Moscow, 31 December 2008. As part of implementation of the energy balance of the Union State of Russia and Belarus, OJSC INTER RAO UES and Belenergo State Production Association plan to sign in January long-term contracts for supply of electric power by OJSC INTER RAO UES to Belarus.

For the first time in the history of relations between the two companies, the contracts are based on the agreed long-term plans of OJSC INTER RAO UES and Belenergo. The contracts are signed for five years and provide for yearly supplies of up to 5 billion kWh of electric power to Belarus. Of the above amount, 3 billion kWh are guaranteed and are supplied at prices and schedule that are adjusted annually. Up to 2 billion kWh are to be supplied based on economic needs of the parties based on daily planning and agreed delivery schedule.

Developing such format of the deal the parties built their strategy based on the use of financial proceeds from its implementation for pursuing joint investment programs in the power sector, including participation in the construction of power generation plants and network infrastructure.

In addition to that, during the talks between the Russian and Belarusian energy authorities held at the end of December, they decided to prepare a proposal regarding the establishment of a joint venture by the end of January 2009. This joint venture will conduct transactions on the foreign energy markets and implement investment projects and projects in the area of engineering.

At the same time, the Russian and Belarusian parties agreed on fundamentally new payment arrangements for transit of electric power generated by OJSC INTER RAO UES via electricity networks of the unified energy system of Belarus.