Investment principles

The Company’s investment activity is guided by the Regulations on the Investment Management Process in the Form of Capital Investments.

Approval of the Company’s Investment Program is the responsibility of the Company’s Board of Directors. The investment programs, before being approved by JSC RusHydro’s Board of Directors, are agreed upon with executive authorities and approved by the Russian Ministry of Energy. Prior to the approval by the authorities, the draf investment programs are preliminarily approved by the Boards of Directors of the respective subsidiaries.

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As part of the Business plan of PJSC RusHydro for 2016-2020 (Minutes of the Board of Directors of 25.12.2015 No. 229) the Business plan of PJSC RusHydro for 2016 has been approved, including investment program for 2016, and the Business plan of PJSC RusHydro for years 2017-2020, including investment program for 2017-2020, has been taken into account.

In the future, in order to optimize expenses for investment activities, the RusHydro Group’s investment program was updated, including the reduction of annual amounts of financing for the projects of technical re-equipment and reconstruction of HPPs of PJSC RusHydro by smoothing the schedule for fnancing the projects of the Program of the comprehensive modernization of hydroelectric power plants and reducing their unit cost, including through increase the effectiveness of procurement procedures with preserving the quality of work performance and the pledged initially target parameters of reliability and safety of hydropower plants.

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