Moscow, 14 April 2006. OAO RAO "UES of Russia" has prepared its financial statements for 2005 in accordance with the Russian Accounting Standards (RAS).

Balance Sheet as of 31 December 2005

During the year, the short-term receivables of RAO "UES of Russia" decreased by RUB1.4 billion to RUB22.52 billion from RUB23.92 billion. The long-term receivables made RUB25.76 billion at 31 December 2005, down RUB6.85 billion from RUB32.61 billion at the beginning of last year.

The change in the long-term receivables was due to the termination of the contracts on the Company's contributions of participatory interests with OAO "Bureyskaya HPP" and OAO "Sochinskaya TPP".

Over 2005, the accounts payable shrunk more than 85% to RUB2.38 billion from RUB16.89 billion. Most of this decrease resulted from payment of the amounts due as contributions to the authorized capital of OAO "WGC-5", reduction in the amounts owed in respect of the Company's securities, and the write-off of tax fines and penalties thanks to the full repayment by the Company if its restructured debt in strict accordance with the schedule.

In 2005, the revenue of RAO "UES of Russia" amounted to RUB28.09 billion, down RUB6.37 billion from RUB34.46 billion in 2004.

The decline in revenue during the reporting period was primarily due to the reduction of electricity export revenue by RUB5.29 billion after the electricity export/import functions were transferred to ZAO "INTER RAO UES". In addition, there was a decrease in lease revenues following the transfer of power plants, which had been previously leased out, to the newly established subsidiaries.

The cost of products sold in 2005 fell by more than 75% to RUB1.42 billion from RUB6.11 billion. This change was mostly due to the transfer of export contracts to ZAO "INTER RAO UES", and, as a consequence, the lower share of cost of electricity purchases for export in the overall costs.

Because of the lower revenues, the profit from sales of RAO "UES of Russia" made RUB22.37 billion in 2005, a decrease of RUB1.88 billion compared to RUB24.25 billion in 2004.

Over 2005, the pre-tax profit declined by RUB2.27 billion to RUB24.96 billion from RUB27.23 billion.

The profit tax and other mandatory payments grew RUB0.92 billion during the year to RUB4.07 billion from RUB3.15 billion in 2004.

The net income of RAO "UES of Russia" amounted to RUB20.9 billion,