The initial size of the claim could be significantly reduced before or
following revision by Russian courts, as evidenced in numerous back tax claims against Russian corporate entities - including Mosenergo's parent company Unified Energy System (B+/Stable/--). The general tax risk arising from the low transparency of Russian tax legislation and unpredictability of its implementation is factored to an extent into the ratings on all Russian
corporations, through Standard & Poor's overall country risk assessment.
S & P considers the size of this claim significant for Mosenergo, however, if approved by the court, the payment of these backdated taxes could substantially affect the company's liquidity and put pressure on the ratings.
S & P will continue monitoring the developments and assess its implications for the ratings on Mosenergo.
