UNIFIED ENERGY SYSTEM OF RUSSIA
(UES)

ANNUAL REPORT

2000



CONTENTS

SUMMARY OF PERFOMANCE RESULTS
MESSAGE TO SHAREHOLDERS FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS OF RAO "UES OF RUSSIA"
MESSAGE TO SHAREHOLDERS FROM THE CHAIRMAN OF THE MANAGEMENT BOARD OF RAO "UES OF RUSSIA"
GENERAL DESCRIPTION OF RAO "UES OF RUSSIA"
   Overview
   Map of the Unified Energy System of Russia
   Organisational structure of RAO "UES of Russia"
   Structure of Management of the Company Main functions
   Structure of management of the company
   Priority areas for restructuring within RAO "UES of Russia" in the year 2000
   Measures taken by management to resolve the main problems faced by the Holding Company

PRODUCTION AND INVESTMENT
PRODUCTION
   Production results
   Dispatch management
ELECTRICITY AND HEAT MARKET
   Tariff policy
   The consumer market in electricity and heat energy
   FOREM and reformà
   Improving sales related activity
INVESTMENT AND INNOVATION
   Investment policy
   Results of investment activity
   Research and development
INTERNATIONAL RELATIONS
   Developing international co-operation
   Export of electricity
   Developing foreign links and international co-operation

FINANCES AND CORPORATE MANAGEMENT
ASSET MANAGEMENT IN RAO "UES OF RUSSIA"
   Assets structure
   Improving asset management
SHARE CAPITAL
   Capital and share distribution
   Russian and international markets in RAO "UES of Russia" securities
FINANCIAL MANAGEMENT
   Improving financial management
   Results of credit activity
HOLDING COMPANY AND COMPANY FINANCIAL RESULTS
   Holding company financial results
   Company financial results
AUDITOR'S REPORT
   Copy of auditor's report for 2000 by ZAO "PricewaterhouseCoopers Audit"

APPENDICES
APPENDIX 1. COMPANY FINANCIAL ACCOUNTS
   Balance sheet of RAO "UES of Russia"
   Profit and loss statement (product dispatched)
   Profit and loss statement (product paid)
APPENDIX 2. RAO "UES OF RUSSIA" HOLDINGS IN THE AUTHORISED CAPITAL AND VOTING SHARES OF JOINT STOCK COMPANIES IN THE POWER GENERATION AND SUPPLY SECTOR
APPENDIX 3. CHRONICLE OF MAJOR CORPORATE EVENTS
BOARD OF DIRECTORS OF RAO "UES OF RUSSIA"
MANAGEMENT BOARD OF RAO "UES OF RUSSIA"
ADDRESS AND CONTACT NUMBERS