Denis Demin, investment analyst, Deputy Managing Director of Lenmontazhstroy IC

– IAS help a company to attract foreign funds by placing bonds or shares

In July-Aug 2009 Atomenergoprom OJSC is planning to hold a tender for the right to draft consolidated financial report for Jan-June 2009 in compliance with the International Accounting Standards (IAS); to audit the consolidated financial report drafted for Atomenergoprom companies for 2010 in compliance with IAS; to provide consultation on whether the cost of the assets and obligations are fair and comply with the requirements of IAS.

The key advantage of the International Accounting Standards over the Russian Accounting Standards for a company like Atomenergoprom is that the former will help the holding to adequately consolidate the results of the work of its subsidiaries and dependent entities. The IAS are the best instrument for a company having shares in dozens of enterprises. The IAS help a company to attract foreign funds by placing bonds or shares. In the autumn Atomenergoprom is going to place bonds worth 100,000,000,000 RUR. It is more profitable to place the bonds of a big head company than the bonds of small subsidiaries. Consolidated accounting helps creditors to more effective assess the risks.

The IAS will help Atomenergoprom once it decides to float its shares. This possibility was discussed when the holding was just being formed. The publication of IAS report will cost Atomenergoprom much less than the transition of dozens of subsidiaries to a unified system.

Atomenergoprom OJSC (Atomny Energopromyshleny Kompleks) is a state holding that is supposed to comprise 89 nuclear companies and to cover the whole range of nuclear services: from uranium mining to NPP construction and electricity production. Atomenergoprom’s companies will have a total of 175,000 employees and an annual production of 200bln RUR (5.5bln EUR). Atomenergoprom is one of the biggest players on the world market: it has a 40% share in the world’s uranium enrichment services, 17% in nuclear fuel production, 8% in uranium mining, 28% in NPP construction (10 reactors). The director of Atomenergoprom is Vladimir Travin, the chairman of the board of directors – Sergey Kiriyenko.