RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2012

RELATED PARTY TRANSACTIONS

14. RELATED PARTY TRANSACTIONS

Pursuant to the SPA and the Amended SPA as described in Note 3, on May 7, 2012, Roust Trading acquired 5,714,286 shares of the Company’s common stock. Roust Trading directly controls Russian Standard Corporation and indirectly controls other Russian Standard entities. Mr. Roustam Tariko who indirectly controls Roust Trading has been appointed to CEDC’s Board of Directors as a non-Executive Chairman of the Board. Effectively all entities controlled by Mr. Tariko are as of now related parties of CEDC, including Russian Standard Bank, Russian Standard Corporation and Roust Inc. (“Roust”).

As disclosed in Note 3 and Note 6 above, on May 7, 2012, the Company issued $70 million principal amount of senior notes due March 18, 2013, bearing on interest rate of 3% to Russian Standard Bank. The details of this transaction are described in Note 6 above.

In the ordinary course of business, the Company is involved in transactions with entities controlled by Mr. Tariko that resulted in recognition of revenues, expenses, assets and liabilities by the Company. There were no significant transactions with the entities controlled by Mr. Tariko in prior periods.

The following table summarizes the transactions with Roust as included in the Company’s Consolidated Financial Statements:

Related Party Transactions with Roust (in thousands)
Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited) for the three and nine month periods ended September 30, 2012 and September 30, 2011	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Sales	$	1,473	$	0	$	1,473	$	0
Selling, general and administrative expenses		83		0		83		0

Condensed Consolidated Balance Sheets as of September 30, 2012 (unaudited) and as of December 31, 2011 (in thousands)	September 30, 2012 (unaudited)		December 31, 2011
Current Assets
Accounts receivable		1,798		0
Other current assets		1,034		0
Total due from Roust		2,832		0
Current Liabilities
Other accrued liabilities		95		0
Total due to Roust		95		0