JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on April 29, 2015.

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The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board – General Director of RusHydro, to provide for the following by June 30, 2015:

1.     Development of measures aimed at reduction of operating expenses by not less than 2-3 percent annually as well as determination of target values of implementation of these measures.

2.     Inclusion of the list of measures, target values of their implementation and cost reduction target in the long-term development program of RusHydro Group, starting from 2015.

3.     Inclusion of operating costs reduction target in the list of Management’s KPIs.

4.     Inclusion of accomplishment of operating costs reduction target, determined in the long-term development program of the Company, into labor agreement of the Chairman of the Management Board – General Director of RusHydro.

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The Board of Directors approved the list of investment projects, being implemented or planned for implementation in terms of the investment program of RusHydro, earmarked for technological assessment and price audit in 2015-2016.

The list of projects includes comprehensive reconstruction of transformers of the Votkinskaya HPP, comprehensive replacement of turbines and hydro units of the Nizhegorodskaya, Chirkeyskaya HPPs, turbines of the Maynskiy hydro complex and hydro units of the Zeyskaya HPP.

In accordance with the Regulation on technological assessment and price audit of major investment projects of RusHydro the list includes the facilities with estimated cost of RUB 1.5 bn or more, including projects financed without budget funds. The approved list includes projects, which implementation is scheduled to start in 2015 and 2016.

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The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board – General Director of RusHydro, to provide for the following:

1.     Annual analysis of the results of creation of the unified treasury of RusHydro Group;

2.     Submission of the report on the results of completed analysis to the Ministry of Finance of Russia and the Federal Financial Monitoring Service on annual basis till September 15, starting from 2015, including:

2.1.   Brief information on the results of execution of the government’s decree of August 8, 2014, on creation of the unified treasury;

2.2.   Information on economic efficiency of creation of the unified treasury and its performance (reduction of operating costs, including costs for external debt service through efficient use of intragroup funding; and increase of return on investments).

The unified treasury of RusHydro will be created to centralize control over cash flows, manage liquidity and financial risks in accordance with the government’s decree. The main responsibilities of the unified treasury will be:

§  relationships with banks;

§  strategic planning and optimization of cash flows;

§  control over budget implementation;

§  financial risks management;

§  creation of information database to automate of the unified treasury functions.

§  the treasury will start working no later than June 30, 2015.

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The Board of Directors approved termination of RusHydro’s participation in JSC Sibenergosbyt through carve-out of 100% shares at total price of RUB 10.5 mn in favor of JSC ESC RusHydro (100% subsidiary of RusHydro, that unites power retail companies of the Group). The price of the stake has been determined by the independent appraiser based on analysis of market conditions.

In terms of implementation of BEMO project several long-term sale and purchase of electricity and capacity agreements will be signed in the nearest future. JSC Sibenergosbyt will act as an independent power retail company in terms of this project, being a tax resident of Krasnoyarsk region, a region where BEMO operates. Consolidation of Sibenergosbyt into a unified system controlling power retail companies of RusHydro in the pricing zones through ESC RusHydro will provide for optimization of corporate governance costs.

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The Board of Directors approved the amended Provisions on the procurement policy of RusHydro.

The document was developed in compliance with the recent changes in the Russian legislation and provides for increasing transparency of procurement processes, as well as includes the government’s guidelines related to procurements from small and medium businesses.