1 Approved on October 29, 20 10 Registered on December 02, 20 10 State Registration Number Board of Directors of JSC RusHydro 0 0 1 5 5 0 3 8 E 0 3 9 D (the body of the Issuer that approved the Prospectus shall be specified) (the State Registration Number assigned to the issue (additional issue) of the securities shall be specified) Minutes No. 110 dated November 01, 2010 (name of the registering authority) (name of the position and signature of the authorized representative of the registering authority) Seal of the registering authority SECURITIES PROSPECTUS Open Joint Stock Company Federal Hydrogeneration Company registered ordinary uncertified shares with the nominal value of 1 (one) ruble each in the amount of 1,860,000,000 (one billion eight hundred and sixty million) shares www.rushydro.ru Information contained in this Prospectus shall be subject to disclosure in accordance with the legislation of the Russian Federation on securities. THE REGISTERING AUTHORITY SHALL BEAR NO REPONSIBILITY FOR THE RELIABILITY OF INFORMATION CONTAINED IN THIS PROSPECTUS, AND DOES NOT EXPRESS ITS ATTITUDE TO THE PLACED SECURITIES BY THE FACT OF REGISTRATION THEREOF Hereby the credibility of the financial statements of the Issuer for the years 2008 and 2009 is confirmed, and also the credibility of the financial (accounting) statements and compliance of the procedure of the Issuer’s accounting and reporting with the legislation of the Russian Federation for the year 2007. Not changing the opinion on the credibility of the financial statements we would like you to note the information stated in Paragraph 5 of our Audit Report dated March 31, 2008 for the year 2007, Paragraph 5 of our Audit Report dated March 25, 2009 for the year 2008 enclosed to the Prospectus. Other information on the financial status of the Issuer contained in Sections III, IV, V and VIII of this Prospectus has been inspected for its compliance in all the material aspects with the data of the financial (accounting) statements for the years 2007, 2008 and 2009, in respect of which the audit has been carried out. Director of the Closed Joint Stock Company PricewaterhouseCoopers Audit, acting on the basis of the Power of Attorney No. GA-00193-1110-zao dated 01.11.2010 _____________ P.O. Solenov ___________ ___, 2010 Place of Seal Chairman of the Management Board of JSC RusHydro _____________ E.V. Dod ___________ ___, 2010 Place of Seal Chief Accountant of JSC RusHydro _____________ D.V. Finkel ___________ ___, 2010 Contents I. BRIEF INFORMATION ON MEMBERS OF THE MANAGEMENT BODIES OF THE ISSUER, INFORMATION ON BANK ACCOUNTS, AUDITOR, VALUER AND FINANCIAL ADVISER OF THE ISSUER, AND OTHER SIGNATORIES HERETO ....................................................................................................... 15 1.1. MEMBERS OF THE MANAGEMENT BODIES OF THE ISSUER ......................................................................................................................................... 15 1.2. INFORMATION ON THE ISSUER’S BANK ACCOUNTS .................................................................................................................................................. 16 1.3. INFORMATION ON THE ISSUER’S AUDITOR(S) ......................................................................................................................................................... 18 1.4. INFORMATION ON THE ISSUER’S VALUER ............................................................................................................................................................... 21 1.5. INFORMATION ON THE ISSUER’S ADVISORS ............................................................................................................................................................ 21 1.6. INFORMATION ON OTHER SIGNATORIES TO THE PROSPECTUS .................................................................................................................................... 21 II. SUMMARY ON NUMBER, TIMELINE, PROCEDURE AND TERMS OF OFFERING FOR EACH CLASS AND TYPE OF EQUITY SECURITIES OFFERED . 23 2.1. TYPE, CLASS AND FORM OF SECURITIES OFFERED .................................................................................................................................................... 23 2.2. NOMINAL VALUE OF EACH TYPE, CLASS AND SERIES OF EQUITY SECURITIES OFFERED .................................................................................................... 23 2.3. ESTIMATED ISSUE AMOUNT IN MONEY TERMS AND NUMBER OF EQUITY SECURITIES INTENDED TO BE ISSUED ................................................................... 23 2.4. OFFERING PRICE (PROCEDURE FOR DETERMINATION OF THE OFFERING PRICE) ............................................................................................................. 23 2.5. OFFERING TERM AND PROCEDURE .......................................................................................................................................................................... 23 2.6. PROCEDURE AND TERMS OF PAYMENT FOR EQUITY SECURITIES OFFERED .................................................................................................................... 29 2.8. TARGET GROUP OF SUBSCRIBERS FOR EQUITY SECURITIES OFFERED ........................................................................................................................... 34 2.9. PROCEDURE FOR DISCLOSURE OF INFORMATION ON THE RESULTS OF THE EQUITY SECURITIES ISSUE ................................................................................. 34 III. DISCLOSURE IN RESPECT OF THE FINANCIAL AND OPERATIONAL POSITION OF THE ISSUER ........................................................................ 41 3.1. FINANCIAL AND ECONOMIC PERFORMANCE OF THE ISSUER ....................................................................................................................................... 41 3.2. MARKET CAPITALIZATION OF THE ISSUER .............................................................................................................................................................. 43 3.3. ISSUER’S LIABILITIES .......................................................................................................................................................................................... 44 3.4. PURPOSES OF ISSUE AND UTILIZATION OF PROCEEDS FROM ISSUE OF EQUITY SECURITIES ............................................................................................... 47 3.5. RISKS RELATED TO ACQUISITION OF OFFERED (ISSUED) EQUITY SECURITIES ................................................................................................................. 48 IV. THE ISSUER’S DETAILED INFORMATION ..................................................................................................................................................... 60 4.1. THE ISSUER’S ESTABLISHMENT AND DEVELOPMENT TRACK RECORD ........................................................................................................................... 60 4.2. THE ISSUER’S CORE BUSINESS ACTIVITY ................................................................................................................................................................ 66 4.3. THE ISSUER’S PLANS FOR FUTURE ACTIVITY ........................................................................................................................................................... 77 4.4. THE ISSUER’S PARTICIPATION IN INDUSTRIAL, BANKING AND FINANCIAL GROUPS, HOLDING COMPANIES, CONCERNS AND ASSOCIATIONS.............................. 78 4.5. THE ISSUER’S SUBSIDIARIES AND AFFILIATES .......................................................................................................................................................... 78 4.6. COMPOSITION, STRUCTURE AND VALUE OF THE ISSUER’S FIXED ASSETS, INFORMATION ON THE ISSUER’S PLANS TO ACQUIRE, REPLACE OR WRITE OFF SOME FIXED ASSETS, AS WELL AS ON ANY BURDENS ON THE ISSUER’S FIXED ASSETS .................................................................................................................................. 116 V. INFORMATION ON THE ISSUER'S FINANCIAL AND ECONOMIC ACTIVITY ................................................................................................... 118 5.1. ISSUER’S FINANCIAL AND ECONOMIC PERFORMANCE ............................................................................................................................................ 118 5.2. ISSUER’S LIQUIDITY, ADEQUACY OF CAPITAL AND CURRENT ASSETS ......................................................................................................................... 120 5.3. SIZE AND STRUCTURE OF THE ISSUER’S CAPITAL AND CURRENT ASSETS ..................................................................................................................... 121 5.4. INFORMATION ON THE ISSUER’S POLICIES AND EXPENDITURE IN THE RESEARCH AND TECHNOLOGY AREA WITH REGARD TO LICENSES AND PATENTS, NEW DEVELOPMENTS AND INVESTIGATIONS ............................................................................................................................................................................. 124 5.5. ANALYSIS OF DEVELOPMENT TRENDS IN THE ISSUER’S CORE ACTIVITY AREA .............................................................................................................. 125 VI. DETAILS OF THE PERSONS INCLUDED IN THE ISSUER’S MANAGEMENT AND AUDIT BODIES AND