Legal risks

Legal risks are generic for IDGC of Urals and any other company operating in Russia. Primarily, legal risks are caused by the specificity of the current legislation, its changes, equivocating interpretation of regulatory documents, contradictory court sentences on similar cases. Legal risks, related to equivocating interpretation of legislation on taxes and levies, possible changes in procedure, rates, terms of tax charge and payment, changes in legislation on joint-stock companies as well as corporate governance, are not significant for us. Permanent monitoring of changes in legislation and court practice enables us to plan our financial and economic operations with regard to changes. Accounting and legal departments work together over the methodology of tax base calculation and control their compliance with the current legislation. There is also a legal expertise of corporate procedures, operations and transactions of the Company.