Moscow, Russia – October 16, 2012– Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that CJSC “Sberbank CIB”, VTB Capital CJSC and Gazprombank OJSC will organise the Group’s potential bond placement following a tender process. The issue is expected to raise a total nominal value of RUB 100 billion.

Anton Khozyainov, Senior Vice President of Rostelecom, commented: “We have decided to award our bond issue tender to these banks as they made the best joint offer and their combined market position leaves them well placed to successfully issue the bonds. The bonds are likely to be placed in stages and we believe the current market environment will enable Rostelecom to achieve attractive terms.”