20.02.2004

On February 11, the board of directors of AO MOSENERGO held a meeting duing which it reviewed the credit policy for 2004.

The board unanimously entitled the general director Arkady Yevstafyev to sign credit and loan agreements on condition the credit rating of the company has not been lower than B3 during the last three months (or C1 rating was assigned only once). The general director also received the right to sign pledge and credit overdraft agreements.

Such decisions can be taken by the board of directors of AO MOSENERGO in accordance with the company’s charter. According to the charter, the general director may sign credit agreements that do not exceed 10% of the capital balance. Larger credits should be approved by the board of directors.

In addition, the board approved key terms for credit operations. In particular, total AO MOSENERGO’s liabilities should not exceed the average monthly cashflow (net of credits) for three months prior to the credit issuance. The amount of credits directly depends on the credit rating that is calculated by a special methodology taking into account the financial condition of the company. The general calculations do not include credits for projects that are carried by AO MOSENERGO.

Amounts and terms of credit notes should conform with amounts and terms of AO MOSENERGO’s liabilities. In addition, according to the decision of the board of directors, the assessment of the working capital, excluding fuel appraisal, should be carried out by an independent appraiser.