32. Related Party Transactions
(a) Control relationships
The Company’s parent as at 31 December 2011 and 2010 was JSC IDGC Holding. The party with the ultimate control over the Company is the Government of the Russian Federation, which held the majority of the voting rights of JSC IDGC Holding.
(b) Transactions with parent
Management fee accounted for RUB 374,774 thousand (2010: RUB 441,000 thousand).
(c) Management compensation
There are no transactions or balances with key management and their close family members except for remuneration in the form of salary and bonuses.
Total remuneration paid to key management, Board of Directors and Management Board members included into personnel costs was:
| Year ended 31 December 2011 |
Year ended 31 December 2010 |
|
|---|---|---|
| Salary and bonuses | 235,881 | 220,555 |
(d) Transactions with government-related entities
In the course of business, the Group makes a significant number of transactions with companies that are government-related. These operations are carried out under the regulated tariffs, or in accordance with market prices.
Revenues from government-related entities accounts for 3% of total revenue for the year ended 31 December 2011, (for the year ended 31 December 2010: 5%) including 3% of the proceeds from the transfer of electricity (for the year ended 31 December 2010: 3%).
Costs of electricity transmission for government-related entities account for 80% of the total cost of the electricity transmission for the year ended 31 December 2011 (for the year ended 31 December 2010: 66%).
(e) Loans and borrowings received from government-related entities
| Addition of loans and borrowings | The balance of transactions | Addition of loans and borrowings | The balance of transactions | |
|---|---|---|---|---|
| 2011 | 31 December 2011 | 2010 | 31 December 2010 | |
| Loans and borrowings received from: | ||||
| Government-related entities | 7,420,000 | 14,962,532 | 3,408,671 | 8,253,900 |
| 7,420,000 | 14,962,532 | 3,408,671 | 8,253,900 | |
Loans and borrowings are drawn at the market interest rate (Note 28).
(f) Pricing policy
Transactions with related parties for the transmission of electricity are carried out at the tariffs set by the state.
Return to Notes to the Consolidated Financial Statements for the year ended 31 December 2011