Financial results

AUDITOR'S REPORT

The Audit Committee under the Board of Directors of RAO "UES of Russia" reviewed the Company's financial statements (accounts) for year 2007, discussed with the Company's executive management and independent auditors, ZAO "PricewaterhouseCoopers Audit", the audit process, efficiency of the Company's internal controls, and the completeness and quality of its financial statements. The Audit Committee also reviewed the Auditor's Report on the statutory financial statements (accounts) of the Company for 2007.

Based on the information received in the course of review of the Company's statutory financial statements (accounts) and the discussion of various aspects of its preparation with the executive management and independent auditors, the Audit Committee recommends that the Board of Directors of the Company approve the statutory financial statements of the Company for 2007 and the Auditor's Report and submit them for shareholder approval at the Annual General Meeting of the Company.

ZAO "PricewaterhouseCoopers Audit" was selected through a competitive tender pursuant to the requirements of Federal Law No. 94-FZ, dated 21 July 2005, On Placement of Orders for Goods, Works and Services for State and Municipal Needs, to audit the statutory financial statements of OAO RAO "UES of Russia" for a term of three years, beginning in 2006. At the Annual General Meeting held on 26 June 2006, the shareholders re-appointed ZAO "PricewaterhouseCoopers Audit" as independent auditors of OAO RAO "UES of Russia" for 2007.

The Auditors conducted an audit of the Company's financial statements (accounts) prepared in accordance with the Russian Accounting Standards (RAS) and the International Financial Reporting Statements (IFRS), as well as an audit of the IFRS consolidated financial statements of RAO UES Group. Furthermore, the Auditors provided consultancy services to the Company in connection with the restructuring of RAO UES Group.

The Auditors and the Company do not have any close business relations or kinship. The Company has not provided any loans to the Auditors. The Auditors (and the Auditor's officers) do not hold any shares in the Company's capital. The Company does not have any information on its officers that are simultaneously officers of the Auditors.

The Auditors conducted an audit of the statutory financial statements of OAO RAO "UES of Russia" for 2007. The Company has no deferred or overdue payments owed for the services provided by the Auditors.

The total amount of service fees for the audit of the 2007 statutory financial statements (accounts) of the Company prepared under the RAS and for the audit of the Company's 2007 financial statements and RAO UES Group's 2007 consolidated financial statements prepared in accordance with the IFRS made RUB150.45 million (including VAT).

Following is the auditor's report by ZAO "PricewaterhouseCoopers Audit" on the results of their audit of the statutory financial (accounting) statements of OAO RAO "UES of Russia" for 2007. The statutory financial (accounting) statements are not included in this Annual Report. Accordingly, all references in the auditor's report to the "attached financial (accounting) statements" and to the information contained in the "Notes to the statutory financial (accounting) statements" are made to the documents which are not part of this Annual Report.

This Auditor's Report applies only to the 2007 statutory financial (accounting) statements of OAO RAO "UES of Russia" and the explanatory notes thereto. Copies of these documents are available on request from RAO "UES of Russia" or from the Internet site: www.rao-ees.ru.