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 issues.

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 ¹15 will amount to RUB 5 billion and bond issue ¹17 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”.