35. RELATED PARTY TRANSACTIONS

For the purpose of these Consolidated Financial Statements parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operational decisions as defined by IAS 24 Related Party Disclosures. Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be effected on the same terms, conditions and amounts as transactions between unrelated parties.

The Group has applied the exemption as allowed by IAS 24 not to disclose all government related transactions, as the parent of the Company is effectively being controlled by the Russian Government. The table below summarises transactions in the ordinary course of business with either the parent company or associates and joint ventures.

The Group enters into transactions with related parties based on market or regulated prices.

As of December 31, 2013, December 31, 2012 and January 1, 2012 the outstanding balances with related parties were as follows:

RUB millions

December 31, 2013

Parent company

Parent's subsidiaries and associates

Associates and joint ventures

Cash and cash equivalents

32,965

Short-term financial assets

16,248

2,869

Trade and other receivables

2,760

3,178

3,497

Other assets

635

3,010

1,326

Long-term financial assets

2,587

6,494

TOTAL ASSETS

3,395

57,988

14,186

Short-term debt and other current financial liability

1,246

Trade and other payables

1,277

3,432

2,488

Other current liabilities

1

761

413

Long-term debt and other non-current financial liability

3,897

1,000

TOTAL LIABILITIES

5,175

4,193

5,147

RUB millions

December 31, 2012

Parent company

Parent's subsidiaries and associates

Associates and joint ventures

Cash and cash equivalents

23,958

Short-term financial assets

1,210

4,010

Trade and other receivables

744

1,926

3,679

Other assets

1,117

678

Long-term financial assets

5,675

TOTAL ASSETS

744

28,211

14,042

Trade and other payables

1,378

1,250

1,555

Other current liabilities

79

35

722

Long-term debt and other non-current financial liability

4,231

1,162

TOTAL LIABILITIES

5,688

1,285

3,439

RUB millions

January 1, 2012

Parent company

Parent's subsidiaries and associates

Associates and joint ventures

Cash and cash equivalents

4,089

Short-term financial assets

242

10,016

Trade and other receivables

921

309

4,438

Other assets

361

679

Long-term financial assets

2,095

TOTAL ASSETS

921

5,001

17,228

Short-term debt and other current financial liability

1,222

527

Trade and other payables

439

319

2,017

Other current liabilities

260

41

1,864

Long-term debt and other non-current financial liability

3,207

573

TOTAL LIABILITIES

5,128

360

4,981

For the year ended December 31, 2013 and 2012 the following transaction occurs with related parties:

RUB millions

Year ended December 31, 2013

Parent company

Parent's subsidiaries and associates

Associates and joint ventures

Crude oil, gas and oil products sales

9,929

21,994

48,156

Other revenue

158

321

6,420

Purchases of crude oil, gas and oil products

31,250

84,618

Production related services

145

13,597

17,089

Transportation costs

4,727

2,025

6,120

Interest income

788

486

RUB millions

Year ended December 31, 2012

Parent company

Parent's subsidiaries and associates

Associates and joint ventures

Crude oil, gas and oil products sales

6,208

14,818

49,418

Other revenue

1

112

5,292

Purchases of crude oil, gas and oil products

18,939

90,209

Production related services

1,075

9,805

11,373

Transportation costs

3,262

4,878

11,609

Interest income

280

TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL

Key Management received remunerations: salaries, bonuses and other contributions amounted to RUB 1,074 million for the year ended December 31, 2013 and to RUB 952 million for the year ended December 31, 2012.