Investment risks

Mistakes in investment program planning and, as a consequence, financing deficit, delays in approval of investment programs by various authorities, long land plot registration and obtainment of a permit for construction, refusal of consumers to connect bear the risks of untimely capital expenditures and risks of failed liabilities to commission invested facilities. We take all measures to minimize investment-related risks aimed at the observation of investment program approval rules, rules of control over investment program implementation exercised by the Russian Ministry of Energy. There is also a working system of control over investment program implementation and financing including weekly control. We have worked out local regulatory documents on capital construction and investment program planning. The Company implements measures aimed at timely material and technical maintenance and observation of terms and quality of the works done by contractors.