OJSC Oil Company Rosneft Consolidated Financial Statements

OJSC Oil Company Rosneft
Notes to Consolidated Financial Statements (continued)
22. Other Non-current Liabilities
Other non-current liabilities as of December 31 comprise the following:
2008 2007
Restructured tax liabilities 1,611 2,146
Long-term lease obligations 86 147
Deferred income 63 115
Liabilities to municipalities under amicable agreements 91 48
Other 19 29
Total other non-current liabilities 1,870 2,485
In February and March 2008, the Company received signed resolutions of the Government of the
Russian Federation and those of the relevant regional and local authorities regarding the restructuring
of the respective tax liabilities. Under the tax restructuring plan, the outstanding tax liabilities shall be
repaid quarterly within five years starting from March 2008. The Company’s payments excluding
interest amounted to RUB 4,646 million (US$ 186.3 million at the CBR official exchange rate as of
the payment dates) for the year ended December 31, 2008.
The Company intends to undertake all possible actions to comply with the tax restructuring plan in full.
23. Related Party Transactions
In the normal course of business the Company enters into transactions with other enterprises which are
directly or indirectly controlled by the Russian Government. Such enterprises are OJSC Gazprom, OJSC
Russian Railways, OJSC Sberbank, Vnesheconombank, OJSC Bank VTB, ОJSC Gazprombank, OJSC
AK Transneft, former business units of RAO UES, and federal agencies, including tax authorities.
Total amounts of transactions and balances with companies controlled by the Russian Government for
each of the reporting periods ending December 31, as well as related party balances as of December 31
are provided in the tables below:
2008 2007 2006
Revenues and Income
Oil and gas sales 163 99 27
Sales of petroleum products and processing fees 616 218 148
Support services and other revenues 83 13 8
Interest income 54 9 25
916 339 208
Costs and expenses
Production and operating expenses 228 109 17
Pipeline tariffs and transportation costs 3,410 2,873 2,032
Other expenses 88 73 5
Interest expense 220 335 384
Banking fees 16 13 13
3,962 3,403 2,451
Other operations
Sale of short-term and long-term investments 1,180 – 4
Purchase of short-term and long-term investments 1,693 – 14
Proceeds from short-term and long-term debt 2,921 3,654 2,463
Repayment of short-term and long-term debt 2,670 5,675 2,104
Deposits placed 48 90 374
Deposits paid – 55 499
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