12. PROPERTY, PLANT AND EQUIPMENT

Movements in property, plant and equipment for the years ended December 31, 2013 and 2012 is below:

RUB millions

Cost

O&G properties

Refining assets

Marketing and distribution

Other assets

Assets under construction

Total PPE

AS OF JANUARY 1, 2013

709,528

183,290

84,292

7,757

59,278

1,044,145

Additions

141,463

1,256

105

1,542

50,875

195,241

Acquisitions through business combinations

35

740

1,619

2,033

122

4,549

Changes in decommissioning obligations

2,538

2,538

Capitalised borrowing costs

1,671

166

373

2,210

Transfers

28,397

19,006

1,574

(48,977)

Internal movement

5,249

(122)

(2,232)

(1,529)

(1,366)

Reclassification from assets classified as held for sale

1,217

1,217

Disposals

(6,973)

(695)

(3,537)

(816)

(691)

(12,712)

Translation differences

11,100

3,968

3,190

145

657

19,060

AS OF DECEMBER 31, 2013

865,828

217,000

102,443

10,706

60,271

1,256,248

DEPRECIATION AND IMPAIRMENT

AS OF JANUARY 1, 2013

(221,754)

(48,021)

(15,604)

(554)

(285,933)

Depreciation charge

(58,409)

(7,840)

(7,503)

(773)

(74,525)

Internal movement

(991)

1

783

207

Reclassification from assets classified as held for sale

(1,017)

(1,017)

Disposals

3,895

112

950

13

4,970

Translation differences

(3,159)

(463)

(455)

(123)

(4,200)

AS OF DECEMBER 31, 2013

(281,435)

(56,211)

(21,829)

(1,230)

(360,705)

NET BOOK VALUE

AS OF JANUARY 1, 2013

487,774

135,269

68,688

7,203

59,278

758,212

AS OF DECEMBER 31, 2013

584,393

160,789

80,614

9,476

60,271

895,543

RUB millions

Cost

O&G properties

Refining assets

Marketing and distribution

Other assets

Assets under construction

Total PPE

AS OF JANUARY 1, 2012

614,566

145,959

70,314

11,411

49,326

891,576

Additions

102,673

4,463

2,133

245

59,704

169,218

Acquisitions through business combinations

4,591

4,591

Changes in decommissioning obligations

2,268

2,268

Capitalised borrowing costs

332

1,242

1,574

Transfers

34,580

13,178

547

(48,305)

Internal movement

3,406

(3,406)

Reclassification to and from assets classified as held for sale

(1,718)

(1,718)

Disposals

(6,278)

(757)

(3,094)

(892)

(1,842)

(12,863)

Translation differences

(6,906)

(955)

(1,645)

(148)

(847)

(10,501)

AS OF DECEMBER 31, 2012

709,528

183,290

84,292

7,757

59,278

1,044,145

DEPRECIATION AND IMPAIRMENT

AS OF JANUARY 1, 2012

(174,038)

(41,903)

(9,969)

(612)

(226,522)

Depreciation charge

(53,530)

(6,552)

(6,929)

(344)

(67,355)

Impairment

(503)

(503)

Reclassification to and from non-current assets classified as held for sale

(216)

216

Disposals

3,913

280

1,759

179

6,131

Translation differences

1,901

154

254

7

2,316

AS OF DECEMBER 31, 2012

(221,754)

(48,021)

(15,604)

(554)

(285,933)

NET BOOK VALUE

AS OF JANUARY 1, 2012

440,528

104,056

60,345

10,799

49,326

665,054

AS OF DECEMBER 31, 2012

487,774

135,269

68,688

7,203

59,278

758,212

Capitalisation rate for the borrowing costs related to the acquisition of property, plant and equipment comprised of 3.99% for the year ended December 31, 2013 (2012: 2.73%).

The information regarding Group’s exploration and evaluation assets (part of O&G properties) are presented below:

RUB millions

2013

2012

AS OF JANUARY 1

31,709

18,744

Additions

23,605

19,048

Unsuccessful exploration expenditures derecognised

(975)

(1,911)

Transfer to proved property

(1,253)

Reclassification to assets classified as held for sale

(1,718)

Disposals

(1,637)

(1,489)

Translation differences

2,065

(965)

AS OF DECEMBER 31

53,514

31,709

Notes in Consolidated Statements:

Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows