To the Shareholders and Board of Directors of
JSC Russian Grids

We have audited the accompanying consolidated financial statements of Joint Stock Company Russian Grids and its Subsidiaries (“the Group”), which comprise the consolidated statement of financial position as at 31 December 2014, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Audited entity’s responsibility for the consolidated financial statements

Management of the Group is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on the fairness of these consolidated financial statements based on our audit.

We conducted our audit in accordance with the federal standards on auditing effective in the Russian Federation and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The audit procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Joint Stock Company Russian Grids and its subsidiaries as at 31 December 2014, and their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards.

Other matter

The consolidated financial statements of the Group for the year ended 31 December 2013 were audited by another auditor who issued an audit report with an unqualified opinion dated 22 April 2014.

D.E. Lobachev
General director
Ernst & Young LL C
22 April 2015

Details of the audited entity

Name: Joint Stock Company Russian Grids and its subsidiaries

Record made in the State Register of Legal Entities on 1 July 2008, State Registration Number 1087760000019.
Amendments due to renaming are recorded in the State Register of Legal Entities on 4 April 2013, State Registration Number 7137746729542.

Address: Russia, 121353, Moscow, Belovezhskaya street, 4.

Details of the auditor

Name: Ernst & Young LL C

Record made in the State Register of Legal Entities on 5 December 2002, State Registration Number 1027739707203.

Address: Russia, 115035, Moscow, Sadovnicheskaya naberezhnaya, 77, building 1.

Ernst & Young LLC is a member of self-regulatory organization of auditors Non Profit partnership ”Russian Audit Chamber” (“SRO NP APR”).

Ernst & Young LLC is included in the control copy of the register of auditors and audit organizations, main registration number 10201017420.