OREANDA-NEWS. RAO "UES of Russia" has prepared its 2006 financial statements under the Russian Accounting Standards.

The Company's net profit in 2006 is RUB745,088 million, up RUB724,190 million from RUB20,898 million in 2005.

Such sharp growth in net profit was due to the adjustment made to the value of investments held by RAO "UES of Russia" in its subsidiaries whose shares are traded on the RTS and MICEX Stock Exchanges. The adjustment of RUB717,656.9 million is reflected in the "Other income" line of the Income Statement.

Accordingly, the Company's actual net profit in 2006 (without taking into account the paper profit) was RUB27,431 million.