The Group’s financial indebtedness as of the end of 2009 consisted of bank overdrafts, bank borrowings, loans from related and third parties and finance lease liabilities at an aggregate principal amount of USD 449.1 million (including accrued interest of USD 2.1* million), representing a decrease of USD 48.6 million or 10% when compared to the end of 2008.

Cash and cash equivalents increased by USD 23.1 million or 17% from USD 137.1 million at the end of 2008 to USD 160.3 million as of the end of 2009.

Net debt of the Group decreased in 2009 by 20% or by USD 71.7 million from USD 360.6* million as of the end of 2008 to USD 288.9* million as of the end of 2009.

The Group continued to operate in 2009 with a strong balance sheet and modest financial gearing, and the net debt to Adjusted EBITDA ratio remained unchanged at the level of 1.0x* as of the end of 2009 compared to the end of the previous year.

In light of a deteriorating US Dollar/Rouble exchange rate, the Group took steps to increase the share of Rouble-denominated borrowings within the debt portfolio. As a result, the share of Rouble-denominated borrowings increased from 12%* at the end of 2008 to 36%* at the end of 2009. The carrying amounts (including accrued interest of USD 2.1* million) of the Group’s borrowings were denominated in the following currencies as of the end of 2008 and 2009: 

^{(1) 26,000 Euro.}

Despite the significant increase in Rouble-denominated borrowings, the Group’s weighted average effective interest rate reduced to 9.04%* at the end of 2009 compared to 10.24%* at the end of the previous year.

As of the end of 2009, 30%* of the Group’s borrowings had a fixed interest rate while the remaining 70%* had a floating interest rate.

The following table sets forth the maturity profile of the Group’s borrowings (excluding accrued interest of USD 2.1* million) as of the end of 2009.  

 ^{*Derived from management accounts.}