25.

Other income/expenses

25.1

Administrative and other operating expenses

General, administrative and other operating expenses are comprised of the following:


	2018		2017		2016
Wages, salaries and social security costs		10,482		7,769		11,654
Office expenses		1,213		1,211		1,397
Audit and consulting services		941		631		569
Provision for legal claims, net		870		1,995		59
Depreciation		756		605		716
Fines and penalties related to business contracts		391		303		487
Social expenses		387		406		452
Consumables		307		276		411
Banking charges and services		245		271		268
Rent		158		165		259
Business trips		139		132		136
Write off of trade and other receivables		2		109		113
Net result from disposal of non-current assets		—		34		57
Other		2,015		1,683		2,213

Total		17,906		15,590		18,791

25.2

Employee benefits expense

Employee benefits expenses are comprised of the following:


	2018		2017		2016
Included in cost of sales
Wages and salaries		21,519		20,591		19,806
Social security costs		6,887		6,438		5,909
Post-employment benefits		130		142		126
Included in selling and distribution expenses
Wages and salaries		3,784		3,686		4,029
Social security costs		999		973		1,015
Included in administrative and other operating expenses
Wages and salaries		8,444		6,259		9,510
Social security costs		2,038		1,510		2,144

Total		43,801		39,599		42,539

25.3

Other operating income

Other operating income is comprised of the following:


	2018		2017		2016
Gain from sales of scrap materials		378		226		190
Subsidies received from the governmental authorities as a compensation for operating activities (energy tariffs)		359		496		—
Income from fines and penalties related to business contracts		248		307		248
Net result from disposal of non-current assets		128		—		—
Curtailment and result of remeasurement of pension obligations		93		175		392
Revision in estimated cash flows of rehabilitation provision		38		—		375
Insurance compensation		—		—		153
Other		467		183		495

Total		1,711		1,387		1,853

In 2018 and 2017, the Group recognised gain on remeasurement of pension obligations because of the changes in the actuarial assumptions, fluctuation in payment amounts from year to year, adjustment in the financial support amount per one pensioner. In 2016, the Group recognised curtailment gain on cancellation of the certain pension programs for workers of Yakutugol, Mechel-Remservice OOO.

Revision in estimated cash flows of rehabilitation provision relates primarily to changes in the discount rate, in the planned volumes of works and change in expected rehabilitation costs.

25.4

Finance income

Finance income is comprised of the following:


	2018		2017		2016
Effect of restructuring of loans and finance leases		33,514		264		992
Remeasurement of fair value of financial instruments (Note 11.5)		320		197		—
Interest income from investments		207		158		177
Income from the discounting of financial instruments		15		14		7

Total		34,056		633		1,176

Effect of restructuring of loans and finance leases in 2018 primarily relates to VTB (Note 11.1 (b)), Gazprombank (Note 11.1 (c)) and the refinancing of the pre-export credit facility (Note 11.1 (a)).

25.5

Finance costs

Finance costs are comprised of the following:


	2018			2017			2016
Interest on loans and borrowings		(35,556	)		(40,298	)		(44,164	)
Fines and penalties on overdue loans and borrowing payments and overdue interest payments		(858	)		(1,086	)		(5,538	)
Finance charges payable under finance leases		(1,104	)		(1,230	)		(1,500	)
Fines and penalties on overdue finance leases		(10	)		(75	)		(475	)

Total finance costs related to loans, borrowings and finance leases		(37,528	)		(42,689	)		(51,677	)
Interest expenses under pension liabilities		(279	)		(314	)		(368	)
Unwinding of discounting of financial instruments		(3,916	)		(4,179	)		(1,956	)
Remeasurement of fair value of financial instruments (Note 11.5)		(27	)		(117	)		—
Unwinding of discount on provisions		(302	)		(311	)		(239	)

Total		(42,052	)		(47,610	)		(54,240	)

Expenses related to discounting of financial instruments include changes in the measurement of the non-current obligation related to put-option granted on non-controlling interests in the amount of RUB 3,796 million (2017: RUB 4,062 million) (Note 6 and Note 11.4).

25.6

Other income and other expenses

Other income is comprised of the following:


	2018		2017		2016
Write-off of trade and other payables with expired legal term		425		516		115
Gain on royalty and other proceeds associated with disposal of Bluestone		3		474		121
Gain on final settlements from subsidiaries’ disposal occurred in previous years		3		—		194
Gain on forgiveness and restructuring of trade and other payables		—		447		—
Dividends received		—		—		3
Other income		81		58		165

Total		512		1,495		598

Other expenses are comprised of the following:


	2018			2017			2016
Loss on sales and purchases of foreign currencies		(108	)		(114	)		(130	)
VEB commissions write off		—			—			(1,411	)
Provision on non-recoverable advances to pension funds		—			—			(408	)
Other expenses		(206	)		(106	)		(54	)

Total		(314	)		(220	)		(2,003	)

Gain on accounts payable with expired legal term constitutes gain on the write-off of payable amounts that were written-off due to legal liquidation of the creditors or expiration of the statute of limitation.

The commissions in the amount of RUB 1,411 million paid in 2014 to VEB for the opening of the credit line was written off in 2016 due to uncertainty in further financing.