14.10.1.1. Financial assets measured at fair value through other comprehensive income

The restricted cash represents cash of the Extraction Facilities Decommissioning Fund, accumulated in a separate bank account due to securing future costs of decommissioning mines and deposits. The Extraction Facilities Decommissioning Fund is created on the basis of the Mining and Geological Law, which requires the Group to decommission extraction facilities once their operation is discontinued. The fund’s resources comprise restricted cash in accordance with IAS 7, presented – due to its long-term nature – under long-term assets. The Fund's cash is increased by the amount of interest accruing on the Fund's assets. Due to formal and legal restrictions on the use of this cash (it may only be applied towards specific long-term objectives), the assets accumulated in the Extraction Facilities Decommissioning Fund are recognised in the Group's statement of financial position as other assets under non-current assets.

As at 31 December 2022 Investment property includes mainly social and office buildings, as well as land. Depending on the characteristics of the property, its fair value was estimated based on the comparative method of appraisal reports prepared by independent experts using observable market information (hierarchy level 2 – value PLN 185 million) or by the income method based on planned future cash flows (hierarchy level 3 - value of PLN 434 million). Comparative method was applied assuming, that the value of assessed property was equal to the market price of a similar property. The increase in 2022 concerns the office and residential complex included in the ORLEN Group as part of the merger transaction with the PGNIG Group in the amount of PLN 248 million.

As at 31 December 2022 in the position Financial assets measured at fair value through profit or loss, the Group presented the estimated fair value of the shares of companies that will be disposed as part of the implementation of the Remedies in connection with the LOTOS Group merger in the amount of PLN 267 million. Additional information in note 7.3.1.

As at 31 December 2022 and 31 December 2021, the Group has security deposits that do not meet the definition of cash equivalents concerning mainly to securing the settlement of transactions hedging commodity risk traded with financial institutions and on commodity exchanges, in the total amount of PLN 8,741 million and PLN 250 million respectively.

Significant impact on the increase in value of security deposits as at 31 December 2022 mainly results from the merger with PGNiG Group. The change resulting from that amounted to PLN 8 019 million. The other changes results mainly from the valuation impact of hedging transactions traded:

• on the ICE exchange and linking the trading portfolios of ORLEN, Grupa LOTOS S.A in terms of CO₂ emission,
• on the TGE exchange and linking the trading portfolios of ORLEN, Grupa LOTOS S.A. and PGNiG S.A at IRGIT.

The position loans granted constitutes mainly the borrowings that are an acquired asset in connection with the mergers with Grupa LOTOS S.A. and PGNiG Group: for Grupa Azoty Polyolefins S.A. in the amount of PLN 232 million and for non-consolidated PGNiG Group companies in the amount of PLN 409 million.