Main provisions of the Financial Policy of TVEL Fuel Company:

• TVEL JSC provides overall guidance of relationship between its subsidiaries and financial institutions (base banks, partner banks) regarding the matters of consolidated debt portfolio management, placement of available cash assets, subsidiaries liquidity management, management of payment and cash services for trade finance and currency exchange transactions, hedging and other financial transactions;
• TVEL JSC approves transactions of the subsidiaries regarding attraction and placement of temporary funds. Conclusion of financial transactions (borrowing, except for borrowing from ROSATOM State Corporation), execution of bank guarantees on the part of the principal, issuing and placement of securities, disposal of derivative financial instruments (under contracts that are concluded outside the exchange business, and that provide for liabilities on products supplies), unsecured letters of credits are executed in accordance with the requirements of the Uniform Industrial Procurement Standard.
• The system of borrowings is being implemented with the purpose to optimize the consolidated credit portfolio of TVEL Fuel Company and expenses on attraction of external funding, as well as for central funding of operating activity of subsidiaries of the Fuel Company and current liquidity management.

Basic principles in Financial Policy of TVEL Fuel Company:

• conservative approach in selecting financial institutions;
• diversification of funding sources, subject to the acceptable level of financial risks;
• single treasurer's office;
• full disclosure.

Budgeting in the subsidiaries of TVEL JSC is set in accordance with the Unified Budgeting Procedure and the standards of ROSATOM State Corporation.

Budgets of the subsidiaries of TVEL FC are approved at the meetings of the Board of Directors of subsidiary companies based on the results of consideration of the consolidated budget of the Company by the budget committees of TVEL JSC and ROSATOM State Corporation.

TVEL Fuel Company received no state financial backing in the reporting and in the previous periods.