9. Investments in associates

Investments in associates as at December 31, 2011, 2010 and 2009 were as follows:


Associate Main activity Voting
share
capital,
%
2011
Carrying
amount
2010
Carrying
amount
2009
Carrying
amount
OJSC Svyazinvest Investments 25.00 29,190 26,309 -
OJSC Bashinformsvyaz Communication services 40.16 3,820 - -
CJSC Volgograd-GSM Mobil communication
services
100.00 - 695 692
CJSC Samara Telecom Communication services 27.78 147 144 150
OJSC MMTS-9 Communication services 49.14 260 186 149
OJSC WestBalt Telecom Communication services 38.00 127 87 88
OJSC Vostoktelecom Communication services 25.00 75 65 61
Other Various - 27 31 57
Total investments in associates     33,646 27,517 1,197

In September 2010, the Group acquired 25% plus one share of OJSC Svyazinvest for a cash payment of 26,000.

The acquisition of interest in OJSC Svyazinvest resulted in a crossholding because OJSC Svyazinvest is the Company’s parent. The Company is the main subsidiary of OJSC Svyazinvest and represents the major part of OJSC Svyazinvest group.

The investment in OJSC Svyazinvest is accounted for using the equity method applicable for crossholding structures.

In March 2012 the decision about the merger of OJSC Svyazinvest and the Company was approved by the President of Russian Federation (see note 34). The crossholding will be eliminated upon the merger’s completion.

In June 2011 the Group acquired 38.78 % equity interest (40.16 % of voting share capital) in OJSC Bashinformsvyaz from LLC Bashtelecominvest. The purchase price amounted to 3,640.

Summarized financial information as at December 31, 2011, 2010 and 2009 and for the years then ended of the associates disclosed above is presented below:


Aggregate amounts 2011 2010 2009
Assets 531,872 447,301 3,456
Liabilities 296,126 260,501 694
Revenue 310,353 284,115 2,990
Net income 12,974 27,188 479

None of the Group’s associates are publicly listed entities and consequently do not have published price quotations, except for OJSC Bashinformsvyaz, which is listed on MICEX-RTS exchange, Moscow. Based on its closing bid price of 12.48 Roubles at the reporting date, the fair value of the Group’s investment is 4,722.

In 2011 the Group received dividends from its investments in equity accounted investees in the amount of 182 (2010: 151, 2009: 95).

History

Service