14. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The Group has several investments in associates and joint ventures. The carrying value of the most significant investments as of December 31, 2013, December 31, 2012 and January 1, 2012 are summarised below:

RUB millions

Ownership percentage

December 31, 2013

December 31, 2012

January 1, 2012

Slavneft

Joint venture

49.9

85,015

78,831

72,681

SeverEnergy

Joint venture

40.2

24,165

24,285

24,599

Others

11,178

2,527

3,435

TOTAL INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

120,358

105,643

100,715

The principal place of business of the most significant joint ventures and associates disclosed above is Russian Federation.

The aggregate carrying amount of all individually immaterial joint ventures and associates as well as the Group’s share of those joint ventures’ and associates’ profit or loss and other comprehensive income are nonsignificant.

The reconciliation of carrying amount of investments in associates and joint ventures as at the beginning of the reporting period and as at the end of the reporting period is shown below :

RUB millions

2013

2012

CARRYING AMOUNT AS OF JANUARY 1

105,643

100,715

Share of profit of associates and joint ventures

11,251

12,767

Dividends declared

(4,405)

(7,892)

Increase in associates and joint ventures

7,858

Other changes in cost of associates and joint ventures

11

53

CARRYING AMOUNT AS OF DECEMBER 31

120,358

105,643

SLAVNEFT

The Group’s investment in JSC Slavneft and various minority stakes in Slavneft subsidiaries (“Slavneft”) are held through a series of legal entities. Slavneft is engaged in exploration, production and development of crude oil and gas and production of refined petroleum products. The control over Slavneft is divided equally between the Group and Rosneft.

SLAVNEFT

The Group’s investment in SeverEnergy LLC (SeverEnergy) is held through Yamal Razvitie LLC (a 50%:50% joint venture between the Group and JSC Novatek) owing a 51% equity interest in SeverEnergy. In December 2013 Yamal Razvitie acquired 60% interest in Artic Russia B.V. owning 49% stake in SeverEnergy. As a result the Group increased its effective share in SeverEnergy from 25.5% to 40.2%. SeverEnergy is developing through its subsidiaries the Samburgskoye and Evo-Yakhinskoye oil fields and some other small oil and gas fields located in the Yamalo-Nenetskiy autonomous region of the Russian Federation.

The difference between the carrying amount of the investment in SeverEnergy and the Group’s share in the underlying net assets as of December 31, 2013 amounting to RUB 16 billion relates to additional shares acquisition in December 2013 by Yamal Razvitie.

The summarized financial information for the significant joint ventures and associates as of December 31, 2013, December 31, 2012 and January 1, 2012 is presented in the table below.

The summarized financial information refers to amounts included in the IFRS financial statements of the joint ventures or associates.

RUB millions

Slavneft

SeverEnergy

December 31, 2013

December 31, 2012

January 1, 2012

December 31, 2013

December 31, 2012

January 1, 2012

Cash and cash equivalents

28,208

32,117

6,888

3,025

724

1,644

Other current assets

18,630

17,822

23,293

7,460

4,493

3,385

Non-current assets

235,420

219,589

209,368

226,727

184,266

166,165

Current financial liabilities

(43,758)

(35,722)

(22,680)

(21,872)

(11,375)

(27,707)

Other current liabilities

(20,617)

(19,507)

(19,177)

(486)

(344)

(41)

Non-current financial liabilities

(33,271)

(36,956)

(36,519)

(78,232)

(41,444)

(5,253)

Other non-current liabilities

(23,816)

(25,998)

(21,671)

(27,807)

(27,395)

(27,685)

NET ASSETS

160,796

151,345

139,502

108,815

108,925

110,508

RUB millions

Slavneft

SeverEnergy

December 31, 2013

December 31, 2012

December 31, 2013

December 31, 2012

Revenue

193,038

198,682

15,832

5,099

Depreciation, depletion and amortization

(26,024)

(28,304)

(6,782)

(1,508)

Finance income

1,623

1,249

57

32

Finance expense

(1,478)

(1,526)

(3,300)

(2,007)

Total income tax expense

(4,731)

(5,835)

(774)

(318)

Profit / (loss) for the period

17,085

24,679

(501)

(1,231)

Other comprehensive income / (loss)

17,085

24,679

(501)

(1,231)

As of December 31, 2013 the Group has contingent liabilities and commitments in relation to its associates and joint ventures in amount of RUB 13.1 billion.

Notes in Consolidated Statements:

Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows