Macro-economical risks

Ongoing global financial crisis, possible price fluctuations on key Russian exported commodities (oil, gas, metals), decreasing internal demand for goods, decreasing rates of production and energy consumption may result in reduction of the Company’s revenues. Changes in foreign currency rates, interest rates and growing inflation may also have a negative influence on investment and operating activities of the Company, its liquidity and debt and equity financing. To minimize macro-economic risks the Company implements a program on reduction of opex, borrowings, attraction of long-term credits at fixed rates, energy consumption forecast taking into account existing dynamics. We also take measures aimed at optimization of receivables and expense management and increase of current asset turnover.