32) Subsequent Events

Loan Participation Notes

On January 27, 2011, TMK Capital S.A. completed the offering of loan participation notes due 2018 in the total amount of 500,000 with a coupon of 7.75% per annum, payable on semi-annual basis. The notes are admitted for trading on the London Stock Exchange.

Bank Loans

In January 2011, the Group partially repaid 1,107,542 Gazprombank loan facilities using the proceeds from issuance of 7.75% loan participation notes in the amount of 500,000.

In February 2011, the Group entered into new credit line agreements with Gazprombank for the amount of 12,000,000 thousand Russian roubles (407,587 at the exchange rates as at the cash proceeds dates) with a maturity in 2014.

Russian Bond Obligations

n February 15, 2011, the Group fully repaid its liability under 5,000,000 thousand Russian roubles bonds issued on February 21, 2006 (170,892 at the exchange rate as at the payment date) using the proceeds from the loan provided by Gazprombank.

Acquisition of the Shares of Volgograd River Port

In March 2011, the Group won an auction for acquisition of 25.5% of Volgograd River Port for 112,825 thousand Russian roubles (3,928 at the exchange rate as at the date of auction). The transfer of ownership is expected to be finalized in the second quarter of 2011.

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