Moscow – March 30, 2010 – Rostelecom (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY)  today announced that Standard & Poor’s (S&P) has affirmed the long-term credit rating on Rostelecom as standing at “BB” with a stable outlook.

S&P commented that the major positive factors include Rostelecom’s resilient financial profile, its ongoing dominant position in the long-distance market alongside the state-of-the-art nationwide network considered to be one of the Company’s key competitive advantages.

According to S&P, the current financial position of Rostelecom continues to be characterized by minimal debt and ample liquidity.

The stable outlook reflects Standard & Poor’s expectation that Rostelecom will maintain its leading position in the long-distance market, and will continue business diversification.

S&P commented that any possible upgrade to the Company’s rating would be contingent on Rostelecom meaningfully improving diversification by either organic expansion into unregulated segments or the acquisition of businesses with strong business risk profiles. In addition, Rostelecom would need to sustain limited debt leverage and sound credit protection.