RAVEN RUSSIA LIMITED
www.RavenRussia.com
Registered Office
Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3ST
Annual Report and Financial Statements
for the year ended 31 December 2009
RAVEN RUSSIA LIMITED
RAVEN RUSSIA LIMITED
Annual Report and Financial Statements 2009
Raven Russia Cover spread  22/3/10  4:32 pm  Page 1 Raven Russia Cover spread  22/3/10  4:32 pm  Page 2 Highlights 4
Chairman’s Statement 5
Chief Executive’s Report 7
Property Review 9
Financial Review 12
Directors 14
Directors’ Report 16
Corporate Governance 18
Directors’ Remuneration Report 20
Independent Auditor’s Report 25
Group Income Statement 26
Group Statement of Comprehensive Income 27
Group Balance Sheet 28
Group Statement of Changes in Equity 29
Group Cash Flow Statement 30
Notes to the Financial Statements 31
Notice of Annual General Meeting 71
Advisers73
Contents
3
Klimovsk
  The Board of Raven Russia releases below the results for the year ended 31 December 2009:
• ¢97 of fully diluted NAV per share (64p at current exchange rate) 
• $70.6 million of annualised NOI as at December 2009 (+36% from FYE’08) 
• Currently $73.4 million of annualised NOI 
• $11.4 million of additional annualised rental income on signed PLAs and LOIs 
• $7.4 million of new leases under negotiation
• ERV yield of 14.3% on investment property portfolio
• $124 million gross cash balance at the year end
• $141 million current gross cash balance
• Gearing of 39.6% net of cash
• 0.5p of final dividend, making it 1p for the year
Highlights
4
Istra The Board of Raven Russia Limited (“Raven Russia”)
announces the Group’s results for the year ended
31 December 2009.
Construction of the initial phase of development has been
completed and our emphasis is now on letting, where solid
progress is being made, with lettings of 189,000 square
metres (“sqm”) of space during the year. 
At the year end our annualised net operating income (“NOI”)
stood at $70.6 million (up 36% from $52 million at
31 December 2008) increasing to $84.8 million, including
pre-let agreements (“PLAs”) and letters of intent (“LOIs”), at
the current date. Since last Autumn, the letting market has
continued to improve and in addition to the above, we are in
active negotiations on 74,000 sqm of space. 
Our balance sheet is strong with gearing of 39.6% as
calculated in note 34(c) to the financial statements and a cash
position today of $141 million. 
Following the year end property valuation, fully diluted NAV per
share was 60p, compared to 63p at the half year and 89p at
31 December 2008, using the year end exchange rate. This
increases to 64p at today’s exchange rate. I concur with our
Chief Executive and fellow board members that the current
valuation of our property portfolio seems anomalous and
unnecessarily conservative given that it barely represents
replacement cost and circa 300+bps higher than yields on
similar buildings in comparable CEE countries such as Poland,
Czechoslovakia and Hungary; and circa 600bps above
equivalent buildings in the UK; despite the fact that we believe
the relevant economies of all those countries are no where
near as strong as Russia’s.
The internalisation of the Property Advisor has continued to
prove successful. In addition to significant improvements in
business and operating efficiency, cost savings have been
greater than we originally anticipated.
The acquisition of Raven Mount last year has also continued to
prove successful with assets being realised above acquisition
value.
We have continued with our plans to move to the Official List
but have been informed by The London Stock Exchange that
this cannot proceed whilst our issued warrants represent more
than 20% of our issued ordinary share capital. We are working
with our advisors to try to resolve this.
Due to the continuing improvement in net operating income
and our strong cash position we intend to declare a final
dividend of 0.5p, bringing the total dividend for 2009 to 1p
(2008: 3p). We would hope to progress this pay out in line with
an improving net operating income.
We now have a successful, simple business which is the
dominant player in its niche market, and our primary objective
Chairman’s Statement
5
Pulkovo is to continue letting our vacant space. The market in which we
are operating is showing good signs of improvement and we
remain well placed to provide solid returns to shareholders
whilst retaining a strong, liquid balance sheet.
I would like to take this opportunity to thank our shareholders,
employees and advisors for their support during the year.
Richard Jewson 
14 March 2010
Chairman’s Statement – continued
6
Krekshino
  At the start of 2009 our main objective was to make the
business financially stable and we achieved this through the
preference share issue and the acquisition of Raven Mount plc.
Operationally, we focussed on completing the initial
development phase of the portfolio and making progress with
lettings. Both of these were achieved. At the same time we
have fully integrated our business under an internally managed
structure.
We have made good progress in improving the terms of our
bank debt and have improved our breakeven level by clearing
expensive debt through refinancing and in the case of AKM,
using the asset as consideration for debt. This is more fully
explained in the Financial Review. We also continue to generate
cash from the sale of Raven Mount assets to apply in our core
business.
The Group’s losses for the year reflect the significant valuation
downgrade reported in the first half of the year and the fact
that we started 2009 with empty space and buildings under
construction. In the second half of the year we made an
operating profit of $40 million, including revaluations, and start
2010 in good shape.
Letting space is the key. The improving occupier market can be
seen in our increasing annualised run rate of NOI and
increasing PLAs and LOIs. At 31 December 2009, NOI was
running at $70.6 million and additional PLAs and LOIs totalled
$10.5 million. At today’s date the $70.6 million has increased to
$73.4 million and additional PLAs and LOIs have increased to
$11.4 million. In addition, today, we have a further 74,000 sqm
under active negotiation which could add $7.4 million to LOIs.
We don’t want to be guilty of counting chickens and historically
many negotiations fail to result in a LOI. However, it is an
encouraging sign. 
At current rent levels, our portfolio should produce annualised
NOI of $123 million when fully let. If average rents return to
$125 per sqm, that figure could increase to $133 million per
annum if we successfully let our vacant space at that level.
What does this all mean? It’s difficult to tell from IFRS accounts
which seem designed to make things look complicated.
Fortunately our business is simple.
In a normal year (if we ever have one) and in cash terms, our
net overheads for the administration of the property portfolio
run at $20 million. This includes about $4 million of cost which
supports our offshore structure and stock exchange listing.
Annual interest costs are $28 million and preference dividends
are $25 million (at today’s exchange rate). This means we need
$73 million of annual NOI for cash breakeven at the income
statement level. The only cash flow item to remember which
cannot be seen on the income statement is $19 million of bank
loan repayments. So $92 million of NOI covers everything on a
cash basis. We are working flat out to get there. After that we
can start increasing dividends.
7
Chief Executive’s Report
Noginsk Currently there are a number of acquisitions we are considering
and if the market continues to improve then we will consider
selective development on our existing land plots.
The year end property valuation results in a diluted NAV per
share of 97 cents (60p), this equates to an ERV yield of 14.3%
and an average capital value of $820 per sqm on the
warehouse portfolio.
Seeing this really hurts. The value barely represents
replacement cost, the yield seems completely out of line with
other CEE countries and although we would buy property on
these terms no-one can find any vendors willing to sell at this
value. It’s an anomaly.
At some point yields should revert to levels similar to Poland,
Czechoslovakia and Hungary and then we will see a great NAV
uplift. In the meantime we will concentrate on letting, cashflow
and dividends.
There is still no new development activity in our sector and with
improving tenant demand, at some point soon vacant space
will run out and rents will rise again. As I said earlier, if we could
achieve $125 per sqm on our unlet space, our portfolio NOI
would be $133 million and that will allow for attractive dividend
growth. If yields start heading back towards 9-10% we are off
to the races.
At some point the markets will wake up to the fact that Russia
is stable and growing, with inflation falling and high cash
reserves. Whilst we are waiting for the markets to realise this,
we will continue to build our unique business in a thoughtful
and careful way.
Glyn Hirsch
14 March 2010
8
Chief Executive’s Report – continued The past twelve months have seen the Group complete our
initial development programme and make good progress in
leasing up this space in difficult economic circumstances. Our
portfolio now comprises over 1 million sqm of Grade A
warehouse space in four major Russian Cities, together with
the Constanta office building in St Petersburg and 411ha of
land.
In total, Raven Russia’s portfolio comprises 1.003 million sqm
(10.8 million sq ft) excluding the AKM property in St Petersburg
which is described in more detail in the Financial Review. These
properties produced an annualised income of $71 million at the
year end.
During the past twelve months we have completed the
construction of 675,500 sqm (7.27 million sq ft) and have
leased a further 189,124 sqm (2 million sq ft) at a total rent of
$23.86 million per annum, including AKM. At the year end we
also had LOIs and PLAs signed on a further 87,000 sqm
(0.94 million sq ft) at a potential rent of $10.5 million per
annum.
We have also begun to take control of our development joint
ventures, now that the development phase of the projects has
been completed. Our partners have exited already on EG, AKM
and the Megalogix developments in Rostov and Novosibirsk,
as well as the regional land bank portfolio. We are discussing
buy outs on the remainder of the development joint ventures.
The investment properties were valued at the period end in
accordance with the RICS Valuation and Appraisal guidelines
at an aggregate gross value of $879 million, (excluding the
AKM property; this is now held as an asset for sale). This
resulted in a decrease of $58 million in portfolio value
compared to 31 December 2008, reflecting the change in
market conditions, not only in Russia but also globally. 
Moscow Assets
The Company has seven Grade A warehouse projects in
Moscow and the Moscow region, providing 589,000 sqm
(6.34 million sq ft) of space. Of this 344,113 sqm, or 58%, was
let at the year end and producing an annualised income at the
year end of $44 million per annum, equating to an average rent
of $128 per sqm overall. The weighted unexpired lease term on
the Moscow properties is 5.52 years and on the whole portfolio
is 6.46 years.
At the project level there has been significant activity during the
year.
At Istra, the fourth phase of 29,580 sqm was completed during
the summer and is now available to let. Initial work on phase
five (which has been pre-let to DSV) has started and it is
intended to deliver this building in the autumn to fit in with the
tenant’s business needs. In April, the project won the Best
Warehouse category at the Moscow Commercial Real Estate
Awards.
Construction work at Noginsk is now completed and although
the property is one of the few in Moscow with a working rail
link, progress on letting has been slower than we hoped, due
in part to the economic crisis. The first tenant is now in
occupation and we are in discussions with a number of others.
Although the delay in leasing is disappointing, we may in fact
benefit from letting into a better market with more
advantageous terms.
Klimovsk is now complete and tenants have taken occupation
of 24,644 sqm out of 54,000 sqm. We are also making good
progress in leasing the remaining space and are in active
negotiations on the majority of the available accommodation.
The project has additional land on which it is possible to build
an additional 50,000 sqm. This is already permitted and we are
beginning to tender the ground work elements of the
construction for a possible start on site later in the year, market
conditions allowing.
Lobnya (EG), has been one of the most challenging projects
during the past twelve months. Not only did we have to replace
the development partner’s on site construction team, but a
pre-let on 29,000 sqm also fell away because of the financial
crisis. We have resolved both of these issues by using our own
in house expertise to complete construction and by relocating
Avalon Logistics into the vacant space. Avalon and their
underlying clients, BAT and Henkel, have benefitted from
economies of scale by consolidating operations into Lobnya. 
St Petersburg Assets
The Group has three properties in St Petersburg, excluding
AKM; the Constanta office building and two Grade A
warehouse projects providing 194,000 sqm (2.09 million sq ft)
of space. Of this, 57,000 sqm, or 29%, was let and producing
an annualised income at the year end of $15.2 million per
annum. Tenant activity in St Petersburg has been slow as many
of the potential requirements were linked to the motor industry
where global uncertainty has reduced production levels and the
need for storage and distribution of components and spare
parts.
At Shushary, the final phase is now completed except for minor
works. In total we have 104,500 sqm available for rent and
hope to sign our next tenant shortly. During the year we have
obtained consent to use the property for light industrial,
assembly and production purposes. Foxconn have since
Property Review
9 started to use part of the premises for assembling computers
for Hewlett Packard.
In Pulkovo, the building is now complete and three tenants are
now in occupation of approximately 7,600 sqm. 
At AKM, we have been successful in attracting an additional
16,000 sqm of new tenants during the year and the project is
36% let, producing $1.2 million of annualised income. These
figures are not included in the summary above or in any
annualised numbers and the position of this project is
explained further in the Financial Review.
Rostov and Novosibirsk
The Group’s two regional warehouse projects are currently
the only major Grade A facilities in Rostov and Novosibirsk.
These cities and their immediate regions have populations of
4.24 million and 2.6 million respectively and are both
substantial regional capitals. Both projects are now fully
completed and letting activity during the past 12 months has
held up quite well.
In Rostov during the year we leased 57,900 sqm to Avalon
Logistics, Auchan and X5 and it is now 58% let. We are in
active negotiations on a couple of new lettings.
In Novosibirsk we have leased 51,606 sqm to tenants including
Oriflame, Avalon and FM Logistics and are in detailed
negotiations with a number of other tenants.
Land Bank
The Company holds an additional 411 ha of land (excluding
AKM), in Kiev, Ukraine; Minsk, Belarus; and various regional
cities in Russia, that has longer term potential. At present we
do not envisage any speculative development on these sites.
Instead we have focused on securing all the necessary
construction permits to add value to the land. Our strategy is
to maximise value from the land bank through the sale of
individual plots, build to suit or further change of use.
Property Review – continued
10
Portfolio Statistics 
The NOI by project, including PLAs and LOIs, at the year end was as follows:
Land Gross Net
plot, Lettable Operating
Property ha Area, sqm Rental Status* Income
Baltia 5.1 28,000 99% $4,200,000
Southern 1.7 14,000 96% $2,500,000
Krekshino 22.2 118,000 100% $14,100,000
Constanta 0.5 16,000 100% $11,800,000
Istra phases 1-5 33.3 199,000 84% $24,400,000
Shushary 1-3 26.0 142,000 36% $4,900,000
Noginsk I 21.8 123,000 3% $330,000
Pulkovo 5.1 36,000 14% $620,000
EG Lobnya 10.0 53,000 100% $6,100,000
Klimovsk I 9.0 54,000 51% $3,600,000
Rostov on Don 18.6 100,000 58% $7,600,000
Novosibirsk 17.8 120,000 43% $4,700,000
Irrecoverable expenses ($3,700,000)
Total 171.1 1,003,000 $81,150,000
*Includes pre-lets and letters of intent. “Valuation is an art not a science” is the mantra of many
valuers. In reality it’s a matter of professional judgment. 
“What would an asset sell for in the market after a period of
marketing between a willing buyer and a willing seller” to
paraphrase the RICS Red Book. In the Russian Real Estate
market there haven’t been any sales of warehouse properties
similar to the Group’s in the last twelve months. But there are
willing sellers and willing buyers, however they seem to be
about 200bps apart in terms of pricing. 
JLL, in their year end valuations, have once again had to
contest with little or no evidence of transactions.
Benchmarking, instead, off the buyer/seller expectations
outlined above, the movement in other markets and sectors
and their own experience. The valuations have improved since
the half year with a slight tightening of yields and stable or
slightly improving ERV’s. However, overall the warehouse
portfolio is valued at around $820 per sqm, which is at or
around replacement cost.
The Market
The first nine months of the year were very slow, with tenants
delaying, deferring or cancelling demand for both new and
existing space. The last three months of 2009 were more
positive and this trend has continued into 2010.
Both Russian and International businesses are now prepared
to make decisions to lease space and the level of take up is
increasing. Moscow is seeing the greatest levels of activity, with
take up in the second half of 2009 of 678,500 sqm according
to research by JLL. The stabilisation of the Rouble against the
US Dollar during the second half of the year made tenants
more comfortable signing into longer term leases denominated
in Dollars. Prior to that point, we saw tenants seeking to share
the exchange risk with landlords or even signing Rouble leases.
Across the market, tenants were affected by decreasing
volumes and we agreed short term concessions with a number
of occupiers to help them survive the economic downturn. 
On the supply side, a large number of schemes were delivered
during the year despite developers putting on hold a number of
new schemes. In total JLL estimate 820,000 sqm of space to
let was completed in Moscow, 30% of which was delivered by
Raven Russia.
Weaker demand and competition from landlords has seen
rents soften and tenant incentives increase during the past
twelve months. Prime rents in Moscow are now around the
$100-$110 per sqm for Grade A warehousing. With current
levels of demand and the lack of new construction it feels as
though rents have bottomed out and may now even be
increasing in Moscow. 
With both capital and debt constrained there is unlikely to be
significant speculative development in the warehouse sector.
Tenants with larger or specialist requirement will therefore be
forced to focus on build to suit projects.
With only a small number of distressed sellers, the investment
market was virtually closed during the year as buyers and
sellers played cat and mouse, neither wanting to commit at the
wrong price. There is certainly interest in the owner occupier
market and a number of deals across all sectors have been
completed, although none of these deals are comparable to
our stock. 
Outlook
Russia Inc. is well placed to come out of the economic
downturn with low levels of debt, higher commodity and oil
prices and an unleveraged work force. The Russian consumer
is still spending and both local and international retailers are
offering an ever increasing range of products at more and more
retail outlets across this vast nation. Retailers are focusing
much more on improving their supply chains and distribution
facilities and our unique portfolio of properties is attractive to
them.
The Company now has over 50 tenants. Leveraging off those
relationships and filling the vacant space is key to our success
and maximising the value of our portfolio. 
Property Review – continued
11 The Group’s financial performance was affected by the
extremely difficult market conditions, especially in the first half
of the year. As a result, we have had a significant reduction in
Net Asset Value since 31 December 2008, driven by the fall in
value of our property portfolio.
The position has stabilised since 30 June 2009 and in a year
where the majority of our portfolio was completed and became
available for letting, the key financial operating targets included:
• Letting of new space;
• Minimising irrecoverable operating costs on unlet space;
• Internalising the Property Adviser and administrative
functions; and
• Restructuring the more expensive, short term construction
financing facilities.
In the uncertain times at the beginning of the year we secured
our financial position through the issue of £76 million preference
shares and warrants and the acquisition of Raven Mount plc,
again with the issue of preference shares and warrants with a
value of £65 million. The latter gave us access to cash reserves
of $30 million and residential and other assets for sale of
$78.7 million This has given us a strong cash position while we
build our operating cash flows through increasing rental income.
We also used the prevailing conditions to buy out our major
joint venture party on the Megalogix and Roslogistics
businesses for nominal value.
The business is now, financially, much simpler, with a
completed investment portfolio and no significant joint venture
operations to account for.
Income
Investment Portfolio
Our property portfolio generated NOI of $46 million (2008:
$40 million) after irrecoverable operating costs, a factor of the
large proportion of our portfolio completing in the second half
of the year and the cost of maintaining the vacant space. As
we operate using triple net leases, much of these costs will be
absorbed as we rent the portfolio.
Roslogistics
As I said in last year’s financial review, this business is in an
early stage of development and since acquisition, we have
actively assisted in restructuring its balance sheet with a full
debt for equity swap, an experienced operations director has
joined the team and we have helped in the renegotiation of
lease terms for the business. In the first quarter of 2010, the
business has also moved one of its larger clients, BAT, into our
premises at Lobnya. Roslogistics contributed $2.5 million to
NOI this year (2008: loss of $5 million) and we expect this
contribution to increase in 2010 and 2011.
Raven Mount
We continue to liquidate Raven Mount’s UK property stock with
sales being achieved above acquisition valuations. The
subsidiary contributed $1.8 million to NOI since acquisition
after a provision of $1.3 million for an onerous lease.
Overheads
In the last 18 months we have progressively internalised all
outsourced functions, the largest exercise being the acquisition
of the property adviser, completed in November 2008. We also
completed the move away from external administrators and
outsourced accounting functions in all of our jurisdictions. Not
only has this resulted in significant costs savings, we have
developed an experienced in house administrative backbone in
our offices in Guernsey, Cyprus and Moscow with a significant
improvement in the quality of financial information available
throughout the business. 
In 2008, the total cost of the outsourced functions was
$35 million. This included $27 million of property adviser fees
for the 11 months to acquisition and only 6 months of external
administrator fees in Cyprus as we moved that aspect in house
in July 2008. This year, the administrative costs for the main
investment business totalled $22 million including $1.2 million
of external administration costs as we moved our Guernsey
administration and Moscow accounting functions completely
in house. 
Roslogistics and Raven Mount added $5.8 million and
$5.5 million to overheads respectively, the latter after redundancy
costs of $2.2 million and transaction costs of $0.4 million.
Overhead levels will continue to be an area that we monitor
depending on how the business develops over the next two
years but we will always have a higher base than our local
peers as we ensure that we remain tax efficient.
Financing
Debt service costs totalled $30 million for the year (2008:
$12.4 million). Our year end debt level, excluding preference
shares, was $481 million (2008: $426 million), including AKM,
with a weighted average cost of debt of 6.9% (2008: 8.3%)
and average term to maturity of 3.5 years (2008: 4.1 years). 
The debt team’s focus this year was on the refinancing of the
remaining construction facilities we had in place. In September
we repaid a $60 million construction facility with VTB Bank
which had a margin over US Libor of 11%. This was financed
by an initial draw of $30 million on a new facility with the IFC, at
a margin over US Libor of 8.3% and a term of 9 years, a short
term facility of $10 million with RBSI at a margin of 2.95% and
the remainder with cash. Since the year end we have
successfully syndicated a further $10 million on the IFC facility
Financial Review
12 on the same terms, and we intend to use this to repay the
outstanding loan with RBSI.
In February 2010, we signed facility documents on the rollover
of a maturing construction loan with HSH Nordbank of
$62 million, with a new term to October 2011 and a margin of
7.5% over US Libor, reducing to 5.5% on meeting leasing
targets.
The last significant construction loan we have outstanding is a
$44 million facility with Nomos Bank, secured on our AKM asset
in St Petersburg. This was a facility introduced by our
development partner prior to our involvement and it was our
intention to refinance the asset on development completion.
That has not been possible at the loan to value levels we would
require; the asset valuation is currently less than the debt
outstanding. The debt has a term and amortisation period of
4.5 years and a margin over US Libor of 12%. The AKM asset
currently has an annualised NOI of $1.2 million and irrecoverable
operating costs of $1.7 million, so no net contribution. Fully let,
the asset should generate $6 million per year. Interest service on
the debt in 2010 is $8 million. In the following year, when
amortisation commences, the total cost to service interest and
amortisation increases to $19 million. We have been in
discussions with Nomos Bank to restructure the repayment
schedule, extending the amortisation period and reducing the
margin but they have been unwilling to do this without seeking a
contribution from Raven Russia. We have therefore proposed
that they simply accept title to the asset as consideration for the
debt and they have agreed to this approach. 
There will be no NAV impact for this transaction as the asset
and related assets and liabilities have been written down in the
last year in line with external valuations. The assets and
liabilities of the project have been disclosed as a disposal
group held for sale on the balance sheet.
Since the year end, we have also completed on one further
syndication deal, with EBRD now sharing a $50 million facility
with IFC on our Novosibirsk asset. This generated $10 million
of additional funding.
Taking all of the above into account, including the release of
the Nomos debt, at today’s date, our debt totals $447 million
at a weighted average cost of 7.0% and an average term to
maturity of 3.8 years.
Other non cash items taken through our finance cost include
amortisation of costs of $5.5 million (2008: $1 million), including
$2.2 million accelerated on the repayment of VTB and mark to
market profit on derivatives of $1.5 million (2008: loss
$10.2 million).
Interest income on our cash balances has been nominal in the
period although we strive to obtain the best deposit rates
whilst managing risk, by placing deposits across a spread of
banks on varying maturities.
The dollar value of our preference shares was $219 million at
31 December 2009 and the translation of the £141 million face
value of these unsecured, irredeemable instruments will distort
our NAV. The unrealised foreign exchange loss since issue is
$13.7 million and included in the translation reserve. The coupon
paid during the year, of $19.4 million is included in finance
expense. Our weighted cost of debt and gearing level, including
preference shares as debt, is 8.6% and 57% respectively.
Hedging
It is the Group’s policy to hedge the cost of debt secured on
completed assets and this is hedged using a mixture of caps
and swaps. $39 million is capped at 5.50% and $239 million
swapped at an average of 3.39% both with three years
remaining. As current and new facilities move from construction
to term investment facilities, appropriate hedging instruments
are being introduced.
As the majority of construction commitments are complete, our
Rouble/US Dollar hedges have now unwound. Cash flow
hedges are operated through the lease mechanisms which are
mainly US Dollar pegged and in holding sufficient Sterling cash
reserves to cover preference share coupon and dividend
commitments for up to 24 months. The latter also part hedges
the unrealised movement on our preference share translation
noted above.
Net Asset Value and Dividends
The driver behind our NAV reduction during the year has been
the valuation of our property portfolio. The charge to the income
statement for the year was $108 million (2008: $78 million),
comprising $58 million (2008: $39 million) on completed assets
and $50 million (2008: $39 million) on land bank and assets
under construction. This was compounded by the Rouble
depreciation at the height of the crises which also devalued our
assets under construction, giving a further loss through the
translation reserve of $28 million (2008: loss of $29 million).
Our Net Assets of $546 million (2008: $735 million) equate to a
NAV per share of 71p (2008: 98p) and fully diluted NAV per
share of 60p (2008: 89p, adjusted for preference share and
warrant issue and year end exchange rate).
As stated at the time of our interim results, it is the Board’s
intention to pay a 1p dividend in respect of 2009 (2008: 3p) and
a final dividend of 0.5p (2008: nil) will be proposed at the AGM. 
Mark Sinclair
14 March 2010
Financial Review – continued
13 Richard Jewson (aged 65)
Non-executive Chairman
Richard Jewson joined Jewson, the timber and building merchant, in 1965 becoming the Managing Director, then Chairman of its
holding group, Meyer International plc from which he retired in 1993. Since then he has served as non-executive director and chairman
of a number of public companies. He retired in 2004 from 10 years as Chairman of Savills plc and in 2005 from 14 years as a
non-executive Director and deputy Chairman of Anglian Water plc. He is currently Chairman of Archant Ltd, and a non-executive
director of Temple Bar Investment Trust plc, Grafton Group plc and other unquoted companies.
He is a member of the Audit Committee and Remuneration Committee and is Chairman of the Nominations Committee.
Anton Bilton (aged 45)
Executive Deputy Chairman
Anton Bilton is an economics graduate from The City University in London. Anton was the founder of The Raven Group. He has also
been a founder and director of three other companies that have floated on AIM and four public property companies established under
the Business Expansion Scheme.
He is a member of the Nominations Committee.
Glyn Hirsch (aged 48)
Chief Executive Officer
Glyn Hirsch qualified as a Chartered Accountant with Peat, Marwick Mitchell & Co in 1985. Until 1995, he worked in the corporate
finance department of UBS (formerly Phillips & Drew) latterly as an Executive Director specialising in UK smaller companies. From 1995
until 2001, he was Chief Executive of CLS Holdings plc, the listed property investment company, a former Director of Citadel Holdings
plc, the specialist French property investor and former Chairman of Property Fund Management plc, the listed property fund
management business. Glyn is also a non-executive director of a number of public and private companies. 
Mark Sinclair (aged 44)
Chief Financial Officer
Mark Sinclair, a Guernsey resident, is a chartered accountant, and spent 18 years at BDO Stoy Hayward, a leading professional
services firm in the UK. He was a partner in the London real estate group responsible for a portfolio of large property companies, both
listed and private. He joined Raven Mount in June 2006 as Finance Director of Raven Russia Property Management Ltd, the Property
Adviser to the Company. He has significant experience in all financial aspects of property transactions and company reporting. Mark
was appointed to the Board on 23 March 2009.
Colin Smith (aged 40)
Chief Operating Officer
Colin Smith, a Guernsey resident, qualified as a Chartered Accountant with Stoy Hayward. Prior to joining the company, he was a
director in the audit and assurance division of the chartered accountant practice of BDO in Guernsey, having joined BDO in 1994. Colin
has also been a non-executive director of a number of offshore investment funds and companies.
Directors
14 Stephen Coe (aged 44)
Non-executive Director
Stephen Coe BSc, FCA, a resident of Guernsey, is self employed providing executive and non-executive services to public and private
clients. His current public directorships include Matrix European Real Estate Investment Trust Ltd, ACP Capital Ltd and Trikona Trinity
Capital Limited where he acts as a non-executive director; he is also chairman of the audit committee for the three entities. Private
clients include investment funds and a captive insurer. From 2003 to 2006, he was Managing Director of Investec Trust (Guernsey) Ltd
and Investec Administration Services Ltd, responsible for private client and institutional structures. Between 1997 and 2003 he was a
director of Bachmann Trust Company Ltd and previously he worked with Price Waterhouse specialising in financial services.
He is Chairman of the Audit Committee and a member of the Remuneration Committee.
David Moore (aged 49)
Non-executive Director
David Moore is a resident of Guernsey. He is an advocate of the Royal Court of Guernsey and is a partner with Ozannes, the
Company’s lawyers in Guernsey. He has been with Ozannes since 1993 and before that spent 10 years practising in the City of
London, predominantly with Ashurst Morris Crisp. He specialises in corporate and financial matters and is a non-executive director of a
number of investment and insurance management companies, investment and insurance companies including Standard Life
Investments Property Income Trust Ltd of which he is non-executive chairman.
He is a member of the Audit Committee.
Christopher Sherwell (aged 62)
Non-executive Director
Christopher Sherwell is a Guernsey resident and a former managing director of Schroders in the Channel Islands. Before joining
Schroders, he was Far East Regional Strategist in London and Hong Kong for Smith New Court Securities and prior to that spent
15 years as a journalist much of them as a foreign correspondent for the Financial Times. He has considerable public company
experience and acts as a non executive director on a number of publicly listed investment companies including Goldman Sachs
Dynamic Opportunities Ltd and Hermes Commodities Umbrella Fund Ltd, both of which he is chairman, IRP Property Investments Ltd
and Rutley European Property Ltd.
He is Chairman of the Remuneration Committee and a member of the Audit Committee and Nominations Committee.
Directors – continued
15 The Directors present their report and the audited
financial statements of the Group for the year ended
31 December 2009.
Principal Activities
The Company is a Guernsey registered investment company
and during the year carried on business as a property
investment company. 
Business Review
A review of the business during the year is contained in the
Chairman’s Statement, Chief Executive’s Report, Property
Review and Financial Review.
Results and Dividends
The results for the year are set out in the attached financial
statements.
The Company paid an interim dividend of 0.5p (2008: 3p) per
ordinary share during the year and is proposing a final dividend
of 0.5p (2008: nil).
Directors
The Directors, who served throughout the year, other than as
stated, were as follows:
Richard Jewson (Non-executive Chairman)
Anton Bilton (Executive Deputy Chairman) 
Glyn Hirsch (Chief Executive Officer) 
Colin Smith (Chief Operating Officer) 
Mark Sinclair (Chief Financial Officer) (Appointed 
23 March 2009)
Stephen Coe (Non-executive Director)
David Moore (Non-executive Director)
Christopher Sherwell (Non-executive Director) 
At each annual general meeting of the Company, one third of
the Directors shall retire from office. In addition, each Director
shall retire from office at the third annual general meeting after
he was appointed or reappointed, if he would not otherwise fall
within the Directors to retire by rotation. A retiring Director shall
be eligible for re-appointment.
Details of the Directors’ remuneration and shareholdings are
included within the Remuneration Report.
Substantial shareholdings
The Company has been notified of shareholders, other than
directors, holding 3% or more of the ordinary shares as follows:
Ordinary Shares of £0.01 Percentage
Number of share
Name of holder Held capital
Invesco Perpetual 99,258,232 19.26
Schroder Investment 
Management 69,759,847 13.54
Mackenzie Financial Corp 45,600,000 8.85
F&C Asset Management 
Limited 36,380,334 7.06
Laxey Partners 24,551,088 4.77
Substantial shareholders are stated as at 25 February 2010.
Directors’ responsibility statement 
Guernsey company law requires the Directors to prepare
financial statements for each financial year, which give a true
and fair view of the state of affairs of the Group at the end of
the year and of the profit or loss of the Group for that period.
In preparing those financial statements, the Directors are
required to:
• Select suitable accounting policies and then apply them
consistently;
• Make judgements and estimates that are reasonable and
prudent;
• State whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
• Prepare the financial statements on the going concern
basis unless it is inappropriate to assume that the Group
will continue in business.
The Directors confirm that they have complied with the above
requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the financial position of the Company and of the Group and to
enable them to ensure that the financial statements comply
with the Companies (Guernsey) Law, 2008 and IFRS as
adopted by the EU. They are also responsible for safeguarding
the assets of the Group and hence for taking reasonable steps
for the prevention and detection of fraud and other
irregularities.
Directors’ Report
16 So far as each of the Directors is aware, there is no relevant
audit information of which the Company’s auditor is unaware
and each has taken all the steps he ought to have taken as a
director to make himself aware of any relevant audit information
and to establish that the Company’s auditor is aware of that
information.
Auditors
Ernst & Young LLP have expressed their willingness to
continue in office and a resolution to re-appoint them will be
proposed at the forthcoming Annual General Meeting.
By Order of the Board,
Mark Sinclair Colin Smith
14 March 2010
Director’s Report – continued
17 Combined Code
As an AIM Company incorporated in Guernsey, there is no
requirement for the Company to comply with the Combined
Code (the “Combined Code”), issued by the Financial
Reporting Council (the “FRC”). However, the Board has
determined that it should be the Company’s policy to ensure
that the Company complies with the Combined Code to the
extent appropriate, taking into account the size and nature of
its business. The Company has complied with the provisions
set out in the Combined Code, including the proposed
changes recently published by the FRC, to the extent
considered appropriate by the Board. 
The Board and Board Committees
The Chairman is Richard Jewson.
The Board considers the Non-executive Directors (including the
Chairman) to be independent for the purposes of the UK Code.
David Moore is a partner in Ozannes, Advocates and Notaries
Public. Ozannes provide independent Guernsey legal advice to
the Group. Total legal fees paid to Ozannes in the year ended
31 December 2009 amounted to £58,070 (2008: £283,394).
Mr Moore refrains from participation in and voting on any board
resolutions concerning the appointment or remuneration of
Ozannes. The other members of the Board consider that
Mr Moore has conducted himself and carried out his duties in
relation to the Company in a manner consistent with, and
demonstrative of, his independence. The Board considers,
therefore, Mr Moore to be independent for the purposes of the
UK Code.
The full Board meets six times a year to consider general
matters affecting the Company and otherwise as required.
Committee meetings comprising any two or more Directors
(not for the time being situated in the UK) meet on an ad hoc
basis to consider transactional and related matters concerning
the Company’s business.
The Board has appointed an Audit Committee which is
responsible for ensuring that the financial performance of the
Group is properly reported on and monitored. The Audit
Committee reviews the annual and interim accounts, results,
announcements, internal control systems and risk
management, accounting policies of the Group and the
continuing appointment of the auditors. The Audit Committee
comprises Richard Jewson, David Moore, Christopher Sherwell
and Stephen Coe, who is Chairman. The Audit Committee
meets at least twice a year. 
The Board has appointed a Nominations Committee
comprising Anton Bilton, Christopher Sherwell and Richard
Jewson, who is Chairman. Changes in the membership of the
Board are considered by the Nominations Committee prior to
making recommendations to the full Board.
The Board has appointed a Remuneration Committee
comprising Stephen Coe, Richard Jewson and Christopher
Sherwell, who is Chairman. The Remuneration Committee will
meet at least once a year to review the performance of
executive directors, to recommend their remuneration and
other benefit packages. The fees of the Non-executive
directors are determined by the executive directors.
Corporate Governance 
18
Attendance at Board or Committee meetings during the year to 31 December 2009
(where ‘N/A’ is shown, the director listed is not a member of the Committee)
Audit Nominations Remuneration
Board
(2)
Committee Committee Committee
Richard Jewson 6 2 0 1
Anton Bilton 6 N/A 0 N/A
Glyn Hirsch 6 N/A N/A N/A
Mark Sinclair
(1)
4 N/A N/A N/A
Colin Smith 6 N/A N/A N/A
Stephen Coe 5 2 N/A 1
Christopher Sherwell 6 2 0 1
David Moore 5 1 N/A N/A
Number of meetings during the year 6 2 0 1
(1) Four Board meetings held since Board appointment on 23 March 2009.
(2) In addition to the above Board meetings there were 50 Board committee meetings held throughout the year. All the Directors are entitled to have access to independent
professional advice at the Company’s expense where they
deem it necessary to discharge their responsibilities as
Directors.
The Directors receive advice from the Company’s financial and
other professional advisers on appointment as to the affairs of
the Company and their responsibilities and will receive such
other training as may from time to time be appropriate.
Performance of the Board
The performance of each Director will be appraised by the
Board, led by the Chairman, prior to the holding of the Annual
General Meeting for each year. The performance of the
Chairman will be appraised by his fellow Directors led by the
chairman of the Audit Committee.
Going Concern
The financial position of the Group, its cash flows, liquidity
position and borrowings are described in the Financial Review
and the notes to the accompanying financial statements. In
addition, in note 34 there is a description of the Group’s
objectives and policies for managing its capital, its financial
instruments and hedging activities and its exposure to credit
and liquidity risk.
The Group has substantial cash and short term deposits,
which have been supplemented by the issue of preference
shares and warrants along with the acquisition of Raven Mount
during the year, as well as an increasing and profitable rental
income stream and as a consequence the Directors believe the
Group is well placed to manage its business risks.
After making enquiries and examining major areas which could
give rise to significant financial exposure the Board has a
reasonable expectation that the Company and its Group have
adequate resources to continue its operations for the
foreseeable future. Accordingly, the Group continues to adopt
the going concern basis in preparation of these financial
statements.
Investor relations
The Board welcomes correspondence from shareholders,
addressed to the Company’s registered office. All shareholders
have the opportunity to put questions to the Board at the
Annual General Meeting. The Board hopes that as many
shareholders as possible will be able to attend the meeting.
The Board believes that sustainable financial performance and
delivering on the objectives of the Company are indispensable
measures in order to build trust with the Company’s
shareholders.
To promote a clear understanding of the Company, its
objectives and financial results the Board aims to ensure that
information relating to the Company is disclosed in a timely
manner and in a format suitable to the shareholders of the
Company.
Corporate Governance – continued
19 Remuneration policy principles
The Group’s remuneration policy aims to attract, retain and
incentivise high calibre executives and senior staff and to align
their interests with those of shareholders and other
stakeholders in the business. The Remuneration Committee
(“the Committee”) seeks to ensure that total remuneration is at
competitive levels compared to the Company’s peers in the
property sector, whilst taking into account the strategic and
geographical complexity of the business. No Director, Executive
or Non-executive, is involved in deciding his own remuneration. 
Remuneration Committee
The Committee comprises three independent Non-executive
Directors, Stephen Coe, Richard Jewson and Christopher
Sherwell (Chairman). The Committee has responsibility for
determining policy and the framework for the remuneration and
employment arrangements of the Executive Directors and
senior management of the Company consistent with the
principles above. 
Executive Directors
Remuneration packages for Executive Directors include
performance-related and non-performance-related rewards and
comprise annual salaries, benefits such as life and health
insurance, pension contributions, performance-related bonuses
and share options.
Details of these payments in the year are shown in the table
below. The bonus figures disclosed relate to performance in
2008, and were determined by the Committee in early 2009. 
Basic salary and benefits
The Committee reviews basic salaries and the level and nature
of benefits provided to the Executive Directors and senior
management annually. Basic salary is the only element of the
Executive Directors’ remuneration which attracts pension
contributions.
Following the annual review in 2009, Anton Bilton’s basic salary
was increased to £480,000 (from £330,000) on 22 May 2009
following the acquisition of Raven Mount plc, at which point he
became fully employed by Raven Russia. Similarly, Colin
Smith’s basic salary was increased to £225,000 (from
£160,000) on 1 April 2009, at which time he became fully
employed by the Company. Both increases reflected the fact
that these directors would henceforth devote 100% of their
time to their executive roles, and were not an increase in their
rate of pay. Glyn Hirsch and Mark Sinclair received no increase.
It is the Committee’s intention to ensure that all basic salaries
for Executive Directors remain unchanged in 2010, and in 2011
other than an adjustment for UK RPI.
Benefits principally comprise life insurance, health insurance
and private healthcare subscriptions. The cost of these benefits
for Executive Directors is included in the table below.
Directors’ Remuneration Report
20
Directors’ remuneration details in respect of the year ended 31 December 2009
Performance Pension Pension
Salaries/ related Total Total Contributions Contributions
fees Bonuses
(1)
Benefits 2009 2008 2009 2008
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive
Anton Bilton 408 – 10 418 30 39 3
Glyn Hirsch 467 – 10 477 45 45 4
Colin Smith 209 140 5 354 21 21 2
Mark Sinclair
(2)
225 350 3 578 – 23 –
1,309 490 28 1,827 96 128 9
Non-executive
Richard Jewson 80 – –8080 – –
Christopher Sherwell 40 – – 40 30 – –
Stephen Coe 40 – – 40 40 – –
David Moore 40 – – 40 40 – –
John Peters – – – – 13 – –
200 – – 200 203 – –
(1) Bonuses paid in 2009 relate to performance in 2008.
(2) Appointed date 23 March 2009. Bonus Plan
Each year, the Committee considers the financial position of
the Company, notably in respect of its strategic and immediate
business objectives, in determining the appropriateness and
scale of annual bonus payments to the Executive Directors and
senior management. In relation to individual bonus payments to
Executive Directors for the year 2008, Anton Bilton and Glyn
Hirsch decided to forego any bonus in light of the market
conditions facing the Company. The Committee awarded
bonuses to Mark Sinclair and Colin Smith as well as to
members of senior management based on their performance
during 2008.
In relation to awards for 2009, the Committee has considered
the current environment and determined that the bonus plan
budgeted for at the time of the internalisation of the Property
Advisor in November 2008 – a plan which envisaged that
rewards would be predominantly cash-based – should be
replaced by a longer-term share-oriented alternative which,
while rewarding management for their performance and
commitment, ensures retention of cash in the business and
better-aligned rewards with shareholder returns.
Accordingly, the Committee has decided to make bonus
awards for the year 2009 which reflect personal and business
objectives set early in the period. At the same time it has
formulated the longer-term arrangement described below. 
For the year 2009, senior management targets were focused
on the completion of the development programme, securing
the business through the financial crisis by raising fresh funds
and retaining the experienced senior management team that
had been developed by the Property Advisor. Specifically, these
targets included:
• Completion of the development phase of the Group’s
portfolio with target of 1 million sqm Grade A warehouse
space;
• Meeting rental income targets on new space in the
context of the current economic environment;
• Successful integration of the Property Advisor following
acquisition in November 2008;
• Successful acquisition and integration of Raven Mount
Group plc;
• Successful completion of preference share fundraising in
the year;
• Proactive management of relationships with debt providers
and refinancing of short term construction facilities;
• Successful programme of bringing outsourced leasing and
property management and administrative functions
in-house;
• Development of management reporting procedures and
internal control and risk monitoring frameworks;
• Maintaining the Group’s efficient tax status following
internalisation of the Property Advisor; and
• Proactive shareholder relations programme.
As a result of the achievement of the Executive Directors in
meeting their objectives, as reflected in the Property and
Financial Reviews, the following has been agreed in relation to
performance related bonuses. 
1. No cash bonuses will be paid to Anton Bilton or Glyn
Hirsch for the year 2009 and cash bonuses will be limited
to a maximum of £100,000 for each of Mark Sinclair and
Colin Smith .
2. 15 million of the 19 million Raven Russia shares held in
Treasury by the Company will be used as consideration for
bonuses for Executive Directors and senior management.
These shares were acquired as part of the Raven Mount
Group plc acquisition at a cost of 23.5p per share and
had a market value of 46p per share at 31 December
2009. They will be transferred to the Company’s Employee
Benefit Trust (EBT) for this purpose. With the potential
cash savings made on prospective bonuses, the share
Directors’ Remuneration Report – continued
21
The contractual arrangements of the Executive Directors are:
Contractual
Appointment Unexpired Notice termination
Salary Date term period payment
Director
Anton Bilton 480,000 27 November Rolling contract 12 months Payment of
2008 12 months
Glyn Hirsch 480,000 27 November Rolling contract 12 months salary and
2008 benefits on
Colin Smith 225,000 14 November Rolling contract 12 months termination
2008
Mark Sinclair 300,000 23 March 2009 Rolling contract 12 months allocations proposed below for 2010 and 2011 are not
expected to be dilutive. 
Of the 15 million, an allocation of 5.9 million will be made
available for distribution to the Executive Directors and senior
management for performance targets met to date. Executive
Directors may not sell their shares for at least one year unless
proceeds are used to reinvest in other Raven Russia listed
instruments and barring a change in control of the Company. 
In respect of the coming two years, the Committee has
determined that:
(a) 4.7 million shares will be allocated to satisfy bonuses for
2010, with awards based on continuing employment and
personal targets. If these targets are met then the
Committee envisages these awards being made in April
2011.
(b) A further 4.4 million shares will be made available for the
Executive Directors and senior management based on
financial and share price targets achieved in the two years
to 31 December 2011. The Committee will have the
discretion to issue the awards on a sliding scale based on
annualised Net Operating Income targets up to
$115 million pa, dividend cover targets and/or a share
price or diluted NAV per share target of 75p. Any awards
based on these targets assume that the senior
management remain in employment at 31 December
2011 and would be made in April 2012, following the
issue of the audited financial statements for the year
ended 31 December 2011.
This change in approach to the bonus plan will ensure that
there are significant cash savings over the next two years for
senior management remuneration and a further alignment of
senior executives with shareholders in that bonuses will be
predominantly in the form of shares and based on personal as
well as corporate performance targets. Together with the
existing share schemes described below, this allows senior
management to hold up to 5.8% of existing share capital and
4.8% of diluted share capital through bonus and incentive
schemes. This compares to the authority given to the Property
Advisor at the time of listing to acquire new shares up to a
maximum of 7.5% of the issued share capital of the Company
for its incentive schemes.
Executive Share Option Schemes (ESOS)
The Group operates two ESOS in which the Executive
Directors participate. These schemes were approved by
shareholders on 28 August 2008 and 24 March 2009 and
replaced ESOS that had been put in place for the Property
Advisor prior to its acquisition by the Company in November
2008. Options are granted by the Company’s EBT, whose
Trustees are independent of the Company but will consider the
recommendations of the Committee as to the granting of
awards under the schemes. 
(a) Executive Retention Scheme (ERS)
This scheme was introduced for certain Executive
Directors and Senior Managers at the time of the
acquisition of the Property Advisor. The EBT currently
holds the 5 million ordinary shares for this scheme. The
options it grants over these shares are exercisable from
the date of publication of the audited financial statements
of Raven Russia Limited for the year ended 31 December
2010. The options do not have an exercise price,
dividends roll up during the life of the option and the sole
vesting condition is that the scheme member remains in
the employment of the Group until the first exercise date.
Anton Bilton and Glyn Hirsch do not participate in this
scheme.
(b) Long Term Incentive Plan (LTIP)
All employees of the Group are eligible to receive
invitations to participate in this scheme. The EBT currently
holds the 10 million ordinary shares reserved for this
scheme. The options it grants over these shares vest in
three equal tranches, subject to performance criteria, on
24 March 2012, 24 March 2013 and 24 March 2014. 
Performance criteria for each tranche is based on meeting a
target, total shareholder return of 7.5% over UK RPI in each of
the following three year periods, with a starting share price of
25p:
• 24 March 2009 to 24 March 2012;
• 24 March 2010 to 24 March 2013; and
• 24 March 2011 to 24 March 2014.
Dividends roll up during the vesting period and options granted
under this scheme have an exercise price of 25p.
The Directors’ interests in the ESOS were not determined
during the year but since the year end, the Committee has
approved the following proposed awards and is liaising with the
Trustees of the EBT, suggesting that the following grants are
made to the Executive Directors or the Company’s Employer
Funded Retirement Fund (“EFRB”) in the current year:
Directors’ Remuneration Report – continued
22 Number of Shares
ERS LTIP Total
Anton Bilton – 810,881 810,811
Glyn Hirsch – 1,000,000 1,000,000
Mark Sinclair 1,000,000 1,000,000 2,000,000
Colin Smith 125,000 500,000 625,000
Total 1,125,000 3,310,811 4,435,811
Pensions
A contribution of 10% of basic salary is made to each
Executive Director for his personal pension arrangements or
direct to his personal pension plan.
Non-Executive Directors
The remuneration of Non-executive Directors is determined by
the Committee in consultation with the wider Board, including
in particular the Executive Deputy Chairman and the Chief
Executive. The Committee believes the pay of the
Non-executive Directors reflects their commitment of time and
the responsibilities of their roles. No Non-executive Director is
entitled to any form of performance-related remuneration,
including share options.
The remuneration of the Non-executives is set out below. 
Directors’ Remuneration Report – continued
23
Contractual
Appointment Unexpired Notice termination
Fees Date term period payment
Non-executive Director
Richard Jewson 80,000 29 June 2007 Rolling contract 3 months No provision for 
Stephen Coe 40,000 4 July 2005 Rolling contract 3 months payment on 
David Moore 40,000 4 July 2005 Rolling contract 3 months termination
Christopher Sherwell 40,000 1 April 2008 Rolling contract 3 months
Performance graph
The graph below shows the performance of the Company’s ordinary shares relative to the FTSE Real Estate Sector Index for the year
ended 31 December 2009.
0
50
100
150
200
250
FTSE 350 SS Real Estate
Raven Russia
01/01/10
01/12/09
01/11/09
01/10/09
01/09/09
01/08/09
01/07/09
01/06/09
01/05/09
01/04/09
01/03/09
01/02/09
01/01/09
Source: Datasteam.
  Interests of Executive and Non-executive
Directors in Ordinary Shares, Preference
Shares and Warrants 
The beneficial interests of the Directors in office at 31 December
2009 in the Ordinary shares, Preference shares and Warrants of
the Company, both at the beginning (or date of appointment if
later) and the end of the year, are set out below:
1 January 31 December
Ordinary shares 2009 2009
Richard Jewson 154,229 194,229
Anton Bilton 18,373,460
(1)
19,373,757
(3,4)
Glyn Hirsch 139,863
(1)
472,175
(3,4)
Mark Sinclair 16,797
(2)
16,797
Colin Smith 11,569 11,569
Stephen Coe 63,000 63,000
David Moore 89,564 89,564
Christopher Sherwell 29,000 29,000
(1) This excludes 1,329,253 Ordinary shares held by the Raven Mount
Group plc Employment Benefit Trust of which Anton Bilton and Glyn
Hirsch were potential beneficiaries.
(2) On 23 March 2009, date of appointment to office.
(3) Additions reflect Ordinary shares issued as a result of the acquisition
of Raven Mount Group plc and the unwind of its option
arrangements and Employment Benefit Trust.
(4) Includes Ordinary shares held by EFRBs.
1 January 31 December
Preference shares 2009
(1)
2009
Richard Jewson – 21,811
Anton Bilton – 21,005,339
(2)
Glyn Hirsch – 3,133,050
(2)
Mark Sinclair – 20,887
Colin Smith – 31,710
Stephen Coe – 37,599
David Moore – 57,052
Christopher Sherwell – –
(1) There were no Preference shares in issue at 1 January 2009.
(2) Includes Preference shares held by EFRBs and EBT under option.
1 January 31 December
Warrants 2009
(1)
2009
Richard Jewson – 20,500
Anton Bilton – 20,569,345
(2)
Glyn Hirsch – 3,124,650
(2)
Mark Sinclair – 10,000
Colin Smith – 10,443
Stephen Coe – 25,000
David Moore – 55,310
Christopher Sherwell – –
(1) There were no Warrants in issue at 1 January 2009.
(2) Includes Warrants held by EFRBs and EBT under option.
The Committee intend that this remuneration report is received
and adopted by members at the annual general meeting of the
Company due to be convened on the 26 May 2010.
Directors’ Remuneration Report – continued
24 We have audited the group financial statements of Raven
Russia Limited for the year ended 31 December 2009 which
comprise the Consolidated income statement, the
Consolidated statement of comprehensive income, the
Consolidated balance sheet, statement the Consolidated
statement of changes in equity, the Consolidated cash flow
statement and the related notes 1 to 39. The financial reporting
framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
This report is made solely to the company’s members, as a
body, in accordance with section 262 of the Companies
(Guernsey) Law, 2008. Our audit work has been undertaken so
that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
company and the company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and
auditors
As explained more fully in the Directors’ Responsibilities
Statement, the directors are responsible for the preparation of
the group financial statements and for being satisfied that they
give a true and fair view. Our responsibility is to audit the group
financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices
Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are
appropriate to the group’s circumstances and have been
consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the
directors; and the overall presentation of the financial statements
Opinion on financial statements
In our opinion the group financial statements:
• give a true and fair view, in accordance with IFRSs as
adopted by the European Union, of the state of the
group’s affairs as at 31 December 2009 and of its loss for
the year then ended;
• have been properly prepared in accordance with the
requirements of the Companies (Guernsey) Law, 2008.
Matters on which we are required to report
by exception
We have nothing to report in respect of the following matters
that under the Companies (Guernsey) Law, 2008 we are
required to report to you if, in our opinion:
• proper accounting records have not been kept by the
Company;
• the Company’s accounts are not in agreement with the
accounting records; or
• we have not received all the information and explanations
we require for our audit.
Ernst & Young LLP
London
14 March 2010
Note:
1. Legislation in Guernsey governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
The maintenance and integrity of the Raven Russia Limited
website is the responsibility of the directors; the work carried
out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility
for any changes that may have occurred to the financial
statements since they were initially presented on the website.
Independent Auditor’s Report
25
  26
Group Income Statement
For the year ended 31 December 2009
2009 2008
Revenue Capital Total Revenue Capital Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 4 112,204 – 112,204 71,311 – 71,311
Property operating expenditure
and cost of sales (61,880) – (61,880) (31,808) – (31,808)
Net rental and related income 50,324 – 50,324 39,503 – 39,503
Administrative expenses 5 (33,852) – (33,852) (24,705) (5,384) (30,089)
Settlement of advisory contract 12 – – – (67,581) – (67,581)
Negative goodwill 12 – – – 7,564 – 7,564
Foreign currency profits/(losses) 1,020 (4,117) (3,097) (9,656) (24,273) (33,929)
Operating expenditure (32,832) (4,117) (36,949) (94,378) (29,657) (124,035)
Operating profit/(loss) before 
profits and losses on 
investment properties 17,492 (4,117) 13,375 (54,875) (29,657) (84,532)
Unrealised loss on revaluation 
of investment property 10 – (57,933) (57,933) – (39,145) (39,145)
Unrealised loss on revaluation 
of investment property under
construction 11 – (50,544) (50,544) – – –
Impairment of investment
property under construction 11 – – – – (38,918) (38,918)
Operating profit/(loss) 17,492 (112,594) (95,102) (54,875) (107,720) (162,595)
Finance income 6 3,952 866 4,818 11,613 – 11,613
Finance expense 6 (57,120) (892) (58,012) (21,066) (17,343) (38,409)
Loss before tax (35,676) (112,620) (148,296) (64,328) (125,063) (189,391)
Tax 7 6,914 2,103 9,017 7,653 11,449 19,102
Loss for the year (28,762) (110,517) (139,279) (56,675) (113,614) (170,289)
Earnings per share: 
Basic and diluted (cents) 8 – – (28.49) (38.77)
Adjusted (EPRA) earnings 
per share:
Basic and diluted (cents) 8 – – (7.04) (3.04)
The total column of this statement represents the Group’s Income Statement, prepared in accordance with IFRS as adopted by
the EU. The revenue and capital columns are both supplied as supplementary information permitted by IFRS as adopted by the EU.
All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of the parent company. There are no minority interests.
The accompanying notes are an integral part of this statement. For the year ended 31 December 2009
2009 2008
US$’000 US$’000
Loss for the year (139,279) (170,289)
Other comprehensive income:
Change in fair value of available for sale financial assets 753 –
Foreign currency translation (41,586) (53,783)
(40,833) (53,783)
Total comprehensive income for the year (180,112) (224,072)
All income is attributable to the equity holders of the parent company. There are no minority interests.
The accompanying notes are an integral part of this statement.
Consolidated Statement of Comprehensive Income Group Statement of Comprehensive Income
27 Heading
28
As at 31 December 2009
2009 2008
Notes US$’000 US$’000
Non-current assets
Investment property 10 878,775 453,750
Investment property under construction 11 101,280 443,653
Plant and equipment 7,663 4,145
Intangible assets 12 13,442 –
Other receivables 15 18,214 153,092
Derivative financial instruments 18 195 64
Deferred tax assets 25 61,176 34,830
1,080,745 1,089,534
Current assets
Inventory 16 61,403 –
Trade and other receivables 17 68,815 82,597
Available for sale financial assets 4,232 –
Cash and short term deposits 19 123,710 108,435
258,160 191,032
Disposal group assets classified as held for sale 20 51,654 –
Total assets 1,390,559 1,280,566
Current liabilities
Trade and other payables 21 62,852 51,511
Derivative financial instruments 18 474 1,027
Interest bearing loans and borrowings 22 97,597 80,042
160,923 132,580
Non-current liabilities
Interest bearing loans and borrowings 22 347,973 356,926
Preference shares 23 219,444 –
Other payables 24 34,249 31,696
Derivative financial instruments 18 6,166 7,904
Deferred tax liabilities 25 24,267 16,420
632,099 412,946
Liabilities associated with disposal groups classified as held for sale 20 51,654 –
Total liabilities 844,676 545,526
Net assets 545,883 735,040
Equity
Share capital 26 9,924 9,921
Share premium 46,858 46,791
Warrants 27 8,584 –
Treasury shares 28 (13,841) –
Special reserve 870,692 870,692
Capital reserve (151,562) (41,798)
Translation reserve (112,676) (71,090)
Retained earnings (112,096) (79,476)
Total equity 29 545,883 735,040
Net asset value per share (dollars): 30
Basic 1.14 1.43
Diluted 0.97 1.43
Adjusted net asset value per share (dollars): 30
Basic 1.14 1.47
Diluted 0.97 1.47
The financial statements were approved by the Board of Directors on 14 March 2010 and signed on its behalf by:
Mark Sinclair and Colin Smith  
The accompanying notes are an integral part of this statement.
Group Balance Sheet
Raven_pp26_30  23/3/10  6:20 pm  Page 28 Heading
For the year ended 31 December 2009
Share Share Treasury Special Capital Translation Retained
Capital Premium Warrants Shares Reserve Reserve Reserve Earnings Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
At 1 January 2008 8,648 11,180 – – 870,692 71,816 (17,307) 29,020 974,049
Total comprehensive income for the year – – – – – – (53,783) (170,289) (224,072)
Scrip dividend issue of ordinary share capital 49 4,101 – – – – – – 4,150
Ordinary shares issued on acquisition of 
subsidiary undertakings 1,224 31,510 – – – – – – 32,734
Dividends paid 9 – – – – – – – (55,074) (55,074)
Transfer in respect of capital losses – – – – – (113,614) – 113,614 –
Share-based payment expense 31 – – – – – – – 3,253 3,253
At 31 December 2008 9,921 46,791 – – 870,692 (41,798) (71,090) (79,476) 735,040
For the year ended 31 December 2009
Total comprehensive income for the year – – – – – 753 (41,586) (139,279) (180,112)
Warrants issued 27 – – 8,593 – – – – – 8,593
Warrants exercised 27 3 67 (9) – – – – – 61
Ordinary shares acquired 28 – – – (13,841) – – – – (13,841)
Dividends paid 9 – – – – – – – (4,048) (4,048)
Share-based payment expense 31 – – – – – – – 190 190
Transfer in respect of capital losses – – – – – (110,517) – 110,517 –
At 31 December 2009 9,924 46,858 8,584 (13,841) 870,692 (151,562) (112,676) (112,096) 545,883
The accompanying notes are an integral part of this statement.
Group Statement of Changes in Equity Group Statement of Changes in Equity
29
Raven_pp26_30  23/3/10  6:20 pm  Page 29 Heading
30
For the year ended 31 December 2009
2009 2008
Notes US$’000 US$’000
Cash flows from operating activities
Loss before tax (148,296) (189,391)
Adjustments for:
Finance income 6 (4,818) (11,613)
Finance expense 6 58,012 38,409
Loss on revaluation of investment property 10 57,933 39,145
Loss on revaluation of investment property under construction 11 50,544 –
Impairment of investment property under construction 11 – 38,918
Foreign exchange losses arising from non-operating activities 3,097 33,929
Settlement of advisory contract 12 – 67,581
Negative goodwill 12 – (7,564)
Impairment of investment in joint venture 5 – 5,384
Recognised share-based payments 31 190 2,410
16,662 17,208
(Increase)/decrease in operating receivables (9,365) 3,464
Increase in inventory (224) –
Increase in operating payables 8,350 1,271
15,423 21,943
Tax paid (514) (3,698)
Net cash generated from operating activities 14,909 17,975
Cash flows from investing activities
Payments for investment property under construction (138,345) (461,740)
Decrease/(increase) in VAT recoverable on construction 46,495 (58,743)
Capital expenditure (1,113) (3,381)
Acquisition of subsidiary undertakings (3,578) (33,135)
Cash acquired with subsidiary undertakings 31,211 159
Loans advanced – (101,363)
Loans repaid – 1,326
Settlement of maturing forward currency financial instruments 6 (892) (14,712)
Interest received 6 2,043 1,258
Net cash used in investing activities (64,179) (670,331)
Cash flows from financing activities
Proceeds from long term bank borrowings 115,791 344,301
Repayment of long term borrowings (110,784) (5,167)
Proceeds from other borrowings – 5,029
Repayment of other borrowings (5,713) (2,355)
Bank borrowing costs paid (27,069) (31,046)
Proceeds from issue of preference shares and warrants 106,999 –
Dividends paid on preference shares (19,226) –
Ordinary dividends paid 9 (4,048) (50,923)
Net cash from financing activities 55,950 259,839
Net increase/(decrease) in cash and cash equivalents 6,680 (392,517)
Opening cash and cash equivalents 108,435 480,830
Effect of foreign exchange rate changes 8,667 20,122
Closing cash and cash equivalents 39 123,782 108,435
The accompanying notes are an integral part of this statement.
Group Cash Flow Statement For the year ended 31 December 2009
1. General information
Raven Russia Limited (the “Company”) and its subsidiaries (together the “Group”) is a property investment group specialising in
commercial real estate in Russia.
The Company is incorporated and domiciled in Guernsey under the provisions of the Companies (Guernsey) Law, 2008. The
Company’s registered office is Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3ST.
The audited financial statements of the Group for the year ended 31 December 2009 comprise the Company and its
subsidiaries and were authorised by the Board for issue on 14 March 2010.
2. Accounting policies
Basis of preparation
The Company has taken advantage of the exemption conferred by the Companies (Guernsey) Law, 2008, section 244, not to
prepare company financial statements as consolidated financial statements have been prepared for both current and prior
periods. The consolidated financial statements are presented in US Dollars and all values are rounded to the nearest thousand
dollars ($000) except where otherwise indicated.
The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have
been consistently applied to all years presented, unless otherwise indicated. 
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a high
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are
disclosed in note 3.
Statement of compliance 
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting
Standards adopted for use in the European Union (“IFRS”) and the Companies (Guernsey) Law, 2008.
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year, except that the Group has adopted
the following new and amended IFRS and IFRIC interpretations as of 1 January 2009:
IAS 1 Presentation of Financial Statements (Revised)
IAS 40 Investment Property (Amended)
IFRS 7 Financial Instruments: Disclosure (Amendment)
IFRS 8 Operating Segments
The principal effects of these changes on the financial statements of the Group are as follows:
IAS 1 Presentation of Financial Statements (Revised)
The standard requires the separation of shareholder and non-shareholder changes in equity. The Statement of Changes in
Equity will now only provide detail relating to transactions with shareholders, with non-shareholder changes presented as a
single line item “total comprehensive income for the year”.
Non-shareholder changes in equity that were previously charged direct to equity, which for the Group is foreign currency
translation gains and losses arising on consolidation, together with fair value movements on available for sale assets acquired
in the year, are presented in a new performance statement called the Statement of Comprehensive Income.
Notes to the Financial Statements
31
  IAS 40 Investment Property (Amended)
IAS 40 has been amended to bring within its scope investment property under construction. Consequently such property is
now measured at fair value where previously it was carried at cost less any recognised impairment loss. The policy has been
applied prospectively from 1 January 2009 and accordingly the amendment has no effect on prior years. A loss on the
revaluation of investment property under construction of US$50.5 million has been recognised in the year ended 31 December
2009. 
IFRS 7 Financial Instruments: Disclosure (Amendment) 
The detailed disclosures required by this amended standard are set out in note 34. 
IFRS 8 Operating Segments
IFRS 8 replaces IAS 14 Segment Reporting. The Group has concluded that the reportable segments determined in
accordance with IFRS 8 are identical to that determined previously, being property investment and logistics together with
property development segment acquired in the period. The detailed disclosures required by IFRS 8 are set out in note 37.
The IASB also issued various other interpretations and amendments to standards that did not have any effect on the financial
performance or financial position of the Group and in many cases did not have any relevance to the activities of the Group.
These were:
IAS 32 Financial Instruments: Presentation and IAS 1 Puttable Financial Instruments and Obligations Arising on Liquidation
IFRIC 9 Remeasurement of Embedded Derivatives and IAS 39 Financial Instruments: Recognition and Measurement
IFRIC 13 Customer Loyalty Programmes 
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
Improvements to IFRSs (May 2008)
Certain new interpretations and amendments or revisions to existing standards, which may be relevant to the Group, have
been published that are mandatory for later accounting periods and which have not been adopted early. These are:
IFRS 2 Share-based Payment: Group Cash-settled Share-based Payment Transactions effective 1 January 2010 
IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and Separate Financial Statements (Amended) including
consequential amendments to IFRS 7, IAS 21, IAS 28, IAS 31 and IAS 39 effective 1 July 2009 
IFRS 9 Financial Instruments effective 1 January 2013 
IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items effective 1 July 2009 
IFRIC 18 Transfers of Assets from Customers effective 1 July 2009 
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments effective 1 July 2010 
Improvements to IFRSs issued April 2009 
The Group is currently assessing the impact of these changes on its financial statements. 
Restatement of prior period amounts
Management have considered the function of expenditure incurred by the Group’s special purpose vehicles (“SPVs”) and
concluded that for some SPVs expenditure previously reported as administrative expenses was operational. The income
statement for 2008 has been restated to reclassify US$3.1 million of administrative expenses to property operating expenses.
This reclassification has no effect on the loss reported in the income statement for the year ended 31 December 2008.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company, its subsidiaries and the SPVs
controlled by the Company, made up to 31 December each year. Control is achieved where the Company has the power to
govern the financial and operating policies of an investee entity so as to obtain benefit from its activities.
The Group has acquired investment properties through the purchase of SPVs. In the opinion of the Directors, these
transactions did not meet the definition of a business combination as set out in IFRS 3 “Business Combinations”. Accordingly
the transactions have not been accounted for as an acquisition of a business and instead the financial statements reflect the
Notes to the Financial Statements – continued
32 substance of the transactions, which is considered to be the purchase of investment property and investment property under
construction.
The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective
date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of entities acquired to bring the accounting policies into
line with those used by the Group.
All intra-group transactions, balances, income and expenditure are eliminated on consolidation. 
Goodwill
Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable assets,
liabilities and contingent liabilities acquired. Cost comprises the fair values of assets given, liabilities assumed and equity
instruments issued, together with any direct costs associated with the acquisition.
Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the Income Statement.
Impairment tests on goodwill are undertaken annually at the financial year end. Impairment charges are included in the
administrative expenses line item in the Income Statement. An impairment loss recognised for goodwill is not reversed.
Where the interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired exceeds the cost of the
combination, the resulting negative goodwill is recognised immediately in the Income Statement.
Joint ventures
A joint venture is a contractual arrangement whereby two or more parties undertake economic activity that is subject to joint
control. The Group undertakes its joint ventures through jointly controlled entities. The consolidated financial statements include
the Group’s proportionate share of these entities’ assets, liabilities, income and expenditure on a line by line basis from the
date on which joint control commences to the date on which joint control ceases. Any premium paid for an interest in a jointly
controlled entity above the fair value of the Group’s share of identifiable assets, liabilities and contingent liabilities is accounted
for in accordance with the goodwill accounting policy.
Revenue recognition
(a) Property investment 
Rental income from operating leases is recognised in income on a straight-line basis over the lease term. Rental increases
calculated with reference to an underlying index and the resulting rental income (“contingent rents”) are recognised in income
as they are determined.
Incentives for lessees to enter into lease agreements are spread evenly over the lease term, even if the payments are not made
on such a basis. The lease term is the non-cancellable period of the lease, together with any further term for which the tenant
has the option to continue the lease, where, at the inception of the lease, the directors are reasonably certain that the tenant
will exercise that option.
(b) Logistics
Logistics revenue, excluding value added tax, is recognised as services are provided. 
(c) UK property development 
The sale of both properties and land are recognised on legal completion. 
Taxation 
The Company is a limited company registered in Guernsey, Channel Islands, and is exempt from taxation. The Group is liable
to Russian, UK and Cypriot tax arising on the results of its Russian, UK and Cypriot operations.
The tax expense represents the sum of the tax currently payable and deferred tax.
Notes to the Financial Statements – continued
33 (a) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit (or loss) as reported in the
Income Statement because it excludes items of income and expenditure that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that
have been enacted or substantively enacted by the balance sheet date.
(b) Deferred tax 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is probably that taxable profits will be available against
which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities
in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Unrecognised
deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable
that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
realised. Deferred tax is charged or credited in the Income Statement, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.
(c) Value added tax
Revenue, expenditure, assets and liabilities are recognised net of the amount of value added tax except: 
• Where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in
which case the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expenditure
item as applicable; and
• Receivables and payables that are stated with the amount of value added tax included. 
The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of receivables or
payables, as appropriate, in the balance sheet.
Investment property and investment property under construction
Investment property comprises completed property and property under construction held to earn rentals or for capital
appreciation or both. Investment property comprises both freehold and leasehold land and buildings.
Investment property is measured initially at its cost, including related transaction costs. After initial recognition, investment
property is carried at fair value. The Directors assess the fair value of investment property based on independent valuations
carried out by their appointed property valuers or on independent valuations prepared for banking purposes. The Group has
appointed Jones Lang LaSalle as property valuers to prepare valuations on a semi-annual basis. Valuations are undertaken in
accordance with appropriate sections of the current Practice Statements contained in the Royal Institution of Chartered
Surveyors Appraisal and Valuation Standards, 6th Edition (the “Red Book”). This is an internationally accepted basis of
valuation. Gains or losses arising from changes in the fair value of investment property are included in the Income Statement in
the period in which they arise.
Notes to the Financial Statements – continued
34 Borrowing costs that are directly attributable to the construction of investment property are included in the cost of the property
from the date of commencement of construction until construction is completed.
Where properties are acquired through corporate acquisitions and there are no significant assets or liabilities other than
property, the acquisition is treated as an asset acquisition. In all other cases the acquisition is accounted for as a business
combination, in which case, the assets and liabilities of a subsidiary or joint venture are measured at their estimated fair value
at the date of acquisition.
Leasing (as lessors)
Leases where the Group does not transfer substantially all the risks and benefits incidental to ownership of the asset are
classified as operating leases. All of the Group’s properties are leased under operating leases and are included in investment
property in the balance sheet.
Plant and equipment
Plant and equipment is stated at cost, net of accumulated depreciation and / or accumulated impairment losses, if any. Plant
and equipment principally comprises racking and related equipment utilised by the Group’s Logistics division and depreciation
is calculated on a straight-line basis over the estimated useful life of the asset, which range from 3 to 20 years.
Inventory 
Inventory is stated at the lower of cost and net realisable value. Such inventory includes land, work in progress and completed
units that are available for sale. As residential development is speculative by nature, most inventory is not covered by forward
sale contracts.
Financial assets
The Group classifies its financial assets into one of the categories discussed below, depending upon the purpose for which the
asset was acquired. The Group has not classified any of its financial assets as held to maturity.
(a) Fair value through profit or loss 
This category comprises only in-the-money derivatives (see financial liabilities policy for out-of-the-money derivatives), which
are carried at fair value with changes in the fair value recognised in the income statement in finance income or finance
expense.
(b) Loans and receivables
These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. In the
case of the Group, loans and receivables comprise trade and other receivables, loans and cash and short term deposits.
Loans and receivables are initially recognised at fair value, plus transaction costs that are directly attributable to their
acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for
impairment. 
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows. The amount of the impairment loss
is recognised in administrative expenses. If in a subsequent period the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment is recognised, the previously recognised
impairment loss is reversed. Any such reversal of an impairment loss is recognised in the income statement.
Cash and short term deposits include cash in hand, deposits held at call with banks and other short term highly liquid
investments with original maturities of three months or less.
(c) Available-for-sale financial investments
These comprise the Group’s investment in unquoted equity securities and are presented as available for sale financial assets
on the balance sheet.
Notes to the Financial Statements – continued
35 Available-for-sale financial investments are carried at fair value with changes in the fair value recognised as other
comprehensive income in the capital reserve until the investment is disposed, at which time the cumulative gain or loss is
recognised in other operating income.
Financial liabilities and equity 
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its
liabilities. Equity comprises ordinary shares and listed warrants.
The Group classifies its financial liabilities into one of the categories listed below. 
(a) Fair value through profit or loss
This category comprises only out-of-the-money derivatives, which are carried at fair value with changes in the fair value
recognised in the income statement in finance income or finance expense.
(b) Other financial liabilities
Other financial liabilities include interest bearing loans, trade payables (including rent deposits and retentions under
construction contracts), preference shares and other short-term monetary liabilities.
Trade payables and other short-term monetary liabilities are initially recorded at fair value and subsequently carried at
amortised cost using the effective interest rate method.
Interest bearing loans and preference shares are initially recorded at fair value net of direct issue costs and subsequently
carried at amortised cost using the effective interest rate method. Finance charges, including premiums payable on settlement
or redemption and direct issue costs, are charged to the income statement using the effective interest method and are added
to the carrying amount of the instrument to the extent they are not settled in the period in which they arise.
For capital risk management, the Directors consider both the ordinary and preference shares to be permanent capital of the
Company, with similar rights as to cancellation.
Treasury shares 
Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. No gain or
loss is recognised in the income statement on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
Any difference between the carrying amount and the consideration is recognised in the capital reserve.
Share-based payments
The Group makes equity-settled share-based payments to certain employees (including senior executives) and service
providers.
The cost of equity-settled transactions is measured by reference to the fair value at the date at which they are granted. Fair
value is determined by an external valuer, using an appropriate pricing model.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and service conditions are fulfilled. The cumulative expense is recognised at each reporting date until the
vesting date, reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The income statement expense or credit for a period represents the movement in
cumulative expense recognised at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions where vesting is
conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the market or
non-vesting condition is satisfied, provided that all other performance and service conditions are satisfied.
Notes to the Financial Statements – continued
36 Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of
either the entity or the employee are not met.
Foreign currency translation 
(a) Functional and presentation currency 
Items included in the financial statements of each Group entity are measured in the currency of the primary economic
environment in which the entity operates (the “functional currency”). Following the acquisition of the Property Advisor and the
subsequent period of integration of the operations of the Property Advisor with that of the Company, the Directors determined
that the Company’s functional currency changed from United States Dollars to Sterling. In accordance with IAS 21 the
Company converted all of its assets, liabilities, income and expenditure to Sterling. The presentation currency of the Group
continues to be United States Dollars, which the directors consider to be the key currency for the Group’s operations as
whole.
(b) Transactions and balances 
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income
statement. Non-monetary assets and liabilities are translated using exchange rates at the date of the initial transaction or when
their fair values are reassessed.
(c) On consolidation
The results and financial position of all the Group entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
(i) assets and liabilities for each balance sheet are translated at the closing rate at the date of the balance sheet; 
(ii) income and expenditure for each income statement are translated at the average exchange rate prevailing in the period;
and
(iii) all resulting exchange differences are recognised in other comprehensive income.
On consolidation, the exchange differences arising from the translation of the net investment in foreign entities are recognised
in other comprehensive income. When a foreign entity is sold, such exchange differences are recognised in the income
statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity
are treated as assets and liabilities of the foreign entity and translated at the closing rate.
Dividends
Dividends to the Company’s ordinary shareholders are recognised when they become legally payable. In the case of interim
dividends, this is when declared by the directors. In the case of final dividends, this is when it is approved by the shareholders
at an AGM.
3. Critical accounting estimates and judgements
The Group makes certain estimates and judgements regarding the future. Estimates and judgements are continually evaluated
and are based on historical experience as adjusted for current market conditions and other factors. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and judgements that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined
below.
(a) Valuation of investment property
The best evidence of fair value is current prices in an active market for similar lease and other contracts. In the absence of
such information, the Group determines the amount within a range of reasonable, fair value estimates. In making its judgement
Notes to the Financial Statements – continued
37 the Group considers information from a variety of sources and engages external, professional advisers to carry out third party
valuations of its properties. These are completed in accordance with appropriate sections of the current Practice Statements
contained in the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards, 6th Edition (the “Red Book”). This
is an internationally accepted basis of valuation.
In completing these valuations the valuer considers the following: 
(i) current prices in an active market for properties of a different nature, condition or location (or subject to different lease or
other contracts), adjusted to reflect those differences;
(ii) recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions
since the date of the transactions occurred at those prices; and
(iii) discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of any existing
lease or other contracts and (where possible) from external evidence such as current market rents for similar properties in
the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in
the amount and timing of cash flows.
(b) Income tax 
As part of the process of preparing its financial statements, the Group is required to estimate the provision for income tax in
each of the jurisdictions in which it operates. This process involves an estimation of the actual current tax exposure, together
with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These
differences result in deferred tax assets and liabilities, which are included in the balance sheet.
Russian tax legislation is subject to varying interpretations and changes, which may occur frequently. The interpretation of
legislation which the Group applies to its transactions and activities may be challenged by the relevant regional and federal
authorities. Additionally there may be inconsistent interpretation of tax regulations by various authorities, creating uncertainties
in the taxation environment in Russia. Fiscal periods remain open to review by the authorities for the three calendar years
preceding the years of review and in some circumstances may cover a longer period. Additionally, there have been instances
where tax regulations have taken effect retrospectively.
Significant judgement is required in determining the provision for income tax and the recognition of deferred tax assets and
liabilities.
(c) Recognition of deferred tax assets 
The recognition of deferred tax assets is based upon whether it is probable that sufficient and suitable taxable profits will be
available in the future, against which the reversal of temporary differences can be deducted. Recognition, therefore, involves
judgement regarding the future financial performance of the particular legal entity or tax group in which the deferred tax asset
has been recognised.
(d) Goodwill and impairment
Goodwill only arises in business combinations. The amount of goodwill recognised is dependent upon the allocation of the
purchase price to the fair value of the identifiable assets acquired and liabilities assumed. The determination of the fair value of
the assets and liabilities is based, to a considerable extent, on management’s judgement.
Goodwill is capitalised as an intangible asset with any impairment in the carrying value being charged to the income statement.
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. The recoverable amount is
determined based on value in use calculations. The use of this method requires the estimation of future cash flows and the
choice of a future discount rate in order to calculate the present value of future cash flows. 
(e) Acquisitions 
The consideration payable in respect of each acquisition is dependent upon certain future events. In calculating the cost of
each acquisition the Group has assessed the most probable outcome as at the balance sheet date. These amounts are
reconsidered annually at each year end. The assessments include consideration of the future rental levels and costs of
Notes to the Financial Statements – continued
38 construction of a property as well as the terms of the legal agreements governing each acquisition. Based on these factors
management will consider whether a liability or a contingent liability should be recognised or disclosed at the balance sheet
date.
(f) Classification of a joint venture or subsidiary undertaking 
The Group’s investment property under construction is typically held in a property specific SPV, which may be legally structured
as a joint venture with a development partner, though in substance reflect the Group’s investment in a wholly owned subsidiary.
In assessing whether a particular SPV is accounted for as a subsidiary or joint venture, the Group considers all of the
contractual terms of the arrangement, including the extent to which the responsibilities and parameters of the development are
determined in advance of the joint venture agreement being agreed between the two parties. The Group will then consider
whether it has the power to govern the financial and operating policies of the SPV, so as to obtain benefits from its activities,
and the existence of any legal disputes or challenges to this control in order to conclude on the classification of the SPV as a
joint venture or subsidiary undertaking.
(g) Inventory 
The Group is required to allocate site wide development costs between units being built or completed in the current period
and those for future periods. In making such assessments and allocations, there is a degree of inherent estimation uncertainty.
The Group has established internal controls designed to effectively assess and review inventory carrying values and ensure the
appropriateness of the estimates made.
4. Gross Revenue
2009 2008
US$’000 US$’000
Rental and related income 80,763 62,201
Proceeds from the sale of inventory property 15,014 –
Logistics 16,427 9,110
112,204 71,311
The Group’s leases typically include annual rental increases (“contingent rents”) based on a consumer price index in Russia,
Europe and USA, which are recognised in income as they arise. Contingent rents included in rental income for the year
amounted to US$950k (2008: US$747k).
Details of the Group’s contracted future minimum lease receivables are detailed in note 38. 
Notes to the Financial Statements – continued
39 5. Administrative expenses
2009 2008
Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Employment costs 14,716 – 14,716 1,250 – 1,250 
Directors’ remuneration 3,116 3,116 527 527 
Property Advisor management fees – – – 6,169 – 6,169 
Office running costs and insurance 4,105 – 4,105 355 – 355 
Travel costs 1,334 – 1,334 159 – 159 
External administrator fees 1,172 – 1,172 3,321 – 3,321 
Auditors’ remuneration
– audit services 693 – 693 1,178 – 1,178 
– non-audit services 1,030 1,030 – – – 
Legal and professional 2,656 – 2,656 1,146 – 1,146 
Abortive project costs 313 – 313 3,684 – 3,684 
Depreciation 1,344 – 1,344 750 – 750 
Other administrative expenses 2,279 – 2,279 809 – 809 
Share of operating expenditure of
joint ventures 904 – 904 2,947 – 2,947 
Equity-settled share-based payment
(note 30) 190 – 190 2,410 – 2,410 
Impairment of goodwill (note 12) – – – – 2,265 2,265 
Impairment of loans to joint venture
(note 32) – – – – 3,119 3,119 
33,852 – 33,852 24,705 5,384 30,089 
The Property Advisor management fees were project specific and are included in the cost of investment property under
construction on consolidation, where construction was in progress. Cumulative fees of US$41.8 million (2008: US$41.8 million)
are included in the cost of investment property and investment property under construction at 31 December 2009. On
26 November 2008 the Group completed the acquisition of the Property Advisor. Accordingly the management fees above
represent fees charged by the Property Advisor in respect of completed assets up to 26 November 2008. Subsequent to that
date, the fee is an intra-group charge, which is eliminated on consolidation.
Notes to the Financial Statements – continued
40 6. Finance income and expense
2009 2008
US$’000 US$’000
Finance income
Income from cash and short term deposits 2,043 1,260
Interest income on loans receivable 380 10,353
Total interest income 2,423 11,613
Change in fair value of open forward currency derivative financial instruments 866 – 
Change in fair value of open interest rate derivative financial instruments 1,529 – 
Finance income 4,818 11,613 
Finance expense
Interest expense on loans and borrowings measured at amortised cost 37,043 13,471 
Interest expense on preference shares 20,077 – 
57,120 13,471 
Loss on maturing forward currency derivative financial instruments 892 14,712 
Change in fair value of open forward currency derivative financial instruments – 2,631 
Change in fair value of open interest rate derivative financial instruments – 7,595 
Finance expense 58,012 38,409 
The above financial income and expense includes the following in respect of assets and liabilities not at fair value through profit
and loss:
2009 2008
US$’000 US$’000
Total interest income on financial assets 2,423 11,613 
Total interest expense on financial liabilities (57,120) (13,471) 
(54,697) (1,858) 
7. Tax
2009 2008
US$’000 US$’000
The tax expense for the year comprises: 
Current taxation 2,690 2,022 
Increase in deferred tax asset (note 25) (16,093) (13,320) 
Increase/(decrease) in deferred tax liability (note 25) 4,386 (7,804) 
Tax credit (9,017) (19,102) 
The credit for the year can be reconciled to the loss per the income statement as follows: 
2009 2008
US$’000 US$’000
Loss before tax (148,296) (189,391) 
Tax at the Russian corporate tax rate of 20% (29,659) (37,878) 
Tax effect of income not subject to tax and non-deductible expenses 32,409 32,516 
Tax on dividends and other inter company gains 1,987 1,387 
Tax effect of financing arrangements (12,986) (12,665) 
Effect of change of corporation tax rate from 24% to 20% – (3,753) 
(Over)/under provision in prior year (768) 1,291 
Tax credit (9,017) (19,102) 
Notes to the Financial Statements – continued
41 During 2008 the standard rate of Russian corporate tax reduced from 24% to 20%. 
8. Earnings per share
The European Public Real Estate Association (“EPRA”) issued Best Practice Policy Recommendations in July 2009, which
gives guidelines for the calculation of performance measures. The Group has decided to adopt the EPRA earnings measure,
which excludes investment property revaluations, impairments, gains and losses on disposal of investment property, intangible
asset movements, gains and losses on derivative financial instruments and related taxation.
The calculation of basic and diluted earnings per share is based on the following data:
2009 2008
Earnings US$’000 US$’000
Earnings for the purposes of basic and diluted earnings per share being the 
net loss for the year (139,279) (170,289) 
Adjustments to arrive at EPRA earnings:
Unrealised loss on revaluation of investment property 57,933 39,145 
Unrealised loss on revaluation of investment property under construction 50,544 – 
Impairment of investment property under construction – 38,918 
Settlement of advisory contract – 67,581 
Negative goodwill – (7,564) 
Impairment of investment in joint venture – 5,384 
Loss on maturing foreign currency derivative financial instruments 892 14,712 
Change in fair value of open forward currency derivative financial instruments (866) 2,631 
Change in fair value of open interest rate derivative financial instruments (1,529) 7,595 
Movement on deferred tax thereon (2,103) (11,449) 
Adjusted EPRA earnings (34,408) (13,336)
2009 2008
Number of shares No ’000 No ’000
Weighted average number of ordinary shares for the purposes of basic EPS 
and basic EPRA EPS (excluding treasury shares) 488,906 439,235 
Weighted average number of ordinary shares for the purposes of diluted
EPS and diluted EPRA EPS (excluding treasury shares) 488,906 439,235 
EPS basic and diluted (cents) (28.49) (38.77) 
EPRA EPS basic and diluted (cents) (7.04) (3.04) 
The Company has a number of potential ordinary shares, being listed warrants (note 27), options and warrants to advisers on
the formation of the Company (note 31) and awards made under the Employee Retention Scheme and Long Term Incentive
Plan (note 31), none of which were dilutive for the year ended 31 December 2009. Since the year end the Company has made
further awards under the Employee Retention Scheme and Long Term Incentive Plan and details of these awards are given in
note 31.
Notes to the Financial Statements – continued
42 9. Ordinary dividends
2009 2008
US$’000 US$’000
Declared and paid during the year on ordinary shares: 
Final dividend for 2008 nil pence (2007: 4 pence) – 34,305 
Interim dividend for 2009 0.5 pence (2008: 3 pence) 4,048 20,769 
4,048 55,074 
The Directors are proposing to declare a final dividend for 2009 of 0.5 pence. 
In 2008 scrip dividends amounting to US$4.15 million were taken up by shareholders. A scrip alternative was not offered for
the dividend declared and paid in 2009.
10. Investment property
2009 2008
US$’000 US$’000
Balance at 1 January 453,750 346,250 
Transfer from investment property under construction (note 11) 515,354 146,645 
Transfer to disposal assets classified as held for sale (note 20) (37,489) -
Additions 5,093 -
Unrealised loss on revaluation of investment property (57,933) (39,145) 
Balance at 31 December 878,775 453,750 
It is the Group’s policy to carry investment property at fair value in accordance with IAS 40 “Investment Property”. The fair
value of the Group’s investment property at 31 December 2009 has been arrived at on the basis of market valuations carried
out by Jones Lang LaSalle (“JLL”), external valuers to the Group and on independent valuations completed for banking
purposes. JLL have consented to the use of their name in these financial statements.
The valuations used by the Directors in these financial statements have been carried out in accordance with The Royal
Institution of Chartered Surveyors Valuation Standards, Sixth Edition (the “Red Book”). The definition of market value is “the
estimated amount for which an asset should exchange on the date of valuation between a willing buyer and willing seller in an
arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without
compulsion”.
The following assumptions were used in determining the valuations, which were specific to the Group: 
No allowances have been made for any expenses of realisation or for taxation which might arise in the event of a disposal
of a property;
The market values reported are gross of purchasers’ costs, which would be incurred on the sale of assets as this is the
recognised valuation approach in Russia; and
No account is taken of the future effect of any index based rent uplifts. 
The Group has pledged investment property with a value of US$658 million (2008: US$398 million) to secure banking facilities
granted to the Group (note 22).
Notes to the Financial Statements – continued
43 11. Investment property under construction
2009 2008
US$’000 US$’000
Balance at 1 January 443,653 251,775 
Costs incurred 142,906 406,252 
Acquisition 119,122 –
Impairment – (38,918) 
Effect of foreign exchange rate changes (28,260) (28,811) 
Transfer to investment property (note 10) (515,354) (146,645) 
Transfer to disposal assets classified as held for sale (note 20) (10,243) – 
Unrealised loss on revaluation of investment property under construction (50,544) – 
Balance at 31 December 101,280 443,653 
Borrowing costs capitalised in the year amounted to US$10.5 million (2008: US$8.1 million). 
The Directors have valued land based on the amounts they consider they can achieve for permitted land and land with access
and infrastructure. The Directors also considered updated acquisition appraisals, the key assumptions being developer’s
required returns, market rents and yields on completed properties. On this basis the Directors consider the fair value of the
land bank to be US$101 million, which equates to an average price of US$21 per square metre.
In prior periods the Group carried investment property under construction at cost less impairments. In 2008 the Group carried
out impairment tests on its investment property under construction in St Petersburg and regional cities in Russia. This involved
calculating the value in use of each property by estimating the future cash flows and discounting these to determine their
present value. The discount rate applied was 13% and it resulted in a write down in that year of US$38.9 million.
The Group has pledged investment property under construction with a carrying value of US$40 million (2008: US$246 million)
to secure banking facilities granted to the Group (note 22).
12. Intangible assets
Negative Advisory
Goodwill Goodwill Contract Total
US$’000 US$’000 US$’000 US$’000
Balance at 1 January 2008 2,265 – – 2,265 
Acquired through business combinations (note 35) – (7,564) 67,581 60,017 
Impairment (2,265) – – (2,265) 
Charge to income statement – – (67,581) (67,581) 
Release to income statement – 7,564 – 7,564 
Balance at 31 December 2008 – – – –
On acquisition of Raven Mount Group plc (note 35) 8,059 – – 8,059 
On change in financing arrangements for Roslogistics
(note 35) 5,383 – – 5,383 
Balance at 31 December 2009 13,442 – – 13,442 
Goodwill impairment is reviewed by management annually. The recoverable amount is determined based on value in use
calculations. The use of this method requires the estimation of future cash flows and the choice of a future discount rate in
order to calculate the present value of future cash flows.
Notes to the Financial Statements – continued
44 Goodwill acquired through the Raven Mount and Roslogistics business combinations has been allocated for impairment
purposes to the Property Development and Logistic operating segments respectively. These represent the lowest level within
the Group at which goodwill is monitored for internal management purposes. The recoverable amount of goodwill has been
determined based on value in use calculations using cash flow projections and project appraisals approved for internal
management reporting and discounted at rates appropriate to each of the segments.
The acquisition of the Property Advisor in 2008 gave rise to an intangible asset from the valuation of the property advisory
contract, and the underlying management and performance fees. This is considered to be reflective of the fair value of
extinguishing the contract and therefore it was charged to the income statement in that year in full.
13. Investment in subsidiary undertakings
The principal subsidiary undertakings of Raven Russia Limited, all of which have been included in these consolidated financial
statements, are as follows:
Proportion of 
ownership interest
Name Country of incorporation 2009 2008
CJSC Kulon Estates Russia 100% 100% 
CJSC Kulon Development Russia 100% 100% 
Fenix LLC Russia 100% 100% 
Petroestate LLC Russia 100% 100% 
EG Logistics LLC Russia 100% 100% 
CSJC Kulon Istra Russia 100% 100% 
Soyuz-Invest LLC Russia 100% 100% 
Reserv-Invest LLC Russia 100% 100% 
CSJC Noginsk Vostok Russia 100% 100% 
Resource Economia LLC Russia 100% 100% 
Kulon Spb LLC Russia 100% 100% 
AKM Logistics LLC Russia 100% 100% 
Megalogix Limited Cyprus 100% 50%* 
Logopark Don LLC Russia 100% 50%* 
Logopark Ob LLC Russia 100% 50%* 
Roslogistics Holdings (Russia) Limited Cyprus 100% 50%* 
Avalon Logistics Company LLC Russia 100% 50%* 
Raven Mount Group plc England 100% –
Raven Russia Property Advisers Limited England 100% 100% 
Raven Russia (Service Company) Limited Guernsey 100% 100% 
Raven Russia (Guernsey) 2 Limited Guernsey 100% 100% 
* Accounted for as a JV in 2008.
During the year the Company acquired Raven Mount Group plc and the remaining 50% of the shares of its joint ventures,
Megalogix Limited and Roslogistics Holdings (Russia) Limited, along with their own subsidiary companies, which include
Logopark Don LLC, Logopark Ob LLC and Avalon Logistics LLC. Further details of the acquisitions are provided in note 35.
The Group’s investment property and investment property under construction are held by its subsidiary undertakings. 
Notes to the Financial Statements – continued
45 14. Investment in joint ventures
The principal jointly controlled entities of the Group are as follows: 
Proportion of 
ownership interest
Name Country of incorporation 2009 2008
Coln Park LLP England 50% – 
Megalogix Limited Cyprus – 50% 
Roslogistics Holdings (Russia) Limited
(trading as Avalon Logistics) Cyprus – 50% 
Armbridge Consultancy Limited Cyprus – 50% 
During the year the Group acquired the remaining 50% of the shares in each of the jointly controlled entities held at 31 December
2008. With the acquisition of Raven Mount Group plc in the year, the Group acquired its interest in Coln Park LLP .
The Group’s interest in each jointly controlled entity has been accounted for by proportionate consolidation. The aggregate
amounts recognised in the balance sheet and income statement were:
2009 2008
US$’000 US$’000
Non-current assets 4 128,891
Current assets 14,782 21,659
Current liabilities (10,921) (14,476)
Non-current liabilities – (163,409)
Net assets/(liabilities) 3,865 (27,335)
Income 13,558 9,110
Expenditure (12,169) (15,459)
1,389 (6,349)
15. Other receivables
2009 2008
US$’000 US$’000
Loans receivable 13 136,523
VAT recoverable 7,402 8,626
Security deposit 1,722 1,788
Prepayments and other receivables 9,077 6,155
18,214 153,092
VAT recoverable arises through the payment of value added tax on construction of investment property, which will be
recovered through the offset of VAT paid on future revenue receipts or repayment direct from the taxation authority. VAT
recoverable has been split between current and non-current assets based on the Group’s assessment of when recovery will
occur.
Loans receivable were principally loans advanced to the Group’s joint ventures. As the relevant joint ventures are now wholly
owned subsidiary companies the loans are eliminated on consolidation. The loans receivable were unsecured, with a weighted
average loan term of 4 years at 31 December 2008 and a weighted average interest rate of 13%.
Notes to the Financial Statements – continued
46 16. Inventory
Land held
for Housing
development stock Total
US$’000 US$’000 US$’000
Balance at 1 January 2008 and 31 December 2008 – – – 
Acquired through business combinations (note 35) 2,402 60,590 62,992 
Costs incurred in the year 694 7,787 8,481 
Cost of sales – (11,066) (11,066) 
Effect of foreign exchange rate changes 38 958 996 
Balance at 31 December 2009 3,134 58,269 61,403 
The Group has pledged inventory with a carrying value of US$50 million (2008: US$ nil) to secure banking facilities granted to
the Group (note 22).
17. Trade and other receivables
2009 2008
US$’000 US$’000
Trade receivables 12,641 5,007 
Prepayments 11,221 3,666 
VAT recoverable 35,806 66,570 
Tax recoverable 3,564 4,627 
Loans receivable 2,422 1,484 
Accrued income 905 146 
Other receivables 2,256 1,097 
68,815 82,597 
The loans receivable were unsecured, with a weighted average interest rate at 31 December 2008 of 14%. 
Notes to the Financial Statements – continued
47 18. Derivative financial instruments
2009 2008
US$’000 US$’000
Interest rate derivative financial instruments
Non-current assets 195 64 
Non-current liabilities (5,781) (7,206)
Forward currency derivative financial instruments
Non-current liabilities (385) (698) 
Current liabilities (474) (1,027) 
The Group has entered into a series of interest rate derivative financial instruments to manage the interest rate and resulting
cash flow exposure from the Group’s banking facilities. The instruments have a notional value of US$276 million (2008:
US$218.1 million) and a weighted average fixed or capped rate of 3.3% (2008: 3.5%).
The Group has also entered into a series of forward currency derivative financial instruments to hedge rentals received under
leases denominated in euros. At 31 December 2009 there were open contracts to sell euros amounting to q11.9 million (2008:
q11.8 million) and buy US Dollars amounting to US$16.2 million (2008: US$15.2 million) at an average rate of 1.36 (2008: 1.29).
The final forward currency derivative instruments in relation to managing the Russian Rouble construction costs settled during
the year. US$2.6 million of US Dollars were sold to buy 68.6 million Russian Roubles at an average rate of 26.36 (2008: 26.01).
19. Cash and short term deposits
2009 2008
US$’000 US$’000
Cash at bank and on call 43,675 63,465
Short term deposits 80,035 44,970
123,710 108,435
Included within cash and short term deposits is US$3.6 million (2008: US$5.8 million) which is held as security for the Group’s
interest rate and foreign currency derivative financial instruments (note 18) and is thus restricted in the use to which it can be
put by the Group.
The Group has also pledged short term deposits with a carrying value of US$25.5 million (2008: US$ Nil) as security for a
bridging facility granted to the Group (note 22). US$10 million of the loan was outstanding at 31 December 2009.
Cash at bank and on call attract variable interest rates, whilst short term deposits attract fixed rates but mature and re-price
over a short period of time. The weighted average interest rate at the balance sheet date is 1.16% (2008: 2.32%).
Notes to the Financial Statements – continued
48 20. Disposal group 
The disposal group represents an investment property, adjacent land and related assets and liabilities on the AKM project in St
Petersburg. This included a loan facility with Nomos Bank, of US$44 million with a margin over US LIBOR of 12% and a term
remaining of 4 years, secured on the property and land. As the asset will not generate sufficient income to service the debt,
Nomos has agreed that it will accept the property and related assets, net of the liabilities, in consideration for the repayment of
all outstanding amounts due under the bank facility. The disposal group represents the assets and liabilities involved, including
the debt facility, and further details are provided in the table below.
2009 2008
US$’000 US$’000
Non-current assets
Investment property 37,489 – 
Investment property under construction 10,243 – 
Plant and equipment 45 – 
Other receivables 186 –
Deferred tax asset 2,796 – 
50,759 – 
Current assets 
Trade and other receivables 823 – 
Cash and short term deposits 72 – 
895 – 
Total assets 51,654 –
Current liabilities 
Trade and other payables 3,045 – 
Interest bearing loans and borrowings 47,817 – 
50,862 – 
Non-current liabilities 
Deferred tax 792 – 
Total liabilities 51,654 – 
21. Trade and other payables
2009 2008
US$’000 US$’000
Investment property acquisition obligations – 6,500
Trade and other payables 53,610 41,647
Tax payable 9,242 3,364
62,852 51,511
Trade and other payables comprise mainly balances due to contractors for the construction activity in the period. 
Notes to the Financial Statements – continued
49 22. Interest bearing loans and borrowings
(a) Bank loans
2009 2008
US$’000 US$’000
Loans due for settlement within 12 months 93,273 76,066
Loans due for settlement after 12 months 339,900 349,803
433,173 425,869
(b) Other interest bearing loans
2009 2008
US$’000 US$’000
Loans due for settlement within 12 months 4,324 3,976
Loans due for settlement after 12 months 8,073 7,123
12,397 11,099
Totals
Loans due for settlement within 12 months 97,597 80,042
Loans due for settlement after 12 months 347,973 356,926
445,570 436,968
The Group’s borrowings have the following maturity profile:
On demand or within one year 97,597 80,042
In the second year 29,776 55,233
In the third to fifth years 252,240 283,566
After five years 65,957 18,127
445,570 436,968
At 31 December 2009, the Group had drawn US$347.4million (2008: US$267million) of term investment debt secured on
completed investment property. This investment debt bears a weighted average margin of 4.62% over US LIBOR (2008:
3.29%) and has a weighted average loan term remaining of 4.2 years (2008: 4.3 years).
The Group also has US$68.1 million (2008: US$193 million) of construction debt, which bears a weighted average margin of
4.76% (2008: 12%).
Included in the above construction debt is a Euro denominated construction facility of US$62.3 million equivalent, which bears
a margin of 4.6% over EURIBOR. This facility had come to the end of its term at the year end and is shown as due within one
year. The extension and restructuring of this facility into a US Dollar denominated loan with a two year term was agreed in
February 2010.
In addition to the debt secured on the principal property portfolio above, the Group also had the following facilities in place at
the year end.
As part of the refinancing of a construction facility with VTB Bank, secured on our asset, Logopark Don in Rostov, which was
repaid in September 2009, a short term 15 month, £25 million (US$39.8 million) facility was established, secured against the
Group’s sterling cash deposits and bearing interest at a margin of 2.95% over LIBOR. The outstanding balance at 31 December
2009 was £6.3 million (US$10 million).
Following the acquisition of Raven Mount Group plc (note 35), a £6 million (US$9.5 million) one year revolver facility was
established secured on the Group’s inventory, which is located in the UK. It bears interest at a margin of 2.5% over LIBOR and
at 31 December 2009 the outstanding balance was £3.7 million (US$5.9 million).
Notes to the Financial Statements – continued
50 Coln Park LLP, a joint venture vehicle in which Raven Mount Group plc is a partner, has a facility of £7.4 million
(US$11.8 million) outstanding at the year end and at a margin over LIBOR of 3%. The facility matures in September 2010.
The Group has met all cash covenants on its debt facilities during the year. No Loan to Value covenants have been breached
although it remains a possibility that this could occur on certain facilities should lenders request new valuations. The facilities
concerned are on a non-recourse basis to other Group companies and any marginal deficiencies can be made good if
necessary. As required under IAS 1, in recognition of the possibility of a breach, US$9 million of bank loans have been
reclassified as current liabilities although it is not anticipated that settlement of these liabilities is likely to occur within
12 months of the balance sheet date.
The Group has entered into hedging arrangements in respect of its interest rate exposure (note 18). US$237 million (2008:
US$226.3 million) of Group bank borrowings have been fixed with three years remaining (2008: four years) at a weighted
average rate of 7.32% (2008: 6.77%) and US$39 million (2008: US$41 million) capped at 5.5% (2008: 5.5%) for three years
(2008: four years). This gave a weighted average cost of debt to the Group of 6.4% (2008: 8.3%) at the year end.
23. Preference shares
2009 2008
US$’000 US$’000
Authorised share capital:
400,000,000 (2008: nil) preference shares of 1p each 5,981 –
On 24 March 2009 the authorised share capital of the Company was increased by the creation of 400,000,000 preference
shares.
2009 2008
Number Number
Issued share capital:
At 1 January –– 
Issued in the year for cash 76,155,000 – 
On acquisition of Raven Mount Group plc (note 35) 66,409,478 – 
Scrip dividends 750,701 – 
At 31 December 143,313,179 –
The Company has issued preference shares, which entitle the holders to a cumulative preference dividend of 12% based on a
par value per share of £1.
24. Other payables
2009 2008
US$’000 US$’000
Investment property acquisition obligations 13,838 14,064 
Rent deposits 9,238 6,850 
Deferred revenue 49 60 
Retentions under construction contracts 8,692 6,687 
Other payables 2,432 4,035 
34,249 31,696 
Notes to the Financial Statements – continued
51 25. Deferred tax
(a) Deferred tax asset
Tax losses Other Total
US$’000 US$’000 US$’000
Balance at 1 January 2008 1,781 94 1,875
Effect of foreign exchange rate changes (6,285) – (6,285)
Charge to income related to change in corporation tax rate 
from 24% to 20% (258) – (258)
Credit to income 13,278 300 13,578
Credit to equity 25,920 – 25,920
Balance at 31 December 2008 34,436 394 34,830
Recognised on business combination (note 35) 2,917 – 2,917 
Recognition on settlement of contracts 6,214 – 6,214 
Effect of foreign exchange rate changes 225 – 225 
Transfer to disposal group classified as held for sale (note 20) (2,796) – (2,796) 
Credit to income 16,090 3 16,093 
Credit to equity 3,693 – 3,693 
Balance at 31 December 2009 60,779 397 61,176 
The Group has losses of US$130 million (2008: US$38.9 million) for which deferred tax assets have not been recognised. 
Amounts credited to equity arise on the translation of loans, which comprise part of the net investment of the Group in foreign
entities.
(b) Deferred tax liabilities
Revaluation
Accelerated of
tax investment
allowances property Total
US$’000 US$’000 US$’000
Balance at 1 January 2008 3,540 21,718 25,258 
Effect of foreign exchange rate changes (1,034) – (1,034) 
Credit to income related to change in corporation tax rate 
from 24% to 20% (449) (3,620) (4,069) 
Charge/(credit) to income 3,799 (7,534) (3,735) 
Balance at 31 December 2008 5,856 10,564 16,420 
Recognised on business combination (note 35) 916 – 916 
Recognition on settlement of contracts 1,974 – 1,974 
Transfer to liabilities associated with disposal groups classified as
held for sale (note 20) (792) – (792) 
Effect of foreign exchange rate changes 1,363 – 1,363 
Charge to income 6,489 (2,103) 4,386 
Balance at 31 December 2009 15,806 8,461 24,267 
Notes to the Financial Statements – continued
52 26. Share capital
2009 2008
US$’000 US$’000
Authorised ordinary share capital:
1,500,000,000 (2008: 1,000,000,000) ordinary shares of 1p each 27,469 20,105 
On 24 March 2009 the authorised ordinary share capital of the Company was increased from £10 million to £15 million by the
creation of an additional 500,000,000 ordinary shares.
2009 2008
Number Number
Issued share capital:
At 1 January 512,552,915 430,040,566 
Issued in the year 144,679 82,512,349 
At 31 December 512,697,594 512,552,915 
Of the authorised ordinary share capital at 31 December 2009, 154,810,632 (2008: 9,629,166) are reserved for options and
warrants.
Details of own shares held in treasury are given in note 28. 
27. Warrants
2009 2008
Number Number
At 1 January –– 
Issued in the year for cash 76,155,000 – 
On acquisition of Raven Mount Group plc (note 35) 66,409,478 – 
Exercised in the year (144,679) – 
At 31 December 142,419,799 – 
2009 2008
US$’000 US$’000 
At 1 January –– 
Issued in the year for cash 4,416 – 
On acquisition of Raven Mount Group plc (note 35) 4,177 – 
Exercised in the year (9) – 
At 31 December 8,584 – 
The warrants issued on acquisition of Raven Mount Group plc include 8.1 million warrants (US$502k) issued to settle a liability
of Raven Mount Group plc.
The Company has issued warrants, which entitle each holder to subscribe for ordinary shares in the Company at an exercise
price of 25p per share. The warrants expire on 25 March 2019.
In the period since 31 December 2009 2,537,321 warrants have been exercised. 
Notes to the Financial Statements – continued
53 28. Treasury shares
2009 2008
Number Number
At 1 January –– 
Acquired in the year 34,035,054 – 
At 31 December 34,035,054 – 
29. Equity
The following describes the nature and purpose of each component within equity:
Component Description and purpose
Share capital The amount subscribed for ordinary share capital at nominal value. 
Share premium The amount subscribed for ordinary share capital in excess of the nominal value. 
Warrants The consideration attributed to the subscription of warrants less associate costs of issuance. 
Treasury shares The cost to the Company of acquiring the own shares held by the Company and its subsidiary 
undertakings.
Special reserve During 2005 and 2006 the Company applied to the Royal Court of Guernsey to reduce its share 
capital by cancellation of its share premium at that time and creation of a special reserve, which is an 
additional distributable reserve to be used for all purposes permitted under Guernsey Company law, 
including buy back of shares and the payment of dividends.
Capital reserve The amount of any capital profits and losses, including gains and losses on the disposal of investment
properties (after taxation), increases and decreases in the fair value of investment properties held at 
each period end, foreign exchange profits and losses on capital items, profits and losses on forward 
currency financial instruments and deferred taxation on the increase in fair value of investment
properties.
Translation reserve The amount of any gains or losses arising on the retranslation of net assets of overseas operations.
Retained earnings The amount of any profit or loss for the year after payment of dividend, together with the amount of 
any equity-settled share-based payments, and the transfer of capital items described above.
Notes to the Financial Statements – continued
54 30. Net asset value per share
2009 2008
US$’000 US$’000
Net asset value 545,883 735,040
Intangible assets – goodwill (13,442) –
Deferred tax on revaluation gains 8,461 10,564
Fair value of interest rate derivative financial instruments 5,586 7,142
Adjusted net asset value 546,488 752,746
Assuming exercise of all dilutive potential ordinary shares
– Listed warrants (note 27) 56,843 –
– ERS (note 31) ––
– LTIP (note 31) 407 –
Fully diluted net asset value 603,738 752,746
Number of ordinary shares at (note 26) 512,697,594 512,552,915
Less treasury shares (note 28) (34,035,054) –
478,662,540 512,552,915
Assuming exercise of all dilutive potential ordinary shares
– Listed warrants (note 27) 142,419,799 –
– ERS (note 31) 1,775,000 –
– LTIP (note 31) 1,020,000 –
Number of ordinary shares assuming exercise of all potential ordinary shares 623,877,339 512,552,915
Net asset value per share 1.14 1.43
Fully diluted net asset value per share 0.97 1.43
Adjusted net asset value per share 1.14 1.47
Adjusted fully diluted net asset value per share 0.97 1.47
31. Share based payments
(a) Terms
In 2005, as part consideration for the services offered by Cenkos Securities Limited and Kinmont Limited under the Placing
Agreement, options were granted to these companies pursuant to which they have the right to subscribe for 1,530,000 and
382,500 ordinary shares respectively at £1.00 per share. The options are exercisable at any time during the period to 24 July
2010.
Also in 2005, to incentivise personnel of the Company’s former Property Adviser involved in providing advice to the Group, the
Company granted to the trustee of the Raven Mount Employee Benefit Trust an option to acquire up to 7.5% of its issued
ordinary share capital from time to time less up to 100,000 ordinary shares under option to Adrian Collins, the Company’s
former Chairman. The options vested in three tranches and were exercisable over a period of 4 to 12 years following the
Company’s admission to AIM dependent upon cumulative performance criteria of between 9% and12% total share return
having been met.
The first tranche of options held by the trustee and Adrian Collins lapsed as the associated performance criteria were not met.
Upon the Company’s acquisition of the Property Advisor the remaining options held by the trustee were cancelled and the
Company agreed to grant replacement options to certain employees and former employees of the Property Advisor’s group.
These replacement options were issued in 2009 and 2010 and comprise the Employee Retention Scheme (“ERS”) and Long
Term Incentive Plan (“LTIP”) more fully explained in the Remuneration Report.
Notes to the Financial Statements – continued
55 The second tranche of options held by Adrian Collins lapsed as the associated performance criteria were not met. 
Finally in 2005, the Company issued warrants to the Property Advisor pursuant to which the Property Advisor was granted the
right to subscribe for 7,650,000 ordinary shares in the Company at £1 per ordinary share. These warrants were transferred by
the Property Advisor to its then parent company, Raven Mount Group plc, immediately prior to the Company’s acquisition of
the Property Advisor. These warrants are now held by the Group following the Company’s acquisition of Raven Mount Group
plc during the year.
2009 2008
No of Weighted No of Weighted
options average options average
and exercise and exercise
warrants price warrants price
Outstanding at the beginning of the period 9,629,166 100p 34,651,257 103p
Issued during the year
– ERS 1,775,000 – – –
– LTIP 1,020,000 25p – –
Lapsed during the year (33,333) 100p (3,825,000) 100p
Repurchased through business combination (7,650,000) 100p – –
Cancelled during the year – – (21,197,091) 103p
Outstanding at the end of the period 4,740,833 46p 9,629,166 100p
Exercisable at the end of the period 1,912,500 100p 9,562,500 100p
The weighted average remaining contractual life of options and warrants was 4 years (2008: 1.8 years). 
(b) Share-based payment charge
The options granted under the ERS were valued using the Black-Scholes option pricing model. The options granted under the
LTIP were valued using a Monte Carlo simulation model. The key inputs to these models are:
ERS LTIP
Share price on grant 38.5p 38.5p 
Exercise price – 25.0p
Expected dividend yield 1.50% 1.50%
Risk free rate 0.81% 2.16%
Expected volatility 40% 27%
Expected volatility was calculated as the median volatility of the Company’s ordinary share price for periods commensurate
with the lives of the options. The risk free rate is based on the yield of UK sovereign bonds with maturities close to the
expected expiry dates of the options.
The Group recognised a total share-based payment expense of US$190,000 (2008: US$3,253,000). Of the share-based
payment costs US$190,000 (2008: US$2,410,000) was expensed and US$ Nil (2008: US$843,000) was included in the cost
of investment property under construction.
(c) Other equity-settled payments
The Company issued 66,409,478 warrants as part of the consideration paid on the acquisition of Raven Mount Group plc
(note 35) and in 2008 issued 80 million ordinary shares as part of the consideration paid on the acquisition of the Property
Advisor.
Notes to the Financial Statements – continued
56 32. Capital commitment
The Group has committed to fund and complete its development programme. At 31 December 2009, US$12.2 million of
funding was required (2008: US$132 million), excluding VAT. Due to fluctuations in budgets, exchange rates and development
profits payable, the actual commitment may differ from this amount.
33. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and
are not disclosed in this note. Further disclosures concerning transactions with the Company’s directors are made in the
Remuneration Report and note 5. There are no loan balances with directors.
Property Advisor/Raven Mount Group plc 
Prior to the Company’s acquisition of its Property Advisor and Raven Mount Group plc (“Raven Mount”) (note 35), both were
considered related parties to the Group. The Property Advisor was acquired in 2008 and in that year, prior to its acquisition,
received US$26,854,955 for property advisory and management services provided to the Group.
The Company purchased the Property Advisor, and two related companies, from Raven Mount for a consideration of
£15 million and the issue of 80 million ordinary shares. As part of this transaction Raven Mount granted the Company a licence
to use Raven Mount’s office for an annual licence fee of £300,000.
Also in 2008 Raven Mount transferred legal ownership to the Company of 50% of Armbridge Consultancy Limited, for the
nominal value of the shares, together with repayment of loans to Raven Mount totalling approximately US$3.1 million.
Ozannes
David Moore is a partner in Ozannes, Advocates and Notaries Public. Ozannes provide independent legal advice to the Group.
Total legal fees paid to Ozannes during the year amounted to £58,070 (2008: £283,394).
Joint Ventures
The Group has leased investment property to Avalon Logistics Company LLC, the operating subsidiary of Roslogistics
Holdings (Russia) Limited, and provided loan finance to all three joint venture vehicles held at 31 December 2008, which the
Group acquired out right during the year. A summary of the Income Statement and Balance Sheet impact of these transactions
in the period prior to them becoming subsidiary undertakings of the Group is as follows:
2009 2008
US$’000 US$’000
Net rental income 1,505 2,923
Loan interest receivable 240 10,320
Trade receivables ––
Loan receivable – 136,012
Impairment of loan receivable (notes) – (3,119)
Remuneration of key management personnel
2009 2008
US$’000 US$’000
Short term employee benefits 4,314 454
Post employment benefits 262 23
4,576 477 
Notes to the Financial Statements – continued
57 34. Financial instruments – risk management
The Group’s activities expose it to a variety of financial risks in relation to the financial instruments it uses: market risk (including
currency risk, price risk and cash flow interest rate risk), credit risk and liquidity risk. The financial risks relate to the following
financial instruments: trade receivables, available for sale financial investments, cash and short term deposits, trade and other
payables, borrowings, preference shares and derivative financial instruments.
The tables and analyses below exclude financial instruments included within the disposal group (note 20) as they are expected
to be settled within 12 months.
Risk management parameters are established by the Board on a project by project basis and overseen by management in
conjunction with professional advisers. Reports are provided to the Board formally on a weekly basis and also when authorised
changes are required.
(a) Market risk
Currency risk 
The Group operates internationally and is exposed to foreign exchange risk arising from a variety of currency exposures,
primarily with respect to US Dollars, Sterling, Russian Rouble and Euro. Foreign exchange risk arises from future commercial
transactions (including construction contracts and lease receivables), recognised monetary assets and liabilities and net
investments in foreign entities.
The majority of the Group’s transactions are denominated in US Dollars. 
In some cases underlying construction contracts on the Group’s development projects are denominated in Russian Roubles.
Non-deliverable forwards were taken out to hedge against the US Dollar/Russian Rouble cash flow exposure, when considered
necessary, during the principal phase of construction of each project. All of these contracts have now matured as the Group’s
principal construction activities are now substantially complete. Whilst the table below indicates the exposure of the Group to
monetary items in foreign currency, the largest foreign currency swings will occur during construction. The fact some of the
Group’s property owning subsidiaries have a functional currency of Russian Rouble and a presentation currency of US Dollars
means that both the Balance Sheet and Income Statement are exposed to unrealised exchange movements on translation to
presentation currency. During construction periods it is likely that the subsidiary companies will hold larger Rouble denominated
cash balances to fund construction contracts, which will also increase exposure to fluctuations in currency rates.
At holding company level, the Group’s exposure to Sterling is primarily driven by the need to pay a quarterly preference
dividend, but also head office costs and ordinary dividends.
Notes to the Financial Statements – continued
58 The table below summarises the Group’s currency profile at 31 December.
Russian
US Dollar Sterling Rouble Other Total
As at 31 December 2009 US$’000 US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable 13 – – – 13
Derivative financial instruments 195 – – – 195
Current assets
Trade receivables 4,331 557 3,157 1,231 9,276
Loans receivable 64 – – – 64
Other current receivables 336 4,622 5,194 91 10,243
Available for sale financial assets – 4,232 – – 4,232
Cash and short term deposits 31,235 68,973 20,071 3,431 123,710
36,174 78,384 28,422 4,753 147,733
Non-current liabilities
Interest bearing loans and borrowings 336,783 11,190 – – 347,973
Preference shares – 219,444 – – 219,444
Derivative financial instruments 6,166 – – – 6,166
Rent deposits 6,866 – 2,371 – 9,237
Investment property acquisition obligations 13,838 – – – 13,838
Retentions under construction contracts – – 2,891 5,801 8,692
Other payables – – 66 – 66
Current liabilities
Interest bearing loans and borrowings 23,443 11,263 3 62,888 97,597
Derivative financial instruments 474 – – – 474
Other payables 2,994 12,326 10,617 382 26,319
390,564 254,223 15,948 69,071 729,806
Notes to the Financial Statements – continued
59 Russian
US Dollar Sterling Rouble Other Total
As at 31 December 2008 US$’000 US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable 136,523 – – – 136,523
Derivative financial instruments 64 – – – 64
Other non-current assets 2,552 545 4,846 – 7,943
Current assets
Trade receivables 2,130 – 1,071 412 3,613
Loans receivable 1,484 – – – 1,484
Other current receivables 239 625 8,326 – 9,190
Cash and short term deposits 66,467 6,811 25,907 9,250 108,435
209,459 7,981 40,150 9,662 267,252
Non-current liabilities
Interest bearing loans and borrowings 356,914 – 12 – 356,926
Derivative financial instruments 7,904 – – – 7,904
Rent deposits 4,263 – 2,441 146 6,850
Investment property acquisition obligations 4,840 9,224 – – 14,064
Retentions under construction contracts 1,202 – 1,989 3,496 6,687
Other payabes – – 3,947 88 4,035
Current liabilities
Interest bearing loans and borrowings 38,460 – 398 41,184 80,042
Investment property acquisition obligations 6,500 – – – 6,500
Derivative financial instruments 1,027 – – – 1,027
Other payables 11,418 4,818 26,053 2,722 45,011
432,528 14,042 34,840 47,636 529,046
The sensitivity analyses below are based on a change in an assumption while holding all other assumptions constant. In
practice this is unlikely to occur and changes in some of the assumptions may be correlated, for example a change in interest
rate and a change in foreign currency exchange rates. The Group principally manages foreign currency risk on a project by
project basis. The sensitivity analysis prepared by management of foreign currency risk illustrates how changes in the fair value
or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
The tables above present financial assets and liabilities denominated in foreign currencies held by the Group in 2009 and 2008.
If the US Dollar weakened or strengthened by 10% against the Russian Rouble, Sterling or Euro, with all other variables in
each case remaining constant, then post tax loss for the year and net asset value would move by:
2009 2008
US$’000 US$’000
Russian Rouble 1,247 500
Sterling 17,584 500
Euro 6,432 3,500
The sensitivity to the Euro is principally a result of the Euro construction loan, which is described in note 22. Since the balance
sheet date this loan has been refinanced in US Dollars. The majority of sterling sensitivity relates to the retranslation of the
value of irredeemable preference shares.
Notes to the Financial Statements – continued
60 Cash flow and fair value interest rate risk
The Group has significant interest-bearing cash resources, the majority of which are held in business accounts with its principal
bankers.
The Group’s interest rate risk arises from long-term borrowings (note 22), which include preference shares issued (note 23).
Borrowings issued at variable rates expose the Group to cash flow interest rate risk, whilst borrowings issued at a fixed rate
expose the Group to fair value risk. The Group’s cash flow and fair value risk is reviewed monthly by the Board. The cash flow
and fair value risk is approved monthly by the Board.
The Group analyses its interest rate exposure on a dynamic basis. It takes on exposure to the effects of fluctuations in the
prevailing levels of market interest rates on its financial position and cash flows. Interest costs may increase as a result of such
changes. They may reduce or create losses in the event that unexpected movements arise. Various scenarios are simulated
taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios
the Group calculates the impact on profit and loss of a defined interest rate shift. The simulation is run on an on-going basis to
verify that the maximum potential impact is within the parameters expected by management. Formal reporting to the Board on
cash flows is made on a monthly basis. To date the Group has sought to fix its exposure to interest rate risk on borrowings
through the use of a variety of interest rate derivatives and the issue of preference shares at a fixed coupon. This gives certainty
over future cash flow but exposure to fair value movements, which amounted to an unrealised loss of US$6.039 million at
31 December 2009 (2008: loss of US$7.595 million). Sensitivity analysis on the Group’s interest rate borrowings, net of interest
bearing deposits, indicate that a 1% increase in the relevant underlying rate would increase the loss for the year and decrease
net assets by US$700,000 (2008: US$870,000). If the various LIBORs were to drop to zero then there would be an increase in
the loss for the year and a decrease in net assets of US$600,000 as the loss on income from cash would be greater than gains
on interest expense because of the low LIBOR rates prevailing at this time and the interest rate hedges in place.
(b) Credit risk
The Group’s principal financial assets are cash and short term deposits, trade and other receivables, loan receivables, available
for sale financial investments and derivative financial instruments.
The credit risk on the Group’s trade and other receivables is considered low due to the Group having policies in place to
ensure that rental contracts are made with tenants meeting appropriate balance sheet covenants, supplemented by rental
deposits or bank guarantees from international banks. The amounts presented in the Balance Sheet are net of allowances for
doubtful receivables. An allowance for impairment is made where there is objective evidence that the Group will not be able to
collect all amounts due according to the terms of the receivables concerned. Details of the movements in provision for
impairment of trade receivables is provided in the table below.
2009 2008
US$’000 US$’000
At 1 January ––
Charge for the year 1,000 –
Utilised in the year (623) –
Unused amounts reversed ––
At 31 December 377 –
At 31 December 2009 there were no significant amounts of trade receivables that were past due for collection. 
The Group has VAT recoverable of US$43 million (2008: US$75 million). The timing of recovery of these balances is subject to
future revenue receipts and application to the Russian Courts. The Group forecasts the recovery of these balances based upon
the timing of future revenue receipts and its experience of successful application to the Russian Courts. No balances are
considered passed due or impaired at 31 December 2009 (2008: US$ nil) based upon this assessment of the timing of future
cash receipts. The Group believes its only exposure is in relation to the timing of recovery.
The credit risk on the Group’s cash and short term deposits and derivative financial instruments is limited to the Group’s policy
of monitoring counterparty exposures.
Notes to the Financial Statements – continued
61 (c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of
committed credit facilities and the ability to close out market positions. The Board and its advisers seek to have appropriate
credit facilities in place on a project by project basis, either from available cash resources or from bank facilities.
Management monitor the Group’s liquidity position on a daily basis. Formal liquidity reports are issued from all jurisdictions on a
weekly basis and are reviewed monthly by the Board, along with cash flow forecasts. A summary table with maturity of
financial liabilities is presented below.
Years Years
Current Year 2 3 to 5 5 to 10
US$’000 US$’000 US$’000 US$’000
As at 31 December 2009
Interest bearing loans and borrowings 97,627 29,807 252,286 65,976
Preference shares 27,455 27,455 82,365 137,275
Derivative financial instruments 474 385 5,781 –
Trade and other payables 58,153 – – –
183,709 57,647 340,432 203,251
As at 31 December 2008
Interest bearing loans and borrowings 80,042 62,356 276,443 18,127
Derivative financial instruments 1,027 – 7,904 –
Trade and other payables 51,511 – – –
132,580 62,356 284,347 18,127
Details of the interest rates applicable to the Group’s long term borrowings and preference shares are given in notes 22
and 23. Interest bearing loans and borrowings show the gross undiscounted cash flows. The Group is subject to interest costs
in perpetuity in respect of preference shares, which have no contractual maturity date. The table above does not show cash
flows beyond 10 years.
The Group monitors its risk to a shortage of funds by forecasting cash flow requirements for future years. The Group’s
objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and other
short term borrowing facilities, bank loans and equity fund raisings.
Notes to the Financial Statements – continued
62 Fair values 
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments in the
financial statements.
2009 2008
Carrying Fair Carrying Fair
value value value value
US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable 13 13 136,523 83,732
Derivative financial instruments 195 195 64 64
Other non-current assets – – 7,943 7,943
Current assets
Trade receivables 9,276 9,276 3,613 3,613
Loans receivable 64 64 1,484 1,484
Other current receivables 10,243 10,243 9,190 9,190
Available for sale financial assets 4,232 4,232 – –
Cash and short term deposits 123,710 123,710 108,435 108,435
Non-current liabilities
Interest bearing loans and borrowings 347,973 229,656 356,926 218,909
Preference shares 219,444 212,776 – –
Derivative financial instruments 6,166 6,166 7,904 7,904
Rent deposits 9,237 9,237 6,850 6,850
Investment property acquisition obligations 13,838 13,838 14,064 14,064
Retentions under construction contracts 8,692 8,692 6,687 6,687
Other payables 66 66 4,035 4,035
Current liabilities
Interest bearing loans and borrowings 97,597 97,597 80,042 80,042
Investment property acquisition obligations – – 6,500 6,500
Derivative financial instruments 474 474 1,027 1,027
Other payables 26,319 26,319 45,011 45,011
Fair values have been calculated by using market values at the balance sheet date. The market values of loans receivable and
borrowings have been calculated by discounting the expected future cash flows at prevailing interest rates. The fair value of
short term deposits, VAT recoverable and other assets, trade and other receivables, trade and other payables is assumed to
approximate to their book values. The fair value of preference shares is assumed to be their open market value. The fair value
of derivatives is determined by a model with market based inputs. The fair value of available for sale financial assets was
determined by reference to the sales proceeds received after the year end.
Notes to the Financial Statements – continued
63 Fair value hierarchy 
The following table shows an analysis of the fair values of financial instruments recognised in the balance sheet by level of the
fair value hierarchy*:
Total fair
Level 1 Level 2 Level 3 value
US$’000 US$’000 US$’000 US$’000
As at 31 December 2009
Assets measured at fair value
Derivative financial instruments – 195 – 195
Available for sale financial assets – – 4,232 4,232
Liabilities measured at fair value
Derivative financial instruments – 6,640 – 6,640
As at 31 December 2008
Assets measured at fair value
Derivative financial instruments – 64 – 64
Available for sale financial assets – – – –
Liabilities measured at fair value
Derivative financial instruments – 8,931 – 8,931
* Explanation of the fair value hierarchy:
Level 1 – Quoted prices in active markets for identical assets or liabilities that can be accessed at the balance sheet
date.
Level 2 – Use of a model with inputs that are directly or indirectly observable market data. 
Level 3 – Use of a model with inputs that are not based on observable market data. 
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide
returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital.
To maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the industry, the Group monitors
capital on the basis of its gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as
total borrowings (including borrowings and trade and other payables as shown in the balance sheet) but excluding preference
shares, which for capital risk management is considered to be capital rather than debt, less cash and short term deposits.
Total capital is calculated as equity, as shown in the balance sheet, plus preference shares and net debt. Where the Group has
a net cash position, the gearing ratio will be zero.
Notes to the Financial Statements – continued
64 2009 2008
US$’000 US$’000
Non-current liabilities (excluding preference shares) 412,655 412,946
Current liabilities 160,923 132,580
Liabilities associated with disposal groups classified as held for sale 51,654 –
Total borrowings 625,232 545,526
Less: cash and short term deposits (including disposal groups) 123,783 108,435
Net debt 501,449 437,091
Equity 545,883 735,040
Preference shares 219,444 –
Total capital 1,266, 776 1,172,131
Gearing ratio 39.58% 37.29% 
35. Business combinations 
(a) Raven Mount Group plc (“Raven Mount”) 
On 8 May 2009 the Company’s acquisition of Raven Mount was pronounced unconditional. The Group considers Raven
Mount to comprise a single cash generating unit. Prior to its acquisition Raven Mount was considered a related party to the
Group. The acquisition of Raven Mount was in respect of 100% of its issued share capital.
Details of the fair values of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows:
Book Fair
value Adjustment value
US$’000 US$’000 US$’000
Non-current assets
Property, plant and equipment 59 – 59
Deferred tax assets 1,398 – 1,398
Current assets
Inventories 66,171 (3,179) 62,992
Trade and other receivables 4,920 – 4,920
Available for sale investments 15,731 – 15,731
Cash and cash equivalents 29,914 – 29,914
Current liabilities
Trade and other payables (21,082) – (21,082)
Interest bearing loans and borrowings (6,189) – (6,189)
Non-current liabilities
Deferred tax liabilities (916) – (916)
Net asset value 90,006 (3,179) 86,827
Goodwill (note 12) 8,059
94,886
Discharged by:
Issue of preference shares (note 23) 88,198
Issue of warrants (note 27) 3,675
Acquisition costs 3,013
94,886
Notes to the Financial Statements – continued
65 Included in the US$8 million of goodwill recognised above are certain intangible assets that cannot be individually separated
and reliably measured from the acquiree due to their nature. These items include the expected value of synergies.
From the date of acquisition to 31 December 2009, Raven Mount contributed US$3,531k to the Group’s loss for the year. Had
the combination taken place at the beginning of 2009, the Group’s loss before tax would have increased by US$1,271k and
gross revenue from continuing operations would have increased by US$9,261k.
(b) Roslogistics Holdings (Russia) Limited (“Roslogistics”) 
Following a change to the financing arrangements of the Group’s logistics joint venture, Roslogistics, the Group considers the
substance of the arrangement to be that of a parent and subsidiary. The change was deemed effective from 1 May 2009. The
Group considers Roslogistics to be a single cash generating unit.
Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows: 
Book Fair
value Adjustment value
US$’000 US$’000 US$’000
Non-current assets
Property, plant and equipment 2,372 – 2,372
Intangible assets 323 (323) –
Deferred tax assets 1,519 – 1,519
Current assets
Trade and other receivables 2,304 – 2,304
Cash and cash equivalents 299 – 299
Current liabilities
Trade and other payables (3,994) – (3,994)
Interest bearing loans and borrowings – – –
Non-current liabilities
Interest bearing loans and borrowings (10,437) 3,119 (7,318)
Net asset value (7,614) 2,796 (4,818)
Goodwill (note 12) 5,383
565
Discharged by:
Cash consideration paid 500
Acquisition costs 65
565
Included in the US$5 million of goodwill recognised above are certain intangible assets that cannot be individually separated
and reliably measured from the acquiree due to their nature. These items include the expected values of synergies and an
assembled workforce.
From 1 May 2009 to 31 December 2009, Roslogistics contributed US$709k to the Group’s loss for the year. Had the
combination taken place at the beginning of 2009, the Group’s loss before tax would have increased by US$2,427k and gross
revenues from continuing operations would have increased by US$13,710k.
Notes to the Financial Statements – continued
66 (c) 2008 Business combination – Property Advisor 
On 9 July 2008 the Company entered into a framework agreement to acquire its Property Advisor, Raven Russia Property
Management Limited, together with two related companies, Russian Property Management Limited and Raven Russia Property
Advisors Limited (collectively the “Property Advisor”), which the Group considers comprise a single cash generating unit.
Details of the fair value of identifiable assets and liabilities acquired, purchase consideration and goodwill are as follows: 
Book Fair
value Adjustment value
US$’000 US$’000 US$’000
Non-current assets
Property, plant and equipment 952 – 952
Intangible assets (note 12) – 67,581 67,581
Current assets
Trade and other receivables 5,482 – 5,482
Cash and cash equivalents 159 – 159
Current liabilities
Trade and other payables (1,058) – (1,058)
Net asset value 5,535 67,581 73,116
Negative goodwill (note 12) (7,564)
65,552
Discharged by:
Cash consideration 27,987
Issue of 80 million ordinary shares 32,734
Acquisition costs 4,831
65,552
The fair value of shares issued as consideration was determined by reference to their closing price on 26 November 2008. 
The acquisition reflects the internalisation of services previously outsourced to the Property Advisor and thus disclosures
regarding the contribution to the loss for the year ended 31 December 2008 are not considered relevant.
36. Subsequent events
Details of post year end re-financings are set out in note 22 and post year end warrant exercises are set out in note 27. 
Notes to the Financial Statements – continued
67 37. Segmental information 
The Group has three operating segments, which are managed and report independently to the Board of the Group. These
comprise:
Property investment – acquire, develop and lease commercial property in Russia and the CIS Logistics – provision of
warehousing, transport, customs brokerage and related services in Russia and the CIS Property development – construct and
sell residential property in the UK.
Financial information relating to investment property is provided to the Board on a property by property basis. The information
provided is net operating income, revaluation gains and losses and where relevant the profit or loss on disposal of an
investment property. The individual properties have similar economic characteristics and are aggregated into a single reporting
segment.
Information on the property development segment provided to the Board is aggregated and comprises the gross profit
recognised on the sale of inventory, including the share of profits or losses of its joint venture.
The logistics segment is a discrete business and the Board is presented with operating profits or losses after deduction of
administrative expenses.
Administrative expenses are reported to the Board by segment. Foreign currency gains or losses, finance income and finance
expense are not reported to the Board on a segment basis. Sales between segments are eliminated prior to provision of
financial information to the Board.
For the balance sheet, segmental information is provided in relation to investment property, inventory, cash balances and
borrowings. Whilst segment liabilities includes loans and borrowings, segment loss does not include the related finance costs.
If such finance costs were included in segment loss, the loss from investment property would have increased by US$35,249k
(2008: US$21,066k) and the loss from property development by US$9,617k (2008: US$ nil). Aggregate segment loss would
have increased by US$44,866k (2008: US$21,066k).
Year ended 31 December 2009
Property Property
investment Logistics development Total
US$’000 US$’000 US$’000 US$’000
Net operating income 46,116 – – 46,116
Operating gain on logistics services – 2,405 – 2,405
Proceeds from sale of inventory property – – 15,014 15,014
Cost of sales of inventory property – – (13,211) (13,211)
Impairment of goodwill – – – –
Impairment of loans to joint venture – – – –
Impairment of investment property under construction – – – –
Unrealised loss on revaluation of investment property (57,933) – – (57,933)
Unrealised loss on revaluation of investment property 
under construction (50,544) – – (50,544)
Administrative expenses (22,545) (5,845) (5,462) (33,852)
Segment loss (84,906) (3,440) (3,659) (92,005)
Settlement of advisory contract –
Negative goodwill –
Foreign currency losses (3,097)
Finance income 4,818
Finance expense (58,012)
Loss before tax (148,296)
Notes to the Financial Statements – continued
68 As at 31 December 2009
Property Property
investment Logistics development Total
US$’000 US$’000 US$’000 US$’000
Assets
Investment property 878,775 – – 878,775
Investment property under construction 101,280 – – 101,280
Inventory – – 61,403 61,403
Cash and short term deposits 96,168 220 27,322 123,710
Segment assets 1,076,223 220 88,725 1,165,168
Other non-current assets – – – 100,690
Other current assets – – – 73,047
Total assets – – – 1,338,905
Segment liabilities
Interest bearing loans and borrowings 434,269 – 11,301 445,570
Capital expenditure
Payments for investment property under construction 138,345 – – 138,345
Year ended 31 December 2008
Property Property
investment Logistics development Total
US$’000 US$’000 US$’000 US$’000
Net operating income 39,606 – – 39,606
Operating loss on logistics services – (103) – (103)
Proceeds from sale of inventory property – – – –
Cost of sales of inventory property – – – –
Impairment of goodwill (2,265) – – (2,265)
Impairment of loans to joint venture (3,119) – – (3,119)
Impairment of investment property under construction (38,918) – – (38,918)
Unrealised loss on revaluation of investment property (39,145) – – (39,145)
Administrative expenses (22,227) (2,478) – (24,705)
Segment loss (66,068) (2,581) – (68,649)
Settlement of advisory contract (67,581)
Negative goodwill 7,564
Foreign currency losses (33,929)
Finance income 11,613
Finance expense (38,409)
Loss before tax (189,391)
Notes to the Financial Statements – continued
69
Notes to the Financial Statements – continued Notes to the Financial Statements – continued As at 31 December 2008
Property Property
investment Logistics development Total
US$’000 US$’000 US$’000 US$’000
Assets
Investment property 453,750 – – 453,750
Investment property under construction 443,653 – – 443,653
Inventory – – – –
Cash and short term deposits 107,785 650 – 108,435
Segment assets 1,005,188 650 – 1,005,838
Other non-current assets – – – 192,131
Other current assets – – – 82,597
Total assets – – – 1,280,566
Segment liabilities
Interest bearing loans and borrowings 434,155 2,813 – 436,968
Capital expenditure
Payments for investment property under construction 461,740 – – 461,740
The Group recognised revenue of US$11.1 million and US$13.3 million (2008: US$13.6 million and US$14.4 million) from
single external tenants amounting to greater than 10% of Group revenues. These amounts arise from rental income in the
property investment segment.
38. Operating lease arrangements 
The Group earns rental income by leasing its investment properties to tenants under non-cancellable operating leases. 
At the balance sheet date the Group had contracted with tenants for the following future minimum lease payments:
2009 2008
US$’000 US$’000
Within one year 64,846 50,279
In the second year 61,929 44,605
In the third to fifth year (inclusive) 176,798 112,367
After five years 82,659 99,312
386,232 306,563
39. Cash and cash equivalents
Cash and cash equivalents included in the cash flow statement comprise: 
2009 2008
US$’000 US$’000
Cash and short term deposits per balance sheet 123,710 108,435
Cash included within disposal group assets (note 20) 72–
123,782 108,435
Notes to the Financial Statements – continued
70 THIS DOCUMENT AND THE ENCLOSED FORM OF PROXY ARE IMPORTANT AND REQUIRE YOUR IMMEDIATE ATTENTION.
If you are in any doubt as to the action you should take, you are recommended to seek advice from your own stockbroker,
bank manager, solicitor, accountant or other financial adviser authorised pursuant to the Financial Services and Markets
Act 2000 if you are in the United Kingdom or, if not, from another appropriately authorised independent financial adviser. 
If you have sold or otherwise transferred all of your ordinary shares in Raven Russia Limited (the “Company”), please send
this document and the accompanying Form of Proxy at once to the purchaser or transferee, or to the stockbroker, bank or
other agent through whom the sale or transfer was effected, for delivery to the purchaser or transferee. If you have sold or
otherwise transferred part of your holding of ordinary shares in the Company, please contact your stockbrokers, bank or
other agent as soon as possible.
For ordinary shareholders, and for information purposes only, to preference shareholders, option holders and warrant
holders.
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Raven Russia Limited (the “Company”) will be held at 1 Le Truchot,
St Peter Port, Guernsey, GY1 6EH on 16 April 2010 at 10.00 a.m. for the purpose of considering and, if thought fit, passing the
following resolutions.
Ordinary Resolutions
1. To receive the financial statements and the report of the directors and of the auditors of the Company for the year ended
31 December 2009.
2. To approve the directors remuneration report for the year ended 31 December 2009.
3. To re-appoint Richard Jewson as a director of the Company.
4. To re-appoint Chris Sherwell as a director of the Company.
5. To re-appoint Ernst & Young LLP as auditors of the Company and to authorise the directors to determine their remuneration.
6. To declare a final dividend of 0.5p per ordinary share of 1p each in the capital of the Company in respect of the period ended
31 December 2009 to be paid to ordinary shareholders.
Special Resolutions
7. To authorise the Company, pursuant to Article 10.1 of the articles of incorporation of the Company (the “Articles”) and in
accordance with section 315 of The Companies (Guernsey) Law 2008 (the “Law”) and in substitution for the existing authority
granted at the Annual General Meeting of the Company held on 1 September 2009, to make market acquisitions (as defined in
section 316 of the Law) of ordinary shares of 1p each in the capital of the Company (the “Ordinary Shares”) provided that:
(a) the maximum number of Ordinary Shares hereby authorised to be purchased shall be 100,000,000;
(b) the minimum price (exclusive of expenses) which may be paid for an Ordinary Share shall be 1p;
(c) the maximum price (exclusive of expenses) which may be paid for an Ordinary Share shall be 105% of the average of the
middle market quotations (as derived from the London Stock Exchange) for the Ordinary Shares for the five business days
immediately preceding the date of purchase;
(d) unless previously varied, revoked or renewed, the authority hereby conferred shall expire 18 months from the date of this
resolution, save that the Company may, prior to such expiry, enter into a contract to purchase Ordinary Shares under such
authority and may make a purchase of Ordinary Shares pursuant to any such contract after such expiry.
Notice of Annual General Meeting
71
  8. To authorise the Company, pursuant to Article 10.1 of the Articles and in accordance with section 315 of the Law and in
substitution for the existing authority granted at the Annual General Meeting of the Company held on 1 September 2009, to make
market acquisitions (as defined in section 316 of the Law) of cumulative redeemable preference shares of 1p each in the capital of
the Company (the “Preference Shares”) provided that:
(a) the maximum number of Preference Shares hereby authorised to be purchased shall be 100,000,000;
(b) the minimum price (exclusive of expenses) which may be paid for a Preference Share shall be 1p;
(c) the maximum price (exclusive of expenses) which may be paid for a Preference Share shall be 105% of the average of the
middle market quotations (as derived from the London Stock Exchange) for the Preference Shares for the five business days
immediately preceding the date of purchase;
(d) unless previously varied, revoked or renewed, the authority hereby conferred shall expire 18 months from the date of this
resolution, save that the Company may, prior to such expiry, enter into a contract to purchase Preference Shares under such
authority and may make a purchase of Preference Shares pursuant to any such contract after such expiry.
9. To amend the Articles by inserting the following new Article 129.5 immediately after the existing Article 129.4:
“129.5 All members are deemed to have agreed to accept communication from the Company by electronic means, including by
means of a website, unless the members notify the Company otherwise. Notice under this Article 129.5 must be in
writing and signed by the member and delivered to the office or such other place as the board directs.”
By order of the Board
Benn Garnham
Secretary
Dated: 26th March 2010
Notes:
1. A member who is entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, vote instead of him or
her. A proxy need not be a member of the Company.
2. A form of proxy is enclosed for use at the meeting. The form of proxy should be completed and sent, together with the power of attorney or other
authority (if any) under which it is signed, or a notarially certified copy of such power or authority, so as to reach Capita Registrars, PXS,
34 Beckenham Road, Beckenham, BR3 4TU not later than forty eight hours before the time appointed for holding the meeting being no later then
10.00 a.m. on the 14 April 2010.
3. You may appoint more than one proxy provided that each proxy is appointed to exercise the rights attached to a different share or shares held by
you. Please indicate in the box provided in the enclosed form of proxy if the proxy appointment is one of multiple appointments being given. If you
wish to appoint more than one proxy, each proxy must be appointed on a separate form of proxy and please enter in the box provided the number
of shares in respect of which the proxy is appointed. Additional forms of proxy may be obtained from the Companies’ transfer agent. Alternatively
you may photocopy the enclosed form of proxy the required number of times before completing it. All forms of proxy must be signed and returned
together in the same envelope.
4. Completing and returning a form of proxy will not prevent a member from attending in person at the meeting and voting should he or she so wish.
5. The Company, pursuant to article 132.2 of the Articles, specifies that only those members entered on the register of members of the Company as at
10.00 a.m. on 14 April 2010 shall be entitled to attend or vote at the meeting in respect of shares registered in their name at that time. Changes to
entries on the register after 10.00 a.m. on 14 April 2010 shall be disregarded in determining the rights of any person to attend or vote at the
meeting.
Registered Office:
Regency Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 3ST
Notice of Annual General Meeting – continued
72 Registered Office:
Regency Court 
Glategny Esplanade
St Peter Port
Guernsey
GY1 3ST 
Nominated Advisers, Joint Brokers & Financial Advisers:
Numis Securities Limited
10 Paternoster Square
London
EC4M 7LT
Joint Brokers:
Singer Capital Markets Limited
One Hanover Street
London
W1S 1AX
Principal Bankers:
Goldman Sachs
HSBC
HSH Nordbank
Investec Private Bank
Lloyds TSB
Royal Bank of Scotland International
UK solicitors:
Berwin Leighton Paisner
Adelaide House
London Bridge
London
EC4R 9HA
Guernsey Advocates:
Carey Olsen
Carey House
Les Banques
St Peter Port
Guernsey
GY1 4BZ
Company Secretary:
Benn Garnham
Valuer:
Jones Lang LaSalle
Kosmodamianskaya NAB
52 Korp 3
Moscow
Registrars:
Capita Registrars (Guernsey) Limited
Longue Hougue House
St Sampson
Guernsey
GY1 3US
UK Transfer Agent:
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Independent Auditors:
Ernst & Young LLP
1 More London Place
London
SE1 2AF
Advisers
73 Linkway 15796 Raven Russia Cover spread  22/3/10  4:32 pm  Page 2 RAVEN RUSSIA LIMITED
www.RavenRussia.com
Registered Office
Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3ST
Annual Report and Financial Statements
for the year ended 31 December 2009
RAVEN RUSSIA LIMITED
RAVEN RUSSIA LIMITED
Annual Report and Financial Statements 2009
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