UK Regulatory Announcement



Moscow, Russia – October 23, 2012 – Rostelecom OJSC (the “Group”) (MICEX -
RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications
operator, announces that it has started to pre-market its RUB 15 billion bond

The Company is expected to issue two sets of bonds by the end of the first
half of November 2012, which form part of an approved bond issue programme
worth a total nominal value of RUB 100 billion. Bond issue №15 will amount to
RUB 5 billion and bond issue №17 will amount to RUB 10 billion. VTB Capital
CJSC, Gazprombank OJSC and CJSC “Sberbank CIB” will organise the placements.
The two sets of bonds will have the following characteristics:

  *The nominal value of a single bond will be RUB 1,000
  *Bonds will mature in 5 years
  *A put option can be exercised after 3 years
  *The coupon period has 182 days.

It is anticipated that order books will be opened on October 31, 2012, with a
closing date of November 1, 2012.

It is expected that bonds will be traded on the MICEX–RTS Stock Exchange and
will be included on Quotation list “A1”.

                                    * * *

For more information please visit or contact:

Investor Relations Department

Tel. +7 (499) 995 97 80

                                    * * *

Rostelecom ( is Russia’s national telecommunications
operator and now also includes the regional incumbent telecommunications
operators (CentreTelecom, SibirTelecom, Dalsvyaz, Uralsvyazinform,
VolgaTelecom, North-West Telecom and Southern Telecommunications Company) and
Dagsvyazinform. Rostelecom has the largest domestic backbone network
(approximately 500 thousand km) in Russia. The Company holds licences to
provide a wide range of telecommunications services (telephony, data, TV and
value-added solutions) to residential, corporate and governmental subscribers
and fourth party operators across all regions of the Russian Federation. The
Rostelecom brand is one of Russia’s ten most trusted brands (source: Romir
market research).

Rostelecom’s ordinary and preferred shares are traded on the MICEX-RTS (RTKM,
RTKMP) stock exchange, and its depository receipts are traded over-the-counter
in the United States on the OTCQX under the symbol ‘ROSYY’. Rostelecom is
directly and indirectly majority owned (55.2% of ordinary shares) by the
Russian Government and has a free float of less than 40% of the outstanding
ordinary shares and over 70% of the outstanding preferred shares. Rostelecom
was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings
and Standard&Poor’s respectively, both with a ‘Stable’ outlook. Rostelecom had
27.8 million local fixed-line voice subscribers, 12.9 million mobile voice
subscribers, 8.6 million fixed-line broadband subscribers and 6.2 million
pay-TV subscribers at the end of 2Q 2012. The Group generated RUB 159.9
billion of consolidated revenues, RUB 64.7 billion of OIBDA (40.5% of
revenues) and RUB 23.4 billion of net income for the six months ended June 30,

                                    * * *

Certain statements in this press release are forward-looking statements within
the meaning of the U.S. federal securities laws and are intended to be covered
by the safe harbors created thereby.

Those forward-looking statements include, but are not limited to:

  *Management’s assessment of the Company’s future operating and financial
    results as well as forecasts of the present value of future cash flows and
    related factors;
  *the Company’s anticipated capital expenditures and plans to construct and
    modernize its network;
  *the Company’s expectations as to the growth in demand for its services,
    plans relating to the expansion of the range of its services and their
  *the Company’s plans with respect to improving its corporate governance
  *the Company’s expectations as to its position in the telecommunications
    market and the development of the market segments within which the Company
  *economic outlook and industry trends;
  *the Company’s expectations as to the regulation of the Russian
    telecommunications industry and assessment of impact of regulatory
    initiatives on the Company’s activity;
  *other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:

  *risks relating to changes in political, economic and social conditions in
    Russia as well as changes in global economic conditions;
  *risks relating to Russian legislation, regulation and taxation, including
    laws, regulations, decrees and decisions governing the Russian
    telecommunications industry, securities industry as well as currency and
    exchange controls relating to Russian entities and their official
    interpretation by regulatory bodies;
  *risks relating to the Company, including the achievement of the
    anticipated results, levels of profitability and growth, ability to create
    and meet demand for the Company’s services including their promotions, and
    the ability of the Company to remain competitive in a liberalized
    telecommunications market;
  *technological risks associated with the functioning and development of the
    telecommunications infrastructure, technological innovations as well as
    the convergence of technologies;
  *other risks and uncertainties. For a more detailed discussion of these and
    other factors, see the Company’s Annual Report and the Company’s other
    public filings.

Many of these factors are beyond the Company’s ability to control or predict.
Given these and other uncertainties, readers are cautioned not to place undue
reliance on any of the forward-looking statements contained herein or
otherwise. The Company does not undertake any obligation to release publicly
any revisions to these forward-looking statements (which are made as of the
date hereof) to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events, except as may be required
under applicable laws.


Rostelecom OJSC
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