The explanatory note to the accounting report of the open joint-stock company "Sibirtelecom" for 2002 (стр. 5 )

1.Companies that lease equipment

According to the terms of the leasing contracts the received equipment is accounted in the balance sheet of the company. The depreciation of this equipment is calculated by using the straight-line method. The depreciation starts being calculated with the rate of the accelerated depreciation conditioned in the contract (3 in 2002) from the moment when the equipment is put into operation. The term of using the equipment is 10 years.

2.Companies that receives the leased equipment

The cost of the equipment received according to the leasing contracts and accounted in the balance sheet of the company (including the joined companies) is as follow.

Table No 6

	2001	2002
	(thousands rubles)	(thousands rubles)
Original cost	-	335911
Depreciation	-	-
Balance Value of Leasing Fixed Assets	-	335911

Liabilities for leasing including VAT:

Table No 7

Maturity date	Thousands rubles .
2003
2004 – 2007
After 2007	336
Total: Liabilities for leasing

The sum of the money paid to the leasing companies (69,248,000 rubles) according to the leasing contracts are shown in the balance sheet (Line 245, 246 in form No 1).

7.2. Unfinished building

Line 130 "Unfinished building" in Form No 1 “Balance-sheet”

Table No 8

The structure of unfinished building	Investments to fixed assets for manufacturing on December 31st, 2002 Thousands rubles	Investments to non-manufacturing fixed assets on December 31st, 2002 Thousands rubles	Total
Account"Investments in non turnover assets" Total	609296	138691	747987
Including building, modernization, reconstruction of the fixed assets by using a contractor' work	452711	135176	587887
Building, modernization, reconstruction of the fixed assets on the company's own	39031	3032	42063
Capital investments to leased fixed assets	129	-	129
Приобретение отдельных объектов основных средств	4089	17	4106
Buying fixed assets according to leasing contracts	1206	-	1206
Buying fixed assets according to investment projects	4359	-	4359
Others	107771	466	108237
Account"Equipment for installation"	Х	Х	58429

7.3.Financial investments

Kinds of financial investments	The rest on January 1st, 2002	Received	Retired	The rest on December 31st, 2002
Total including the data of the joined companies	The data of the joined companies	Total including the data of the joined companies	The data of the joined companies before the date of the reorganization	Total including the data of the joined companies	The data of the joined companies before the date of the reorganization
1	2	3	4	5	6	7	8
Long-term investments including the following:
Shares and a share of authorized capitals	82650	68510	120	120	4909	4839	77861
Stocks
Deposits according to the particular partnership contract
Bills of credit	5780	5780	25		200	200	5605
Loans granted	400				400	0
Others	6436	5435	567		4443	1	2536
Reserve for defaulting
Total Page 140, Form No 1	95266	75292	687	25589	9952	5040	86002
Short-term investments including the following:
Stocks
Bills of credit	17698	16711	183791	97000	167317	100782	34172
Loans granted
Deposits according to the particular partnership contract
Deposit
Other short-term investments	10115	57	3713	0	9566	57	4262
The shares of company bought from shareholder
Reserve for defaulting
Total Page 250, Form No 1	27813	16768	187504	97000	176883	100839	38434
TOTAL	123079	92060	213661	122589	212304	132419	124436

(* The turnovers connected with transferring balances of the account to the main company are excluded because of the reorganization