAOUES: Stockholders ofJSC ate ocre Price Parties concerned ., PaluninD.N.,Rumy- . (are members of the . (aremembersofthe — 1). 2.2. Members — 1).2.2.Members . Yu., Nikitin . Yu.,Nikitin 80 856000ruble. 1 010700000rubleandpercentageamountof 1 091636000rubles,includingthemaindebtof vAT. 2 547861ruble12copecksayear,including d/d. 19.08.2010 Minutes No.30 d/d. 19.08.2010 Minutes No.30 transaction the approving BD minutes No. ofGMS/

151 ANNUAL REPORT JSC RAO UES / 2010 152 ANNUAL REPORT JSC RAO UES / 2010 55 56 No. rial Se- 45 000(fortyfivemillion)Euros.Guaranteeterm:unlimited. maximum amountofthebankguaranteedoesnotexceed is RAONordicOy.Bankguaranteevaliditytermnotlimited,the OMx StockholmAB(Sweden).Theprincipalonthebankguarantee ment ).Moreover:ThebeneficiaryontheBankguaranteeisNASDAq 28, 2009forthebenefitofbank(redraftedtoadditionalagree- nity forBankGuarantee),providedbyRAONordicOyonDecember, provisions ofcounterobligationRAONordicOy(CounterIndem- million) Eurosandotherpaymentscommissionsaccordingtothe of thesumbankGuaranteeamountingto45000(fortyfive RAO NordicOy(beneficialowner)oncompensationtotheCreditor obliged toanswerbeforethecreditoronobligationsfulfillmentby RAO UESforNordicOy.Guaranteesubject:theGuarantoris The additionalagreementtotheguaranteecontractofJSCINTER tranche. Contract period:3yearsfromthemomentofprovidingwithfirst ment periodofeachtrancheis3monthsfromthemomentissue. the Agreementareprovidedtomutuarybytranches.Repay- interest, specifiedintheAgreementaswell.Moneteryfundsper during thetermspecifiedinagreementandtopayamountof ary, andthemutuaryisobligedtoreturnsameamountofmoney funds intheamountof30000(Thirtymillion)Eurostomutu- OY. Subjectoftheagreement:Loanertransfersmonetary The loanagreementbetweenJSCINTERRAOEESandNordic essential terms) Transactions (subjectmatteroftransactionandits Plc —“Creditor” Nordea Bankfinlad UES —“Guarantor”; JSC INTERRAO “Mutuary” RAO NordicOY— UES —“Loaner”; JSC INTERRAO Parties Nordic Oy). of thedirectorsRAO member oftheBoard (at thesametimeis Oy) andD.N.Palunin directors ofRAONordic Chairman oftheBoard same timeisthe D.Mikalaiunas (atthe JSC INTERRAOUES. the Boardofdirectors UES) 2.1.Membersof of JSCINTERRAO 20% ofthevotingstocks hold togethermorethan affiliated persons,they RAO Capital(being goatom 1.3.CJSCINTER JSC ConcernRosener- Corporation Rosatom; 1.2. stockholder oftheState JSC INTERRAOUES: .1. Stockholdersof ate ocre Price Parties concerned can bedonenomoreoftenthanonceamonth. for eachchange.Bankguaranteesumchange guarantee atarateofnomorethan250Euros commissions onchangingofthesumBank tion inthemarketsofdebtcapital,and— of theGuarantor,andalsodependingonasitua- or reducingdependingonthefinancialindicators review thesizeofcommissiononincreasing bank hastherightnomorethanonceayearto nual, addedtotheBankguaranteeamount.The guarantee, atarateofnomorethan1,5%an- regularly duringtheperiodofvaliditybank maximum amount»),—thecommissionpaid five million)Euros(furtheralso«aguarantee the bankguarantee,namely:45000(forty due totherealizeofpaymentregarding funds whicharethecompensationtobank following: —maximumamountofthemonetary AB (Sweden),istheamountcollectedfrom for thebenefitofNASDAqOMxStockholm bank guarantee(furtheralso"Bankguarantee") (further also—"Bank"),duetotheissueofanew Nordea BankfinlandPlc(Republicfinland) Nordic OyfromDecember,28,2009before (Counter IndemnityforBankGuarantee)RAO "Guarantee agreement")totheCounterobligation ment) fromDecember,28,2009(further— agreement (GuaranteeandIndemnityAgree- Cost oftherequirementrightsonGuarantee the wholetermofloanusing. EURIBOR3M +annualrate5.85percentsduring percentage amountattherate,thatequalsto Amount oftheloanis30000Eurosand d/d. 19.08.2010 Minutes No.30 d/d. 19.08.2010 Minutes No.30 transaction the approving BD minutes No. ofGMS/ 57 58 No. rial Se- BS-Client v.3.DurationofAgreement:forindefiniteterm. electronic formaccordingtothesystemofremotebankservice tions onthecurrentaccountthatClienthasopenedatBankin Bank andClientestablishtheorderofexecutionpaymenttransac- All-Russian BankofRegionalDevelopment.Subjectagreement: joint stockcompanyINTERRAOUESandopen Agreement ofthetransactionsonaccountbetweenopen by thelegislationfortrustmanagementagreements. prolongations, cannotbelongerthantheperiodofvalidityspecified the agreementtermexpiration.Thetotalterm,including the Confidentialmanagingdirectornolaterthan1(one)monthbefore than 3(three)monthsbeforetheexpirationdateortrustee—to the notificationofrefusalsuchprolongationtotrusteenolater longed forthesimilartermincasetrustdirectordoesnotdirect and itisvalidwithin1(one)year.Theagreementautomaticallypro- ized controlbodyfromthemomentofitssigningbyallsides comes intoforceafteritsapprovalbythelastpersonofauthor- RazTPP bytheConfidentialdirector.Agreementterm:agreement is connectedonlywiththerealizationofstockrightsunderJSC beneficial owneroftheagreementistrustee.Trustmanagement as totheconfidentialdirectordutiescannotinfluencestocks.The the terminationofstockownershiprightstrustee.Chargings during theagreement’sterm.Agreementconclusiondoesnotcause control therights,specifiedbystocks,inbenefitoftrustee specified furtherasshares,andtheConfidentialdirectorobligatesto street, RazdanskayaTPP),stocksandbondsspecifiedaboveare Armenia republic,Kotajkskymarz,cityofRazdan,Gortsaranain nine) ordinarynominalstocksofJSCRazTPP(thelocation:378550, thousand ninehundredseventyfourtwenty director toJSCINTERRAOUES(trustdirector):15974429(fifteen of therightscertifiedbyfollowingsecueitiesownedtotrust the agreement:JSCROSNEfTEGAZ(thetrustee)transfersallset moment whensuchpermissionhasbeengranted.2.Asubjectof permission isnotgranted,theagreementcomesintoforcefrom Russian serviceisrequiredandifbythemomentofsigningsuch to thetrustmanagementpermissionoffederalantimonopoly for thetrustmanagementagreements.Iftransferrrencestock not belongerthantheperiodofvalidityspecifiedbylegislation expiration. Thetotalagreementterm,includingprolongations,can director nolaterthan1(one)monthbeforetheagreementterm the expirationdateortrustee—toConfidentialmanaging prolongation tothetrusteenolaterthan3(three)monthsbefore the trustdirectordoesnotdirectnotificationofrefusalsuch agreement isautomaticallyprolongedforthesimilartermincase of itssigningbyallthesidesanditisvalidwithin1(one)year.The by thelastpersonofauthorizedcontrolbodyfrommoment Agreement term:theagreementcomesintoforceafteritsapproval duties. Beneficialowneristhetrusteeaccordingtodocument. the influenceofchargingsaccordingtoconfidentialdirector’s ownership rightsofthetrusteeonstock.Sharecannotbeunder trustee. Agreementconclusionshallnotleadtotheterminationof the agreementisobligedtocontrolshareforbenefitof LLC RN-ENERGO,andtheconfidentialdirectorduringtermof RAO UES(trustdirector)100%stockintheauthorizedcapitalof JSC NKRosneft(managementdirector)transferstotheINTER ROSNEfTEGAZ, JSCNKRosneft.1.Subjectoftheagreement: Agreements (contracts)betweenJSCINTERRAOUESand essential terms) Transactions (subjectmatteroftransactionandits The “Trustee” INTER RAOUES— ROSNEfTEGAZ, JSC manager”. 2.JSC UES —“Trust JSC INTERRAO NEfT —“Trustee”, 1. JSCNKROS- UES —the“Client” JSC INTERRAO ment —the“Bank”; of RegionalDevelop- JSC All-RussianBank Parties NEfTEGAZ) directors ofJSCROS- member oftheBoard (at thesametimeheis of JSCINTERRAOUES the Boardofdirectors S.I.Shmatko, memberof ROSNEfTEGAZ) and Board ofdirectorsJSC is theChairmanof (at thesametimehe of JSCINTERRAOUES of theBoarddirectors Sechin I.I.,theChairman JSC ROSNEfTEGAZare: JSC INTERRAOUESand in transactionsbetween 2. Theinterestedparties in JSCNKROSNEfT) of theBoarddirectors time heisthemember RAO UES(atthesame of directorsJSCINTER and memberoftheBoard Rosneft) andPetrovU.A., of directorsinJSCNK Chairman oftheBoard the sametimeheis JSC INTERRAOUES(at Board ofdirectors I.I., theChairmanof NK Rosneftare:Sechin INTER RAOEESandJSC the dealsbetweenJSC 1. Interestedpersonsin at thesametime) Regionalal Development All-Russian Bankof (is thePresidentofJSC RAO UESG.M.Kurtser of directorsJSCINTER A memberoftheBoard ate ocre Price Parties concerned the confidentialdirector. of theprincipalcontrolShares,arecoveredby fidential trusteedirector,regardingtherealization of theRussianfederation.ExpensesCon- rate specifiedaccordingtothecurrentlegislation The specifiedawardincludesthevATunder date ofreceivingtheaccountfromtrustdirector. paid quarterlyduring30calendardaysfromthe to 3000(threethousand)rubleaquarter.Itis The trusteereceivedrenumenaration,amounting tion ofthecorrespondingbankoperation. defined bytheBankratesfordateofexecu- Price oftheBankServicesonAgreementis d/d. 19.08.2010 Minutes No.30 d/d. 19.08.2010 Minutes No.30 transaction the approving BD minutes No. ofGMS/

153 ANNUAL REPORT JSC RAO UES / 2010 154 ANNUAL REPORT JSC RAO UES / 2010 59 61 60 No. rial Se- December 31,2010. ments: fromthedateofconclusionactualtransactionuntil on thetotaloftransactions:upto2.824millionMWh.Termagree- is obligedtoacceptitandpayit.volumeofelectricenergysupply the electricpowerorandcapacityCustomer Subject ofagreements:Thevendorisobligedtotransfer(supply) ergy andpowerbetweenJSCINTERRAOUESEnelOGK-5. Purchase andsalestransactionsoftheelectricenergyoren- its termends. (modernisation) thecorrespondingAgreementisterminatedbefore the Agreementsand(or)rightsoforderertheirconstruction Principal loseshisrightsforalltheobjectsofgenerationindicatedin foreseen bytheAgreements.Incaseifduetoreorganisation obligations establishedbyAgreementsexcludingtheeventsthatare unilaterally toexecutetheAgreementcompletelyorinpartof execution indicatedintheAPS.ThePartiesarenotentitledtorefuse years fromthelatestdateofbeginningpowersupplyobligation tion executionindicatedintheAPSanduntilexpiryof10(ten) time fromtheearliestdateofbeginningpowersupplyobliga- total powersupplyperiodontheAPSisdefinedwithof to as“APS”)concludedbytheAgentconcerningPrincipal.The ods ofalltheagreementspowersupply(hereinafterreferred duration ofAgreementsmustcorrespondtothepowersupplyperi- the samepricezonewithcorrespondinggenerationobjects.The Agreement ofjoiningwhoseconsumptionsupplypointsgroupsarein market) accordingtotheRulesofwholesalemarketand ATS (TradingSystemAdministratoroftheelectricenergywholesale inversion participantsonthewholesalemarketthataredefinedby that arethesubjectsofwholesalemarket,withelectricenergy “Agreement ofjoining”)withthebuyerselectricenergy(power) joining thewholesalemarkettradesystem(hereinafterreferredtoas ing tothestandardformthatisappendixAgreementof wholesale markettheagreementsofprovisionpoweraccord- Principal duringthetermofvalidityContracttoconcludeat the obligationonbehalfof,innameofandatexpense ments: ThePrincipalauthorisestheAgentandassumes Councel, JSCATS,SOUES,CJSCCfR.Subjectofagree- Contracts ofagencybetweenJSCINTERRAOUESandNPMarket arisen fromJuly1,2010. by thePartiesandcoversrelationsbetweenthathave The agreementcomesintoforcefromthemomentwhenitwassigned ance andtransfercertificate.TermofAgreement:untilJune30,2012. Lessee untilthedayofitsreturntoLessoraccordingaccept- The rentispaidfromthedayoftransferEquipmentforuseto equipment toanythirdpersonwithoutwrittenconsentoftheLessor. tion dataoftheequipment.TheLesseeisnotentitledtotransfer for purposesofproductionaccordingtotheconstructionandexploita referred toas"Equipment").TheEquipmentissuppliedtheLessee and twoopticalmultiplexswitches“SuperGvozdRTK.34”(hereinafter plant ofJSCRostelecom(cityTejkovo,Pershinskaiastreet,48-a) somolskaia street,1)tothecommunicationnodeoflineequipment Ivanovskije PGUofJSCINTERRAOUES(cityKomsomolsk,Kom- A3), theareamaintenancebuilding(LetterA1,A2)ofbranch main buildingofIvanovskaiaGRES(statedistrictpowerstation)(Letter ble onthesectionfromnodeofcommunicationbuilding provide theLesseefortemporaryuseonewireofoptical-fiberca- UES andJSC“Stend”.Subjectofagreement:theLessorisobligedto Contract ofleasetheoptical-fibercablebetweenJSCINTERRAO essential terms) Transactions (subjectmatteroftransactionandits - the vendor OGK-5– theBuyeror the Buyer;JSCEnel UES —thevendoror JSC INTERRAO Councel” Councel, —“Market operator”; NPMarket “ATS”, “Commercial erator”; OJSCATS— UES, —“Systemop- “Agent”; SCSO CJSC CfR— UES —“Principal”; JSC INTERRAO Stend —“Lessee” UES —“Lessor”;JSC JSC INTERRAO Parties OGK-5) of directorsJSCEnel member oftheBoard Artamonov v.Yu.(isthe of JSCINTERRAOUES Board ofmanagement Deputy Chairmanofthe UES atthesametime) of directorsOJSCSO members oftheBboard Shmatko S.I.(arethe RAO UESDodE.v.and directors ofJSCINTER members oftheBoard at thesametime); of directorsCJSCCRR the membersofBoard v.M., LokchynA.M.(are Dod E.v.,Kravchenko of JSCINTERRAOUES of theBoarddirectors same time);themembers NP MarketCouncelatthe supervisory directorsof members oftheBoard Lokchyn A.M.(arethe UES Kravchenkov.M., of JSCINTERRAO the Boardofdirectors time); themembersof OJSC ATSatthesame of Boarddirectors v.M. (arethemembers chuk B.Yu.,Kravchenko INTER RAOUESKoval- Board ofdirectorsJSC The membersofthe RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. Rosatom; 1.2. JSC Rosen- the Publiccorporation UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders ate ocre Price Parties concerned seasonal coefficient. part ofJSCINTERRAOUESwithallowance for MW notincludingvATforapurchaseonthe the salesandnotmorethan200000.00ruble/ established tariffrateofthestationsfor2010 1 MWhofcapacitymustbenotlessthanthe JSC INTERRAOUES.Themarginalpricefor not includingvATforapurchaseonthepartof activity forimport)andnotmorethan1000ruble price ofthepurchaseforexternaleconomic stations for2010thesales(notlessthan be notlessthantheestablishedtariffrateof marginal pricefor1MWhofelectricenergymust Up to2000ruble,includingvAT.The each Agreement. 100 000rubleperaquarterincludingthevATfor ruble 00kopecksincludingvAT. Monthly rentamountfortheEquipmentis11000 d/d. 19.08.2010 Minutes No.30 d/d. 19.08.2010 Minutes No.30 d/d. 19.08.2010 Minutes No.30 transaction the approving BD minutes No. ofGMS/ 62 65 64 63 No. rial Se- from thedateofitssignatureandisvalidforindefiniteterm. the newrate.TermofAgreement:agreementcomesintoforce of theClientatleast10(ten)daysfromdateimplementation commission chargeinhissolediscretionafterawrittennotification counts oftheClient.TheBankisentitledtochangeamount of Agreement:ReallocationmonetaryresourcesontheBankac- counts betweentheCompanyandOJSCGazprombank.Subject Agreement ofreallocationmonetaryresourcesonthebankac- the fullexecutionofobligationsbyparties. ment comesintoforcefromthedateofitssignatureandisvaliduntil terms providedbytheAgreement.TermofAgreement:Agree- provision ofservicesstatesecretprotectioninvolumeandupon sary toobtainthelicencesforexecutionofmeasuresand(or) information andalsoobservingtheotherconditionsthatareneces- countering actionandprotectionofthetechnicalchannelleakage requirements byJSCINTERRAOUES,foreigntechnicalintelligence tise executionbyverificationofthenecessaryspecial assumes theresponsibilitytoprovideservicesofspecialexper- ment: theClientcommitsandisobligedtopayExecutor between JSCINTERRAOUESandfSKUES.SubjectofAgree- Agreement ofprovisionservicesspecialexpertiseexecution of Chinafor2011. are effectuatedonlyinthepresenceofacontractforcewithGEK cember 31,2011.SuppliesontheAgreementsfromJanuary1,2011 million) MWh.TermofAgreements:fromJanuary1,2011untilDe- of electricenergysupplyontheAgreements:upto1000(one and topayforitaccordingtheconditionsofAgreement.volume Bureiskaia andZeiskaiaGEStheBuyerisobligedtoacceptit into ownership(support)totheBuyerelectricenergyproducedby 2010. 2.Subjectofagreements:thevendorisobligedtotransfer hundred thousand)MWh.TermofAgreements:untilDecember31, of electricenergysupplyontheAgreements:upto700000(seven it andtopayforaccordingtheconditionsofAgreement.volume Bureiskaia GESandZeiskaiatheBuyerisobligedtoaccept into ownership(support)totheBuyerelectricenergyproducedby market. 1.Subjectofagreements:thevendorisobligedtotransfer of theRussianfederationnotunifiedintopricezoneswholesale pany andOJSCRushydroontheterritoriesofterritorialsubjects Sale andpurchaseagreementsofelectricenergybetweentheCom- the momentofacceptancepresentresolution. value of1europershare.Duedateshares:during6monthsfrom dred seventeenthousandtwohundredeight)pieces,withanominal Middle EastB.v.,intheamountof3317298(threemillionthreehun- pays thefollowingsecurities:supplementsharesofINTERRAO of agreements:theIssuertransfersandTransfereeaccepts of INTERRAOMiddleEastB.v.thatareplacedadditionally.Subject Purchase transactionofJSCINTERRAOUESthesimpleshares essential terms) Transactions (subjectmatteroftransactionandits “Client” INTER RAOUES— bank —“Bank”;JSC OJSC Gazprom- RAO UES—“Client” ecutor”; JSCINTER JSC fSKUES.—“Ex- RAO UES—“Buyer” “vendor”; JSCINTER OJSC Rushydro— East B.v.—“Issuer” INTER RAOMiddle UES —“Transferee”; JSC INTERRAO Parties time RAO UESatthesame directors ofJSCINTER member oftheBoard Selezniov K.G.thatisthe OJSC Gazprombank Board ofdirectors The membersofthe UES atthesametime) of directorsJSCfSK the memberofBoard RAO UESS.I.Shmatko(is of directorsJSCINTER The membersofBoard OJSC Rushyidro) the Boardofdirectors B.Yu. (isthememberof RAO UESKovalchuk ment BoardofJSCINTER Chairman oftheManage- of OJSCRushydro);the the ManagementBoard E.v. (istheChairmanof INTER RAOUESDod Board ofdirectorsJSC time); thememberof Rushydro atthesame of directorsOJSC members oftheBoard Kurtser G.M.(arethe RAO UESShmatkoS.I., of directorsJSCINTER The membersofBoard RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSCINTER RAOKapital ergoatom Concern;1.3. Rosatom; 1.2. JSC Rosen- the StateCorporation the shareholderis JSC INTERRAOUES: 1.1. Theshareholdersof ate ocre Price Parties concerned mission charge). 500 rublepermonth,vATisnotimposed(com- 50 000rubleincludingvAT. exporter intheexportpriceofnolessthan8%. defined byformulathatstipulatesthepartof 2. Onthebasisofpriceforelectricenergy 1. Upto550rubleper1MWhnotincludingvAT. 3 317298Euros. d/d. 30.09.2010 Minutes No.32 d/d. 30.09.2010 Minutes No.32 d/d. 30.09.2010 Minutes No.32 d/d. 30.09.2010 Minutes No.32 transaction the approving BD minutes No. ofGMS/

155 ANNUAL REPORT JSC RAO UES / 2010 156 ANNUAL REPORT JSC RAO UES / 2010 66 68 67 No. rial Se- after suchconsenthas beenobtained. of votingsharescanbetransferredintopossession oftheBuyeronly of theagreement(s)inamountexceeding 25%fromthetotalnumber consent hasnotbeenobtainedthentheshares whicharetheobject the momentofsignatureagreement (s)bythePartiessuch of thefederalAnti-MonopolyServiceRussia isrequiredandby of theblockssharesindicatedinpresent resolutiontheconsent of pledgesharesbySeptember1,2010, No.2/01/09.Ifthetransfer according totheorderestablishedby article5oftheAgreement holder isentitledtoinstituterecoveryproceedings againsttheShares pledge remainsinpossessionanduseofthePledger.ThePledge RAO KapitalastheBuyerandfortumvendor.Thesubjectof St. PetersburgsalescompanyconcludedbetweenCJSCINTER conditions ofthesaleandpurchaseagreement(s)sharesJSC Brodokalmakskii trakt,6,OGRN1058602102437)accordingtothe (place oflocation:theRussianfederation,454077,Cheliabinsk, number ofordinarynominaluncertifiedsharestheOJSCfortum dred seventyeightmillion)rubleinmonetaryfundsand/orequivalent sales companyinamountofupto1678000(onebillionsixhun- of thepricepurchasedblocksharesJSCSt.Petersburg 1/01/09. ThesecuredobligationisthepaymenttoPledgeholder shares saleandpurchaseagreementbySeptember1,20.10,No purpose oftheobligationsPriorPledgerasbuyeron that arethesubjectofpledgeinfavourPledgeholderfor 100 nominalpreferentialsharesofJSCSt.Petersburgsalescompany 2/01/09 concerning191432148nominalordinarysharesand48633 tions ofthePriorPledgeronagreementbySeptember1,2010no pany. SubjectofAgreement:Thenewpledgerassumestheobliga- Agreement ofpledgesharesJSCSt.Petersburgsalescom- on theirpayment. into thepledgetovendorsecureobligationsofBuyer subject ofthesaleandpurchaseagreement(s)arenottransferred agreement ofSeptember1,2010no1/01/09.Thesharesthatarethe of CJSCINTERRAOKapitalunderthesharessaleandpurchase Power andheatOy(pledgeholder)forthepurposeofobligations under sharesofSeptember1,2010no2/01/09infavourfortum company arethesubjectofpledgeonAgreement 48 633100nominalpreferentialsharesofJSCSt.Petersburgsales up to293252835ruble.191432146nominalordinarysharesand of thepurchasedblockpreferentialnominaluncertifiedsharesis 2-01-55168-E withthenominalvalueof0.2rublepershare.Theprice certificate shares,thestateregistrationnumberofsecuritiesissue to 1384975166ruble.b)up48633100preferentialnominalnon- of thepurchasedblockordinarynominaluncertifiedsharesisup 1-01-55168-E withthenominalvalueof0.2rublepershare.Theprice uncertified shares,thestateregistrationnumberofsecuritiesissue Petersburg salescompany:a)upto229600253ordinarynominal to sellandtheBuyerisobligedbuyfollowingsharesofJSCSt. burg salescompany.SubjectofAgreement(s):thevendorisobliged The saleandpurchaseagreement(s)forsharesofJSCSt.Peters- gations ontheagreement. Agreement: untilthecompleteexecutionbypartiesoftheirobli- revenue fromelectricenergysuppliedbythePrincipal.Termof the transfertoPrincipal’saccountofexportforeigncurrency to organiseinorderandontermsdefinedbythepresentAgreement energy withtheauthorisedentitiesatlocationofimporters;— manner thetechnicalconditionsofassumedsupplieselectric electric energywiththeimporters;—tocoordinateinappropriate of thePrincipalandathisexpenseagreementssupply customers (importers);—toconcludeinhisownnamebutonbehalf research andfollowinginteractionwithpotentialimporters—foreign the energysystemofKaliningradregionincluding:—toorganise produced onthegeneratingequipmentofBaltijskajaAESlocatedin of suppliestoexportelectricenergybelongingthePrincipaland of executionthecomplexmeasuresconcerningorganisation Principal andathisexpensetoexecutethelegalanotheractions The Agentisobligedforafeeinhisownnamebutonbehalfofthe UES andJSCRosenergoatomConcern.SubjectoftheAgreement: Agreements ofelectricenergyexportbetweenJSCINTERRAO essential terms) Transactions (subjectmatteroftransactionandits Pledger” RAO UES—“New Pledger”; JSCINTER RAO Kapital—“Prior holder”; CJSCINTER heat Oy—“Pledge fortum Powerand UES —“Buyer” JSC INTERRAO Kapital —“vendor”; CJSC INTERRAO cern —Principal Rosenergoatom Con- UES —Agent;JSC JSC INTERRAO Parties RAO Kapital). directors ofCJSCINTER members oftheBoard and D.N.Palunin(arethe RAO UES:I.I.Mirsiyapov directors ofJSCINTER members oftheBoard RAO UES).2.1.The ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom concern;1.3. satom; 1.2.OSCRosen- the StatecorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders RAO Kapital) directors ofCJSCINTER members oftheBoard and D.N.Palunin(arethe RAO UES:I.I.Mirsiyapov directors ofJSCINTER members oftheBoard RAO UES).2.1.The shares ofJSCINTER than 20%ofthevoting possessing jointlymore are theaffiliatedpersons INTER RAOKapital(which concern; 1.3.CJSC 1.2. OSCRosenergoatom corporation Rosatom; shareholder istheState JSC INTERRAOUES:the 1.1. Theshareholdersof UES) shares ofJSCINTERRAO than 20%ofthevoting possessing jointlymore are theaffiliatedpersons INTER RAOKapital(which transaction); 1.3.CJSC Concern partyofthe 1.2. JSCRosenergoatom Corporation Rosatom; shareholder istheState JSC INTERRAOUES:the 1.1. Theshareholdersof ate ocre Price Parties concerned 047 ruble. The valueofthepledgedsharesis1157018 Up to1678228001ruble. currency transitaccount. revenue wasreceivedontheAgent’sforeign (five) bankdaysfromthedatewhenexport Agent ofthecorrespondingamountduring5 of payment.Thefeeispaidbydeductionthe valid rateofRussianlegislationatthemoment account, inadditiontothevATaccording ment thathasbeenpaidintotheAgent’stransit connection withtheexecutionofAgree- coordinated bytheAgentandPrincipalin ment inamountofforeigncurrencyrevenue defined accordingtotheconditionsofAgree- INTER RAOUESasanAgentbyAgreementis The amountofthemonthlyagentfeeJSC d/d. 29.10.2010 Minutes No.33 d/d. 29.10.2010 Minutes No.33 d/d. 30.09.2010 Minutes No.32 transaction the approving BD minutes No. ofGMS/ 69 71 70 No. rial Se- to expandtheAuthorisedcapitalofCompany. as asoleparticipantofLLCINTERRAOUES fINANCEofaresolution working daysfromthemomentofacceptance JSCINTERRAOUES capital ofLLCINTERRAOUESfINANCE.Term:during10(ten) hundred eightythousand)rublenotincludingvATintotheauthorised of JSCINTERRAOUESamountingto5880000(fivemillioneight the informationalsystemofcentralisedcontrolreferencedata of MTR(materialandtechnicalresources)”thatareincludedinto ordinary non-exclusivelicence)ofthecorporativeguide“Catalogue exclusive nonnegotiabletothethirdpersonsrightsofutilisation(of Subject ofAgreement:IntroductionbyJSCINTERRAOUESnon- tribution totheauthorisedcapitalofLLCINTERRAOUESfINANCE. Transaction onpayingupbyJSCINTERRAOUESofadditionalcon- with theforeignBuyers. price lowerlimitatthesuppliesofelectricenergyonagreements the validityofAgreementuntilDecember31,2012;—toraise (Conclusion ofAdditionalAgreementNo9willallow:—toprolongate and JSCTGK-1uponessentialconditionsaccordingtotheAppendix. february 28;2008No06-643/2008-1betweenJSCINTERRAOUES approve theadditionalAgreementNo9toAgentby 2008 No06-643/2008-1JSCINTERRAOUESandTGK-1.To Additional AgreementNo9totheAgentbyfebruary28; No 2ofPGU-325IvanovskayaGRESto220kWelectricmains). execute thetechnologicalattachmentofpowergeneratingunit (The conclusionofanadditionalagreementwillgiveapossibilityto be concludeduponessentialconditionsaccordingtotheAppendix. a transactiontheeffectuationofwhichhassomeinterestthatisto electric mainsbetweenJSCINTERRAOUESandfSKas technological attachmentoftheelectricpowerinstallationsto UES andJSCfSKUES.Toapprovetheagreementofexecution power installationstotheelectricmainsbetweenJSCINTERRAO Agreement ofexecutiontechnologicalattachmenttheelectric essential terms) Transactions (subjectmatteroftransactionandits pany” fINANCE —“Com- LLC INTERRAOUES UES —“Participant”; JSC INTERRAO TGK-1 —“Principal” UES —“Agent”;JSC JSC INTERRAO pany” “Generating com- Ivanovskije PGU– RAO UES(branch tion”; JSCINTER “Network organisa- JSC fSKUES— Parties RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders TGK-1 atthesametime) Board ofdirectorsJSC (is theChairmanof RAO UESSelezniovK.G. of directorsJSCINTER The memberoftheBoard UES atthesametime) of directorsJSCfSK the memberofBoard RAO UESS.I.Shmatko(is of directorsJSCINTER The memberoftheBoard ate ocre Price Parties concerned 5 880000rublenotincludingvAT. of obligationsontheAgreement. related totheexecutionofJSCINTERRAOUES currency revenuetransfer;—otherexpenses tion; —allbankexpensesrelatedtotheforeign the energeticsystemofRussianfedera- Principal viatheenergeticsystemoffinlandto provision ofelectricenergytransitservicesthe conclusion andexecutionoftheagreement INTER RAOUES;—theexpensesrelatedto broker iftheseserviceswillbeprovidedtoJSC the expensesforservicesofcustoms custom registrationofelectricenergyincluding execution including:—theexpensesfor on behalfofJSCTGK-1fortheAgreement expenses ofJSCINTERRAOUES,incurred of servicestransit.—compensationallthe Principal accordingtotheagreementofprovision services ofthetransitelectricenergy percent (notincludingvAT)fromthevalueof tions describedintheAgreement).—5(five) Buyer (companythathasacceptedthecondi- for supplyupontheContractswithaforeign volumes ofelectricenergywhichwereplanned a resultoftherealisationonOREM vAT) oftherevenuereceivedbyJSCTGK-1(as of JSCTGK-1).—8(eight)percent(notincluding present paragraphareexecutedattheexpense of theforeigncurrencyrevenueaccordingto expenses relatedtothereceptionandtransfer account ofJSCINTERRAOUES(allbank revenue obtainedonthetransitforeigncurrency vAT) oftheamountforeigncurrency contains: —3(three)percent(notincluding Is equaltotheamountofagentfeewhich JSC fSKUES. 201-e andtheinternaldocumentsappliedby Tariff Service)ofRussiabyAugust21,2009no Mains approvedbytheOrderoffST(federal for theTechnologicalAttachmenttoElectric Instructional GuidelinesonDefiningthePayment to theelectricmainsdefinedaccording of paymentforthetechnologicalattachment makes uptheamountthatisequalto UES (hereinafter also referred to as “Agreement”) between JSCINTERRAOUESandfSK electric powerinstallationstothemains execution oftechnologicalattachmentthe The priceofservicesundertheagreement d/d. 29.10.2010 Minutes No.33 d/d. 24.12.2010 Minutes No.35 d/d. 29.10.2010 Minutes No.33 transaction the approving BD minutes No. ofGMS/

157 ANNUAL REPORT JSC RAO UES / 2010 158 ANNUAL REPORT JSC RAO UES / 2010 72 74 73 No. rial Se- UES andCJSCINTERRAOKapitalforatermof1year. the loanagreementofNovember10,2009betweenJSCINTERRAO ject ofadditionalagreement:prolongationthetermvalidity between JSCINTERRAOUESandCJSCKapital.Sub- Additional agreementtotheloanofNovember10,2009 the Agreement. tion notlessthanonemonthbeforetheendoftermvalidity terms ifnoneofthePartieshasnotifiedanotherPartyitstermina- year withannualprolongationforonesucceedingonthesame the RussianfederationbyApril15,1995No333),andisvalidforone secret protection(accordingtotheResolutionofGovernment for executionofmeasuresand(or)provisionservicesthestate the statesecretandofreceiptbyJSCINTERRAOUESalicence licence forexecutionofworksusingtheinformationthatisapart receipt LLCCentreofenergyefficiencyINTERRAOUESa agreement: TheAgreementcomesintoforcefromthemomentof in volumeandupontermsdefinedbytheAgreement.Termof ity toprovidetheservicesinfieldofstatesecretprotection mits andisobligedtopaytheExecutorassumesresponsibil- efficiency ofINTERRAOUES.SubjectAgreement:theClientcom- protection betweenJSCINTERRAOUESandLLCCentreofenergy Agreement onprovisionofservicesinthefieldstatesecret (eleven) monthsfromJanuary1,2011. after theendoftermvalidityAgreement.Termlease:11 ing toitsdestination,paytherentandreturnrentedProperty and theLesseeisobligedtoexecuteuseofPropertyaccord- Ivanovskaia region,cityofKomsomolsk,Komsomolskaiastreet,1 to theappendixAgreementlocatedataddress:155150, constructions, transferdevices,machinesandequipmentaccording the Lesseefortemporarypossessionandusebuildings JSC Stend.SubjectofAgreement:theLessorisobligedtoprovide Contract ofleasepropertybetweenJSCINTERRAOUESand essential terms) Transactions (subjectmatteroftransactionandits Kapital —“Loaner” CJSC INTERRAO UES —“Lender”; JSC INTERRAO UES —“Client” efficiency ofRAO LLC Centreofenergy UES —“Executor”, JSC INTERRAO JSC Stend”–“Lessor” UES —“Lessee”; JSC INTERRAO Parties RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders INTER RAOUES” of energyefficiency of directorsLLCCentre the membersofBoard Yu.v. Sharovastheyare UES A.v.Golovliovand Board ofJSCINTERRAO 2.1. Themembersofthe of JSCINTERRAOUES). 20% ofthevotingshares sessing jointlymorethan affiliated personspos- Kapital (whicharethe 1.3. CJSCINTERRAO Rosenergoatom Concern; tion Rosatom;1.2.OSC is theStateCorpora- UES: theshareholder of theJSCINTERRAO 1.1. Theshareholders RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders ate ocre Price Parties concerned 1 123928131ruble,99kopecks MinutesNo.35 865 114ruble8kopecksperyearincludingvAT. monthly. 11 555310ruble91kopecksincludingvAT d/d. 24.12.2010 Minutes No.35 d/d. 24.12.2010 d/d. 24.12.2010 Minutes No.35 transaction the approving BD minutes No. ofGMS/ 75 76 No. rial Se- moment oftheirsignatureandarevaliduntil December31,2013. Agreements: TheAdditionalAgreementscome intoforcefromthe at least1%(Onepercent)perannum.Term ofvalidityAdditional monetary fundsontheClient’saccountfrom 0%(Zeropercent)upto Agreements: Themodificationoftheinterestrateforutilisation tween theCompanyandOJSCBANKRUSSIA.SubjectofAdditional 2. Additionalagreementstothebankaccountagreementinrublebe- moment ofitssignaturebythePartiesandisvalidforindefiniteterm. Duration oftheAgreement:Agreementcomesintoforcefrom in orderestablishedbythecurrentlegislationandAgreement. keeps hismonetaryfundsonBankAccountandmanagesthem provides thecashmanagementservicestoClient.TheClient current accounttotheClientinRussianfederationcurrencyand and OJSCBANKRUSSIA.subjectofAgreement:theBankopensa 1. BankaccountagreementinrublebetweenJSCINTERRAOUES Bank forReconstructionandDevelopmentJSCTelasi. the AgreementofProjectSupportandSharesholdupareEuropean and JSCTelasi.ThebeneficiariesoftheContractIndemnity holdup areEuropeanBankforReconstructionandDevelopment of IndemnityandtheAgreementProjectSupportShares defined intheCreditAgreement).ThebeneficiariesofContract credit agreementandtheotherfinancialDocuments(asthistermis complete executionbyJSCTelasiofallitsobligationsunderthe from themomentofitssignaturebyPartiesandisvaliduntil agreement ofprojectsupportandsharesholdupcomesintoforce executes hisobligationsontheagreement.Termofvalidity: without awrittenconsentofEBRD;—toensurethattheShareholder arises bylaworduringanyregulareconomicactivityoftheSponsor concerning theShareholder’ssharesexcludingprovisionthat tion ofsecurities;—towithholdfromestablishinganyprovision the authorisedcapitalofShareholderafterthatprimarydistribu- Sponsor continuestoholddirectlyorindirectlyatleast51%sharesin execution oftheprimarydistributionsecuritiesprovidedthat these sharesintheauthorisedcapitalofShareholderdueto sale, transferoranotherdisposaloftheSponsor’srightsconcerning the authorisedcapitalofShareholderexcludingcasesany retains possession(directorindirect)ofnotlessthan100%sharesin responsibilities duringallthetermofvalidityagreementand the sharesaccordingtowhichSponsorassumesfollowing of theShareholderwithoutawrittenconsentEBRD;b)holdup provision thatarisesbylaworduringanyregulareconomicactivity any provisionconcerningtheShareholder’ssharesexcluding the termofvalidityagreement;—towithholdfromestablishing at least51%sharesintheauthorisedcapitalofJSCTelasi”duringall holder assumesthefollowingobligations:—toretainpossessionof shares holdup:a)holdupoftheaccordingtowhichShare- and Development.SubjectoftheAgreementprojectsupport UES, SilkRoadholdingsB.v.andEuropeanBankforReconstruction ment ofprojectsupportandsharesholdupbetweenJSCINTERRAO by JSCTelasiofallitsobligationsonthecreditagreement;2.Agree- of itssignaturebythepartiesandisvaliduntilcompleteexecution contract: thecontractofindemnitycomesintoforcefrommoment ments (asthistermisdefinedintheCreditAgreement);Durationof due tothemonetaryobligationsofJSCTelasionfinancialDocu- irrevocably indemnifyEBRDforanylossesandexpensesincurred was themaindebtor;b)TheGuaranteeisobligedtoabsolutelyand (as thistermisdefinedintheCreditAgreement)asifGuarantee gations ontheCreditAgreementandanotherfinancialDocuments execution orimproperbyJSCTelasiofthepaymentobli- obliged toabsolutelyandirrevocablyreporttheEBRDfornon- Development. Subjectofcontractindemnity:a)TheGuaranteeis JSC INTERRAOUESandEuropeanBankforReconstruction Interconnected transactions:1.Contractofindemnitybetween essential terms) Transactions (subjectmatteroftransactionandits “EBRD” Development — Reconstruction and European Bankfor B.v. —“Shareholder”; Silk Roadholdings UES —“Sponsor”; 2. JSCINTERRAO ment —“EBRD”; tion andDevelop- for Reconstruc- European Bank UES —“Guarantee”, 1. JSCINTERRAO RAO UES—“Client” “Bank”, JSCINTER BANK RUSSIA.— “Client”. 2.1.OJSC INTER RAOUES— SIA. —“Bank”,JSC 1. OJSCBANKRUS- Parties RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders OJSC BANKRUSSIA) of heBoarddirectors relative totheChairman Kovalchuk (isaclose INTER RAOUESB.Yu. agement BoardofJSC The chairmanoftheMan- ate ocre Price Parties concerned Agreement). Documents (asthistermisdefinedintheCredit tions ofJSCTelasitoEBRDonthefinancial amount; —otherpossiblemonetaryobliga- from theinterestsandprincipaldebtoverdue overdue amountfeeinof2%perannum Credit Agreement;—interestsandprincipaldebt first threeyearsfromthedateofsignature immediately iftheredemptionismadeduring of 1.5%theprincipaldebtthatistobepaid of funds;—earlyredemptionpenaltyinamount commitment duringalltheperiodofavailability mitment feeinamountof0.5%theundrawn in amountof1.5%thecreditamount;—com- lowing fees:—frontendfeeforthecreditissue Guarantee andJSCTelasi,theamountoffol- year dependingonthefinancialindicatorof the margininamountof3.5to5.0percentper (i) ofLIBORrate(6monthsinUSdollars)and(ii) credit, therateofinterestmakesupamount US dollars,—theamountofintereston Indemnity: upto25000(twentyfivemillion) Credit AgreementsecuredbytheContractof tions: —theamountofprincipaldebton Is definedconsideringthefollowingcondi- account ofJSCINTERRAOUES. balance ofthemonetaryfundsoncurrent and notexceeding10%perannumaddedtothe “Client-Bank” system.Inamountofatleast1% and throughtheinformationdistributionin stands intheBankpremises,onsite changes bypublicationofthisinformationonthe 20 (twenty)calendardaysbeforethedateof tion afterhavingnotifiedtheClientofitatleast amount ofcommissionfeeatitssolediscre- practice. TheBankisentitledtochangethe entrepreneurs andindividualsleadingaprivate OJSC BANKRUSSIAforlegalpersons,private ment oftheactualtariffscommissionfee ing tothetariffsestablishedbyAbridg- 1. TheClientpaysfortheBankservicesaccord- d/d. 24.12.2010 Minutes No.35 d/d. 24.12.2010 Minutes No.35 transaction the approving BD minutes No. ofGMS/

159 ANNUAL REPORT JSC RAO UES / 2010 160 ANNUAL REPORT JSC RAO UES / 2010 77 78 No. rial Se- valid forindefiniteterm. comes intoforcefromthedateofitssignaturebyPartiesandis ices andtopayforthem.DurationoftheAgreement:TheAgreement the Associationsassumeobligationtoacceptprovidedserv- ruble andforeigncurrencyopenattheBankCompany fectuation ofthetransactionsonaccountsAssociationsin of exchangeelectronicdocuments(“Client-Bank”system)atef- the Associationsservicesrelatedtoutilisationofsystem company. SubjectofAgreement:bankprovidestotheCompanyand OJSC TambovenergysaleslCompany,St.Petersburgsales OJSC Mosenergosbyt,Saratovenergo,Altajenergosbyt, exchange betweenJSCINTERRAOUES,OJSCGazprombankand Agreement ofutilisationthesystemelectronicdocuments square meters,roomno8withthefloorareaof61.3meters). in theatticfloor(partofroomno5witharea233.9 room no8withthefloorareaof65.0squaremeters),PremisexIv square meters,roomno5withthesurfaceof381.5 Premise xIIinthe2ndfloor(roomno2withareaof396.3 the 1stfloor(roomno9withareaof46.1squaremeters), building; thetotalfloorareais1184.06squaremeters:Premisevon Pirogovskaia street,27,building3,accordingtothefloorplanof following premisesthatarelocatedattheaddress:Moscow,Bolshaia The LessortransfersandtheLesseeacceptsintotemporaryuse INTER RAOUESandCJSCELEKTROLUCh.SubjectofAgreement: Non-residential (office)premisesleaseagreementbetweenJSC essential terms) Transactions (subjectmatteroftransactionandits “Associations” sociation” andjointly independently “As- company —each St. Petersburgsales sales company, OJSC OJSC Tambovenergy ergo, Altajenergosbyt, OJSC Saratoven- Mosenergosbyt, “Company”; OJSC INTER RAOUES— bank —“Bank”;JSC OJSC Gazprom- UES —“Lessee” sor”; JSCINTERRAO KTROLUCh —“Les- CJSC ELE- Parties RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders CJSC ELEKTROLUCh Supervisory Cometteeof they aremembersofthe Boris andD.N.Paluninas INTER RAOUES:A.G. bers oftheBoardJSC RAO UES).2.1.Themem- ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders ate ocre Price Parties concerned new tariff. days beforethedateofimplementation notified theClientofitatleast10(ten)calendar commission feeinitssolediscretionafterhaving The Bankisentitledtochangetheamountof 100 000.00rublepermonth,vATisnotimposed. corresponding paymenteffectuation. rate oftheBankRussiaasondate be madeintheRussianfederationrubleat the typesofpaymentsonAgreementareto for onecalendarmonthnotincludingvAT.All hundred) USdollarsperoneLessee'svehicle 27, building1,2,3,4inamountof200(two address: Moscow,BolshaiaPirogovskaiastreet, territory ofthegroupbuildingslocatedat entrance andexitoftheLessee’svehicleson the electricpowermeter;—Paymentforregular vAT; —variablerentdefinedontheindicatorsof meter ofrentedsurfacepremisesnotincluding (one hundred)USdollarsperyearforonesquare Lessee maintenancecostintheamountof100 rented surfaceofpremisesnotincludingvAT;— dred) US dollars per year for one square meter of vAT; —Basicrentinamountof700(sevenhun- dredths) conventionalunits(c.u.)notincluding thousand fourhundredtenwholesand00hun- deposit thatisequalto88410.00(eightyeight Consists ofthefollowingpayments:—Security d/d. 24.12.2010 Minutes No.35 d/d. 24.12.2010 Minutes No.35 transaction the approving BD minutes No. ofGMS/ 79 80 No. rial Se- cluded forindefiniteterm. Trade Contracts.DurationoftheAgreement:Agreementiscon- transfer ofelectricenergyaccordingtotheconditionsforeign via theinterconnectorsdefinedbyAgreement-1.—Ensures tracts. —EnsuresthetransportationofelectricenergyPrincipal security oftheobligationsPrincipalonforeignTradeCon- energy (capacity)uponconditionsprovidedbytheAgreement-1asa Market andtheregulationsofwholesalemarketelectric (Capacity), theAgreementofJoiningTradeSystemWholesale established bytheRulesofWholesaleMarketElectricEnergy on themarketofelectricenergyRussianfederationinorder the expenseofPrincipal:—Purchasesandsellselectricenergy The Agentexecutesthefollowingactionsinhisownnameandat fee intheamountandorderestablishedbyAgreement-1. counteragents andthePrincipalisobligedtopayAgentagent the foreigntradecontractsconcludedbetweenPrincipalandhis supply ofelectricenergyfromtheRussianfederationtoMongoliaon expense ofthePrincipallegalandotheractionsproviding commitment ofthePrincipaltoexecuteinhisownnameandat lia toRussia).1.SubjectofAgreement:theAgentisobligedon (supply ofelectricenergyfromRussiatoMongoliaandMongo- Agent agreementbetweenJSCINTERRAOUESandOJSCvEK ary 31,2011,dateoftheendinspections—untilApril30,2011. of worksontheAgreement:datebeginning—untilJanu- plete executionbythePartiesoftheirobligations.Term 30, 2011andinthepartofexecutionscalculationsuntilcom- from themomentofitssignaturebyPartiesandisvaliduntilApril Agreement. DurationofAgreement:TheAgreementcomesintoforce indicated intheTechnicalRequirementsthatisanintegralpartof in theAgreement;EssenceofWorksandtheirrequirementsare the Russianfederationuntilapositiveresultforobjectsindicated confirmation ofthenormativevaluesinMinistryEnergetics used forcalculations,consultingmaintenanceoftheprocedure capacity standardscalculation;—verificationofjustificationdata the releasedelectricandthermalenergy;—examinationfuel transfer; —examinationandthefuelratestandardscalculationfor and theprocesslossesstandardscalculationatheatenergy the responsibilitytoeffectuatefollowingWorks:—examination Subject ofagreement:TheClientcommitsandtheExecutorassumes efficiency ofINTERRAOUES(unifiedelectricpowersystem)”. calculation betweenJSCINTERRAOUESandLLCCentreofenergy 2. Agreementofexecutionworksexaminationandthestandards 31, 2011,dateoftheendinspections—untilSeptember30,2011. Agreement: dateofbeginningworks(inspections)—untilJanuary of theirobligations.Termexecutionworks(inspections)onthe executions ofcalculationsuntilthecompleteexecutionbyParties by thePartiesandisvaliduntilSeptember30,2011inpartof The Agreementcomesintoforcefromthemomentofitssignature days fromthedateofbeginningworks.DurationAgreement: gram”) providedtotheClientbyEnergyAuditorduring7(seven) of energeticinspection(hereinafterreferredtoas“EnergyAuditPro- energy auditiseffectuatedaccordingtotheProgramofexecution Technical RequirementsthatisintegralpartoftheAgreement.The the Client(hereinafterreferredtoas“energyaudit”)according assumes theobligationstoeffectuateenergeticinspectionof tions oftheAgreementClientcommitsandEnergyAuditor UES. SubjectofAgreement:Onthebaseandaccordingtocondi- INTER RAOUESandLLCCentreofenergyefficiency 1. AgreementofexecutionenergeticinspectionsbetweenJSC essential terms) Transactions (subjectmatteroftransactionandits “Executive” of INTERRAOUES– of energyefficiency “Client”; LLCCentre INTER RAOUES— ergy Auditor”.2.JSC RAO UES—“En- efficiency ofINTER Centre ofenergy UES —“Client”;LLC JSC INTERRAO “Agent” or“Principal” INTER RAOUES— pal” or“Agent”;JSC OJSC vEK—“Princi- Parties the sametime Directors ofOJSCvEKat member oftheBoard D.N. Paluninwhoisthe JSC INTERRAOUES member oftheBoard Director ofOJSCvEK; who isalsotheGeneral RAO UESYu.v.Sharov the BoardofJSCINTER 2.1. DeputyChairmanof of JSCINTERRAOUES). 20% ofthevotingshares sessing jointlymorethan affiliated personspos- Kapital (whicharethe 1.3. CJSCINTERRAO Rosenergoatom Concern; tion Rosatom;1.2.OSC is theStateCorpora- UES: theshareholder of theJSCINTERRAO 1.1. Theshareholders ate ocre Price Parties concerned No morethan7008020ruble,includingvAT. No morethan29000020ruble,includingvAT. SO UESthatisnolessthan0.01ruble/kWh. energy (capacity):OJSCATS,CJSCCfR,OJSC- organisations ofthewholesalemarketelectric INTER RAOUESfortheservicesofinfrastructure contracts consideringtheexpensesofJSC from thebuyerofOJSCvEKonforeigntrade ferred tothebuyerofOJSCvEKandreceived RAO UESdefinedontherateofonekWhtrans- In theamountofagentfeeJSCINTER d/d. 24.12.2010 Minutes No.35 d/d. 24.12.2010 Minutes No.35 transaction the approving BD minutes No. ofGMS/

161 ANNUAL REPORT JSC RAO UES / 2010 162 ANNUAL REPORT JSC RAO UES / 2010 81 82 No. rial Se- forty four)shares,totalpriceisupto1472439386ruble. amount of561944(fivehundredsixtyonethousandnine forty two)somonipereach,priceofoneshareis2620.26rublein Shestopalova street,2a,withnominalvalueof3042(threethousand GES-1, location:RepublicofTajikistan,734033,cityDushanbe, uncertified sharesofopenjointstockcompany“Sangtudinskaya payment fortheacquiredSecuritiesofIssuer:—ordinarynominal funds inrubles;TheAcquirertransfersthefollowingpropertyfor is madebynonmonetaryfundsandcanalsobemonetary 1-03-33498-E-002D. ThepaymentoftheacquiredSecuritiesIssuer Russia onNovember16,2010underthestateregistrationnumber of JSCINTERRAOUESadditionalissueregisteredbyfSfR of Issueris5.35kopecksperoneordinarynominaluncertifiedshare 504 670securities;thepriceofplacementacquiredSecurities lowing conditions:—numberofacquiredSecuritiesIssuer:28898 of Issuer”)andtheAcquirerpaysSecuritiesIssueruponfol- placed byprivatesubscription(hereinafterreferredtoas“Securities 002D withnominalvalueof0.02809767rublepereachthatare vember 16,2010underthestateregistrationnumber1-03-33498-E- RAO UESofadditionalissueregisteredbyfSfRRussiaonNo- ties thataretheordinarynominaluncertifiedsharesofJSCINTER Issuer places(transfers)intothepropertyofAcquirersecuri- additional sharesofJSCINTERRAOUES.SubjectAgreement:the Transaction withtheStatecorporationRosatomonplacementof Concel bySeptember20,2010. resolution oftheboardsupervisorydirectorsNPMarket the tradesystemofwholesalemarketineditionapprovedby the AppendixesnoD.16andD.16.1toAgreementofjoining to theStandardformofAgreementscapacityprovisionthatare CJSC CfRactingasanagentofJSCINTERRAOUESaccording are concludedonthebaseofindicatedAgentAgreements Concel bySeptember20,2010.Agreementsofcapacityprovision by theresolutionofboardsupervisorydirectorsNPMarket joining thetradesystemofwholesalemarketineditionapproved that aretheAppendixesnoD.15andD.15.1toAgreementof INTER RAOUESaccordingtothestandardformofsuchagreements the capacitypurchase.AgentagreementsareconcludedbyJSC Agent agreementsandagreementofcapacityprovisionincluding essential terms) Transactions (subjectmatteroftransactionandits sato” —“Acquirer” State CorporationRo- UES —“Issuer”; JSC INTERRAO organisations) ATS (infrastructure OJSC SOUES, NP MarketConcel, wholesale market, capacity buyeronthe agent CJSCCfR,the represented bythe INTER RAOUES ity purchase:JSC including thecapac- capacity provision the Agreementsof organisations); for ATS (infrastructure OJSC SOUES, NP MarketConcel, CJSC CfR(agent), RAO UES(principal), ment: JSCINTER fortheAgentAgree- Parties RAO UES) ing sharesofJSCINTER more than20%ofthevot- persons possessingjointly (which aretheaffiliated CJSC INTERRAOKapital ergoatom Concern;1.3. satom; 1.2.OSCRosen- the StateCorporationRo- UES: theshareholderis of theJSCINTERRAO 1.1. Theshareholders at thesametime) member ofOJSCSOUES S.I. Shmatko(isthe of JSCINTERRAOUES of theBoardDirectors Market Concel;member supervisory directorofNP v.M. Kravchenko(isthe JSC INTERRAOUES Board ofDirectors time); memberofthe OJSC ATSatthesame Board ofDirectors (are themembersof of JSCINTERRAOUES, the ManagementBoard Kovalchuk, Chairmanof of DirectorsandB.Yu. member oftheBoard v.M.Kravchenko,the ate ocre Price Parties concerned Up to1472439386ruble. September 20,2010). of supervisorydirectorsNPMarketConcelby edition approvedbytheresolutionofBoard pendix D.16.1.totheAgreementofjoining(in according tothestandardformthatisAp- Concel bySeptember20,2010)andconcluded board ofsupervisorydirectorsNPMarket (in theeditionapprovedbyresolutionof is theAppendixD.16toAgreementofjoining concluded accordingtothestandardformthat 4.1. totheAgreementoncapacityprovision foreseen byAppendixno4and buyer) isdefinedaccordingtotheorderthat agreement forJSCINTERRAOUES(capacity Agreement oncapacityprovision.Thepriceof by Appendixno4and4.1.tothe defined accordingtotheorderthatisforeseen for JSCINTERRAOUES(capacityvendor)is ing vAT(18percent).Thepriceofagreement (one hundredthousand)rubleperquarterinclud- validity oftheagreementinamount100000 the agentineachquarterduringalltermof UES (principal)isthefeepaidbyprincipalto The priceofagreementforJSCINTERRAO d/d. 27.12.2010 Minutes No.36 d/d. 24.12.2010 Minutes No.35 transaction the approving BD minutes No. ofGMS/ 83 No. rial Se- 624 578765ruble. of 3390.99rubles,inamount1597429shares,totalpriceisupto of Razdan,Gortsaranainstreet,RasdanskaiaTPP,withnominalvalue place oflocation:378550RepublicArmenia,Kotaikskiimarz,city pany “RasdanskaiaEnergeticCompany(RazTPP)”(OAO“RazTPP”), Issuer: —ordinary(simple)nominalsharesofopenjointstockcom- the followingpropertyforpaymentacquiredSecuritiesof also bemadebymonetaryfundsinrubles;TheAcquirertransfers acquired SecuritiesofIssuerismadebynonmonetaryfundsandcan the state registration number 1-03-33498-E-002D. The payment of the Service forfinancialMarkets)ofRussiaonNovember16,2010under power system)”ofadditionalissueregisteredbyfSfR(federal OAO (openjointstockcompany)“INTERRAOYeES(unifiedelectric Issuer is5.35kopecksperoneordinarynominaluncertifiedshareof 440 securities;—thepriceofplacementacquiredSecurities conditions: —numberofacquiredSecuritiesIssuer:11674369 and theAcquirerpaysSecuritiesofIssueruponfollowing private subscription(hereinafterreferredtoas“SecuritiesofIssuer”) with nominalvalueof0.02809767rublepereachthatareplacedby 16, 2010underthestateregistrationnumber1-03-33498-E-002D fSfR (federalServiceforfinancialMarkets)ofRussiaonNovember (unified electricpowersystem)”ofadditionalissueregisteredby fied sharesofOAO(openjointstockcompany)“INTERRAOYeES of theAcquirersecuritiesthatareordinarynominaluncerti- Subject oftransaction:theIssuerplaces(transfers)intoproperty company) “INTERRAOYeES(unifiedelectricpowersystem)”. the ordinarynominaluncertifiedsharesofOAO(openjointstock NEfTEGAZ” (OAO“ROSNEfTEGAZ”)ofthesecuritiesthatare Transaction onpurchasebytheopenjointstockcompany“ROS- essential terms) Transactions (subjectmatteroftransactionandits GAZ” —“Acquirer” pany “ROSNEfTE- open jointstockcom- system)” —“Issuer”; (unified electricpower “INTER RAOYeES stock company) OAO (openjoint Parties at thesametime) pany) “ROSNEfTEGAZ” (open jointstockcom- Board ofDirectorsOAO (are themembersof Sechyn andS.I.Shmatko electric powersystem)”I.I. RAO YeES(unified stock company)“INTER Directors OAO(openjoint Members ofBoard ate ocre Price Parties concerned Up to655810000ruble. d/d. 27.12.2010 Minutes No.36 transaction the approving BD minutes No. ofGMS/

163 ANNUAL REPORT JSC RAO UES / 2010 164 ANNUAL REPORT JSC RAO UES / 2010 holds forJanuary1,2010 ordinary stockofthejoint-stockcompanyhe the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof holds asofJanuary1,2010 ordinary stockofthejoint-stockcompanyhe the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof date oftransaction transactions ofpurchaseordisposalsharesthejoint-stockcompany date oftransaction transactions ofpurchaseordisposalsharesthejoint-stockcompany July 8,2010 July 8,2010 July 22,2010 December 2,2010 As on December 31, 2010 holds 1 998 333 333 shares shares 333 333 31, 1998 2010 holds December on As shares 000 000 31, 1200 2010 holds December of As Artamonov ViacheslavYuriyevich Dod YevgeniyViacheslavovych Of JSCINTERRAOUESExECUTIvEBODIES EqUITY TRANSACTIONSMADEBYMEMBERS INfORMATION ABOUTJSCINTERRAOUES 0.00% and 0.00% and essence oftransaction essence oftransaction purchase ofshares purchase ofshares disposal ofshares disposal ofshares December 31,2010 stock ofthejoint-stockcompanyheholdsfor joint-stock companyandthepartofordinary partnership share in the authorised capital of the December 31,2010 stock ofthejoint-stockcompanyheholdsas joint-stock companyandthepartofordinary partnership share in the authorised capital of the stock companyheholds) and thepartofordinarystockjoint- authorised capitalofthejoint-stockcompany action (inunitsandinpartnershipsharethe joint-stock companythatisthesubjectoftrans- category (type)andnumberofsharesthe stock companyheholds) and thepartofordinarystockjoint- authorised capitalofthejoint-stockcompany action (inunitsandinpartnershipsharethe joint-stock companythatisthesubjectoftrans- category (type)andnumberofsharesthe 8 3 3 hrs(.1%ad018)0.118%and 2 683333shares(0.118%and0.118%) 0.3034%and 6 900000shares(0.3034%and0.3034%) 8 0 0 hrs(.31 n .31)0.0879%and 685 000shares(0.0301%and0.0301%) 0.1383%and 2 900000shares(0.1002%and0.1002%) 0.0691% and 0.1383% and transaction he holdsaccordingtotheresultsof ordinary stockofthejoint-stockcompany the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof transaction he holdsaccordingtotheresultsof ordinary stockofthejoint-stockcompany the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof holds asofJanuary1,2010 ordinary stockofthejoint-stockcompanyhe the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof holds asofJanuary1,2010 ordinary stockofthejoint-stockcompanyhe the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof date oftransaction transactions ofpurchaseordisposalsharesthejoint-stockcompany date oftransaction transactions ofpurchaseordisposalsharesthejoint-stockcompany December 9,2010 October 21,2010 October 1,2010 July 13,2010 December 1,2010 October 11,2011 September 17,2010 August 2,2010 July 12,2010 As on December 31, 2010 does not hold any shares. shares. any 31, hold not 2010 does December on As shares. 000 000 31, 1005 2010 holds December on As Sharov YuriiVladimirovich Mikalaiunas Dangiras 0.00% and 0.00% and essence oftransaction essence oftransaction disposal ofshares disposal ofshares disposal ofshares purchase ofshares disposal ofshares disposal ofshares disposal ofshares disposal ofshares purchase ofshares December 31,2010 stock ofthejoint-stockcompanyheholdsas joint-stock companyandthepartofordinary partnership share in the authorised capital of the December 31,2010 stock ofthejoint-stockcompanyheholdsas joint-stock companyandthepartofordinary partnership share in the authorised capital of the stock companyheholds) and thepartofordinarystockjoint- authorised capitalofthejoint-stockcompany action (inunitsandinpartnershipsharethe joint-stock companythatisthesubjectoftrans- category (type)andnumberofsharesthe stock companyheholds) and thepartofordinarystockjoint- authorised capitalofthejoint-stockcompany action (inunitsandinpartnershipsharethe joint-stock companythatisthesubjectoftrans- category (type)andnumberofsharesthe 0 0 3 hrs(.18 n .18)0.00%and 0.0346%and 0.0800%and 1 000333shares(0.0138%and0.0138%) 0.118%and 1 300000shares(0.0449%and0.0449%) 368 333000shares(0.0162%and0.0162%) 2 683333shares(0.118%and0.118%) 0.0347%and 0.0467%and 0.0770%and 345 000shares(0.0119%and0.0119%) 0.0879%and 400 000shares(0.0138%and0.0138%) 0.118% and0.118% 250 000shares(0.0109%and0.0109%) 685 333shares(0.0300%and0.0300%) 2 683333shares(0.118%and0.118%) 0.00% and 0.0347% and transaction he holdsaccordingtotheresultsof ordinary stockofthejoint-stockcompany the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof transaction he holdsaccordingtotheresultsof ordinary stockofthejoint-stockcompany the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof

165 ANNUAL REPORT JSC RAO UES / 2010 166 ANNUAL REPORT JSC RAO UES / 2010 holds asofJanuary1,2010 ordinary stockofthejoint-stockcompanyhe the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof date oftransaction transactions ofpurchaseordisposalsharesthejoint-stockcompany July 5,2010 registered modificationstotheCharterofJSCINTERRAOUESfromOctober11,2010authorisedcapitalcontaines2893027370229ordinaryshares. according totheregisteredCharterofJSCINTERRAOUESuntilOctober11,2010authorisedcapitalcontained2274113845013ordinarysharesandafterthisdate * During thecalculationofpartnershipsharesinauthorisedcapitalCompanyandordinarystockbelongingtopersonsitwastakenintoconsiderationthat 31, 197 2010 shares. 707 holds 736 December on As Palunin DmitriiNikolaievich 0.00% and essence oftransaction purchase ofshares December 31,2010 stock ofthejoint-stockcompanyheholdsas joint-stock companyandthepartofordinary partnership share in the authorised capital of the stock companyheholds) and thepartofordinarystockjoint- authorised capitalofthejoint-stockcompany action (inunitsandinpartnershipsharethe joint-stock companythatisthesubjectoftrans- category (type)andnumberofsharesthe 9 0 3 hrs(.07 n .07)0.0087%and 197 707736shares(0.0087%and0.0087%) 0.0068% and transaction he holdsaccordingtotheresultsof ordinary stockofthejoint-stockcompany the joint-stockcompanyandpartof partnership shareintheauthorisedcapitalof TSA TSA OS GLOSSARY FTS UES FGC TPP TGK TS UES for SO P and SPA EE of DM RAS RGC RCD RA PGU UPS EPWM AWP IDO OGK NP MDNC IFRS KPI CPT CSA SAC GES (GTE) GTU GS GRES BM

Administrator of Administrator the trading system market of wholesale Ordinary shares shares Ordinary f System Energy Unified the of Company Grid federal plant power Thermal Territorial generating companies Trading schedule system Energy Unified the of Operator System power and Sales and purchase agreement of electrical energy Tomorrow market Russian Accounting Standards Regional generating companies Regional control departments Regulated agreements Combined cycle power unit systems power United Electric power wholesale market Autumn-winter period Interregional Dispatching Office Generating companies of wholesale market Nonprofit partnership Multi-regional distribution network companies International financial reporting standards Key performance indicators Competitive power takeoff Capacity supply agreement Subsidiary and affiliated companies plant power hydraulic plant) power turbine (gas unit turbine Gas Guaranteeing supplier plant) power thermal — Russia (in plant power district State Balancing market of electric power electric of ederal Tariff Service

kWh MVA MVA kVA kV Hz Gcal/hour Gcal kVV kVV Nft Eft Ton\h GW MW TERMS

Kilowatt Kilowatt Kilowatt-hour Megavolt-Ampere Kilovolt-Ampere Kilovolt Electric hertz Gigacalorie/hour Natural fuel ton fuelton Equivalent Tons hour per Gigawatt Megawatt Gigacalorie Gigacalorie

Unit of measurement of electric electric of measurement of Unit

Unit of measurement of produced of measurement of Unit

Unit of measurement of capacity of measurement of Unit Unit of measurement of thermal thermal of measurement of Unit capacity of measurement of Unit nt f esrmn o electric of measurement of Unit electric power Unit of measurement of voltage Current frequency capacity Unit of measurement Unit of measurement of steam-generating capacity Unit of measurement capacity electric of measurement of Unit capacity capacity Unit of measurement of thermal energy

167 ANNUAL REPORT JSC RAO UES / 2010 168 ANNUAL REPORT JSC RAO UES / 2010 Phone: Phone: shareholders: for line Hot FOR SHAREHOLDERS: CONTACT INFORMATION website: Corporate e-mail: e-mail: e-mail: Fax: Phone: department: relations Public Fax: Phone: f cow, 123610, Russian the 12, Krasnopresnenskaya Nab, Entrance 7, Mos address: Mailing f cow, 123610, Russian the 12, Krasnopresnenskaya Nab, Entrance 7, Mos address: Legal (JSCINTERRAOUES) INTER RAOUES

[email protected] +7 (495) 967-05-26 +7 (495) 967-05-27 +7 (495) 710-89-83 www.interrao.ru [email protected] +7 (495) 967-05-26 (multi-channel) +7 (495) 967-05-27 JOINT STOCKCOMPANY CONTACT INfORMATIONOf ederation ederation - - fax: fax: e- Tanya AvP Amaya, http://www.bnymellon.com/ York New of Mellon Bank The DEPOSITARY BANК Fax: Phone: 115035 Russia, 77, Nab., 1,Building Sadovnicheskaya Moscow, address: Legal Young and Ernst Company Joint-Stock AUDITOR e- mailto: Fax Tel London E14 Square Canada One Issuer Services York New of Mellon Bank The vP Lewis, Mark phone: phone: York, 10286 New NY 22 101 Depositary Receipts York New of Mellon Bank The mail: mail: -nd floor West West floor -nd Barclay Street

5AL +1-212-571 020.7964.6024 [email protected] 020.7964.6089 [email protected] +1-212-815 [email protected] +7 (495) 755-97-01 +7 (495) 705-97-00

- - 30 28 - - 92 50

of JSC INTER RAO UES: RAO INTER JSC of Call-centerof register holderfor shareholders Web-site: Fax: Phone: str., 9, 107996 18, Moscow, POB Stromynka address: Mailing R.O.S.T Registrator JSC REGISTER HOLDER Russia) and e-mail: [email protected] e-mail: and Russia) across free is (call 8-800-700-03¬70 Phone:

www.rrost.ru (495) 771-73-34 (495) 771-73-35 Yaroslavl regionalbranch Aktsiya-Reyestr Yuzhno-Sakhalinsk Branch Electrostal Branch Chelyabinsk regionalbranch Ulyanovsk regionalbranch Tambov regionalbranch Separate subdivisioninSyktyvkar Stavropol Branch Mordovia republicBranch Separate subdivisioninSt.Petersburg Samara Branch Podolsk Branch Kamchatka Branch Separate subdivisioninPerm Omsk Branch Novosibirsk Branch Branch ofNizhnyNovgorod Kurgan RegionalBranch Krasnoyarsk Branch Krasnodar Branch Kostroma regionalbranch Komsomolsk-on-Amur Branch Alpari KemerovoBranch Kaluga regionalbranch Irkutsk Branch Separate subdivisioninIvanovo Zheleznogorsk Branch Separate subdivisioninGorno-Altaysk Voronezh regionalbranch Separate subdivisioninVologda Separate subdivisioninVolgograd Vladivostok Branch Separate subdivisioninBratsk Oktyabrskiy Branch Archangelsk Branch Name BY JCSREGISTRATORR.O.S.T. BRANCHES REGISTERED 17/14, Trefolevstr., Yaroslavl,150000 20, KarlMarksstr., office210,Yuzhno-Sakhalinsk,693000 1, Zheleznodorozhnayastr.,Electrostal, Moscowregion144002 93/B, Dzerzhinskystr.,office601,602, Chelyabinsk,454078 5, Sovietskayastr.,room72,Ulyanovsk, 432011 POB 67,Tambov,392000 16a, Derzhavinskayastr.,office40,416 cab.,Tambov392000 9, Garazhnayastr.,Syktyvkar,KomiRepublic167000 36, Dovatortsevstr.,Stavropol,355037 100, Leninave.,Saransk,RepublicofMordovia,430003 15, 26lineofVasilevskiyIsland,Building2,letterA,St.Petersburg199026 44, Novo-Sadovayastr.,Samara,443110 57, Fevralskayastr.,Building1,Podolsk,MoscowRegion,142100 35, KarlMarksave.,Petropavlovsk-Kamchatsky,theKamchatkaRegion,683000 24, Kirovastr.,Perm,614000 80/18, Frunzestr.-Gertsenastr.,office726/9,Omsk,644007 50, Kommunisticheskayastr.,Novosibirsk,630007 4/2, M.Gorkiysquare.,office9,NizhnyNovgorod,603000 144, Kuibyshevstr.,3rdfloor(forexpress-mail),Kurgan640006 144, Kuibyshevstr.,POB1098,Kurgan,640006 117, Uritskiystr.,office504,Krasnoyarsk,660017 176, Krasnayastr.,4thfloor,Krasnodar,350020 4, Komsomolskayastr.,office39,Kostroma,156002 681016 13, Miraave.,building3,Komsomolsk-on-Amur,681016POB7, 6a, Sobornayastr.,Kemerovo,650004 4, Smolenskiylane,office7,Kaluga,248600 6, Leninastr.,office302-A,Irkutsk,664000 52, Bubnovstr.,Ivanovo,153012 27, Gornyakovstr.,Zheleznogorsk,Kurskregion,307170 139, Kommunisticheskiyave.,Gorno-Altaysk,RepublicofAltai,649002 68, KarlMarksstr.,Voronezh,394006 55, Komsomolskayastr.,office103,Vologda,160019 9, BogomoletsAc.Str.,3rdfloor,Volgograd,400033 82, Svetlanskayastr.,Vladivostok,690001 POB 1071,Bratsk-12,665712 127A, Leninaave.,Barnaul,656011 Lomonosova str.,Archangelsk,163061 Mailing address (4852) 32-83-15,32-89-49 (4242) 42-32-43 (49657) 2-95-54,7-13-76 (351) 239-02-25,239-02-26 (8422) 41-25-26 (4752) 71-43-68,72-71-41 (8212) 29-33-84 (865-2) 77-07-13 (834-2) 27-01-54 (812) 322-76-27,322-48-91 (846) 273-84-48,273-84-28 (4967) 55-77-01 (4152) 25-24-70 (342) 259-10-36,259-10-46 (381-2) 433-156 (383) 218-76-77,218-76-79 (831) 434-11-19 (3522) 46-65-80 (391) 212-08-21 (861) 255-21-01,2-100-328 (4942) 31-02-05 25-26-10 (4217) 25-27-17,59-16-13, (3842) 35-30-78,35-26-97 (4842) 58-08-65 (3952) 20-33-40 (4932) 32-65-80 (47148) 4-70-26 (38822) 6-40-90 (473) 253-11-61 (8172) 54-30-40 (8442) 79-82-80 (4232) 22-89-38,21-17-95 (3953) 35-95-82 (3852) 77-78-35,77-64-58 (8182) 63-31-62,63-31-68 Phone

169 ANNUAL REPORT JSC RAO UES / 2010