UK Regulatory Announcement



Moscow, Russia – May 22, 2014 – Rostelecom OJSC (MOEX: RTKM, RTKMP; OTCQX:
ROSYY), Russia’s national telecommunications operator, today announces that it
has launched the beta version of its search engine, Sputnik, at the St
Petersburg International Economic Forum.

The Sputnik search engine focuses on socially important internet services. It
is designed to help Russian families who use the Internet to help them with
everyday tasks, but who are also increasingly interacting with public services
and social institutions online. Sputnik has analysed more than 10 billion
RuNet pages, selecting the most authentic, complete and official sources of

Sergey Kalugin, President of Rostelecom, commented: “In accordance with our
strategy, we are entering the growing internet market, which is an attractive
area for all the major players in the telecom industry. Sputnik’s task is to
become a popular platform for finding socially important information online,
therefore helping to improve people’s quality of life. This is a powerful new
channel through which Rostelecom is looking to engage with its consumers.”

Alexey Basov, Vice President of Rostelecom and Chairman of the Board of
Sputnik, also commented: “The way users are using the internet is constantly
evolving and usage is growing as new types of customers are coming online.
Rostelecom has all the resources necessary to develop mass internet services
to help people solve everyday problems and to create opportunities for them to
interact with state and public institutions. Our task is to lead in this area
and develop the most up-to-date and relevant services for the Russian

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For more information please visit or contact:

“Rostelecom Investor Relations / Rostelecom IR” application is now available
to download for free from the Apple App Store and Google Play

Investor Relations Department

Tel. +7 (499) 995 97 80

                                    * * *

Sputnik is a socially-oriented search platform. LLC Sputnik is the developer
of the platform, with the subsidiary OJSC Rostelecom being the controlling

Sputnik’s team is currently made up of 150 technical specialists and managers,
who have developed and implemented new types of search services. The project
was born out of a start-up by IT enthusiasts, which began operating in the
mid-2000s. Sputnik started to cooperate with Rostelecom in 2010, as Rostelecom
was seeking opportunities to enter new markets. Rostelecom began investing in
the project in 2012, and by 2013, Sputnik became a fully-fledged part of
Rostelecom’s strategy to provide a platform for mass socially-oriented

Rostelecom ( is one of the largest national
telecommunications operators in Russia and Europe. The Group operates in all
segments of the telecommunications market and covers more than 34 million

Rostelecom is an undisputable leader of the broadband and pay-TV markets in
Russia with over 10.6 million fixed-line broadband subscribers and over 7.5
million pay-TV subscribers.

The Group generated RUB 325.7 billion of consolidated revenues, RUB 113.3
billion of OIBDA (34.8% of revenues) and RUB 24.1 billion of net income for
the 12 months ended December 31, 2013.

The Group is a market leader in providing telecommunications services to
government bodies and corporates of all levels. It is also an important
innovator that provides solutions in the field of medicine, E-Government,
cloud computing, education, security and housing & utility services.

Rostelecom was assigned ‘BBB-’ and ‘BB+’ international credit ratings by Fitch
Ratings and Standard & Poor’s respectively.

                                    * * *

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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