12. Property, Plant and Equipment

Thousands of Russian Roubles, unless otherwise stated

Land and buildings Transmission networks Equipment for electricity transformation Other Construction in progress Total
Deemed cost
At 1 January 2010 9,970,247 24,033,924 11,789,709 5,334,943 2,726,748 53,855,571
Acquisitions through business combinations 419,131 842,111 336,416 35,913 76,416 1,709,987
Additions 60,183 173,595 50,785 — 11,194,145 11,478,708
Transfers 2,484,866 2,465,660 2,959,677 1,550,594 (9,460,797) —
Disposals (10,127) (30,795) (17,548) (116,668) (57,419) (232,557)
Balance as at 31 December 2010 12,924,300 27,484,495 15,119,039 6,804,782 4,479,093 66,811,709
At 1 January 2011 12,924,300 27,484,495 15,119,039 6,804,782 4,479,093 66,811,709
Additions 54,409 58,609 36,007 525 16,362,118 16,511,668
Transfers 3,945,016 4,135,024 3,043,145 2,308,930 (13,432,115) —
Disposals (45,277) (42,839) (70,049) (65,399) (70,756) (294,320)
Balance as at 31 December 2011 16,878,448 31,635,289 18,128,142 9,048,838 7,338,340 83,029,057
Accumulated depreciation
At 1 January 2010 (1,276,191) (5,510,651) (2,180,908) (1,492,716) — (10,460,466)
Depreciation for the year (633,243) (2,342,980) (876,016) (809,255) — (4,661,494)
Disposals 1,914 17,465 6,683 62,861 — 88,923
At 31 December 2010 (1,907,520) (7,836,166) (3,050,241) (2,239,110) — (15,033,037)
At 1 January 2011 (1,907,520) (7,836,166) (3,050,241) (2,239,110) — (15,033,037)
Depreciation for the year (988,182) (2,746,334) (1,074,520) (1,092,518) — (5,901,554)
Disposals 7,403 20,383 32,854 40,885 — 101,525
At 31 December 2011 (2,888,299) (10,562,117) (4,091,907) (3,290,743) — (20,833,066)
Net book value
At 1 January 2010 8,694,056 18,523,273 9,608,801 3,842,227 2,726,748 43,395,105
At 31 December 2010 11,016,780 19,648,329 12,068,798 4,565,672 4,479,093 51,778,672
At 31 December 2011 13,990,149 21,073,172 14,036,235 5,758,095 7,338,340 62,195,991

As at 31 December 2011 construction in progress includes advance payments for property, plant and equipment of RUB 53,661 thousand (as at 31 December 2010: RUB 47,603 thousand).

The amount of capitalized interest in 2011 was RUB 61,930 thousand (in 2010: RUB 91,858 thousand).

Leased property, plant and equipment

The Group leases production equipment and transportation vehicles under a number of finance lease agreements. Title to the leased assets transfers to the Group at the end of each lease.

As at 31 December 2011 and 31 December 2010 the net book value of leased property, plant and equipment, accounted for as part of the Group’s property, plant and equipment, was as follows:

Land and Buildings Transmission networks Equipment for electricity transformation Other Total
Cost 84,704 363,915 2,533,484 313,440 3,295,543
Accumulated depreciation (14,538) (52,356) (425,557) (81,006) (573,457)
Net book value at 31 December 2010 70,166 311,559 2,107,927 232,434 2,722,086
Cost 51,306 65,204 2,109,135 242,352 2,467,997
Accumulated depreciation (9,203) (16,129) (493,800) (77,046) (596,178)
Net book value at 31 December 2011 42,103 49,075 1,615,335 165,306 1,871,819

Return to Notes to the Consolidated Financial Statements for the year ended 31 December 2011