Minutes of 16.07.2008 №59

MINUTES No. 59

OF THE BOARD OF DIRECTORS MEETING


Date and time of the Board of Directors Meeting
(date and time of vote counting):                                               July 16, 2008, 6 p.m.

                                                                                              (Moscow time)

Minutes dated:                                                                         July 18, 2008.

Site of vote counting:                                                                Moscow, Arkhitektora Vlasova Str, 51

Number of elected members of the Board of Directors:                   13

Members of the Board of Directors present at meeting:                    V. Yu. Sinyugin

                                                                                                D. S. Akhanov

                                                                                                B. I. Ayuev

                                                                                                S. Yu. Vyazalov

                                                                                                Yu. M. Medvedev

                                                                                                D. V. Ponomarev

                                                                                                A. N. Rappoport

                                                                                                Remes Seppo

                                                                                                Yu. A. Udaltsov

                                                                                                Ya. M. Urinson

                                                                                                R. Z. Khamitov

                                                                                                A. V. Sharonov


In compliance with the Federal Law on Joint-Stock Companies and the company's Articles of Association the quorum for conducting the Board of Directors meeting is present.


AGENDA OF THE BOARD OF DIRECTORS MEETING:


1. Election of the Chairman of the Board of Directors.

2. Election of the Deputy Chairman of the Board of Directors.

3. Approval of the work plan of the Board of Directors for 2008-2009.

4. Strategy Development Committee under the supervision of the company's Board of Directors.

5. Audit Committee under the supervision of the company's Board of Directors.

6. Human Resources and Remuneration Committee under the supervision of the company's Board of Directors.

7. Investment Committee under the supervision of the company's Board of Directors.

8. Company's logo image.

9. Progress of the company's strategy implementation.

10. Approval of a decision on additional release of securities.

11. Approval of the company's Prospectus.

12. Determination of the company's procurement policy.

13. Approval of the reports on execution of key performance indicators of the company for 2007 and the first quarter of 2008.

14. Consideration of the report on fulfilment of the Insurance Coverage Programme for the second quarter of 2008.

15. Company's participation in other companies.

16. Approval of the company's transactions.

Approval of interested-party transactions between the company and JSC Mosenergo.

Approval of an interested-party transaction between the company and JSC GVC Energetiki.

17. Determination of company's (company's representatives) opinion regarding the agenda of the Board of Directors meeting and General Shareholders' Meeting of company's subsidiaries and affiliates (SA).

Decision on participation of JSC MC HydroOGK in another organisation.

Decision on additional issue of the company's SA shares.

Decision on carve-out of JSC UGK TGK-8 and JSC TGK-10 shares held by LLC Index of Energy HydroOGK.


RESULTS OF VOTING ON AGENDA:


Matter 1: Election of the Chairman of the Board of Directors.


Decision:

To elect Vyacheslav Yuryevich Sinyugin as Chairman of the company's Board of Directors.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Pono╜marev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 2: Election of the Deputy Chairman of the Board of Directors.


Decision:

To elect Yury Mitrofanovich Medvedev as Deputy Chairman of the company's Board of Directors.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Pono╜marev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.

 


 

Matter 3: Approval of the work plan of the Board of Directors for 2008-2009.

 

Decision:

To approve the work plan of the company's Board of Directors for 2008-2009 (Appendix 1).


Voting results:

"For" - 11 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (D. S. Akhanov)

Decision made.




Matter 4: Strategy Development Committee under the supervision of the company's Board of Directors.


Decision:

4.1. To elect the Strategy Development Committee under the supervision of the company's Board of Directors:


1

Per-Christian Endsjo

Ex-president Hydro Energy - Strategy Development Committee

2

Vsevolod Valeriyanovich Gavrilov

Deputy Director of the Department of the State Tariff Regulation, Infrastructural Reforms and Environmental Economics of the Ministry of Economic Development of the Russian Federation

3

Valentin Efimovich
Mezhevich

Member of the Federation Council of the Federal Assembly of the Russian Federation, First Deputy Chairman of Natural Monopolies Commission of the Federation Council

4

Rustem Zakievich Khamitov

Head of the Federal Agency for Water Resources

5

Dmitry Sergeevich Akhanov

Member of the Board of Directors of JSC RusHydro

6

Vitaly Yuryevich Zarkhin

Lead Analyst in East Capital

7

David Alexander Khern

Managing Director in Halcyon Advisors

8

Sergey Yuryevich Vyazalov

Deputy Head of the Presidential Foreign Policy Directorate

9

Sergey Igorevich Zhuravlev

Head of Fuel and Energy Complex Property Department attached to Commercial Sector Property Management Administration of the Federal Assets Administration Agency

10

Andrey Vladimirovich Sharonov

Managing Director of Troyka Dialog Group of Companies

11

Maria Gennadyevna Tikhonova

Deputy Head of Department for Legal Support and Property Relations in the Fuel and Energy Complex Rosenergo

12

Maksim Genrikhovich Balashov

Deputy Director of the Power Engineering Department of the Ministry of Industry and Energy of the Russian Federation

13

Vasily Alexandrovich Zubakin

Deputy Chairman of the Management Board, JSC RusHydro

14

Oleg Borisovich Oksuzyan

Member of the Management Board, JSC RusHydro


4.2. To elect Per-Christian Endsjo as chairman of the Strategy Development Committee under the supervision of the company's Board of Directors.


Voting results:

"For" - 10 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (D. S. Akhanov, Yu. A. Udaltsov)

Decision made.




Matter 5: Audit Committee under the supervision of the company's Board of Directors.


Decision:

5.1. To approve members of the Audit Committee under the supervision of the Board of Directors of JSC RusHydro.


1

Dmitry Valeryevich Ponomarev

Member of the Board of Directors of JSC RusHydro

2

Boris Ilyich Ayuev

Member of the Board of Directors of JSC RusHydro

3

Yury Arkadyevich Udaltsov

Member of the Board of Directors of JSC RusHydro


5.2. To elect Dmitry Valeryevich Ponomarev as chairman of the Audit Committee under the supervision of the Board of Directors of JSC RusHydro.


Voting results:

"For" - 11 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 1 (Yu. A. Udaltsov)

"Abstained" - 0.

Decision made.




Matter 6: Human Resources and Remuneration Committee under the supervision of the company's Board of Directors.


Decision:

6.1. To approve members of the Human Resources and Remuneration Committee under the supervision of the company's Board of Directors.


1

Remes Seppo Yukha

Member of the company's Board of Directors

2

Yakov Moiseevich Urinson

Member of the company's Board of Directors

3

Andrey Vladimirovich Sharonov

Member of the company's Board of Directors


6.2. To elect Remes Seppo Yukha as a Chairman of the Human Resources and Remuneration Committee under the supervision of the company's Board of Directors.

6.3. To approve a revised version of the Provision on the Human Resources and Remuneration Committee under the supervision of the company's Board of Directors (Appendix 2.1).

 

Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Pono╜marev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 7: Investment Committee under the supervision of the company's Board of Directors.


Decision:

7.1. To establish Investment Committee under the supervision of the company's Board of Directors.

7.2. To approve the Provision on the Audit Committee under the supervision of the company's Board of Directors (Appendix 2.2).

7.3. To elect the Investment Committee under the company's Board of Directors in the following composition:


1

Mikhail Yuryevich Kurbatov

Acting Manager of the Department of the State Tariff Regulation, Infrastructural Reforms and Environmental Economics of the Ministry of Economic Development of the Russian Federation

2

Vyacheslav Mikhailovich Kravchenko

Director of the Department of the Ministry of Energy of the Russian Federation

3

Sergey Igorevich Zhuravlev

Head of Fuel and Energy Complex Property Department attached to Commercial Sector Property Management Administration of the Federal Assets Administration Agency

4

Elena Valentinovna Pomchalova

Head of the Administration for Price Setting and Regulation in the Electric Power Engineering Industry under the supervision of the Federal Tariff Service

5

Remes Seppo

Senior Advisor of the Finish Strategy Institute of Republic of Finland under the supervision of the Parliament of the Republic of Finland

6

David Alexander Khern

Managing Director in Halcyon Advisors

7

Andrey Vladimirovich Sharonov

Managing Director of Troyka Dialog Group of Companies

8

Wolfang Skribot

Head of Property Management and Corporate Relations Department of JSC Gazprom

9

Andrey Nikolaevich Kobzev

Deputy Head of Department for Legal Support and Property Relations in the Fuel and Energy Complex Rosenergo

10

Vasily Alexandrovich Zubakin

Deputy Chairman of the Management Board, JSC RusHydro

11

Sergey Aleksandrovich Yushin

Member of the Management Board, JSC RusHydro

12

Aleksandr Yuryevich Sergeev

Member of the Management Board, JSC RusHydro


7.4. To elect Mikhail Yuryevich Kurbatov as chairman of the Investment Committee under the company's Board of Directors.


Voting results:

"For" - 11 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (Yu. A. Udaltsov)

Decision made.




Matter 8: Company's logo.

 

Decision:

8.1. To approve the new company's logo (Appendix 3).

8.2. To instruct the Management Board to ensure implementation of legal, managing and technical and information events related to launching the company's new logo.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 9: Progress implementing the company's strategy.


Decision:

To approve a Report on the implementation of the company's strategy in the first half of 2008 (Appendix 4).


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 10: Approval of a decision on additional release of securities.


Decision:

To approve the decision on the (additional) release of company's securities in accordance with Appendix 5.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 11: Approval of the company's Prospectus.


Decision:

To approve JSC RusHydro's Prospectus (ordinary registered uncertified shares) in accordance with Appendix 6.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Pono╜marev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.


Matter 12: Decide the company's procurement policy.

 

Decision:

12.1. To approve the Provision on the procedure of performing scheduled purchase of products for the needs of JSC RusHydro (Appendix 7).

12.2. To state that:

12.2.1. The provision on procedure of performing scheduled purchase of production for the needs of JSC RusHydro is subject to application for the purchases for the needs of JSC RusHydro, in respect of which a management document regulating procurement implementation was published after the date of making the present decision.

12.2.2. Provision on the procedure of performing scheduled purchase of goods, works and services for the needs of JSC HydroOGK approved by a decision of the Board of Directors of JSC HydroOGK (minutes No. 45 dd. 26.12.2007) is subject to application for the purchases for the needs of JSC HydroOGK (JSC RusHydro), in respect of which managing documentation regulating procurement implementation was published before the date of making the present decision.


Voting results:

"For" - 10 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (D. S. Akhanov, Yu. A. Udaltsov)

Decision made.




Matter 13: Approval of the reports on execution of key performance indicators of the company for 2007 and the first quarter of 2008.


Decision:

1. To approve the report on execution of key performance indicators (KPI) of JSC RusHydro for 2007 (Appendix 8).

2. To approve the report on execution of KPI of JSC RusHydro for the first quarter of 2008 (Appendix 9).


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 14: Consideration of the report on the implementation of the Insurance Coverage Programme for the second quarter of 2008.


Decision:

To take into consideration the Report on the implementation of the Insurance Coverage Programme of JSC RusHydro for the second quarter of 2008 (Appendix 10).


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.




Matter 15: Company's participation in other companies.


Decision:

15.1. To approve JSC RusHydro's participation in an independent international organisation World Economic Forum (location: 91-93 route de la Capite CH-1223 Cologny/Geneva Switzerland) subject to the following conditions:

- an annual membership fee is 250,000 (Two hundred and fifty thousand) Swiss francs;

- participation of the Chairman of the Management Board in the annual Davos meeting of the World Economic Forum, a contribution amount is 19,368 (Nineteen thousand three hundred and sixty eight) Swiss francs;

- method of annual contribution payment - monetary assets;

- amount and procedure of annual membership fees payment is established by Partnership Agreement.


Voting results:

"For" - 10 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (D. S. Akhanov, Yu. A. Udaltsov)

Decision made.


Decision:

15.2. To approve participation of JSC RusHydro in the international organisation Great Energy Eight (е8) (location: 1155, Metcalfe Street, Suite 1120, Montreal (Quebec) Canada H3B 2V6) subject to the following conditions:

- an annual membership fee is 150,000 (One hundred and fifty thousand) US Dollars. Decision on the amount of the membership fee is determined during an annual summit of e8;

- method of admission fee payment - monetary assets;

- amount and procedure of annual membership fees payment is established based on e8 summit decision supported by extracts from the minutes and issued invoice.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.


Decision:

15.3. To approve participation of JSC RusHydro in a non-commercial partnership Russian National Committee of the World Energy Council subject to the following conditions:

- an admission fee is 5,000 (Five thousand) US Dollars;

- an annual membership fee is 20,000 (Twenty thousand) US Dollars;

- method of admission fee payment - monetary assets;

- amount and procedure of annual membership fees payment is established by Partnership Contract.


Voting results:

"For" - 11 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 1 (D. S. Akhanov)

Decision made.


Decision:

15.4. To approve participation of JSC RusHydro in a non-commercial partnership Business Council for Cooperation with India subject to the following conditions:

- an annual member ship fee is 300,000 (Three hundred thousand) rubles;

- method of annual contribution payment - monetary assets;

- amount and procedure of annual membership fees payment is established based on decision of the General Meeting of the Partnership Members supported by extracts from the minutes and issued invoice.

 

Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.


Decision:

15.5.1. To approve participation of HSC RusHydro in JSC Energy Sales Company RusHydro by establishing under the following conditions:

- founders: JSC RusHydro, New Energy Fund;

- share of JSC RusHydro in the authorised capital is 57.4 per cent;

- share of New Energy Fund in the authorised capital is 42.6 per cent;

- authorised capital in JSC Energy Sales Company RusHydro is 3,012,500,000 rubles;

- authorised capital of JSC Energy Sales Company RusHydro is developed at the expense of the founders' monetary assets and property, contributed at a market value determined in accordance with a report of an individual appraiser accredited by the Evaluation Committee under the supervision of the Board of Directors of JSC RAO UES of Russia;

- from JSC RusHydro - monetary assets in the amount of 500,000 rubles, 395,355,808 registered ordinary shares and 580,289 preferred shares of A type of JSC Krasnoyarskenergosbyt at market value of 1,730,000,000 rubles determined by an independent appraiser;

- from the New Energy Fund - 739,928,346 registered ordinary shares of JSC Chuvashenergosbyt at the market value of 650,000,000 rubles, determined by an independent appraiser; 101,400,480 registered ordinary shares of JSC Ryazan Power Distributing Company at the market value of 632,000,000 rubles determined by an independent appraiser;

- deadline for payment for the shares - shares of JSC Energy Sales Company RusHydro shall be paid within a year from the date of state registration of JSC Energy Sales Company RusHydro. At least 50per cent of shares of JSC Energy Sales Company RusHydro shall be paid within three months from the date of state registration of JSC Energy Sales Company RusHydro.

15.5.2. Approve disposal of 395,355,808 registered ordinary shares and 580,289 preferred shares of A type of JSC Krasnoyarskenergosbyt by JSC RusHydro at the market value of 1,730,000,000 rubles determined by an independent appraiser allocated to the authorised capital of JSC Energy Sales Company RusHydro.


Voting results:

"For" - 10 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (D. S. Akhanov, Yu. A. Udaltsov)

Decision made.


Decision:

15.6. To approve participation of JSC RusHydro in JSC Ust-Srednekanskaya HPP by purchasing additional shares of JSC Ust-Srednekanskaya HPP subject to the following conditions:

- category, type, nominal value; ordinary registered shares with the par value of 1 (One) ruble per share;

- number of acquired shares: 680,000,000 (Six-hundred and eighty-million) shares; JSC RusHydro is entitled to purchase less shares of JSC Ust-Srednekanskaya HPP, in this case JSC Ust-Srednekanskaya HPP transfers into ownership of JSC RusHydro a corresponding number of the paid shares;

- share acquisition price: at additional shares of JSC Ust-Srednekanskaya HPP placement price which is 1 (One) ruble per one additional share (corresponds to a nominal value);

- method of share payment - monetary assets;

- share of JSC RusHydro in the authorised capital of JSC Ust-Srednekanskaya HPP prior to purchasing shares of additional issue - 0 per cent; share of JSC RusHydro in the authorised capital of JSC Ust-Srednekanskaya HPP prior to purchasing shares of additional issue (in case shares of additional issue are placed to the full extent) - 5.36 per cent.


Voting results:

"For" - 11 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" -1 (D. S. Akhanov)

Decision made.




Matter 16: Approving the company's transactions:


16.1. Approval of interested-party transaction between the company and JSC Mosenergo.


Decision:

16.1.1.1. Determine that a monthly rental payment under non-residential premises rent contract No. 26‑ю/12836-28/1964/482Д dd. 29.12.2007 concluded between JSC Zagorskaya PSHPP and JSC Mosenergo as reworded in Supplementary Agreement No. 3 (hereinafter - Supplementary Agreement) concluded between the company and JSC Mosenergo, amounts to 185,035.80 (One-hundred and eighty-five-thousand and thirty-five) rubles 80 kopecks, including 18 % VAT - 28,225.80 rubles.

16.1.1.2. To approve conclusion of Supplementary Agreement between the company and JSC Mosenergo, which is an interested-party transaction subject to the following conditions:

Parties to the Supplementary Agreement:

Lessee is JSC Mosenergo

Lessor is JSC RusHydro (JSC HydroOGK).

Subject of the Supplementary Agreement:

Change of the rental payment under the Contract, including allocation of the rental payment under the Contract for January, February, March, April, May 2008, replacement of Appendix No. 1 to the Contract "List of leased sites (property) with rental payment calculation" with Appendix No. 1 to the Supplementary Agreement "List of leased sites (property) with rental payment calculation".

Rental Payment Amount under the Contract as amended by the Supplementary Agreement:

Monthly rental payment is 185,035.80 (One hundred and eighty five thousand thirty five) rubles 80 kopecks, including 18 % VAT - 28,225.80 rubles.

Effective Period of Supplementary Agreement:

The Supplementary Agreement comes into force from the date of its signing by the parties, applies to the relations of the Parties under the Contract started from June 01, 2008, and is valid until complete fulfilment of obligations by the Parties under the Contract.


Voting results:

"For" - 10 (D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.

Yu. A. Udaltsov, member of the Board of Directors of JSC RusHydro is recognized as an interested partying the transaction, as well as V. Yu. Sinyugin, member of the Board of Directors of JSC RusHydro, who was RusHydro's Board Chairman within a year preceding a decision and who is not recognized as an independent director, did not take part in voting.


Decision:

16.1.2.1. Determine that total cost of the works under the Contract No. 29 dd. 18.02.2008 concluded between JSC HydroOGK and JSC Mosenergo (hereinafter - Contract) as amended by the Supplementary Agreement No. 1 to the Contract concluded between JSC RusHydro and JSC Mosenergo, is increase by 1,935,781.03 (One million nine-hundred and thirty-five-thousand seven-hundred and eighty-one) rubles 03 kopecks, including VAT (18 %): 295,288.63 (Two-hundred and ninety-five-thousand two-hundred and eighty-eight) rubles 63 kopecks, and amounts to 50,710,905.92 (Fifty million seven-hundred and ten-thousand nine-hundred and five) rubles 92 kopecks, including VAT (18 %): 7,735,561.92 (Seven million seven-hundred and thirty-five-thousand five-hundred and sixty-one) rubles 92 kopecks.

Cost of handout materials used by JSC Mosenergo during works performance under the Contract as amended by Supplementary Agreement No. 1 to the Contract concluded between JSC RusHydro and JSC Mosenergo, is increased by 1,510,626.84 (One million five-hundred and ten-thousand six-hundred and twenty-six) rubles 84 kopecks, and amounts to 11,550,526.84 (Eleven million five-hundred and fifty-thousand five-hundred and twenty-six) rubles 84 kopecks (non-taxable).

16.1.2.2. Approve conclusion of Supplementary Agreement No. 1 (hereinafter - Supplementary Agreement) between JSC RusHydro and JSC Mosenergo to the Contract No. 29 dd. 18.02.2008 concluded between JSC HydroOGK and JSC Mosenergo (hereinafter - Contract) which is a party-interested transaction subject to the following conditions:

Parties to the Supplementary Agreement:

Contractor is JSC Mosenergo;

Customer is JSC RusHydro.

Subject of the Supplementary Agreement:

The Contractor undertakes to execute works on shifting a damaged step bearing of hydro-power unit No. 2 at the Zagorskaya PSHPP onto a permanent rigid support with installation of new support notches and bolts (in a set), and the Customer undertakes to accept and arrange payment for the performed works.

Supplementary Agreement Price:

Total cost of the works carried out by the Contractor under the Contract as amended by the Supplementary Agreement is increased by 1,935,781.03 (One million nine-hundred and thirty-five-thousand seven-hundred and eighty-one) rubles 03 kopecks, including VAT (18 %): 295,288.63 (Two-hundred and ninety-five-thousand two-hundred and eighty-eight) rubles 63 kopecks, and amounts to 50,710,905.92 (Fifty million seven-hundred and ten-thousand nine-hundred and five) rubles 92 kopecks, including VAT (18 %): 7,735,561.92 (Seven million seven-hundred and thirty-five-thousand five-hundred and sixty-one)rubles 92 kopecks.

Cost of handout materials used by the Contractor during works performance under the Contract as amended by Supplementary Agreement to the Contract is increased by 1,510,626.84 (One million five-hundred and ten-thousand six-hundred and twenty-six) rubles 84 kopecks, and amounts to 11,550,526.84 (Eleven million five-hundred and fifty-thousand five-hundred and twenty-six) rubles 84 kopecks (non-taxable).

Works completion period:

Works completion period: August 12, 2008.

Works completion period: August 29, 2008.

Effective period of Supplementary Agreement:

The Supplementary Agreement comes into effect from the date of its signing by the Parties and is valid until a complete fulfilment of the Parties' obligations.


Voting results:

"For" - 10 (D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.


Yu. A. Udaltsov, member of the Board of Directors of JSC RusHydro recognized as transaction interested party, as well as V. Yu. Sinyugin, member of the Board of Directors of JSC RusHydro, who was RusHydro's Board Chairman within a year preceding a decision and who is not recognized as an independent director, did not take part in voting.


16.2. Approval of an interested-party transaction between the company and JSC GVC Energetiki.


Decision:

16.2.1. To determine that the cost of a licensed software under the Supply Contract concluded between the company and JSC GVC Energetiki amounts to 5,679,262.68 (Five million six-hundred and seventy-nine-thousand-two-hundred and sixty-two) rubles 68 kopecks, including 18 % VAT - 866,328.21 rubles.

16.2.2. To approve conclusion of Supply Contract between the company and JSC GVC Energetiki, which is an interested-party transaction subject to the following conditions:

Parties to Contract:

Supplier is JSC GVC Energetiki

Buyer is JSC RusHydro (JSC HydroOGK).

Subject of Contract:

According to the Contract the Supplier undertakes to arrange licensed software delivery developed by Microsoft Ireland Operations Limited, while a Buyer undertakes to accept and arrange payment for this licensed software with the procedure and terms established by the Contract.

Contract Price:

Total cost of the licensed software is 5,679,262.68 (Five million six-hundred and nine-thousand two-hundred and sixty-two) rubles 68 kopecks, including 18 % VAT - 866,328.21 rubles.

Effective Period of Contract:

The Contract comes into force from the date of its signing by the Parties and is valid until complete fulfilment of mutual obligations of the Parties and settling of accounts between the Parties under this Contract.


Voting results:

"For" - 11 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.

V. Yu. Sinyugin, member of the Board of Directors of JSC RusHydro, who was RusHydro's Board Chairman within a year preceding a decision and who is not recognized as an independent director, did not take part in voting.




Matter 17: Determination of company's (company's representatives) opinion regarding the agenda of the Board of Directors Meeting and General Shareholders' Meeting of company's subsidiaries and affiliates (SA).


17.1. Determination of an opinion regarding participation of JSC MC HydroOGK in another organisation.


Decision:

To instruct JSC RusHydro's representatives in the Board of Directors of JSC MC HydroOGK regarding the agenda of the Board of Directors of JSC MC HydroOGK On participation of the company in LLC SpetsEnergoService to vote "FOR" participation of JSC MC HydroOGK in LLC SpetsEnergoService subject to the following conditions:

- amount of the acquired share in the authorised capital of LLC SpetsEnergoService (hereinafter - share of LLC SpetsEnergoService) - 0.1 %;

- nominal value of the acquired share of LLC SpetsEnergoService is 29,100 (Twenty-nine-thousand one-hundred) rubles;

- price of acquiring share of LLC SpetsEnergoService is 100,000 (One-hundred thousand) rubles;

- seller: JSC VegaSibTrade;

- method of payment for the acquired share of LLC SpetsEnergoService - monetary assets;


Voting results:

"For" - 10 (V. Yu. Sinyugin, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (D. S. Akhanov, Yu. A. Udaltsov)

Decision made.


17.2. Determination of an opinion regarding additional issue of the company's SA shares.


Decision:


17.2.1.1. To instruct JSC RusHydro's representatives in the Board of Directors of JSC Zagorskaya PSHPP-2 to vote FOR inclusion of the following matters into agenda of General Shareholders' Meeting of JSC Zagorskaya PSHPP-2:

- Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares;

- Introduction of amendments and supplements to the company's Articles of Association;          

- An increase of the company's authorised capital by offering additional shares.

17.2.1.2. To instruct representatives of JSC Zagorskaya PSHPP-2 in the General Shareholders' Meeting of JSC Zagorskaya PSHPP-2 to vote "FOR" making the following decision in relation to Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares:

1)  to determine number of declared registered ordinary shares of JSC Zagorskaya PSHPP-2 in the amount of 35,000,000,000 (thirty-five billion) pieces with nominal value of 1 (one) ruble each for the total amount of 35,000,000,000 (thirty-five billion) rubles;

2)  ordinary registered shares declared by JSC Zagorskaya PSHPP-2 to be released provide their holders with rights stipulated in paragraph 6.2. of the Articles of Association of JSC Zagorskaya PSHPP-2.

17.2.1.3. To instruct the company's representatives in the General Shareholders' Meeting of JSC Zagorskaya PSHPP-2 to vote "FOR" introduction of amendments and supplements to the Articles of Association of JSC Zagorskaya PSHPP-2 in relation to determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares.

17.2.1.4. To instruct JSC RusHydro's representatives in the General Shareholders' Meeting of JSC Zagorskaya PSHPP-2 to vote "FOR" the following decision making in relation to An increase of JSC Zagorskaya PSHPP-2's authorised capital by offering additional shares:

- to increase an authorised capital of JSC Zagorskaya PSHPP-2 by placing additional ordinary registered shares in the amount of 35,000,000,000 (thirty-five billion) pieces with nominal value of 1 (one) ruble each for the total amount of 35,000,000,000 (thirty-five billion) rubles;

- method of placement - private subscription, group of persons among which supplementary shares are assumed to be placed - JSC RusHydro;

- share offering price is the price determined by the Board of Directors of JSC Zagorskaya PSHPP-2 in accordance with articles 36, 77 of the Federal Law On Joint-Stock Companies based on the opinion of an independent appraiser, but not less than their nominal value;

- method of share payment - monetary assets;

- procedure for share payment - the shares shall be paid at their placement in full.

 

Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.


17.2.2.1. To instruct JSC RusHydro's representatives in the Board of Directors of JSC Zaramagskiye HPPs to vote FOR inclusion of the following matters into agenda of General Shareholders' Meeting of JSC Zaramagskiye HPPs:

- Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares;

- Introduction of amendments and supplements to the company's Articles of Association;          

- An increase of the company's authorised capital by offering additional shares;

- Approval of an interested-party transaction.

17.2.2.2. To instruct JSC Zaramagskiye HPPs' representatives in the General Shareholders' Meeting of JSC Zaramagskiye HPPs to vote "FOR" making the following decision in relation to the Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares:

1) to determine limit number of declared registered ordinary shares of JSC Zaramagskiye HPPs in the amount of 8,500,000 (Eight million five hundred thousand) pieces with nominal value of 1,000 (one thousand) rubles each for the total amount of 8,500,000,000 (Eight billion five hundred million) rubles;

2) ordinary registered shares declared by JSC Zaramagskiye HPPs to be released provide their holders with rights stipulated in clause 6.2. of the Articles of Association of JSC Zaramagskiye HPPs.

17.2.2.3. To instruct the company's representatives in the General Shareholders' Meeting of JSC Zaramagskiye HPPs to vote "FOR" introduction of amendments and supplements to the Articles of Association of JSC Zaramagskiye HPPs in relation to "Determination of quantity, nominal value, category (type) of the company's declared shares and rights attached to these shares".

17.2.2.4. To instruct JSC RusHydro's representatives in the General Shareholders' Meeting of JSC Zaramagskiye HPPs to vote "FOR" the following decision making in relation to an increase of JSC Zaramagskiye HPPs' authorised capital by offering additional shares:

- to increase an authorised capital of JSC Zaramagskiye HPPs by placing additional ordinary registered shares in the amount of 8,500,000 (eight million five-hundred-thousand) pieces with nominal value of 1,000 (one thousand) rubles each for the total amount of 8,500,000,000 (eight billion five-hundred million) rubles;

- method of placement - private subscription, group of persons among which supplementary shares are assumed to be placed - JSC RusHydro;

- price of shares placement (including the placement price for people having priority right to purchase additional shares placed) is the price defined by the Board of Directors of JSC Zaramagskiye HPPs in compliance with articles 36, 77 of the Federal Law on Joint-Stock Companies, based on the opinion of an independent appraiser, but not less than their nominal value.

- method of share payment - monetary assets;

- procedure for share payment - the shares shall be paid at their placement in full.


Voting results:

"For" - 12 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, Yu. M. Medvedev, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 0.

Decision made.


17.3. Determination of an opinion regarding carve-out of JSC UGK TGK-8 and JSC TGK-10 shares held by LLC Index of Energy - HydroOGK.


Decision:

17.3.1. Due to the fact that Mandatory proposals on shares acquisition of the indicated companies in the order stipulated by Chapter XI.1 of the Federal Law on the Joint-Stock Companies were sent by legal entities who acquired more than 30 per cent of JSC UGK TGK-8 and JSC TGK-10's shares, and due to excess of the prices stipulated in the Mandatory proposals over the current market quotations, to consider it expedient for LLC Index of Energy - HydroOGK to accept a mandatory proposal from LLC LUKOIL-Volgogradneftepererabotka on acquisition of JSC UGK TGK-8's shares and a mandatory proposal from Fortum Russia B.V. on acquisition of JSC TGK-10's shares.


Voting results:

"For" - 10 (D.S Akhanov, B. I. Ayuev, S. Yu. Vyazalov, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (Yu. M. Medvedev, V. Yu. Sinyugin).

Decision made.


17.3.2. To instruct JSC RusHydro's representatives in the Board of Directors of LLC Index of Energy - HydroOGK to vote FOR making the following decisions:

17.3.2.1. To approve carve-out of JSC UGK TGK-8 and JSC TGK-10's shares held by LLC Index of Energy HydroOGK subject to the following conditions:

- category, type, nominal value of the carved-out shares; ordinary registered shares with nominal value of 0.01 (zero point one-hundredth) ruble per share;

- number of carved-out shares: up to 7,858,028,608 (Seven billion eight-hundred and fifty-eight million twenty-eight-thousand six-hundred and eight) pieces;

- share carve-out procedure: LLC Index of Energy - HydroOGK accepts mandatory proposal of LLC LUKOIL-Volgogradneftepererabotka on acquisition of JSC UGK THK-8's ordinary registered shares in the procedure stipulated by the article 84.2 of the Federal Law on the Joint-Stock Companies;

- deadline for mandatory proposal accepting is August 15, 2008;

- share carve-out price: share acquisition price defined in the Mandatory Proposal, equal to 0.0398 (Zero point three hundred and ninety eight) ruble per one ordinary share;

- method of share payment - monetary assets;

- the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC UGK TGK-8 before share carve-out in compliance with the present decision is 0.38 per cent; the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC UGK TGK-8 after share carve-out in compliance with the present decision is 0 per cent.


Voting results:

"For" - 10 (D.S Akhanov, B. I. Ayuev, S. Yu. Vyazalov, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (Yu. M. Medvedev, V. Yu. Sinyugin).

Decision made.


17.3.2.2. To approve carve-out of JSC TGK-10's shares held by LLC Index of Energy HydroOGK subject to the following conditions:

- category, type, nominal value of the carved-out shares; registered ordinary shares with nominal value of 1 (one) ruble per 66 (sixty six) kopecks per share;

- number of carved-out shares: up to 4,033,728 (Four million thirty-three-thousand seven-hundred and twenty-eight) pieces;

- share carve-out procedure: LLC Index of Energy HydroOGK accepts mandatory proposal of Fortum Russia B.V. on the acquisition of JSC TGK-10's ordinary registered shares in the procedure stipulated by the article 84.2 of the Federal Law on the Joint-Stock Companies;

- deadline for mandatory proposal accepting is July 18, 2008;

- share carve-out price: share acquisition price defined in the Mandatory Proposal, equal to 111 (One hundred and eleven) rubles 80 (Eighty) kopecks per one ordinary share;

- method of share payment - monetary assets;

- the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC TGK-10 before share carve-out in compliance with the present decision is 0.87 per cent; the share of LLC Index of Energy - HydroOGK in the authorised capital of JSC TGK-10 after share carve-out in compliance with the present decision is 0 per cent.


Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (Yu. M. Medvedev, V. Yu. Sinyugin).

Decision made.


17.3.3. To instruct JSC RusHydro's representatives in the management bodies of LLC Index of Energy - HydroOGK to vote "FOR" making all the necessary decisions to implement this decision.


Voting results:

"For" - 10 (V. Yu. Sinyugin, D. S. Akhanov, B. I. Ayuev, S. Yu. Vyazalov, D. V. Ponomarev, A. N. Rappoport, Remes Seppo, Yu. A. Udaltsov, Ya. M. Urinson, R. Z. Khamitov, A. V. Sharonov)

"Against" - 0

"Abstained" - 2 (Yu. M. Medvedev, V. Yu. Sinyugin).

Decision made.


Questionnaires of the members of the Board of Directors are attached.




Chairman of the Board of Directors                                                               V. Yu. Sinyugin

 

Secretary of the Board of Directors                                                               M. M. Davydov

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