| 9. | Related party disclosures |
Note 1 provides information about the Group’s structure, including details of the subsidiaries and the holding company. The following table provides the total amount of transactions that have been entered into with the related parties in 2017, 2016 and 2015.
| 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||
| Purchases | Sales | Other loss (income) |
Purchases | Sales | Other loss (income) |
Purchases | Sales | Other loss (income) |
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Associates |
230 | 134 | (6 | ) | 200 | 117 | (11 | ) | 199 | 80 | 28 | |||||||||||||||||||||||||
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Controlling shareholders and entities under control of the Group’s Controlling shareholders |
267 | 50 | (33 | ) | 278 | 45 | 41 | 261 | 37 | (23 | ) | |||||||||||||||||||||||||
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Total |
497 | 184 | (39 | ) | 478 | 162 | 30 | 460 | 117 | 5 | ||||||||||||||||||||||||||
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As of December 31, 2017 and 2016, the Group had the following balances in settlement with related parties:
| December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
| Receivables from |
Payables to |
Total outstanding, net |
Receivables from |
Payables to |
Total outstanding, net |
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Associates |
16 | (23 | ) | (7 | ) | 33 | (55 | ) | (22 | ) | ||||||||||||||
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Controlling shareholders and entities under control of the Group’s Controlling shareholders |
47 | (35 | ) | 12 | 70 | (37 | ) | 33 | ||||||||||||||||
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Total |
63 | (58 | ) | 5 | 103 | (92 | ) | 11 | ||||||||||||||||
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| (a) | Transactions with associates |
The Group’s associates provide to the Group’s subsidiaries transportation and auto repair services. During the years ended December 31, 2017, 2016 and 2015, the Group purchased from its associates transportation services in the amount of RUB 98 million, RUB 114 million and RUB 105 million, respectively, and repair services in the amount of RUB 132 million, RUB 86 million and RUB 94 million, respectively.
| (b) | Controlling shareholders and entities under control of the Group’s Controlling shareholders |
As of December 31, 2017 and 2016, the amounts of accounts receivable fully covered by the allowance included amounts receivable of RUB 24,391 million and RUB 24,539 million, respectively, described below. In December 2013, the Group, related party (an entity wholly owned by the Controlling Shareholder) and the former Estar metallurgical plants (hereinafter referred to as “metallurgical plants”) signed an assignment agreement. Under that agreement, the Group assigned to its related party the right to collect amounts due from the metallurgical plants, and the related party is to repay this amount to the Group through November 2017. In November 2017, the Group extended the terms of repayment through 2022. The amount of receivables and allowance have been reclassified to Non-current financial assets (Note 13).
The outstanding cash balance in Coalmetbank was RUB 1,217 million and RUB 200 million as of December 31, 2017 and December 31, 2016, respectively.
| (c) | Compensation to key management personnel |
The total compensation to key management personnel was included in general and administrative expenses in the consolidated statement of profit (loss) and other comprehensive income (loss) and consisted of the short-term employee benefits in the amount of RUB 613 million, RUB 543 million and RUB 481 million in the years ended December 31, 2017, 2016 and 2015, respectively. There are no share-based payments to key management personnel. The Group’s directors and executive officers are also provided with voluntary medical insurance and the use of wireless services.