22 November 2010 in Moscow Committee of Audit of the Board of Directors IDGC North-West has discussed the questions for consideration.

The members of the Committee of Audit of the Board of Directors IDGC North-West   have analyzed and approved the new version of Statement of the department of internal audit and risk management. The main difference of the new version is new subordination. The Department of internal audit and risk management is subjected directly to the General Director and has to render an account to the Committee of Audit. Committee of Audit of the Board of Directors IDGC North-West recommended to the General Director approving the Statement and providing its implementation.

Also the Committee of Audit of the Board of Directors IDGC North-West was informed about the situation with the documents aimed at modernization and development of internal control, audit and risk management in the Company. According to the Order of General Director ¹354 from 02.08.2010 there was created a working group for implementation of integrated system of risk management and internal control. The main results are making –up of the passports and register of risks and description of 5 key business-processes.

The head of department of internal audit IDGC North-West Gennady Grishin has reported about the activity of the department for 9 month 2010. Committee of Audit of the Board of Directors IDGC North-West reviewed in detail the results of the inspections. Particular attention was paid to the analysis of problems, the effectiveness of measures for its elimination and prevention in the future.

The members of the Committee of Audit of the Board of Directors IDGC North-West   were informed about results of analysis of contracts for consulting services for the period 2009 – 2010. Also they approved plan of operations of the development of internal control and audit for the 2 half of the year 2010 and 1 quarter of 2011.

Following the discussion, committee members decided to hold next committee meeting 9 December 2010 in a form of joint attendance.