Report of TVEL JSC Internal Control and Audit Director on the Accuracy of Data in 2013 Report

We have audited the process of public annual reporting preparation (hereinafter — PAR) of TVEL JSC over 2013.

We are responsible for expressing the opinion on the effectiveness of the internal control system of the process of PAR preparation and on compliance of the order of PAR preparation with the requirements of the current legislation, standards of ROSATOM State Corporation, internal regulatory documents of TVEL JSC applicable to public reporting.

We conducted the audit in compliance with “The Procedure for planning and conducting internal audits of business processes, carried out by TVEL JSC and companies, included in the control scheme of Fuel Company”, approved by the President’s Order of TVEL JSC dated December 14, 2011 No.271

The audit comprised executing of the following procedures:

• Review of compliance of the order of PAR preparation with the requirements of the current legislation, li>standards of ROSATOM State Corporation, internal regulatory documents of TVEL JSC applicable to public reporting;
• Evaluation of efficiency of risk management system, typical for the process;
• Evaluation of quality of formalization and regulation of PAR preparation;
• Analysis of design of key control procedures and testing their operational efficiency.

Furthermore, based on the audit results we have elaborated recommendations, focused on development and enhancement of efficiency of internal controls system of PAR preparation process.

We have not noted any facts of constrains on the audit from the management and personnel of structural units of TVEL JSC.

We believe that the conducted audit provides reasonable basis to express opinion on efficiency of the internal control system.

In our opinion the internal control system of the process is effective and the process of preparation of TVEL JSC annual report complies with the current legislation, Policy of ROSATOM State Corporation applicable to public reporting and requirements of internal regulatory acts of TVEL JSC, specifying the process of PAR preparation.

Internal Control and Audit Director, CIA

G.I. Bobrova