Moscow, Russia – May 13, 2011 – Rostelecom (the “Company”) (MICEX: RTKM, RTKM-002D - RTKM-017D, RTKMP; RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that Standard & Poor's Ratings Services has issued a press-release, stating that its “BB” long term corporate credit rating for Rostelecom and related bond issue ratings has been increased to “BB+” with “Stable” outlook.

Standard & Poor's press-release states that: “The upgrade reflects the change of our analytical approach to Rostelecom as a government-related entity. We believe there is a moderate likelihood that the government of the Russian Federation (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia national scale 'ruAAA') will provide extraordinary government support to Rostelecom in a situation of financial distress. The stable outlook reflects our expectation that Rostelecom's fixed-line business will generate sufficient cash flows to finance its growth in other segments of the market, such as broadband Internet.”