The Company is the holding company for all of its subsidiaries, including its Russian subsidiaries. It controls the overall planning, financing, oil marketing and acquisition strategy and oversees all exploration and development activity of its subsidiaries.
The Moscow based subsidiary of the Company, Urals Energy LLC, directs all day to day operations. Urals Energy LLC assumed the function of the Russian subsidiaries' chief executive body, allowing the management of the Company to exercise effective direct control of all of their activities.
The Company's Russian management company, Urals Energy LLC, acts as the legal General Director of each operating subsidiary. The operating entities' Chief Accountants and local technical staff carry out decisions communicated by the Company. The management of each subsidiary reports to the operational, accounting and other members of the senior management of Urals Energy LLC in Moscow. Each subsidiary signs its own contracts and is legally responsible for its own day to day activities, including the payment of all taxes and other governmental charges and employs its own local personnel to carry out such activities in accordance with the overall coordination and advice of the Company.