28. Leases

Finance leases

LLC “FosAgro-Trans”, a Group subsidiary, has entered into several agreements to lease 1,650 railway wagons. At the end of the lease term, the ownership for the leased assets will be transferred to the lessee.

	2011
RUB Million	Minimum lease payments	Interest	Principal
Less than one year	595	189	405
Between one and five years	1,841	401	1,441
More than five years	330	18	312
	2,766	608	2,158

	2010
RUB Million	Minimum lease payments	Interest	Principal
Less than one year	273	86	187
Between one and five years	615	189	426
More than five years	168	16	152
	1,056	291	765

Operating leases

During 2010-2011, LLC “FosAgro-Trans”, a group subsidiary, entered into several operating lease agreements to rent railway wagons. The rent payments for 2011, which are recorded in the cost of sales, amounted to RUB 729 million (2010: RUB 414 million).

The non-cancellable operating lease rentals are payable as follows:

RUB Million	2011	2010
Less than one year	345	278
Between one and five years	152	202
	497	480

Notes to the Consolidated Financial Statements

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