Appendix No. 1 to item No. 1 on the agenda of the Annual General Shareholders’ Meeting of JSC “Rostelecom” on the year 2010

APPROVED by the Annual General Shareholders’ Meeting of JSC «Rostelecom» June 27, 2011

Minutes #1 dated June 30, 2011

ANNUAL REPORT

OF THE JOINT STOCK COMPANY OF LONG-DISTANCE AND INTERNATIONAL TELECOMMUNICATIONS “ROSTELECOM” BASED ON YEAR 2010 RESULTS

President of JSC “Rostelecom” п/п A. Yu. Provorotov

Chief Accountant of JSC “Rostelecom” п/п R.A. Frolov

______year 2011

Moscow, 2011 ANNUAL REPORT FOR JSC “ROSTELECOM” CONTENTS

JSC «ROSTELECOM» AT A GLANCE ...... 4 KEY FINANCIAL AND OPERATING HIGHLIGHTS...... 5 THE CHAIRMAN’S STATEMENT ...... 7 THE PRESIDENT’S MESSAGE ...... 8 CALENDAR OF 2010 EVENTS...... 9 COMPANY’S INDUSTRY POSITION...... 12 THE COMPANY AND THE BOARD OF DIRECTORS’ REVIEW OF THE YEAR 2010 ...... 25 DEVELOPING RETAIL RELATIONSHIPS...... 25 RUSSIAN OPERATORS MARKET ...... 30 COOPERATION WITH GOVERNMENT ENTITIES...... 33 THE SOCHI 2014 OLYMPIC WINTER GAMES...... 34 OPERATING AND FINANCIAL RESULTS ...... 37 ENERGY RESOURCES USED...... 39 REORGANIZATION...... 40 THE COMPANY’S DEVELOPMENT PRIORITIES AND PLANS ...... 44 TELECOMMUNICATIONS NETWORK OF JSC “ROSTELECOM” ...... 46 BACKBONE NETWORK DEVELOPMENT ...... 46 DATA NETWORK...... 47 INTELLIGENT NETWORK SERVICES...... 48 COMPANY’S INVESTMENTS IN NETWORK DEVELOPMENT ...... 49 CORPORATE GOVERNANCE...... 59 SHARE CAPITAL ...... 61 THE BOARD OF DIRECTORS...... 66 THE PRESIDENT AND THE MANAGEMENT BOARD ...... 71 THE AUDIT COMMISSION ...... 74 SOCIAL RESPONSIBILITY...... 75 THE COMPANY’S SIGNIFICANT TRANSACTIONS...... 79 CONTACT INFORMATION ...... 82

2 ANNUAL REPORT FOR JSC “ROSTELECOM”

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Certain statements in this Annual Report of JSC «Rostelecom» (hereinafter, the Annual Report) based on the year 2010 results are so-called “forward-looking statements” as defined by the U.S. Federal laws on securities 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 JSC «Rostelecom»’s (hereinafter, the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors; • the Company’s plans to participate in charter capital of other organizations; • the Company’s anticipated capital expenditures and plans to construct and modernize its network; • the Company’s expectations as to the growth of demand for its services, plans relating to the expansion of its range of services and their pricing; • the Company’s plans with respect to improving its corporate governance practices; • the Company’s expectations as to its position in the telecommunications market and the development of the market segments within which the Company operates; • economic outlook and expected industry trends; • the Company’s expectations as to the regulation of the Russian telecommunication 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 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 the Russian Federation as well as changes in global economic conditions; • risks relating to Russian legislation, legal control and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunication 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’s operations, 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 the Russian liberalized telecommunications market; • technological risks associated with the functioning and development of the telecommunication infrastructure, technological innovations as well as the convergence of technologies; • other risks and uncertainties. For more detailed discussion of these and other factors, see this Annual Report and the Company’s other public documents. Most 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.

3 JSC «ROSTELECOM» AT A GLANCE

JSC «ROSTELECOM» AT A GLANCE In April 2011 a new leader emerged in the Russian telecommunications market following the consolidation of seven interregional telecommunication companies1 (hereinafter, the ITCs) and JSC “Dagsvyazinform” (hereinafter, the Merger companies) on the basis of JSC «Rostelecom», a national telecommunication company. The decision on the merger of the ITCs and JSC “Dagsvyazinform” to JSC «Rostelecom» was adopted in summer 2010 at the annual General Shareholders’ Meetings of all the companies involved in the reorganization. JSC «Rostelecom» became the owner of the biggest Russian backbone network, almost 500 thousand km long, and of the access infrastructure (so-called “last mile”) encompassing more than 35 million households and corporations as a result of the merger2. The unique combination of a highly powerful backbone infrastructure and exclusive rights to the “last mile” is the guarantee of successful development of the newly merged company as a world-class integrated operator; it also serves as a basis for introducing innovational services and forming and maintaining technological leadership, as well as for the realization of extensive marketing opportunities in the dynamic regional telecommunications market. In order to provide its customers with easy access to the widest possible range of modern telecommunication services throughout the whole territory of Russian Federation the Rostelekom PLC is intending to engage actively in further development and upgrades of its very own infrastructure. The larger company that JSC «Rostelecom» is today has all the necessary licenses and frequencies to render wire, wireless and convergent telecommunication services as well as possess successful experience in providing such services. Moreover, the favourable conditions created in the Company allow for centralized efficiency of the business operations, enhancement of investment efficiency and operating efficiency and, as a consequence, an increase in shareholder value. At the moment JSC »Rostelecom» is a proper blue chip with sound liquidity and a high investment potential. The shares and depository receipts of JSC «Rostelecom» are listed and traded on the major Russian and foreign exchanges, including the Russian exchanges RTS and MICEX (ticker symbols: RTKM, RTKM-002D – RTKM-017D, RTKMP), as well as the US electronic system OTCQX (ticker symbol: ROSYY) and outside the listing in London (ticker symbols: RKMD), in Frankfurt (ticker symbol: RTL) and on other foreign stock exchanges. JSC «Rostelecom»’s largest shareholder is the state represented by the Russian Federation government, owning 53.2% of ordinary voting shares in the Company through the JSC “Svyazinvest”, the Deposit Insurance Agency and Vnesheconombank. 2.7% more of ordinary shares and 28.8% more of preference shares were bought out from the stock during the reorganization in the summer 2010 and added to the charter capital of “MOBITEL” LLC in March 2011. JSC «Rostelecom»’s public free float is comprised of 44.1% of placed ordinary shares and 71.1% of placed preference shares. The Standard&Poor’s global credit rating of the Company is a “BB+” with a “Stable” outlook.

1 JSC “CenterTelecom”, JSC “SZT”, JSC “VolgaTelecom”, JSC “UTK”, JSC ”Uralsvyazinform”, JSC “SibirTelecom”, JSC “Dalsvyaz” 2 including Interregional Telecommunications Companies, JSC “Dagsvyazinform” and JSC “National Telecommunication Company”

4 JSC «ROSTELECOM» AT A GLANCE

KEY FINANCIAL AND OPERATING HIGHLIGHTS

Minutes (mln) 2009 2010 2010/2009 %

Domestic long-distance traffic (outgoing) 9 186,1 8 278,2 -9,9 International long-distance traffic (outgoing) 1 751,6 1 311,7 -25,1 International long-distance traffic (incoming) 3 458,2 3 361,7 -2,8

RUB (mln)

Revenue 61 223,5 60 527,4 -1,1

OIBDA3 12 089,3 11 355,5 -6,1 OIBDA margin, % 19,7 18,8

Operating profit 7 513,1 5 961,1 -20,7 Operating margin, % 12,3 9,8

Net profit 5 101,6 3 460,0 -32,2 Net margin, % 8,3 5,7

Dividends4 on ordinary shares 1 020,3 809,7 -20,6 on preference shares 510,1 434,8 -14,8

3 calculated as the revenue less expenses (including depreciation) incurred in the ordinary course of business before amortization and leasing expenses 4 the amount of dividend paid for the 9 months of 2010 as recommended by the Board of Directors of JSC «Rostelecom» for approval at the Annual General Meeting of Shareholders upon 2010 results.

5 JSC «ROSTELECOM» AT A GLANCE

REVENUE TRENDS OIBDA TRENDS

OPERATING PROFIT TRENDS NET PROFIT TRENDS

6 ANNUAL REPORT OF JSC «ROSTELECOM»

THE CHAIRMAN’S STATEMENT

Dear Shareholders and Investors, The previous year of 2010 will undoubtedly make history of the Company as the first year of the implementation of the comprehensive program aimed at building a leader in the Russian telecommunication industry on the basis of JSC «Rostelecom». During this very year all the key initiatives laying the foundation for creating a national champion in the telecommunication area were launched. The merger of the telecommunication companies on the basis of JSC «Rostelecom» got approval on all different levels, from the Transport and Communication Commission of the Russian Federation to the shareholders’ meetings of the companies. The members of JSC “Svyazinvest” Coordination Council, The Board of Directors of the Association for Protection of Investors’ Rights (APIR) and the representatives of the Institutional Shareholder Proxy Advisory Services (ISS) had all supported the merger in due time. Projects of this kind of scale are always coupled with solving a range of complex organizational issues and claim to accommodate interests of many participants. Special attention was given to ensuring that the shareholders’ rights of all companies involved in the merger are observed and that the most comfortable mechanism possible was provided in order for them to transfer to the new “united” share. As the Chairman of the Board I express sincere gratitude to all the shareholders and employees participating in this reorganization, to the representatives of regulatory authorities and to all of those who made a contribution to resolving the task of literally the state significance. Without their active participation we couldn’t have undertaken all the necessary procedures in the time period outlined by the Russian legislation. The decision to pay out interim dividends is an example of the true intention to respect the interests of each shareholder without exception during the course of the reorganization. According to the Russian legislation, the only source of the dividends payable at the end of the financial year of 2010 to all of the shareholders of the newly formed company would have been the profit closed by JSC «Rostelecom» solely – that is, the profit of other companies involved in the merger could not be employed. Thus, the shareholders of the merger company would have received less dividends than they are actually entitled to. In order to avoid this situation all the companies involved in the merger paid out interim dividends for the first 9 months of the year 2010 at 30% of their respective net profits earned. I am confident that the management of the Merger Company will aim at producing management decisions that will respect the interests of each shareholder without exception, and that the committees of the JSC «Rostelecom»’s Board of Directors will help increase the clarity of such decisions and improve the quality of the corporate governance. To conclude, I would like to express my confidence that the foundation of the largest company in the domestic telecommunication industry ready to act as its leader of innovation development shall become a catalyst of modernization processes not only in the industrial infrastructure but in the Russian economy in general.

Sincerely yours,

V.N. Bondarik Chairman of the Board of Directors, JSC «Rostelecom»

7 ANNUAL REPORT OF JSC «ROSTELECOM»

THE PRESIDENT’S MESSAGE Dear shareholders, investors, customers, partners and colleagues, The year 2010 has turned out to be the year of grand change for all of us, full of intense but at the same time interesting work. Our operations were scrutinized by the market’s regulating body, participants and experts of the market during all of the previous year. Our colleagues’ attention is obvious. JSC «Rostelecom» found itself in the very center of a reform of an unprecedented size and term. In essence, it concerned the transformation of the structure of state-controlled assets in the telecommunication industry by means of a merger of seven interregional telecommunication companies (ITCs) and JSC “Dagsvyazinform” with JSC «Rostelecom». I am glad to inform you that our joint efforts turned out a success and that in March 2011 the largest integrated telecommunication company in the market was found on the basis of JSC “Rostelecom”. Each of us partook in this unique process and contributed to the foundation of the leader in the Russian telecommunication industry. This achievement, however, would not have been possible without the well- coordinated and efficient work in 2010. The past year was full of important events without which the merger could not have been accomplished. The key phase of the reorganization occurred in summer 2010, when it was time for all the corporate approvals. The shareholders of all companies voted for the merger with JSC «Rostelecom» and approved the swap ratio of shares during the Annual Generals Shareholders’ Meetings. The procedure of compulsory buy-out of shares from the reorganization object or the shareholders involved was executed in due time. Along with the necessary legal reorganization procedures we have been actively engaging in the business integration of the companies involved in the merger as well as have kept on tapping the perspective market’s segments and improving the quality of our services. When still the 9 independent operators, we started the operational integration. The main reason behind this initiative was to ensure smooth transition from independent business operations to a Merger Company business for the customers, employees and partners. During the year 2010 we have developed and approved the organizational chart of the new company, centralized the set of important functions and worked actively on the strategy of the Merger JSC «Rostelecom». We did a great job on modifying the approach to Company’s organization and management. A project on the development of a new incentive scheme for the employees that correlates the remuneration of the employee with the results attained while performing the job was launched. This system encourages increases in labour productivity and will serve to the growth of the shareholder value of the Merger company. Change always brings moments of uncertainty. The Company’s employees are its stakeholders most sensitive to change. We created favourable working conditions and shared information on current changes to make sure to keep qualified, talented and high-skilled staff. We tried to take better weighted staffing decisions and all the debatable issues were submitted to the representatives of the Pan-Russian Communication union. Another important vector in the operations of the Company in 2010 was the cooperation with our shareholders and investors. We were constantly in touch with the representatives of investment banks and funds, explaining the essence of the changes being undertaken. The Professional Investment Society was directly involved in the process of making key decisions on reorganization through its participation in the JSC “Svyazinvest”’s Coordination Council. We discussed the swap ratio calculation, the dividends policy, and the development priorities of the merger operator together. We also met our shareholders and investors at the investment conferences and forums and conversed at regular personal meetings. In the end, I would like to draw your attention to the unique property of the document you are holding. In 2010, JSC «Rostelecom», Interregional Telecommunications Companies and JSC “Dagsvyazinform” worked as the separate legal entities. But at the same time they were closely tied by the merger procedures and acted as a whole. That is why we daringly decided to represent their consolidated activity in 2010. On behalf of the JSC «Rostelecom» administration we thank our shareholders, investors, customers, partners and colleagues for the support! Sincerely, A.Yu. Provotorov The President of JSC «Rostelecom»

8 ANNUAL REPORT OF JSC «ROSTELECOM»

CALENDAR OF 2010 EVENTS January 2010 ƒ JSC «Rostelecom» increased the connection to Moscow Internet Exchange Point MSK-IX (Moscow Internet Exchange) by 10 Gbit/s to a total of 30 Gbit/s which is due to the quick growth of traffic exhibited by the Russian segment of the global Internet network. ƒ The Company’s market share at the market of backbone transfer of Internet traffic increased by more than 3 times – from 10% in 2007 to 35% in 2009. February 2010 ƒ JSC «Rostelecom» provided the multiuser video conference for the management of the Fedetion Council of the Federal Assembly of the Russian Federation with the state secretaries – Deputy Chiefs of federal executive bodies and heads of the constituent entities of the Russian Federation. Video conferencing was run within the meeting on the “Legislative support of modernization and improvement of the quality of life in order to provide stable development of the Russian Federation”. ƒ JSC «Rostelecom» increased the connection to the IP/MPLS stations on the Frankfort-on-the-Main sites to 40 Gbit/s and to the stations on the London sites to 30 Gbit/s, both of which are in the top five of the biggest global traffic exchange sites. ƒ Prior to the XXI Winter Olympic Games the Company set up a unique “infobridge” called “Vancouver – All Russia” which connected the capital of the Olympic Games and dozens of cities all over Russia by means of digital channels. In order to set up and service the infobridge the Company had to deploy a vast and complex telecommunication equipment system in Vancouver. March 2010 ƒ JSC «Rostelecom» announced the beginning of its cooperation with the subjects of the Russian Federation in the field of rendering of the state and municipal services in electronic format – the so- called “Electronic Russia” project. ƒ JSC «Rostelecom» provided the digital communication channels for putting up the video monitoring system allowing to oversee the working progress at the Sochi Olympic construction sites, which is being run by the “Olimpstroy” State corporation. ƒ JSC «Rostelecom» introduced the innovational corporate service called “Virtual Telephone Network – VTN” to the market. The new service allows corporate customers to organize their telephone network with a united short numeration system on the base of an IP-network and without the need to purchase a traditional automatic telephone station. ƒ The US depositary receipts (hereinafter, the USDR) representing the shares of JSC «Rostelecom» started trading at OTCQX. JSC «Rostelecom» became the second Russian company (after JSC “Gazprom neft”) to receive registration on this prestigious site and is planning to exploit all of the advantages of the said trading system in reference to the investors. ƒ JSC «Rostelecom» (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunication operator, announced that Standard&Poor's Ratings Services had issued a report stating that its “BB” long-term corporate credit rating with a “Stable” outlook for JSC «Rostelecom» had been kept unchanged. April 2010 ƒ JSC «Rostelecom» won the competition for the “Best service provider for State needs in 2009” held as part of the Sixth Pan-Russian forum-exhibition “Government order 2010”. It was organized by the Ministry of Economic Development of the Russian Federation and the Anti-monopoly committee of the Russian Federation. JSC «Rostelecom» was declared the best service provider in the telecommunication industry. ƒ JSC «Rostelecom» and JSC “FCC UES” completed the construction and launch of the “Chelyabinsk – Khabarovsk” fiber-optic communication line (FOCL). This is undoubtedly the largest backbone telecommunication line construction implemented in the Russian Federation over the past 10 years with total investments in excess of 5 billion rubles. The line spans about 10 thousand km throughout the Russian Federation. May 2010 ƒ JSC «Rostelecom» completed the project on increasing the power of its backbone in the segment from Finland to Kazakhstan. The total links and lines re-equipped as part the project span about 10

9 ANNUAL REPORT OF JSC «ROSTELECOM»

thousand km – that is, considering the complete redundancy on both geographically dispersed routes. ƒ Together with the President’s Library named in honour of B.N. Eltsin JSC «Rostelecom» held a multiuser video conference for the Veterans of the World War II dedicated to the 65th Victory Day Anniversary. The Veterans of Saint Petersburg, Moscow, Novosibirsk, Rostov-on-Don, Samara, Tyumen, Khabarovsk and of the countries of the Anti-Hitlerite coalition – specifically the members of the Arctic convoys and the legendary aviation regiment “Normandy – Neman”, as well as the general councils of Great Britain and France, took part in this conference. ƒ JSC «Rostelecom» acted as the assignee, organizer and participant of the 42nd Meeting of the Board of the Heads of Communications Administration of the Regional Commonwealth and the 15th Meeting of the Information Coordination Council. June 2010 ƒ On June 26, 2010, the General Shareholder’s Meeting approved the decision of JSC «Rostelecom» reorganization by merger with JSC “CenterTelecom”, JSC “SZT”, JSC “VolgaTelecom”, JSC “UTK”, JSC “Uralsvyazinform”, JSC “SibirTelecom”, JSC “Dalsvyaz” and JSC “Dagsvyazinform”, as well as the conversion rate of their shares into ordinary shares of the newly formed Company. ƒ JSC «Rostelecom» completed the next stage of the IP/MPLS network expansion. The infrastructure upgrade of the Privolzhskiy Federal district allowed to increase the speed of the data transfer in ring structures up to 10 Gbit/s. ƒ JSC «Rostelecom» increased the capacity of the access point to its IP/MPLS network by 10 Gbit/s to the total of 20 Gbit/s in both Novosibirsk and Krasnoyarsk. ƒ JSC «Rostelecom» put into operation the “Kochenevo–Biryusinsk” network section which completed the construction of the “Kochenevo–Emelyanovo–Biryusinsk–Kochenevo” ring structure in the Siberian Federal district. At the same month JSC «Rostelecom» completed the ring structure on the basis of the primary transport network on the “Shelkun–Opitnoye” segment in the Ural Federal district. ƒ JSC «Rostelecom» created the prototype of the basic standard software and hardware solutions for servicing the segments of the “Electrobnic government” regional infrastructure. This decision allows each subject of the Russian Federation to lay a foundation for their individual regional infrastructural segments of the “Electronic government”. July 2010 ƒ JSC «Rostelecom» introduced a commercial demo-version of the “Audio conference” service which allows the user to put up a telephone session with several other users at once; such a session may be controlled by means of a specially designed web interface. ƒ JSC «Rostelecom» received and processed more than 120 000 requests of the Russian citizens related to their registration of a “Personal account” on the gosuslugi.ru web resource. All these requests arrived in the first three months (April, 1 – July, 1) of the functioning of the “Personal account” service on this web resource. More than 90 000 users activated their accounts. ƒ JSC «Rostelecom» introduced a demo-version of the Government sales – the www.torgi.gov.ru. This resource is a web interface of the data system which helps analyze information on state and municipal trading. JSC «Rostelecom» is the system designer and is to act as a call-center and a registration center for the traders. ƒ JSC «Rostelecom» provided the SKOLKOVO Moscow management school with a package of modern telecommunication services. August 2010 ƒ JSC «Rostelecom» passed on the Russian segment of the submarine cable network “Russia– Japan–South Korea” (RJK) totalling 565 km and located in the Japanese sea to the Pacific Oceanological Institute of the Far-Eastern department of the Russian Academy of Science named in the honour of I.V. Ilichev. The Institute is planning to use the provided line to research the geomagnetic field of the Earth. ƒ JSC «Rostelecom» started a cooperation program with designers of software and hardware solutions. These solutions will be implemented on the basis of the “Electronic government” infrastructure in the interest of public authorities of the Russian Federation subjects and local authorities.

10 ANNUAL REPORT OF JSC «ROSTELECOM»

September 2010 ƒ JSC «Rostelecom» set up the “hot line” on the All-Russian population census for the Russian citizens. More than 300 thousand calls were processed. ƒ The Company successfully tested the wireless data network of the fourth generation (4G) on the basis of the LTE protocol (Long-Term Evolution protocol) of the TD (Time Duplex) standard within the frequency range of 2.3 – 2.4 GHz during the IX annual International Investment Forum “SOCHI- 2010”. It was the first time that the LTE technology was tested in this range in the Russian Federation. October 2010 ƒ JSC «Rostelecom» introduced the upgraded digital radio relay link P-684 in the “Tynda–Yakutsk” section with the capacity of up to 2.9 Gbit/s. The increase of the capacity of the digital radio relay communications line by more than 3.5 times provides access to high-speed Internet and other modern telecommunication services for the citizens of South Yakutiya and the companies operating in the region. ƒ JSC «Rostelecom» introduced the first multifunctional data terminal (the infomat) which allows Russian citizens to access all governmental services of federal, regional or local level in electronic format. A new infomat was presented to the members of the Council on Regional Informatization of the Ministry of the Russian Federation for Communications and Mass Media. November 2010 ƒ JSC «Rostelecom» successfully completed the testing of DWDM “START” equipment manufactured by the Russian company “IRE-Polyus”. Throughout the tests the “START” equipment allowed to provide a 40 Gbit/s capacity to a single optic channel with a distance of the signal transfer without electrical regeneration of 1000 km. ƒ JSC «Rostelecom» had provided the JSC MMC “Norilsk Nickel” with separate dedicated channels of communication which connected the Moscow office of the company with its offices in Murmansk, Saint Petersburg, Krasnoyarsk, Arkhangelsk and Sochi. December 2010 ƒ JSC «Rostelecom» (RTS, MICEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunication operator, announced that Standard&Poor's Ratings Services had issued a report stating that its “BB” long-term corporate credit rating with a “Stable” outlook for JSC «Rostelecom» had been kept unchanged. ƒ According to “Romir” holding company, JSC «Rostelecom» is in the Top-10 companies enjoying the highest level of Russian citizens’ loyalty and trust.

11 MAINTAINING LEADERSHIP

COMPANY’S INDUSTRY POSITION JSC «Rostelecom» is one of the leading companies in the Russian telecommunication market. In 2010 the Company successfully maintained its leadership in the traditional DLD and ILD telecommunication market and continued its steady growth in the high-technology segments, developing Internet access and data transmission services, deployment of virtual private networks (VPN), video conferencing and intelligent network services. JSC «Rostelecom»’s long-term leadership is ensured by its high-speed backbone network, enabling the Company to provide telecommunication services to users in all the regions of the Russian Federation. The telecommunication network resources and the use of exclusively modern technologies allow the Company to proceed with active promotion of its modern telecommunication services and expansion into new markets. Among the major contributing factors of its success one must note the use of a data transmission network based on IP/MPLS technology, a new intelligent platform, and the ever-expanding network of regional Data Centers.

Domestic and International Long-Distance Telecommunications As the results of the year 2010 suggest, JSC «Rostelecom» has earned the major portion of its revenues in the market of DLD and ILD fixed-line communication services designated for end users. More than 30 operators with appropriate licenses for provision of DLD and ILD telecommunication services compete with the Company in this field. Some of these operators have already organized and built their own networks to handle DLD and ILD traffic, as well as received carrier selection codes for rendering long-distance telecommunication services. Despite the dense competition, JSC «Rostelecom» has retained its leadership in its traditional segment. Successful adaptation of its business to the new principles of provision of telecommunication services, employment of its own sales and services network and development of its own tariff system have allowed JSC «Rostelecom» to retain its leading positions in the DLD and ILD telecommunications market for the fourth year running, which is supported by stable financial results. The existence of international links, presence on the leading traffic exchange platforms, participation in international cable systems and telecommunication organizations, as well as strong partner relationships, help ascertain JSC «Rostelecom»’s position as the number one telecommunication operator in Russia.

12 MAINTAINING LEADERSHIP

Domestic and International Long-Distance Telecommunication services for Russian Customers In 2010 the volume of the DLD traffic comprised 8 278 million minutes, which is a 10% fall on 2009. The Company’s revenue from DLD telecommunication services decreased by 11% to 23 301 million rubles.

Trends of the DLD Traffic and the Company’s Revenue

RUB million 10 229 50 000 9 186 10 000 8 278 40 000 8 000 Revenue, RUB, mln. 30 000 29 565 26 063 6 000 23 301 Traffic, min., mln. 20 000 4 000

10 000 2 000

0 0 2008 2009 2010 million minutes

In 2010, the volume of outgoing ILD traffic decreased by 25% to 1 312 million minutes. The Company’s revenue from ILD telecommunication services to Russian customers was 8 802 million rubles, which is a 23% fall on 2009. The key factor behind the decrease is the toughened competition and the customers’ ability to select a long-distance telecommunication operator at the very origination of each domestic or international long-distance call.

The Trends of the Outgoing ILD Traffic and Revenues brought by the Russian Customers

The decrease in DLD and ILD traffic and revenue is primarily attributable to the increasing competition in the Russian long-distance telecommunications market as well as the continued migration of long-distance end- customer traffic from fixed-line to mobile networks. Additionally, in order to provide the customers of JSC «Rostelecom» – both individuals and legal bodies as well as Russian operators – with competitive tariffs, the Company followed a flexible pricing policy which also impacted the DLD and outgoing ILD revenues.

13 MAINTAINING LEADERSHIP

Incoming International Traffic Transit and Call Termination Services JSC «Rostelecom»’s active expansion policy of its cooperation with international operators and further development of its high-speed backbone network helped ensure that the volume of the incoming ILD traffic continues to grow and that the Company remains the leader among international operators in Russia. Incoming ILD traffic from foreign operators in 2010 reached 3 362 million minutes, which is the same as of the previous year. Total revenues from the international operators of the incoming ILD traffic transit and termination also remains at the 2009 level, amounting to 6 127 million rubles.

Incoming ILD Traffic and Revenue from Foreign Operators’ Trends

Data Transmission and Telematic Services JSC «Rostelecom»’s key competitive advantages in this segment are the high quality of its data transmission services and the largest IP/MPLS network in Russia, which, combined, produced an impressive revenue growth rate for the Company. In 2010, JSC «Rostelecom»'s revenue from data transmission and telematic services increased by more than 80% on the previous year and amounted to 9 224 million rubles.

Revenue Trends from Data Transmission and Telematic Services

14 MAINTAINING LEADERSHIP

Intelligent Network Services (INS) Thanks to extensive promotion of intelligent network services, improvement of their quality and introduction of new tariffs JSC «Rostelecom» has sustained the income from intelligent network services, such as Freephone, Premium Rate Services, International Freephone, Home Country Direct. In 2010 the revenues earned by the INS comprised 1 315 million rubles, which is an increase of nearly a quarter (25 percent) on 2009.

Revenue Trends from Intelligent Network Services

Leased Line Services Revenues from leased-line services decreased by 6% on last year to 6 899 million rubles. This decrease is mainly attributable to the fact that the Russian operators completed the construction of their own networks, thus reducing their demand for channels and resulting in increased competition in the Russian leased line market. Alongside these developments is the ongoing transition from analogue to digital lines which are less expensive to rent as well as the increase in demand from corporate clients for VPN services as opposed to line leasing.

The Company’s Revenue from Leased Line Services Trends

RUB million 7 846 8 000 7 306 8 000 6 899

6 000 6 000

4 000 4 000 Revenue, RUB, mln.

2 000 2 000

0 0 2008 2009 2010 RUB million

15 MAINTAINING LEADERSHIP

JSC «ROSTELECOM» RUB, mln Key financial highlights 2010 2009 Change, % Revenue 60 527 61 224 (1%) OIBDA 11 356 12 089 (6%) Net profit 3 460 5 102 (32%) In 2010, JSC «Rostelecom»’s revenue amounted to 60 527 million rubles, a 1,1% decrease on the previous year because of a decrease in revenue in a number of traditional segments. In this accounting period the Company continued its business diversification and reaped increased revenues from high-tech telecommunication services. Thus the total revenue from data transfer services and telematic services (services related to the Internet and VPN) rose by 82% and amounted to 9 224 million rubles and the revenue from intelligent network services went up by 24%. RUB, mln Revenue 2010 2009 Change, % Domestic and Long-Distance telecommunication 38 228 43 718 (13%) Data Transmission and Telematic Services 9 224 5 080 82% Leased Line Services 6 899 7 306 (6%) Intelligent Network Services 1 315 1 060 24% Radiocommunication, Broadcasting, Television, Satellite Communication Services 218 256 (15%) Local and Rural 146 124 17% Other 4 498 3 679 22% Total 60 527 61 224 (1%) RUB, mln Expenses 2010 2009 Change, % Communications providers’ services 31 467 32 180 (2%) Labour costs 7 457 7 470 (0,2%) Fringe benefit expenses 1 519 1 444 5% Depreciation of fixed assets 5 394 4 576 18% Material costs 569 578 (2%) Other 8 160 7 462 9% Total 54 566 53 710 2%

16 MAINTAINING LEADERSHIP

JSC “CENTERTELECOM” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 39 744 36 434 9% OIBDA 15 415 10 193 51% Net profit 5 972 5 059 18% In 2010 the company’s revenue increased by 9% and amounted to 39 744 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 1 million in 2009 to 1.4 million in 2010) ensured the growth of the company’s revenue. These factors strongly influenced the financial results of the accounting period. The salary indexation and the growth of material costs due to inflationary climate in the Russian Federation also had an impact on the net profit performance and OIBDA. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 5 743 6 097 (6%) Local telephone communications services 19 036 17 237 10% Mobile radio services, wire broadcasting, radio communication and TV 748 765 (2%) Mobile wireless telephoning (cellular) services 314 317 (1%) Telegraph communications, data transfer and telematic services 7 760 6 258 24% including data transfer and Internet network access services 7 530 6 054 24% Connection and traffic transfer services 3 874 3 657 6% Other 2 270 2 101 8% Total 39 744 36 434 9% RUB, mln Expenses 2010 2009 Change, % Labour costs 8 608 8 094 6% Fringe benefit expenses 1 873 1 809 4% Depreciation of fixed assets 3 934 4 289 (8%) Material costs 2 566 2 244 14% Other 15 261 14 093 8% Total 32 242 30 529 6%

17 MAINTAINING LEADERSHIP

JSC “SZT” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 28 104 26 295 7% OIBDA 9 807 7 720 27% Net profit 3 513 3 473 1% In 2010 the company’s revenue increased by 7% and amounted to 28 014 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 0.9 million in 2009 to 1.1 million in 2010) ensured the growth of the company’s revenue. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 2 671 2 594 3% Local telephone communications services 14 166 13 358 6% Mobile radio services, wire broadcasting, radio communication and TV 308 373 (17%) Mobile wireless telephoning (cellular) services - - - Telegraph communications, data transfer and telematic services 6 082 5 263 16% including data transfer and Internet network access services 5 845 5 062 15% Connection and traffic transfer services 2 540 2 516 1% Other 2 338 2 191 7% Total 28 104 26 295 7% RUB, mln Expenses 2010 2009 Change, % Labour costs 6 413 6 602 (3%) Fringe benefit expenses 1 447 1 451 (0,3%) Depreciation of fixed assets 6 391 5 411 18% Material costs 2 026 2 266 (11%) Other 8 433 8 257 2% Total 24 709 23 987 3%

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JSC “VOLGATELECOM” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 28 688 27 077 6% OIBDA 11 927 10 826 10% Net profit 4 118 4 263 (3%) In 2010 the company’s revenue increased by 6% and amounted to 28 688 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 0.9 million in 2009 to 1.1 million in 2010) ensured the growth of the company’s revenue. The salary indexation and the growth of material costs due to inflationary climate in the Russian Federation also had an impact on the net profit performance and OIBDA. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 4 414 4 568 (3%) Local telephone communications services 12 389 11 459 8% Mobile radio services, wire broadcasting, radio communication and TV 761 739 3% Mobile wireless telephoning (cellular) services 293 341 (14%) Telegraph communications, data transfer and telematic services 6 642 5 912 12% including data transfer and Internet network access services 6 492 5 775 12% Connection and traffic transfer services 2 558 2 633 (3%) Other 1 630 1 425 14% Total 28 688 27 077 6% RUB, mln Expenses 2010 2009 Change, % Labour costs 6 822 6 279 9% Fringe benefit expenses 1 550 1 433 8% Depreciation of fixed assets 4 456 4 846 (8%) Material costs 2 136 1 917 11% Other 6 743 6 623 2% Total 21 707 21 097 3%

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JSC “UTK” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 23 140 21 857 6% OIBDA 9 681 9 547 1% Net profit 1 884 1 846 2% In 2010 the company’s revenue increased by 6% and amounted to 23 140 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 0.5 million in 2009 to 0.8 million in 2010) ensured the growth of the company’s revenue. The salary indexation also had an impact on the net profit performance and OIBDA. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 3 190 3 436 (7%) Local telephone communications services 9 898 9 501 4% Mobile radio services, wire broadcasting, radio communication and TV 354 361 (2%) Mobile wireless telephoning (cellular) services - - - Telegraph communications, data transfer and telematic services 6 836 5 757 19% including data transfer and Internet network access services 6 647 5 580 19% Connection and traffic transfer services 1 836 1 942 (5%) Other 1 026 859 19% Total 23 140 21 857 6% RUB, mln Expenses 2010 2009 Change, % Labour costs 5 130 4 506 14% Fringe benefit expenses 1 297 1 090 19% Depreciation of fixed assets 4 186 4 004 5% Material costs 1 692 1 682 1% Other 5 341 5 032 6% Total 17 646 16 314 8%

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JSC “URALSVYAZINFORM” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 43 126 40 744 6% OIBDA 19 267 14 412 34% Net profit 8 168 4 069 101% In 2010 the company’s revenue increased by 6% and amounted to 43 126 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 0.7 million in 2009 to 0.9 million in 2010) ensured the growth of the company’s revenue. The successful internal cost saving policies also had an impact on the net profit performance and OIBDA. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 4 244 4 557 (7%) Local telephone communications services 11 004 10 455 5% Mobile radio services, wire broadcasting, radio communication and TV 564 541 4% Mobile wireless telephoning (cellular) services 14 260 12 999 10% Telegraph communications, data transfer and telematic services 7 472 6 495 15% including data transfer and Internet network access services 7 270 6 324 15% Connection and traffic transfer services 4 435 4 518 (2%) Other 1 146 1 179 (3%) Total 43 126 40 744 6% RUB, mln Expenses 2010 2009 Change, % Labour costs 6 781 6 374 6% Fringe benefit expenses 1 494 1 352 11% Depreciation of fixed assets 5 974 6 080 (2%) Material costs 1 840 2 029 (9%) Other 15 031 16 577 (9%) Total 31 120 32 412 (4%)

21 MAINTAINING LEADERSHIP

JSC “SIBIRTELECOM” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 29 127 27 970 4% OIBDA 11 485 9 549 20% Net profit 3 787 2 345 61% In 2010 the company’s revenue increased by 4% and amounted to 29 127 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 0.6 million in 2009 to 0.8 million in 2010) ensured the growth of the company’s revenue. The growth of material costs due to inflationary climate in the Russian Federation also had an impact on the net profit performance and OIBDA. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 4 401 4 928 (11%) Local telephone communications services 12 474 11 599 8% Mobile radio services, wire broadcasting, radio communication and TV 222 403 (45%) Mobile wireless telephoning (cellular) services 808 895 (10%) Telegraph communications, data transfer and telematic services 6 903 5 791 19% including data transfer and Internet network access services 6 691 5 565 20% Connection and traffic transfer services 2 552 2 702 (6%) Other 1 767 1 653 7% Total 29 127 27 970 4% RUB, mln Expenses 2010 2009 Change, % Labour costs 6 480 6 624 (2%) Fringe benefit expenses 1 554 1 545 1% Depreciation of fixed assets 4 606 4 714 (2%) Material costs 1 522 1 270 20% Other 8 277 8 999 (8%) Total 22 440 23 152 (3%)

22 MAINTAINING LEADERSHIP

JSC “DALSVYAZ” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 15 203 13 397 13% OIBDA 5 250 4 522 16% Net profit 2 473 2 171 14% In 2010 the company’s revenue increased by 13% and amounted to 15 203 million rubles. The indexation of rates for local communications as well as an expanded base of broadband wireless users (from 1 million in 2009 to 1.4 million in 2010) ensured the growth of the company’s revenue and its merger with JSC “SakhalTelecom”. These factors strongly influenced the financial results of the accounting period. The salary indexation and the growth of material costs due to inflationary climate in the Russian Federation also had an impact on the net profit performance and OIBDA. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 2 313 2 238 3% Local telephone communications services 5 749 5 125 12% Mobile radio services, wire broadcasting, radio communication and TV 167 161 4% Mobile wireless telephoning (cellular) services 208 255 (18%) Telegraph communications, data transfer and telematic services 4 927 3 974 24% including data transfer and Internet network access services 4 769 3 845 24% Connection and traffic transfer service 924 981 (6%) Other 914 663 38% Total 15 203 13 397 13% RUB, mln Expenses 2010 2009 Change, % Labour costs 3 586 3 310 8% Fringe benefit expenses 801 579 38% Depreciation of fixed assets 1 487 1 443 3% Material costs 1 237 1 059 17% Other 4 330 3 927 10% Total 11 440 10 318 11%

23 MAINTAINING LEADERSHIP

JSC “DAGSVYAZINFORM” RUB, mln Key financial highlights 2010 2009 Change, % Revenue 343 442 (22%) OIBDA -170 -264 - Net profit -130 1 - The fall in the revenues and losses incurred accordingly are defined by the weakening of the Company’s market position in a number of segments, by decreases in income and by inefficient expenses control. RUB, mln Revenue 2010 2009 Change, % Intrazone telephone communications services 71 89 (20%) Local telephone communications services 179 205 (13%) Mobile radio services, wire broadcasting, radio communication and TV 1 2 (25%) Mobile wireless telephoning (cellular) services - - - Telegraph communications, data transfer and telematic services 31 31 (2%) including data transfer and Internet network access services 23 26 (13%) Connection and traffic transfer service 33 42 (22%) Other 27 73 (62%) Total 343 442 (22%) RUB, mln Expenses 2010 2009 Change, % Labour costs 171 171 (0,1%) Fringe benefit expenses 42 41 3% Depreciation of fixed assets 39 40 (4%) Material costs 76 54 41% Other 488 442 11% Total 815 747 9%

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THE COMPANY AND THE BOARD OF DIRECTORS’ REVIEW OF THE YEAR 2010 In 2010 the Company focused on offering a complete range of telecommunication services for its customers positioning itself on the market as a universal operator. Besides, JSC «Rostelecom» directed its efforts to keep its dominant position in the telecommunications market despite the weakened Russian and world economy. In this context JSC «Rostelecom» focused on its competitive advantages to be able to offer its customers a whole range of services, keep its regular customers and attract new ones in all segments of the telecommunication industry by offering comprehensive service of high quality. In addition to that much consideration was given to the improvement of the Company's own backbone telecommunication network. By developing the potential of this network the Company gradually founds the basis for ensuring a growing demand for modern and high quality telecommunication products and delivers users nationwide access to JSC «Rostelecom» services.

DEVELOPING RETAIL RELATIONSHIPS In the context of developing retail and corporate customer relationships the Company focused on retaining its share in the markets of voice DLD and ILD telecommunication services by means of service improvement and further development of niche tariff options in both retail and corporate customer segments.

DLD and ILD Telecommunication services DLD and ILD telecommunication are traditional services offered by JSC «Rostelecom» which make for a substantial part of the Company’s business. In 2009 proceeds from the provision of DLD and ILD telecommunication services to its customers (except for other operators) amounted to 27 980 million rubles (exclusive of VAT) which constituted 46% of JSC «Rostelecom»’s total revenue. While ensuring retention of its leading positions in this market the Company was committed to implementing commercial offers that satisfy its customers’ demand for modern telecommunication products as much as possible. Concurrently, JSC «Rostelecom» focused on optimizing its tariffs, while further increasing the quality and efficiency of its telecommunication services. The new tariff plans of the Company are designed to diversify the range of options offered by JSC «Rostelecom» to its retail customers, ensuring freedom of choice and price advantages that would result in retention of existing customers and acquisition of new customers. For example, a new tariff plan called ”More talk” was introduced in June 1, 2010, in the “Population” retail segment in order to attract new users on the territory of the Russian Federation. This tariff plan is designed first of all to attract new customers that were previously employing services from another operator of DLD/ILD telecommunication when making calls. Within the further development of the tariff options for its corporate customers, in August 01, 2010, the Company introduced six new tariffs: – «Optimal – Standard», «Optimal – Mobile», «Optimal – Federal district» inside the Russian Federation (except for the Privolzhskiy federal district); – «Business», «Active», «Exclusive» within the Privolzhskiy federal district. The abovementioned tariffs are designed based on the expressed demands of corporative customers and reflect the following fundamental differences from any previously existing ones: – a substantial decrease of the DLD prices for a number of destinations including Moscow, Saint Petersburg and constituent entities of the Russian Federation of their federal district; – uniform prices for calling mobile/cellular number throughout the whole of the Russian Federation regardless of the existing tariff zones; – flat rate within every federal district regardless of the existing local tariff zones. Besides that, corporate customers of the Company are offered an integrated package of services which, in addition to traditional DLD and ILD telephoning services, includes services geared toward the setup and provision of high-speed Internet access, the setup of virtual private networks, audio and video conference services as well as access to JSC «Rostelecom»’s intelligent platform services, including those provided by its subsidiaries. The existing portfolio of the Company’s services is developing permanently and provides the corporate customer with a full package of useful tools for efficient business practices.

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JSC «Rostelecom»’s own network of more than 90 Customer Care Centers in all the regions of Russian Federation enables the Company’s customers to settle service issues easily and quickly, get advice on JSC «Rostelecom»’s services and tariffs from highly qualified experts, obtain information about debts and details of their DLD and ILD connections, pay invoices and execute necessary contracts. Along with the development of the sales network and execution of direct contracts for DLD and ILD services the Company increased the efficiency of customer servicing and availability of long-distance circuits for communication with its customers. JSC «Rostelecom»’s Integrated Federal Number 8-800-200-00-33 (a free-of-charge hotline servicing all of the Russian Federation) enabled the Company’s customers to get information on all issues regarding JSC «Rostelecom» services, submit applications for services and contact managers 24 hours a day, 7 days a week. The Integrated Distributed Call Center of the Company (IDCC) allows to perform efficient processing of service-related customer calls. At the beginning of 2010 IDCC was integrated with an automated data recording system which files and stores information on telecommunication services provided, tariffs and billing. This allows any customer in a direct services agreement with JSC «Rostelecom» to receive information about his/her current tariff with the Company’s, his/her account information, outstanding bills or payments made for services provided via an interactive voice response (IVR) in automatic mode. In 2010 JSC «Rostelecom» also worked on expanding the network of locations where payments for the Company’s services could be made, which is to further optimize the procedures for settling customers’ invoices. In 2010 JSC «Rostelecom» paid specific attention to increasing its brand awareness, customers' loyalty and building up an image of a competent and reliable telecommunication operator among end-users.

DLD and ILD Leased Line Services In 2010 JSC «Rostelecom» remained one of the leaders in leasing digital dedicated circuits to corporate customers in the Russian Federation and abroad by leveraging its main competitive advantage: being the largest modern backbone telecommunication network in the Russian Federation. JSC «Rostelecom» leases dedicated 10 Gbit/s circuits. The service is provided on the basis of JSC «Rostelecom»’s transport network set up on the basis of modern SDH and DWDM technologies and equipment from the world's leading producers (Siemens, Alcatel, NEC, Huawei). Leasing digital channels from JSC «Rostelecom» gives the customer a chance to perform transmission of large amounts of information of any kind without any restrictions including data, voice and video traffic. Customers can also use leased channels to organize corporate networks by uniting all regional branches in a single information space. By leasing out its digital circuits, JSC «Rostelecom» guarantees the security of transmitted information. Any internal information transmitted through communication circuits is protected against any external influence, as data transmission is carried out directly without using additional cross-connection equipment. This is particularly important for the customers with a strong need for information security. Additionally, the Company ensures round-the-clock use of a dedicated circuit with guaranteed capacity, and an option for a prompt increase of a circuit capacity. The quality of the services meets Russian and international standards which is evidenced by a Certificate of Compliance of the INTEREKOMS Voluntary Certification System of services in the field of communication, information technologies and quality systems of enterprises pertaining to the service ‘Leasing an ILD/DLD digital circuit’. High reliability of the service is ensured by using the wavelength-division multiplex DWDM, ring protection of network sections, as well as executing a Service Level Agreement with the customer and the 24-hour technical support provided by JSC «Rostelecom» agencies.

Intelligent Network Services JSC «Rostelecom»’s proprietary communication network and intelligent platform enable the Company to provide its customers with intelligent network services on federal and international levels, high-quality communication, low prices and huge opportunities to gather and handle statistical information. JSC «Rostelecom» provides the following intelligent services on the basis of License no. 29777 issued by the Ministry of Communications and Information Technologies of the Russian Federation: – Free call with the «800» dialing code (Freephone); – Premium rate communication services with the «809» dialing code (Premium Rate Service); – International Freephone Service;

26 SECURING A LEADING MARKET POSITION

– Home Country Direct. Last year in order to enable the Freephone service the Company introduced the option of terminating calls to international destinations and to customer equipment connected via IP-technology. Besides that, in order to launch premium rate communication services JSC «Rostelecom» organized and put into operation 26 new services allowing users to access informational and entertainment content.

Data Transmission and Telematic Services As part of its business diversification in 2010, JSC «Rostelecom» paid priority attention to the development of data transmission and telematic services, including provision of Internet access, implementation of virtual private networks and Data Center services. Access to the Company’s high-speed network across the Russian Federation, the flexible tariff system and the commitment to top-level quality and reliability have generated significant customer demand for data transmission services In 2010 JSC «Rostelecom»’s revenue from data transmission and telematic services increased by 82% and amounted to 9 224 million rubles as compared to 5 080 million rubles (exclusive of VAT) in 2009. Besides that, the ”Personal account” information system was launched as part of the data services. This system allows the Company’s customers to register and access information on all the Agreements; on service orders placed including all the historic order records with indication of the main characteristics of the rendered services: speed, location, tariff plan, service class; on options of online reviews of traffic details for a given time period as well as sending such review’s to the users electronic mail; on invoice calculations and charges incurred. It should be also noted that the Company is progressing continually, and that JSC «Rostelecom» is striving to perfect the ”Personal account” information system by introducing new services, amendments and upgrades to it. Virtual Private Networks (IP/VPN) Services Using its own backbone network covering virtually all regions of Russian Federation, as well as the IP/MPLS high-speed data transmission network, the Company is able to offer virtual private network (IP/VPN) services which allow to integrate all of the Company’s branches located in various cities throughout the territory of Russian Federation in a protected corporate network with a common information space and a full range of highly reliable telecommunication services. Data communications security is guaranteed by the MPLS technology which implies that each customer's IP/VPN is separated from other networks, thus ensuring complete protection of traffic from unauthorized access. JSC «Rostelecom»’s IP/MPLS network has a Certificate of Packet Switch Network Compliance with information security requirements of FSTEC of Russia, which guarantees high security level of services rendered on its basis. High reliability and availability of the service is ensured by JSC «Rostelecom»’s trunk network ring protection and is guaranteed by an executed Service Level Agreement (SLA), while it is maintained by 24- hour monitoring and user technical support. JSC «Rostelecom» is able to set up a complete virtual private network of any map and any level (local, federal, and international) and implement connection and transmission of traffic through private virtual private networks. The use of common IP technology standards made it possible for JSC «Rostelecom» to integrate various services offered by the Company with services of virtual private networks, such as the International Freephone service (the 8-800 numbers), outgoing DLD and ILD IP services, Internet access services and server hosting. The common standards allow JSC «Rostelecom» to offer comprehensive services to its customers, ensuring convenience and time saving. The high quality, performance characteristics and reliability of JSC «Rostelecom»'s IP/VPN services were evidenced by a Certificate of Compliance of the INTEREKOMS Voluntary Certification system of services in the field of communication, information technologies and quality of enterprises. Virtual Private Network Ethernet Services (L2 VPN и VPLS) In 2010 JSC «Rostelecom» expanded the range of its virtual private network services. A new service allows to arrange virtual “point-to-point” and “fully connected” channels organized on the basis of Ethernet technology. Both operators and corporation may become customers of this service. The service is provided on the whole territory of JSC «Rostelecom»’s IP/MPLS network coverage including the international Points of Presence, which allows providing customers with virtual circuits just about anywhere in the world with the assistance of international partners.

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Today Ethernet is the most widespread technology of network deployment due to the vast room of its universal application and the costs of implementing solutions it exhibits. A Service Level Agreement is signed within the framework of the service to guarantee the quality of provided services. Internet Access Services JSC «Rostelecom» provides Private Internet Access using its own data channels which guarantee instant access to Russian and foreign network segments and high-speed transmission of large volumes of traffic. JSC «Rostelecom»’s Points of Presence located on the entire territory of the Russian Federation enableits customers to receive Internet access services in every region of Russia. Besides, as of the end of 2010, JSC «Rostelecom» has its own backbone network of more than 160 000 km in length which makes it possible to render services of high quality and reliability. In 2010, using a data network based on the Multi-Protocol Label Switching technology (IP/MPLS), the Company continued provision of Internet access seeking to meet the customers' requirements to full extent. Due to the great number of points of presence across the country, JSC «Rostelecom» as a backbone provider can ensure the highest quality and reliability of its services as well as provide skilled technical support to its customers nationwide. By regular and timely upgrades to its IP/MPLS network capacity JSC «Rostelecom» is able to increase the speed of the Internet connection in prompt response to its customers’ requirements. A new service called ”Corporate e-mail” is provided to JSC «Rostelecom»’s corporate customers. This service is provided on the basis of the MS Exchange server hardware and software system and allows to organize corporate e-mail system based on their domain. The high quality of the services was evidenced by a “Communication-quality” Certificate of Compliance of the Internet access services with the requirements of Voluntary Certification system of services in the field of communication, information technologies and Quality Management System of communication organization. Data Center Services In 2007 the Company began establishing data centers on the basis of its IP/MPLS network. At the end of 2009 the Data Centers in Khabarovsk, Novosibirsk, Yekaterinburg, Kazan, and two Data Centers in Moscow were brought into operation. The services offered through these Data Centers enable customers to install their own server or telecommunication equipment or rent a server of a required configuration from JSC «Rostelecom» as well as receive round-the-clock high-speed Internet access to the information resources housed on these servers. The Data Centers allow JSC «Rostelecom» customers to have high-speed access to data and information systems while being confident of the security and integrity of the stored data, as well as of a stable and continuous functioning of the equipment and information systems. The Company received a Certificate of Compliance of the INTEREKOMS Voluntary Certification system of services in the field of communication, information technologies and quality systems of enterprises for data centers services. Besides, the committed quality of services is ensured by the employment of modern technologies and is supported legally and financially by a Service Level Agreement (SLA). Audio Conference Services The Company’s Audio Conference Service enables users to simultaneously set up conversation sessions by means of a traditional telephone connection between several participants located anywhere in the world. The only thing needed is a stationary or a mobile phone. All the conference participants have the possibility to communicate with each other at the same time. The maximum number of participants is 128. With the service agreement the client gets a number expressed in the “8-800” code format as well as a login and a password in order to access the appropriate web interface via the Internet. The customer may book an audio conference session both in advance or directly prior to the start of the call. The customer can administer the audio conference session online. To organize the service the intellectual number in the “8-800” code format is used that allows the customer to pay for the audio conference session, so that the other participants do not need to also pay for the audio conference access service.

Video Conference Services As part of its modern telecommunication offers, the Company’s Video Conference service enables users to communicate ”face to face” with colleagues and partners from different cities and countries. This allows JSC

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«Rostelecom»’s customers to meet different challenges and make efficient use of their time and other resources that are consumed by travel. With over 100 video conference points on the territory of Russian Federation at its disposal, the Company is able to render video conference services to its corporate customers enabling them to communicate with companies in virtually any area of the world. Whether customers utilize their own equipment or rent it from JSC «Rostelecom», users can arrange their own video telephone communication by connecting to the Company’ network, be that in Russia or abroad. Broadcasting and television JSC «Rostelecom» provides services on distribution of television and audio broadcasting programs in the Russian Federation for television and broadcasting companies employing its transport network (analog and digital). The Company also provides air services for television and audio programs broadcasting, that is – under its license for “Telecommunication services for air broadcasting”, organizes television and radio broadcasting programs delivered from various Russian cities and the CIS countries on request by television and audio broadcasting companies. In order to organize the television and radio broadcasting services JSC «Rostelecom» maintains a Technical Center for Commutation of Domestic Long-Distance Television Programs in Moscow. This Center is fitted out with commutation and switching equipment and is connected by means of fiber-optical cables to the largest air television operator (the Federal Governmental Unitary Enterprise (FGUE) “Russian Television and Broadcasting Network”), as well as with other leading tele- and radio broadcasting companies, the Technical television center “Ostankino”, operators of space communications (FGUE “Space Communication”, JSC “Gasprom space systems”, JSC “Geotelecommunication”, JSC “Global communication”), Moscow cable TV operators, and telecom operators. JSC «Rostelecom» owns a similar television commutation center in Saint Petersburg. JSC «Rostelecom» acts as a sole Program Booking Center (PBC Moscow) which processes orders by the television and radio broadcasting companies and exercises program provision upon requests of both Russian and foreign broadcasting companies and communication administrations. It ensures prompt receipts of the video recordings of the meetings of the key state persons, of sports, cultural, political and other special events for daily news blocks of such programs as “Vremya” (Perviy channel), “Vesti” (VGTRK), “Segodnya” (NTV), etc., as well as efficient organization of direct tele- and radio bridges, translation of sport events, concerts, festivals, etc. Corporate Virtual Telephone Network (VTN) The Virtual Telephone Network service allows to organize the corporate telephone network with the common system of short numbers and distribution of incoming calls on the basis of IP-networking without the need to purchase traditional office automated telephone station(s). This service enables to use more than 100 additional smart services of the IP-commutation center of the Company. It is notable that some of these services cannot be employed on the basis of traditional digital automated telephone stations. With appropriate help via a special web interface the customer can administer the settings of its corporate telephone network and additional smart services. The functions of technical administration of the corporate telephone network are outsourced to JSC «Rostelecom». smaRTCall The smaRTCall service is an innovational service for corporate customers of JSC «Rostelecom». This service allows to reduce the costs of DLD and ILD calls from mobile phones in domestic mobile operators’ networks and the costs of national roaming. A special application downloaded to the mobile phone of the customer allows to dial any number, including a contact number from the phonebook of the mobile phone. A mobile application smaRTCall is compatible with advanced mobile phones including communicators and smart-phones. No funds are debited from the mobile network account even when in national roaming while the service is used. The customer pays for such calls according to the contract terms with JSC «Rostelecom». The download and use of the mobile application is free of charge for all the customers.

29 SECURING A LEADING MARKET POSITION

RUSSIAN OPERATORS MARKET Provision of telecommunication services to Russian and foreign operators is a traditional specialization of JSC «Rostelecom». Long-term experience in the operators' market segment and unique possibilities of the proprietary digital backbone network and its coverage enable the Company to provide ultra-high quality communication services both in the Russian Federation and abroad. Today JSC «Rostelecom» has direct connection junctions with 190 networks in 70 countries. It provides communication services to more than 600 fixed-line and mobile operators, Internet and content providers. JSC «Rostelecom»’s product portfolio includes solutions for voice, data and video transmission and offers different service levels corresponding to operators' individual requirements.

Cooperation with Russian Operators on Provision of DLD and ILD Telecommunication services In 2010 JSC «Rostelecom» continued to cooperate with Russian regional telecommunication operators to render efficient DLD and ILD telecommunication services to its customers. JSC «Rostelecom» connects intrazonal and local operators to the infrastructure of its backbone network in all regions, forming an integrated national telecommunication network. This enables the Company to provide DLD and ILD telecommunication services from any location in the country to its customers, ranging from private households to large corporations. When subscribers make DLD or ILD calls, regional operators provide initiation and termination of the call to the Company on both the intrazonal and local level. If settlements with end users as well as other operations related to customer service are carried out by an agent, JSC «Rostelecom» pays agency remuneration.

Private Circuit Services New backbone networks put into operation by alternative operators and subsequent migration of traffic to those networks have substantially increased competition in the private digital circuits segment. In order to increase the competitiveness of the private digital circuits service, JSC «Rostelecom» focused on strengthening its market positions in this segment primarily by designing flexible tariffs, ensuring high quality and reliability of services and executing Service Level Agreements with other operators. In Russian Federation JSC «Rostelecom» offers its private circuit services on the basis of its outstanding backbone digital telecommunication network. Besides, circuits are offered in the CIS countries, in Europe, Asia, America and in any other part of the world in cooperation with leading foreign operators. Furthermore, JSC «Rostelecom» offers several methods of payment, including the One Stop Shopping, which enables a customer to order all circuit elements in the national as well as international segments, execute one contract and pay for the whole range of services on the basis of a single invoice issued by JSC «Rostelecom». In 2010, the Company ensured the 100% network redundancy on the “Transit from Europe to Asia Transit” (TEA) project for further successful realization of the leasing capacity on the Europe–Asia route for the international operators. The Company won a set of tenders and increased the sales of its services due to applying reciprocal business schemes with international operators. The capacity upgrade of the “Russia–Azerbaijan” international transition allowed JSC «Rostelecom» to strengthen its positions in leasing telecommunication circuits to operators of Georgia, Azerbaijan and Iran, as well as to enter the markets of Iraq and Turkmenistan in order to offer its Internet access services. Besides, JSC «Rostelecom» and an international telecommunication provider BT jointly won the tender by NATO on establishing of the telecom network between Europe and Afghanistan, which was achieved partly due to the capacity upgrade of the “Russia–Kazakhstan” international transition. In 2010 the Company started implementing the “Establishment of the Company’s PoPs in Armenia”. The Agreements for network services were signed (concerning long-term lease of fibers and equipment appropriate for a 2*10 Gb channel for the “Iran–Erevan–Georgia” transition), as were the agreements on the rights granted to JSC “Rostelecom” to employ the physical territory of Azerbaijan for its networking purposes and on the “Georgia–Russia” submarine fiber-optic network. Once this project is duely implemented, the Company will enjoy the strengthening of its positions in the data transfer market of Transcaucasia and the Middle East.

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Data Network Services Internet Traffic Connection and Transmission via IP/MPLS Network One of the priorities of the JSC «Rostelecom»'s operations is the provision of IP-protocol services to telecom operators related to traffic transmission and Internet access. In 2010 the market share of the Company (that is, including the share of JSC “RTComm.RU”) in trunk Internet segment rose to 44%, which is a rise on 2009. JSC «Rostelecom» saw a significant increase in demand logically following the presence and employment of an extensive high-speed data transmission network, direct connections to the largest traffic exchanges in Russia and abroad, high reliability of its network and high quality of services guaranteed in its SLAs. Further expansion of peer-to-peer relations with international and Russian operators in order to provide better network interconnectivity, higher quality Internet access and lower Internet traffic costs comprised a significant part of JSC «Rostelecom»'s operations in 2010. The main stage in developing the international MPLS segment of the Company’s network involved increasing the European network capacity up to 200 Gb on the year end and expansion of peer-to-peer relations with Russian operators and content-providers to 470 Gb. The Company is currently present at such traffic exchanges as LINX (London, UK), DE-CIX (Frankfurt, Germany), Kleyrex Internet Exchange (Frankfurt, Germany), MSK-IX (Moscow), Netnod (Stockholm, Sweden), AMS-IX (Amsterdam, the Netherlands). Virtual Private Networks Traffic Connection and Transmission (InterAS VPN) In 2010 JSC «Rostelecom» actively promoted its new service for telecom operators: “Virtual Private Network Traffic Connection and Transmission (InterAS VPN)”. With this service, operators can extend their own VPN services to any location as long as it is covered by the JSC «Rostelecom»’s data network. Such inter-operator cooperation allows deployment of a Virtual Private Network (VPN) between offices located on networks of different operators. The networks can even be located in different countries. Regardless of the distance between the user's networks or his offices or locations, the IP/VPN ensures their complete interconnectivity, security, operation, and any business applications connectivity. The InterAS VPN service has the same advantages as the IP/VPN service, including the Quality of Service support (QoS), the opportunities to impose any VPN map imaginable, highly secure data transmission, and reduction of costs of equipment and network maintenance. The fundamental principles used for establishing a network interconnection, including coordination of the Classes of Service (CoS) and the inter-operator SLAs, guarantee high quality of the IP/VPN services from both parties. The main competitive advantages of the InterAS VPN service provided by JSC «Rostelecom» are the wide geography of its own backbone network, customer’s expenditure optimization, flexible tariffs, advanced technologies and equipment, and a Certificate of Compliance of a packet commutation network with the information security requirements of FSTEC of Russia. Virtual Private Network Ethernet Services (MPLS L2 VPN/VPLS) In 2010 within the development of the Product Portfolio of the Company there was a Virtual Private Network Ethernet Service (VPLS) launched on the basis of MPLS L2 VPN. The service is intended for telecom operators and enables those to connect geographically dispersed customers' local networks both on “point-point” and “fully connected” basis via JSC «Rostelecom»’s data network. The service is aiming to simplify the network control for the operators as well as reduce costs of maintaining such a network. Besides, to reach high service quality standards JSC «Rostelecom» and a user sign an SLA determining the quality of service provision and additional agreement on service level extending the guarantee validity between end devices (CE-CE). Data Center Services In keeping with its business diversification efforts, in 2010 the Company actively developed and promoted its Data Center services to providers of hosting and content services. Data Center services offered by JSC «Rostelecom» like installation of one's own equipment in a data center or a rental from the Company of a separate server of a certain configuration are already used by large federal and regional content providers. Besides that, the advantages of JSC «Rostelecom»’s Data Centers include: connection to the Company’s powerful data network, 24-hour technical support, uninterrupted power supply and protection from unauthorized access. Data Centers are located in Moscow (two of them), Yekaterinburg, Novosibirsk, Khabarovsk and Kazan.

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In order to attract content and service providers to the network of JSC «Rostelecom», “Burst”, the special tariff plan employing an asymmetric band, was developed in the accounting period. This tariff allows customers to choose the necessary speed of the outgoing connection of their equipment given the certain correlation of incoming and outgoing traffic that undoubtedly gives an advantage to content and service providers. Cooperation with International Operators In 2010 the Company continued to actively foster cooperation with foreign telecommunication operators and telecommunication service providers, so as to further strengthen its positions in the international traffic market. In 2010 the volume of ILD traffic from foreign operators comprised 3,362 million minutes, which is similar to that of the previous year. The Company’s income from the ILD traffic transit and termination have also remained on the level of the previous year of 2009 and totaled 6,127 million rubles. In 2010 in the context of developing international cooperation the Company signed more than 15 new Agreements on direct collaboration with communication operators of foreign countries and the CIS. Among them there are Kaztranscom (Kazakhstan), VivaCell (Armenia), GNC Alfa (Armenia), «K-Telecom» (Armenia), «LMT» (Latvia), «MGI» (Switzerland), OTEGLOBE (Греция), Lebara (Great Britain), and others.

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COOPERATION WITH GOVERNMENT ENTITIES JSC «Rostelecom» occupies a special position in the Russian telecommunications market and traditionally supplies the telecommunication services to the government entities including security services. The high quality and security of the services as well as the professionalism of the Company allow it to be a trusted partner for such respected state bodies of the Russian Federation as the Federal Security Guard Service, the Supreme Arbitration Court, the Federal Custom Service, the Ministry of Home Affairs, the Pension Capital Fund, the Supreme Court, the Russian Post, the Federal Registration Service, the Ministry of the Russian Federation for Communications and Mass Media, the Federal Property Administration Agency and others. The proprietary high-speed backbone network of the Company spanning all of the territory of the Russian Federation together with the use of state-of-art equipment enable video conference sessions of top quality to be provided to the interested state authorities of the Russian Federation. Thus, on February 3, 2010, the Company provided the multichannel video conference of the Heads of the Council of Federation of the Federal Assembly of the Russian Federation with the State Secretaries – Deputy Heads of federal executive bodies and heads of the constituent entities of the Russian Federation. This video conference was run as part of an interactive meeting on “Legislative support of modernization and improvement of the quality of life for the stable development of the Russian Federation”. On March 17, 2010, JSC «Rostelecom» provided its backbone resources for establishing the multichannel video conference with the Minister of telecommunication and mass media of the Russian Federation, Igor Scheglov, during his visit to Ural. It became part of the Final meeting of the organizing committee for preparing and holding the event in the honour of the 150th anniversary of A.S. Popov’s birth in Krasnoturiinsk of the Sverdlovsk Region. On September 9-10, 2010, JSC «Rostelecom» provided special telecommunication support for the Global political forum “Modern state: democracy standards and effectiveness criteria” held in Yaroslavl. The Company provided two allocated channels within the geographically dispersed routes of “Moscow–Yaroslavl” and ensured there was zero disruption to the broadband Internet access at the speed of 50 Mbit/s as well as five additional channels to connect automated telephone stations to for a total of 300 numbers. Moreover, the Company provided three channels for TV signal transmission from the location in Yaroslavl where the Forum was held to the Company’s Technical Center of commutation in Moscow followed by its further broadcast to the broadcast television complex of the Vserossiyskaya Teleradioveschatelnaya Kompania (Pan-Russian State Television and Radio Broadcasting Company), or VGTRK. Within the All-Russian population census that took place on October 14-25, 2010, the Company provided the “hot line” that encompassed all of the regions of the country. A number with a “8-800” code format was furnished in order to provide this free-of-charge service nationwide. The Russian citizens of any region of the Russian Federation could call and address their questions on the population census from any telephone using the automated or delaid long-distance communication from any call office. In 2010 JSC «Rostelecom» rendered the telecommunication support in putting up the official website of the Ministry of Defence of the Russian Federation. The section on the “Heroic deed of the people in the Great Patriotic War of 1941-1945” (http://www.podvignaroda.mil.ru) of the official website of the Ministry of Defence of the Russian Federation (http://www.mil.ru) performed a certain run-up to the celebration of the 65th Anniversary of the Victory Day. The Ministry of Defence of the Russian Federation published some archived information and data on the Great Patriotic War in this section. Thus, the memory of the heroes of the Great Patriotic War of 1941-1945 was honoured and perpetuated by the executed work. Moreover, JSC «Rostelecom» rendered telecommunication services to the Ministry of Communications and Mass Media of the Russian Federation within a project on the development of a common information and telecommunication infrastructure of the state system of issuance and control of passport and visa documents of new generation in 2010. Other significant events of 2010 are the following: – JSC «Rostelecom» rendered services on the development of a common information and telecommunication infrastructure for the postal operator of the Russian Federation – the Russian Post. The infrastructure connected more than 9000 offices of the postal service. – Within the implementation of the “Justice” Russian Federation state system,the Company continued constructing the wide-encompassing telecommunication network of data exchange automated system to create the common information space of Regular Courts and Law departments under the Supreme Court of the Russian Federation. The constructed telecommunication network provides the information and technological support of the court procedures on assisting the required balance between citizens’, society’

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and state’ demand for free unrestricted information and yet the necessity to sometimes restrict releases of certain information. At the end of 2010 JSC «Rostelecom» had connected 285 objects of information sharing for the Russian Federation state automated system called “Justice”. – JSC «Rostelecom» rendered the package of informational and technological services on leasing the domestic digital networks and communication paths to guarantee the functioning of the equipment involved in the Russian Federation “Election” State automated system. Having implemented this system allows to automate the process of organizing an election, as well as holding an election and ensuring the transparency of the election’s results. This is a major aid to the exercise of the citizens’ rights to a democratic transparent election according to the Constitution of the Russian Federation. JSC «Rostelecom» guarantees the high quality and reliability of its services through the long-term experience in the field of rendering telecommunication services, through its wide network geography and use of the modern communication systems. It is the defining factor of the confidence and trust given to the Company by the state bodies and authorities.

THE SOCHI 2014 OLYMPIC WINTER GAMES In January 2009 JSC «Rostelecom» won a tender arranged by the Organizing Committee of Sochi 2014 Olympic Winter Games. Together with JSC “Megafon”, JSC «Rostelecom» was designated General Partner of the XXII Sochi 2014 Olympic Winter Games in the “Telecommunications” category and was granted official rights to employ the ”Telecommunications partner / Telecommunications operator of XXII Sochi 2014 Olympic Winter Games” title by the Organizing Committee. It was not accidental that “Telecommunications” was the first category where the General partners were finalized. Sochi 2014 Olympic Winter Games were announced by the organizers to be innovative games, and telecommunication is a sector of economy directly associated with both infrastructure and innovation. As Russia’s national telecommunication operator, JSC «Rostelecom» is well aware that the implementation of large-scale projects should always start laying the foundation in the telecommunication. The key advantage of JSC «Rostelecom» is its ability to ensure complete turn-key technological implementation of the project. JSC «Rostelecom»’s unique capabilities enable it to create a basis for provision of advanced telecommunication services in the south of Russia prior to, during and after the Olympic Games. JSC «Rostelecom»’s experienced employees are currently undertaking tremendous scope of work in order to prepare and establish the infrastructure for the coming Olympic Games. Key investment areas in the Southern Administrative District (SAD) involve construction of the backbone network for the Integrated Information and Telecommunication Infrastructure of the Olympic Games 2014, that is – including the construction of the submarine segments of the network, as well as extensive upgrade and modernization of the existing digital backbone transmission links in order to increase the network throughput by dozens of times, improve the network reliability and optimize the backbone network performance. In 2010 the volume of the core telecommunication services rendered to the Autonomous Non-commercial Organization (ANO) “Organizing Committee of the Sochi 2014”, such as the DLD/ILD communications, local and intraregional telecommunication, allocated Internet access, IP/VPN services increased greatly. The non- core services, such as the “Data Processing Reserved Center” and audit services, were purposely designed for provision to ANO “Organizing Committee of the Sochi 2014”. The Company’s specialists are working on constructing the IT-infrastructure for the Organizing Committee for the Olympic Games at Sochi 2014. In 2009 the Regional Center of Data Processing for the Olympic Games Organizing Committee (Phase 1) was put into operation in Moscow. In 2010, the OCS telephoning equipment was installed and wired in the offices of ANO “Organizing Committee of the Sochi 2014” in Moscow and Sochi. Most of the equipment for the Regional Center of Data Processing (Phase 2) was also installed and set in Moscow. In 2010 JSC «Rostelecom» together with JSC “Megafon” designed the “Concept of creating the Integrated Information and Telecommunication Infrastructure of the XXII Winter Olympic Games 2014 and of the XI Winter Paralympic Games 2014 in Sochi”. Throughout the preparation of the XXII Olympic Winter Games as well as for the whole of their actual duration particular attention is (and will be) paid to protecting the environment of the alpine resorts area. In 2010 JSC «Rostelecom» and ANO “Organizing Committee of the Sochi 2014” drew up and signed a “Memorandum of cooperation in the field of ecology and environmental protection within the initiative of the Organizing Committee of the “Sochi 2014” on sustainable development”. The main goal of JSC «Rostelecom» is to make the ”This is our Olympics” motto relevant for each Russian citizen. The Company’s aim is to bring this Olympics into each and every home. Television broadcasts from numerous venues, comprehensive information about athletes, coaches, and their achievements, specific

34 SECURING A LEADING MARKET POSITION features of different sports and sports equipment should reach any locality of the country, whatever its population. This will help Russian citizens see and “feel” the Olympics at least as well as the spectator on the tribunes would see and feel, if not even better.

ELECTRONIC GOVERNMENT PROJECT Since 2002, in order to improve efficiency and performance of the public agencies, the Government of the Russian Federation has been implementing a federal special program called ‘Electronic Russia’. The ‘Electronic Government’ project within the framework of this federal program targets ensuring the ease of exercise of the rights of citizens and organizations to get unrestrained access to public services and information about responsibilities and organizational structures of governmental authorities and public institutions. On August 26, 2009, in accordance with the Order of the Government of the Russian Federation, JSC “Rostelecom” was designated the sole national telecommunication operator of the “Electronic Government” infrastructure. The nationwide project will establish a centralized infrastructure that will house an integrated informational environment of the Government of Russia and provide easy access for citizens and organizations to information and public services of governmental and local municipal authorities. In 2010 the following key results were achieved in the course of work on the “Electronic Government” infrastructure : • The implementation of efficient provision of 70 government services in electronic form regarding both individuals and legal entities by 21 federal authorities of executive bodies on the Government services portal. • 31 web services of 18 agencies were integrated with the System of interagency electronic interaction. • 500 points of public access (Infomats) to information in electronic form about public authorities’ work and services were installed. The information and payment gateway to provide the payment for the government services from both the Government services portal and Infomats was designed. • Series of undertakings were accomplished in relation to creating and developing regional segments of the “Electronic Government” infrastructure. • The Company created software and hardware infrastructures for the integrated trust resource for digital signatures, and the target level of twelve certifying centers being included into the resource which was set by the “Electronic Russia” Federal special program, was achieved. • JSC «Rostelecom» created the standard identification subsystem to use in the infrastructure of common electronic cards. • The Company prepared the package of documents and started working out on its commercial Certifying Center for the needs of electronic government. • Along with the creation of the Common vertically-integrated automated information system that is to provide monitoring of the efficiency of federal authorities’ operations, as well as of the subjects’ of the Russian Federation public authorities and local authorities, in achieving key goals in the social and economic development of the Russian Federation, in the industry development, in implementation of the top-priority national projects and government programs (State Automated System “Management”), JSC «Rostelecom» developed the “Management” State Automated System (SAS), the “Federation” code, the Information system of work support for the Russian Federation Government through development of the top-priority Information system of work support for the Chairman of the Government of the Russian Federation. The Company also created and developed department information systems of the Russian Federation Ministry of Regional Development, developed department systems of the Ministry of economic development and trade of the Russian Federation, created and developed department information systems of the Federal Service Guard of the Russian Federation, designed and developed department information systems for the Ministry of Communication and Mass media of the Russian Federation, created regional level of the state automated system “Government”. • The demo-version of the “State Sale” resource was launched. The final official version of the resource is ready to be introduced to the public. The Company has designed the prototype of the information analysis system of this “State Sale” resource. • The demo-version of the “Independent Registrar of the State Sale resource” information system was launched. The system is ready to be introduced for industrial exploitation.

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In 2011, the project will be implemented in three main directions: 1. Guaranteeing the exploitation of the information systems created in 2009-2010 as part of the electronic government infrastructure. 2. Performing scientific research, development works and other activities related to the events of the “Information-orientated society (2011-2020)” Government program approved by the Russian Federation Decree No. 1815-r as of October 20, 2010. 3. Developing the regional segment of the electronic government infrastructure within the general investment program of JSC «Rostelecom». The ”Electronic Government” project will facilitate professional development of government officials and increases in computer literacy of the Russian citizens in the regional areas.

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OPERATING AND FINANCIAL RESULTS

Major economic indicatiors

2009 2010 2010/2009 Item RUB thou. RUB thou. % Revenue from sales of goods, products, works, services 61 223 505 60 527 413 -1,1 including revenue from telecommunication services 59 560 969 58 460 504 -1,8 Costs 53 710 366 54 566 360 1,6 Operating profit 7 513 139 5 961 053 -20,7 Profit before taxes 6 522 134 4 428 863 -32,1 Net profit 5 101 583 3 459 752 -32,2

Revenue by users’ type and category* 2010 (without VAT) including from public Type of services RUB thou. RUB thou. Revenue from telecommunication services – 58 460 503 19 150 492 total, including: intrazonal, DLD and ILD telecommunication 38 531 577 19 113 567 local telecommunication 134 557 35 817 from connections provided by means 786 786 of all types of public telephones documentary telecommunication 4 496 474 321 including the services in the data 4 328 770 321 communication network and telematic services radio telecommunication, broadcasting, TV 218 169 0 and satellite telecommunication mobile telecommunication 0 0 connection and traffic transit services 15 078 940 0 Other 0 0 * In accordance with Form No.65 – svyaz for 2010.

Expenditures 2009 2010 Item RUB thou. % RUB thou. % Telecommunications operators 32 180 027 59,9 31 466 718 57,7 Payroll 7 469 869 13,9 7 457 452 13,7 Fringe benefit expenses 1 444 175 2,7 1 518 617 2,8 Depreciation 4 576 237 8,5 5 394 482 9,9 Material costs 578 425 1,1 569 456 1,0 Other 7 461 633 13,9 8 159 635 15,0 TOTAL 53 710 366 100,0 54 566 360 100,0

Efficiency Indicators Measure- 2010/2009 Item 2009 2010 ment unit % Operating margin % 12,3 9,8 - Net margin % 8,3 5,7 - Costs per 100 RU of revenue RUB 87,7 90,2 2,4 OIBDA* RUB, thou. 12 089 376 11 355 535 -6,1 OIBDA margin % 19,7 18,8 - Revenue per employee RUB, thou. 3 038,4 3 312,5 9,0 Ner profit per employee RUB, thou. 253,2 189,3 -25,2 * Average number of employees on payroll over the reporting period including part-time workers to be considered

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Net Assets as of December 31, 2010 Item RUB thou. Net assets 54 182 042 Charter capital 2 429 Reserve fund 364 Net assets to charter capital ratio 22 306 Net assets to charter capital and reserve fund ratio 19 399

The Company’s Interests in Telecommunications Operators amounting to at least 10% share in their Charter Capital* Entity Core Business Stake Contribution Key performance indicators in to Charter Number of Revenue Net profit Charter Capital sub- RUB RUB Capital RUB scribers / thou. thou. % lines JSC “MTs NTT” local telecommunication and 100,00 150 000 15 019 638 640 21 514 data services to end users JSC “ZEBRA local telecommunication and 99,99 32 450 000 1 702 399 357 (28 857) TELECOM” data services to end users JSC “GLOBUS- local telecommunication and 94,92 112 000 63 056 915 039 48 745 TELECOM” data services to end users JSC “GlobalTel” mobile satellite telecommunication services via 51,00 5 100 000 328 164 180 (198 715) GlobalStar network JSC Internet access services 99,51 40 800 000 6 105 4 167 307 50 573 “RTComm.RU” JSC “MMTS-9” telecommunication services 36,86 4 756 - 471 936 78 460 JSC “WestBalt local telecommunication and 10,00 4 051 200 34 902 237 145 18 504 Telecom” data services * JSC «Rostelecom» also has stakes in other entities which currently do not provide any telecommunication services.

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ENERGY RESOURCES USED

The use of energy resources in 2010 Measurement Energy resources Consumption Cost, RUB thou. unit

1.Fuel and technologic liquids 261 809,12 For boilers 72 374,63 m3 67,31 Other 114,56 ton 82,00 Coal ton 2 063,59 7 364,63 thou. liters 89,00 Diesel fuel/Oil 24 082,67 Ton 1 039,25 Ton 882,29 Gas (including gas condensate) 39 102,23 thou. m3 13 022,88 Black oil fuel - 0,00 0,00 Kerosene ton 77,25 1 710,54 For transport and mechanisms 145 138,62 ton 942,45 Fuel 137 287,95 l 6 216 494,66 ton 14,95 Oil and technological liquids 7 850,67 l 91 451,24 For technological equipment 44 295,86 ton 1 983,89 Fuel l 186 441,26 41 923,33 m3 271,50 ton 25,35 Oil and technological liquids 2 372,54 l 6 551,72 2. Communal services 735 018,93 Electric power supply thou. kWh 200 794,47 572 674,27 Gkal 126 006,89 Heating 162 344,66 ton 489,605

39 REORGANIZATION

REORGANIZATION

Reorganization of JSC «Rostelecom» and of the Interregional Companies of JSC “Svyazinvest” In 2009 JSC «Rostelecom»’s parent company, JSC “Svyazinvest”, worked out a new development concept calling for the establishment of a single federal operator by means of reorganization in the form of a merger of its seven interregional telecommunication companies (ITCs of JSC “Svyazinvest”) and JSC ‘Dagsvyazinform’ with and on the basis of JSC «Rostelecom». The selected model of the reorganization of the company members of JSC “Svyazinvest” Group will allow for exploitation of the financial synergy created, resulting in (but not limited to) reduction of capital expenditures due to the usage of common integrated infrastructure and reduction of administrative and general management expenses due to economies of scale of the operations. As a result of the reorganization the territorial separation of the operating areas of ITCs of JSC “Svyazinvest” as well as the separation in terms of types of services offered by JSC «Rostelecom» and ITCs were eliminated. Therefore, the new integrated telecommunication operator to be established as a result of the merger will be able to offer the widest possible range of modern communication services to its customers throughout the regions of the country. Competitive advantages of the new Company will ensure maintaining leading positions in the traditional segments of fixed-line telephoning and Internet access, consolidation and strengthening of its presence in the mobile communications market and expansion beyond Russia. Moreover, the planned reduction of the number of management levels in the reorganized Company will positively affect operational flexibility and efficiency of decision-making as well as preclude the undertaking of certain procedures which are questionably necessary and are currently part of the JSC “Svyazinvest” daily business – for example, the approval of the related party transactions. The forthcoming reorganization will also improve liquidity of the new merger Company’s shares and increase its market capitalization. The merger Company will be able to get higher credit rating which in its turn will open opportunities to borrow funds in larger amounts and on better terms and conditions. In October 2009 the Board of Directors of JSC “Svyazinvest” approved the reorganization plan and in December the according concept was approved by the Government of the Russian Federation. On June 26, 2010, the General Shareholder’s Meeting approved of the decision to reorganize JSC «Rostelecom» by merger with JSC “CenterTelecom”, JSC “SZT”, JSC “VolgaTelecom”, JSC “UTK”, JSC “Uralsvyazinform”, JSC “SibirTelecom”, JSC “Dalsvyaz” and JSC “Dagsvyazinform” as well as of the decision to convert their shares into ordinary shares of the new Company at a particular rate. The compulsory shares buy-out from the shareholders who didn’t support reorganization followed the decision of the Annual General Shareholder’s Meeting. The Company paid 6,1 billion rubles based on the ransom price of 86,21 rubles per share. On February 17, 2011, the Federal Service for the Financial Markets of the Russian Federation registered the additional issue of 2 216 163 000 ordinary registered non-documentary shares of JSC «Rostelecom» with a par value of 0,0025 rubles each in order to convert into them the ordinary and preference shares of the companies involved in the merger. Moreover, on February 15, 2011, the Federal Service for the Financial Markets registered an issue of bonds of JSC «Rostelecom» totaling 31,56 billion rubles. The bonds floated by the companies involved in the merger are to be converted into issued bonds. On March 25, 2011, the companies involved in the merger applied to the registering body to make an entry to the Uniform State Register of Legal Entities about the termination of their activity in connection with the merger on the basis of JSC «Rostelecom». On April 1, 2011, the companies were withdrawn from the Uniform State Register of Legal Entities. At the same time the securities of the companies involved in the merger were converted into corresponding securities of JSC «Rostelecom». Thus, JSC «Rostelecom» became the successor of all the rights and obligations of these companies and legally the procedure of creation of the merger company on the basis of JSC «Rostelecom» was completed. On April 28, 2011, the Federal Service for the Financial Markets registered reports about the additional issue of ordinary registered non-documentary shares of JSC «Rostelecom». Thus, the Company placed 16 additional issues of 2 214 561 949 ordinary shares. On May 5 and 12, 2011, the report on the results of the additional issues of the bonds of JSC «Rostelecom» was registered. In 2011, following the reorganization of JSC “Svyazinvest” holding company, an integrated telecommunications company able to render a wide range of services was established on the basis of JSC «Rostelecom». The integrated company will render an extensive package of services and data transfer throughout thr territory of the Russian Federation. The reorganized company shall become the “national

40 REORGANIZATION champion” in the telecommunication industry in spite of the growing competition from private telecommunication providers. Business Integration At the moment the main attention of the managers of the merger company is focused on fast and effective operational integration of JSC «Rostelecom» and the ITCs. In order to assist the management of the transition there was an operating integration program (hereinafter, the Program) established. The Program includes the measures proposed in assistance to the expected transition to integrated operating processes, common information systems and an integrated network infrastructure, which is integral to all of the business’s functional directions. In 2011, the main emphasis of the Program will shift towards the commercial operations in order to provide customers with a smooth transition to the integrated service standards, to the recognition of a newly formed brand and to the implementation of segment-orientated sales and services. The Company is producing efforts in uniting and interconnecting its backbone network lines, as well as in the development of the integrated technical standards and equipment standardization. The optimization of the network resources, optimization of access networks and implementation of the integrated information system are all in progress. Besides, the Company will provide the equalization of organization structures of functional blocks in Macroregional and regional branches and implementation of budget planning processes and uniform financial policy. Special attention will be given to keeping the high-skilled specialists, creating a new system of motivation and developing a healthy corporate culture. As part of the integration of JSC «Rostelecom» and the ITCs certain use will be made of the potential of the companies joining JSC «Rostelecom» in the process of reorganization as well as of the recently purchased business assets of the group of NTK companies. Efficiency Enhancement of the Merger Company In 2010 the Company and the ITCs initiated several projects to raise efficiency of their key activities, all of which are still on full throttle. In particular, there were/are projects run on increasing the turnover of the customer services, optimizing resources employed in the operations, increasing the number and the efficiency of the customer service outlets. For example, in 2010 the Company provided its customers with an option to pay for its services via the Company’s official website using banking cards of all the major payment systems as well as via secure online e-payment systems. Several of the ITCs also improved their payment channels, including the introduction of mobile and Internet applications, as well as means self-service. In 2010 the customer service centralization continued, as did the measures on improving the standards of quality of customer service. Several ITCs centralized their technical maintenance and administration functions. Due to unification and optimization of key business processes within the integration of the companies involved in the merger, the Company intends to reduce its operating expenses and increase the efficiency of the management system and organization. Synergies of all sorts are expected to emerge from optimizing the operations of the communications network, centralizing the networking processes and the development of information technologies, as well as centralizing and eliminating the duplication of certain services. Besides, the organization of key business processes, such as sales and customer service, marketing, procurement management will be revised. Thus, in 2010 the Procurement Department was established in the Company. This department is responsible for creating an integrated uniform block of the procurement management of the merger company, for integrating procurement activities of all the elements involved, and increasing transparency and economic efficiency of the procurement processes. The department’s work joins the activities of the Tender Committee of the Company whose mission is to ensure the most efficient decision-making on procurement of goods, services and resources. At this stage the main goal of the Procurement Department is coordinating the merger Company’s procurement in order to reduce procurement prices by exploiting the economies of scale. Operating efficiency of the merger Company in the market of telecommunication services will also rise given that the level of competition in a range of services that both the Company and the ITCs used to provide will fall. The competitive edge for groups of services, on the other hand, will increase since it will be possible to segment the customer base and structure sales and service channels accordingly.

41 REORGANIZATION

In 2011 the Company has begun establishing centralized and unified information systems, including the uniform Enterprise Resource Planning (ERP) System, to increase transparency and efficiency of its business management. Optimizing the Organizational Structure In 2010 the Company worked on a standardized structure for all management levels, as well as drew up the detailed structure for regional subdivisions for approval as part of the project of designing the corporate structure of the merger Company. Based on the best practices of JSC “Rostelecom” and the ITCs and taking into consideration the region-specific characteristics of the subjects of the Russian Federation, the functional organizational structure conforming to the needs of the business during and after the reorganization was devised. The fundamental goal is creating the structure that will allow to minimize the general risks of reorganization related to its potential impact on the business and the latter’s relations with customers as well as the risks of instability in the quality of key processes. The project concept proposes step-by-step change towards the target structure through the stage-by-stage integration of the management processes and the communication networking processes of the ITCs and JSC “Rostelecom”. The target structure of the merger Company is based on full retention of the existing centralization degree in the regions, where a positive outcome has already been achieved, while the foundation for further centralization of support functions is gradually introduced to the structure. All the actions concerning the project realization were planned, approved and executed in accordance with the current legislation, decisions of authorized bodies of JSC “Rostelecom” and the internal regulatory documents of the Company. Average number of employees on payroll including part-time workers and workers under civil law contracts over 2010 was 18,809 employees. Average monthly salary of JSC «Rostelecom»’s employees grew by 9% on the previous year and amounted to 33,033 rubles.

Staff Numbers and Average Salary Trends*

RUB 60 000 22 926 22 178 21 218 20 308 50 000 18 809 20 000 Average monthly s alary , RUB 40 000 33 033 29 232 30 306 30 000 23 337 Staff number, 10 000 employees 20 000 18 257

10 000

0 0 2006 2007 2008 2009 2010 Employees

* Average number of employees on payroll over the reporting period including part-time workers and workers under civil law contracts to be considered.

Guaranteeing High Quality Telecommunication Services While offering its customers existing services and developing new telecommunication services, JSC “Rostelecom” traditionally places high emphasis on the quality of its products to ensure their competitive advantage on the market. In December 2010 the Company received prolongation of its Certificate of Compliance of the Quality Management System (QMS) with the “GOST R ISO 9001-2008” standard. This proved that the Company’s operations and quality management processes comply with the best world practice.

42 REORGANIZATION

The distinctive feature of the ISO 9000 standard is that it imposes prerequisites not on the quality of services or products, but on the management system in place which operates in such a manner that the customer satisfaction with the quality of services is a natural consequence. ISO standards of the current series are the best known and the most popular today. They are recognized throughout the world and are accepted as national standards in more than 140 countries. Besides, in 2009 JSC “Rostelecom” received Certificates of Compliance of the INTEREKOMS Voluntary Certification system of services in the field of communication, information technologies and quality of enterprises for all the core services of the Company. All JSC “Rostelecom” products, including traditional services (private digital circuits, traffic transmission, etc.) and data communication and intelligent networking services, have been identified, approved and stated as compliant with the requirements of appropriate regulatory documents. Certificated services of JSC “Rostelecom” are yet another proof that the Company provides telecommunication services of a committed high quality. meeting customer requirements and complying with technical regulations and standards.

43 DEVELOPMENT PRIORITIES

THE COMPANY’S DEVELOPMENT PRIORITIES AND PLANS The JSC “Rostelecom”’s strategy consists of development of a universal telecommunication operator that would provide the widest possible range of telecommunication services to retail customers, businesses and state agencies throughout the Russian Federation. The strategic goal of the Company is to become a leader in the Russian telecommunications market in terms of income while at the same time increasing the business efficiency. Achieving this will result in an increase the Company’s capitalization, which is the main state asset in the telecommunication industry. The general strategic initiatives of the merger Company are: ƒ Transition to a single brand The merger Company will operate under the JSC “Rostelecom” brand, which is one of the strongest national brands in the Top-10 brands with the highest loyalty and trust level with the Russian citizens according to a research by the “ROMIR” holding company (www.romir.ru). The JSC “Rostelecom” brand recognition throughout the country will allow to attract and maintain customer loyalty for the whole rande of telecommunication services of the merger Company as well as to create and sustain the image of a competent and reliable telecommunication provider for end users. ƒ Mobile communication service development Establishing a proper federal mobile business as part of the reorganization of the mobile assets of JSC “Rostelecom” groups of companies is another natural strategic step. Such mobile business can, for example, engage in providing mobile communication services and wireless broadband Internet access, amongst many other services. Besides, the reorganization of mobile assets will ensure certain cuts on investment thanks to the integrated technical policy as well as the synergic implication drawn from the union of stationary and mobile businesses. ƒ Development of the broadband Internet access services in the mass-market segment The Company is planning to implement this strategic initiative by launching and promoting the broadband Internet access services in the market for common federal broadband products, as well as including this service in the packages of other communication services, such as the mobile communications, pay-TV and other services. The further development of the sales channels and maintenance services and the implementation of the best practices in organizing the user support, including the establishment of the Integrated Call-Center, the preparation of the standardized product options for partner networks, and increasing the efficiency of direct sales, will also provide for strengthening the competitiveness of the Company in this segment. Moreover, highly maintained parameters of reliability, of connectivity (including the key Internet content resources), of ensuring the data communications network is reservable and of sufficient capacity are undoubtedly the competitive advantages of JSC “Rostelecom” as a player in the broadband Internet access market. ƒ Development of the pay-TV service Here the priority for the Company is the development of technologies related to Internet-television (including IPTV). It is expected that the integrated structure of the channel packages be designed as a service, as is the integrated content library including a “video upon request” option, as well as an integrated portfolio of services including music, radio, user content, and information. Moreover, the creation and promotion of an Internet-television service is planned as part of this trend. The development of pay-TV will be implemented by means of including this service to a service package. ƒ Protection of existing stationary business at market mass segment JSC “Rostelecom” is planning to carry out a number of measures pointed at saving its subscribers base and non-admission of fast revenues stagnation, such as holding a balanced tariff policy, service packaging, implementation of new payment systems for zonal and DLD/ILD communications, optimizing tariffs on local communications and differentiating proposals to different users segments. ƒ Strengthening of positions in the corporate segment of the market The Company is planning to further strengthen its market positions in the market segments for corporate customers and government bodies – first of all, by increasing the sales efficiency. Implementing

44 DEVELOPMENT PRIORITIES

innovative decisions on the basis of the Integrated Data Processing Center is also on the agenda for JSC “Rostelecom”. The introduction and development of the software production platform as a service (SaaS) will allow to provide electronic state services to the citizens as well as large corporate customers and to establish partner business-models of rendering services to medium and small business. The Company plans to create and provide the “Electronic region” solutions for the regional authorities as part of the “Electronic government” service. ƒ Optimizing the business in the providers market segment One of the main goals of the Company in this segment is providing high quality of the IP-traffic transmission by maintaining direct connections with key content resources of the Internet and enabling redundancy of its own network as well as attracting more content-providers to hosting their content with JSC “Rostelecom”. Besides, the Company is aiming to develop trans-border services of IP-transit for foreign partners and to implement projects on transit routes including the “From Europe to Asia” and the “From North to South” transits. ƒ Developing the Moscow market Here the main goal of the Company is to promote its services of wire broadband Internet access and pay-TV by leveraging the “National telecommunication” group of companies, primarily but not exclusively by keeping at constructing the fiber-optic transmission systems (FOTS). At the same time the Company plans to develop mobile business within partnership with SkyLink group of companies. The key points to be noted down about the Company’s growth are: the mobile communication services and wireless broadband Internet access, services for corporate customers as well as wire broadband Internet access. Establishing the federal mobile communication network, FOTS mass construction and significant growth of the backbone capacity of the Company will all be the factors of tremendous value in this growth.

45 TELECOMMUNICATIONS NETWORK

TELECOMMUNICATIONS NETWORK OF JSC “ROSTELECOM”

JSC “Rostelecom” owns a unique and extensive telecommunication network totaling approx. 500 thousand kilometers in length, covering almost the entire Russian Federation and interconnecting networks of regional and local operators, integrating them into a nationwide telecommunication network. JSC “Rostelecom”’s network is the fundamental cornerstone of the Company’s success and its strong standing as a reputable hi-tech telecommunication provider both in the Russian market and among its international partners. State-of-the-art technology underpinning the Company’s network enables it to become an integrated operator for its customers and provide a full range of high quality telecommunication services conforming to their needs. As the very foundation of JSC “Rostelecom”’s business, the network provides a basis for enhancing the Company’s competitive strengths as a universal operator: ability to offer a broad range of services from a single source, traditionally high network quality and reliability ensured by state-of-the-art equipment and network redundancy. Moreover, the network is the basis for development of innovative features and products that meet evolving needs of end users and telecommunication operators alike. That is why the strategy of network infrastructure development and improvement takes up significant efforts on the Company’s side. JSC “Rostelecom”’s investment policy targets further development of its key asset – the high-speed telecommunication network – employing state-of-the-art technologies and equipment. The Company increases the capacity of its technological infrastructure, enhances its reliability and stability by employing ring network redundancy as well as improves the quality of provided telecommunication services by constructing and upgrading the existing backbone networks. With the help of new tier technologies and digital outputs, the Company widens the network geography and connects new cities in order to meet the citizens’, companies’ and providers’ requirements for modern communication services. The Company’s plans on providing its services to other countries include the development of its own network infrastructure abroad and increasing international transit with the CIS countries, Europe and Asia. In 2010 JSC “Rostelecom” invested in expanding and increasing the capacity of its IP/MPLS multiservice network which allowed to continue active promotion of modern services of data transfer such as high-speed Internet access and construction of virtual private networks. The construction and launch of a series of regional Data-centers in large Russian cities ensured the improvement in the quality of data communications network services provided and allowed to extend cooperation with telecommunication services providers. JSC “Rostelecom”’s 2010 investment program totaled 10 3645 million rubles and included the significant projects described in more detail below.

BACKBONE NETWORK DEVELOPMENT JSC “Rostelecom” places high emphasis on constructing new telecommunication lines and upgrading existing ones, as well as on the network redundancy and deployment of ring structures to guarantee high quality of service and network reliability. The following projects enable the Company to increase network capacity in order to meet the growing customer demand for traffic transmission. In order to conceive and develop relationships with foreign partners, the Company puts up new and increases capacity of the existing international transits which brings about additional revenues on account of the additional international traffic processed by its network, rendering the services of international caliber, developing access for the Russian users to international recourses. Major projects in 2010: Creating the network ring structures The reserved capacity in the scope of 15 ring transmission systems of the 10G standard was organized by additionally equipping the existing and installing the new DWDM system in the Central, Southern, Privolzhsky, Ural, Siberian and Far-Eastern regions. Construction of the Vologda-Arkhanhelsk-Belomorsk FOTS to establish a ring structure in the North-Western region The Company constructed the ring structure in the North-Western region, increased network resources and organized the digital access for Arkhangelsk to the backbone network.

5 Monetary assets employed in procurement and creation of major production assets and other capital assets (line 061 of the Report on movement of funds in 2010 upon RAS)

46 TELECOMMUNICATIONS NETWORK

Creating the “Chelyabinsk–Khabarovsk” ring structure, as well as the primary and secondary binding linkages to several Russian cities The Company constructed the last section of the “Biryusinsk–Tynda–Khabarovsk” reserved FOTS. Development of the data communications network IP/MPLS The Company installed new DWDM systems in the cities of the Central, North-Western, Privolzhskiy, Southern and Siberian branches. The existing DWDM systems were fully upgraded, 8 additional backbone transit IP/MPLS hubs were additionally capacitated and 9 regional IP/MPLS hubs were also upgraded. 35 regional IP/MPLS hubs were installed and upgraded. Additional equipment for digital radio relay line R-684 The existing digital radio relay line (DRRL) was equipped and upgraded for an increased capacity. Establishing the PoP of the Company in Armenia and Georgia The Company constructed its first launch complex (first construction phase) which will, other things aisde, allow for expansion of an international transit to Azerbaijan by means of the STM-64 FOTS, which will, in turn, allow to increase the volume of the multiservices provided. Establishing the “last miles” in the cities of Privolzhskiy branch The Company implemented the first stage of setting up the “last mile” system (namely, the city zonal extensions) in the cities of Privolzhskiy branch of the Company (Kazan, Naberezhniye Chelny, Ulyanovsk, Penza, Saratov, Izhevsk, Perm, Orenburg, Samara, Tolyatti, Ufa, Yoshkar-Ola, Kirov, N. Novgorod, Saransk, Cheboksary), intending to connect its potential customers to the IP/MPLS network. Upgrading the data transmission network for connecting content-providers The Company upgraded its data transmission network in order to provide the necessary technical capability of connecting major content-providers, intending to improve connectivity and to optimize the routing of Internet traffic. Modernization of the radio relay line (RRL) 18 at the “Yakutsk–Mirniy/Lensk” section The Company installed a digital line on the basis of the analog RRL-18 with digital access to Mirny and Lensk, intending to transmit all kinds of traffic and lease channels and paths.

DATA NETWORK Leveraging its own extensive transport network, JSC “Rostelecom” continued to develop its data network using the Multiprotocol Label Switching (IP/MPLS network) as the engineering basis for provision of high- speed Internet access and virtual private networks, Data Center services, and development and promotion of new telecommunication services. In 2010 the Company established international hubs in Stockholm, Frankfurt, London and Amsterdam, as well as over 180 regional hubs and access points to its IP/MPLS network in Russia. This way the Company creates engineering capabilities to meet the ever-growing demand for Internet access services, establishment of virtual private networks, and for other data services across the Russian Federation. Currently, the IP/MPLS network throughput amounts to 1 Tbit/s. Apart from the development of its IP/MPLS network, JSC “Rostelecom” operates a network of six Data Centers in Moscow, Kazan, Khabarovsk, Novosibirsk and Yekaterinburg that enable the development of content services based on JSC “Rostelecom”’s network, the attraction of new traffic and increasing the value of Internet access services. Further development of JSC “Rostelecom”’s data network is aimed at increasing its throughput, expanding the geography of the access points, and construction of new Data centers to expand the range of telecommunication services offered by the Company and increase the share of revenue generated by these services in the total revenues of the Company.

47 TELECOMMUNICATIONS NETWORK

INTELLIGENT NETWORK SERVICES Leveraging the capabilities of the “Tellin” intelligent platform, produced by Huawei Technologies, which is installed in Moscow, JSC “Rostelecom” provides the Freephone Service, Premium Rate Services, International Freephone Service and Home Country Direct Service. Features of intelligent OSP platform, produced by Alcatel-Lucent, ensure access to the DLD and ILD telecommunication services necessary for the user to exploit. Functionality of the Company’s intelligent network platform provides the basis for launching innovative service offerings, such as the number portability for users of mobile and fixed-line networks and universal personal telecommunication.

48 TELECOMMUNICATIONS NETWORK

COMPANY’S INVESTMENTS IN NETWORK DEVELOPMENT

Fixed Assets Investments Trends

Measurement Item units 2009 2010 2010/2009, % Investment in fixed assets - total, RUB, million 7 516 11 709 155,8 including: industry structure: RUB, million traditional telephoning 431 47 10,9 backbone transmission and DLD/ILD 3 260 3 964 121,6 telephone service facilities new services and technologies 284 629 221,5 information technologies 407 434 106,6 communication infrastructure 200 110 55,0 facilities for service provision others, including communication 2 934 6 525 222,4 infrastructure facilities reproduction structure: RUB, million new construction 4 764 8 581 180,1 Expansion 1 905 1 896 99,5 reconstruction 843 1 232 146,1 technical upgrade (modernization) 4 - 0 Company’s own funds invested in fixed assets RUB, million 7 516 11 709 155,8 Borrowed funds invested in fixed assets RUB, million - - - Fixed assets put into operation RUB, million 7 500 9 751 130,0 Capacities put into operation thou. 3 476 599 32 958 400 948,0 chan.x km

Facilities Put into Operation in 2010 Facility Commissioned Commission- in 2010 ing quarter

Domestic long-distance lines (km): Ring structure (“Chelyabinsk–Khabarovsk” section) 2 378 I Construction of the “Nakhodka–Vranguel–Vosochniy Kozmino Port” FOTS 35 II Construction of the “Kem–Kostomuksha” FOTS 86 IV Development of the “last mile” network for the Siberian branch of JSC 12 IV “Rostelecom” Organization of “last miles” in the cities of Privolzhskiy branch 291 IV “Vologda–Arkhangelsk–Belomorsk” FOTS construction in order to create the 6 IV ring structure in the North-Western region Construction of the access network system to provide service packages 290 IV FOTS in Moscow to provide services to the Federal Drug Control Service of 91 I the Russian Federation Transfer of digital transmissions from the RRL Р-8Ж to Р-608 with 18 II communication compensation for special КМ-19Б customers “Kingisepp–Slantsy” and “Kingisepp–Kirishi” FOTS installation 6 II The Company’s Network Development Indicators Item Unit 2008 2009 2010 Growth of DLD telephone channels, total (new construction), thou. chan.x including digital circuits km 7 898 915 3 476 599 32 958 400 thou. chan.x km 7 898 915 3 476 599 32 958 400 Growth of basic telephone stations, total, million units including: - - - urban telephone network; million units rural telephone network million units - - -

49 TELECOMMUNICATIONS NETWORK

- - - Growth of outgoing automatic channels of Automatic Trunk Exchanges, total, circuits - - - including intra-regional telecommunication circuits - - -

50 RISK MANAGEMENT

RISK MANAGEMENT Risk-oriented Approach to Business JSC “Rostelecom”’s business operations are subject to various risks that may adversely affect the achievement of its objectives. Recessionary tendencies which took place in 2009 continue to affect JSC “Rostelecom”’s operations in 2010 increasing the likelihood of or possible negative effects resulting from some of the risks listed below. At the same time, we believe that for the present there is a great degree of certainty concerning the mentioned tendencies. In this context, the Company monitors corresponding risks and takes preventative and corrective measures within the usual risk management cycle. In order to manage possible risks, the Company has implemented and continues to develop a risk-oriented business management approach designed to ensure efficient adoption of the most effective decisions by the Company’s management under conditions of uncertainty, and effectively identify opportunities for achieving JSC “Rostelecom”’s goals and objectives. As a result of implementation of the risk management system, the Board of Directors of the Company annually approves the Program on risk management which involves regular risks update and development and subsequent monitoring of any response measures taken to reduce any negative consequences to an acceptable level. In the course of development and implementation of operational business decisions the Company also assesses inherent risks including discussions at the meetings of the Board of Directors, of the Audit Committee, the Management Committee, and the Internal Control Committee, various working groups and conferences. In connection with the merger of the seven ITCs and JSC “Dagsvyazinform” with JSC “Rostelecom” several risks listed below lose their relevance or will be reduced as the business integration of the Company proceeds. At the same time, as a result of the merger the influence of risks typical for the operations of the ITCs and JSC “Dagsvyazinform” on the operations of the new Company is increasing. Listed below are the risks which may significantly affect JSC «Rostelecom»’s operations. However, the Company cannot rule out the existence of other risks, including risks of which the Company is currently unaware or which the Company currently considers insignificant.

Industry risks The further increases in the level of competition including the emergence of new operators and the principle changes in rendering the services in DLD and ILD communication may decrease the Company’s market share and, as a result, adversely affect its revenues from rendering such services. As of the end of 2010, more than 40 (new) companies were licensed to render the services of DLD and ILD communication. Among those with a license to render the services of DLD and ILD communication such long-distance communication services were provided by seven operators (other than JSC “Rostelecom”): MTT, Beeline, TransTelecom, Orange B.S., Arktel, Sinterra, Komstar-OTS. Besides, the fast growth of mobile communications facilities market ensures wide access to end users of telecommunication services throughout the country. Mobile operators have the technical capabilities and can transfer DLD and ILD traffic via public service telephone lines using both the Company’s network and the networks of competing operators of DLD and ILD communication. Active development of IP-telephony also may significantly enhance the competition in the Russian market of DLD/ILD communication. The IP-technology allows to provide a better optimized cost structure compared to the costs of the operators of public service telephone lines. Moreover, the development of broadband Internet in the Russian Federation and throughout the world makes the IP-telephony services an attractive alternative as opposed to the more expensive communication services rendered by common and mobile operators. With an intention to lower this risk, the Company continuously monitors the competitors’ operations including the (non)compliance of their operations with the legislation. The Company is focused on designing new services and competitively growing existing ones and, if necessary, devising necessary countermeasures.

The significant expenses of the Company related to inter-carrier settlements may forbid the Company to set competitive tariffs with the required level of profitability on its ILD services, which may negatively influence its ability to keep existing customers and attract potential ones, as well as

51 RISK MANAGEMENT the financial performance of the Company and, consequently, the Company’s ability to discharge its obligations on securities. Due to the fact that JSC “Rostelecom” is included in the Register of Natural Monopolies, the Company’s operations are subject to the Federal Tariff Service (FTS) regulation. Presently, the FTS regulates the Company’s tariffs for DLD communication services throughout the whole of the Russian Federation, as well as for its local and regional telecommunication services. The regulation of the Company’s tariffs allows it to fix competitive and economical tariffs in general. Initialization and termination constitute a considerable proportion of the Company’s revenues from rendering DLD and ILD communication services, thus reducing the Company’s ability to effectively manage its tariffs for DLD and ILD communication services. To reduce this risk, the Company cooperates with regulating authorities on setting the optimal tariffs. As a result of the Merger, this risk is reduced significantly by a share of the Company's settlements on initialization and termination services with the other companies involved in the Merger. The Company’s tariffs in the foreign markets (leasing of ILD-channels, ILD-traffic transfer), as well as tariffs on similar services consumed by the Company itself in the foreign market, are generally stable and the risks related to any fluctuations here are not fundamental.

Country and regional risks The stability of the Russian economy depends mostly on economic reforms, development of legal, tax, and administrative infrastructure as well as the efficiency of measures taken by the Government of the Russian Federation in the financial and monetary policy fields. Presently the political situation in the country is stable, but nevertheless the Russian economy is subject to fluctuations in the world economy. In many ways the Russian economy is dependent on the oil prices, which started growing in the beginning of 2010. The oil price increase leads to the influx of foreign investment into Russia, as well as to manufacturing recovery, reduction of unemployment, growth of income per household and replenishment of the gold and currency reserves of the country. In spite of the measures taken by the Government of the Russian Federation aiming to assure the liquidity and refinancing of the foreign borrowings of the Russian banks and companies, some uncertainty remains regarding the possibility of access to capital resources and the cost of capital for the Company and its contractors. This may influence the financial position, the outcomes of the Company’s operations and the economic perspectives of the Company. The instability of the capital markets may lead to a significant worsening of the liquidity in banking sector and subsequent stiffening of the credit terms in the Russian Federation. As a whole, the Company cannot produce any significant impact on the economic situation in the country. Yet still, the Company will take all the possible measures to reduce the negative consequences that may compromise its ability to fulfill its securities obligations, including portfolio diversification, should there emerge any negative effects in the country or in the particular regions in which the Company is registered as the taxpayer and conducts its business. The risk of military conflicts, national emergency and/or strikes in the country and the regions, in which the Company is registered as the taxpayer and conducts its business, is evaluated as insufficient to consider these risks as the circumstances that could dramatically influence the Company’s business. To prevent strikes, the Company on its part creates the favorable working conditions and fulfills all of its obligations to the employees. To minimize the risk of terrorist attacks, the Company took additional measures for security protection. The risks relating to the geographical peculiarities of the regions in which the Company is registered as the taxpayer and conducts its business, including high likelihood of acts of God, possible stoppages of transport connections due to the remoteness and difficult access of the locality are considered insignificant. The activity of the Merger companies is also exposed to the abovementioned country and regional risks. The management of these risks is realized within the business of the Merger company.

52 RISK MANAGEMENT

Financial Risks Changes to the exchange rates introduced by the financial market may lead to negative effects on the financial performance of the Company. At the moment, the Company has loan capital with a floating interest rate. The value of the loan capital may increase should there be new borrowing undertaken by the Merger company. In this respect the potential increase of interest rates in the market may raise the Company’s expenses of servicing its debt as well as increase the costs of new borrowings. This can have a negative effect on the financial performance of the Company and increase the costs of the project(s) implemented on the basis of such borrowings. Besides, upon adverse conjuncture of the financial and money markets, the Company may suffer losses related to ineffective assets management and fixed and floating interest rate liabilities as well as different calling-in terms. With the intent to reduce this risk, the Company monitors the market conditions and, if necessary, refinances its liabilities and manages the risks relating to floating interest rate under credit commitments. Such indicators of the financial performance of the Company as the gross interest rate payable and loaning and borrowing debts accrued, which may go up in case the risk is realized, are most vulnerable to this kind of risk. Given the stable credit rating of the Company, the probability of this risk is first of all related to the rise in the interest rate of the newly contracted borrowings following any changes in the money market. As a result of currency fluctuations, the part of the Company’s financial performance based on foreign currency transactions as well as money denominated in foreign currency may be negatively re-evaluated. A significant share of the Company’s revenues, costs and liabilities, including capital expenditures and borrowings, is denominated in foreign currencies, whilst the major part of its operational earnings is received in rubles. Following the 12 months of the year 2010, the ruble’s devaluation against the US dollar constituted 0,8% (exchange rate of 30,2442 RUB/USD as of December 31, 2009, compared to 30,4769 RUB/USD as of December 31, 2010). The ruble exchange rate went up against the euro by 7% (exchange rate of 42,3883 RUB/EUR as of December 31, 2009, compared to 40,3332 RUB/EUR as of December 31, 2010). Since the probability of devaluation of the ruble remains, hence, the Company’s expenditures and liabilities may increase considerably in ruble terms, which, in turn, would adversely affect the profitability and the results of the Company’s operations. Additionally, the fluctuations in the ruble exchange rates may lead to losses related to the re-evaluation of the Company’s foreign currency assets and liabilities, which may produce a negative effect on the Company’s financial results. At the same time, the currency risk shall not significantly impact liquidity and the sources of finance of the Company. To reduce this risk the Company monitors the currency exchange rate dynamics closely, assesses its currency position and maintains well-balanced money reserves, including those expressed as currency liabilities. Such indicators of the financial performance of the Company as the money funds, receivables and payables, loaning and borrowing debts accrued, which may fall (assets) or rise (liabilities) in case the risk is realized, are most vulnerable to this kind of risk. The probability of the risk is, first of all, related to changes in global currency markets and government regulations of currency exchange rates.

Inflation could result in growing costs and lower operating margins of the Company. Russian economy is still characterized by a relatively high inflation rate. In 2008 and 2009 the inflation level was stated as 13,3% and 8,8% respectively. In 2010 the inflation rate comprised 8,8%, the same as in 2009. In spite of some stability of the inflation rate during the last two years, the predicted inflation rate in Russia remains fairly high. In the Company’s opinion, the critical inflation rate would be such that significantly exceed the official predictions for the coming year, and those cannot be precisely forecasted. As some of the Company’s expenses are subject to inflation, a rising general price level may increase the nominal value of the Company’s costs, while the increasing competition between telecommunication operators as well as the tariff regulation imposed by the state authorities may prevent the Company from increasing, at its own discretion, its tariffs up to a level sufficient to sustain required profitability of its operations. However, the inflation will not affect the payment of securities of the Company. To reduce this risk, the Company allocates available money funds to income-bearing financial instruments and optimizes the costs of the services rendered. Such indicators of the financial performance of the Company as the money funds that are subject to potential

53 RISK MANAGEMENT devaluation and the investment costs that may rise in case the risk is realized are most vulnerable to this kind of risk. The probability of the risk is, first of all, related to the government regulations of money in circulation and of prices and tariffs.

If the Company’s customers and other counterparties fail to meet their payment obligations on time or in full, the Company may incur losses due to its inability to recover such debts. In the past JSC “Rostelecom” had experienced delays in receiving payments from some organizations, individuals, government bodies, as well as some international operators, and presently it is also the case. Delayed payments may cause cash shortages and the Company will have to borrow funds to cover them and consequently pay interest rate for the employment of such borrowed funds. In addition, the Company allocates available cash to short-term promissory notes and other financial instruments. Facing the instability of the financial system in Russia, especially amid the global financial crisis, there is a risk of failure of geting back the deposits or receiving repayment of the deposit certificates, as is the risk of the Company’s failure to repay its issued debt obligations. To reduce this risk, the Company optimizes working procedures to recover receivables, including cases when debt collecting agencies are engaged. Such indicator of the financial performance of the Company as the debts payable, which may fall in case of and increase of the risk estimation (increase in provision for doubtful debts), is most vulnerable to this kind of risk. The probability of the risk is, first of all, related to the solvency of the Company’s contractors and the general economic climate in the country. Insufficient asset liquidity may limit the Company’s ability to meet its obligations and dispose of such assets. While JSC “Rostelecom” timely repays its own obligations, the Company may be exposed to liquidity risks; in the event that the Company’s contractors demand due payments from the Company, it may face difficulties and even incur losses due to the insufficiency or lack of funds required to repay such obligations and due to the need to dispose of its liquid and other assets in a discounted manner. In December 2010 the international rating agency Standard&Poor’s confirmed the “BB” credit rating of JSC “Rostelecom” with a “Stable” outlook; according to Standard&Poor’s current estimates, JSC “Rostelecom”’s financial position features a low debt ratio, high liquidity ratios, positive free operating cash flow and moderate capital expenditures. In May, 2011, Standard&Poor’s has assigned JSC “Rostelecom” a “BB+” international credit rating with a “Stable” outlook. Such indicators of the financial performance of the Company as financial investments, payables and loaning and borrowing debts accrued, as they are subject to increases, as are the penalties, charges and forfeits, in case the risk is realized, are most vulnerable to this kind of risk. The probability of the risk is, first of all, related to the financial investments of the Company.

Legal Risks Presently, the main legal risks of the Company are defined by the changes in the legal regulation of specific services and requirements of the business operations in the industry in view of the amendments to the Federal law no. 126-FL "On telecommunication" dated July 7, 2003, approving a series of legal acts regulating different operational fields in telecommunication (Rules on rendering local, intrazonal, DLD and ILD telecommunication services, Rules on telecommunication networks connection and nteraction, Rules on rendering telegraph communication services, Rules on rendering mobile communication services, etc.) and bringing existing relations in line with the requirements of the legal acts in force. Risks associated with changes in the exchange regulation The risks related to changes in the exchange regulation are presently considered by the Company as insignificant. In view of the current policy of liberalization of exchange regulations, the risks here are deemed low. The Russian legislation regulating the foreign investments in no way forbids or limits foreign investments into the telecommunication industry. However, there is no unanimity as to what level of government regulation in the telecommunication industry would have been optimal. Since the telecommunication industry rates as a strategic industry for the Russian Federation, the government regulation may take to increasing while the foreign investment may be driven out/limited. Any strengthening of such governmental control or restrictions to the foreign investment may prevent the ease of access to additional capital.

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Risks associated with changes in tax legislation Russian tax legislation is subject to variable interpretations and regular additions and amendments. The Company monitors the ongoing changes in the tax legislation and pays emphasized attention to workshops and meetings with leading experts in this area. Recent developments indicate that the Russian tax authorities may take up a tougher (less flexible) position on the interpretation of tax legislation and tax calculations. As a result, tax authorities may lodge claims to those transactions and accounting methods which were not subjects of claims before. Subsequently the tax authorities may impose additional taxes, penalties and fines, which can be significant. The Company is subject to review by the tax authorities over the three calendar years of its operations preceeding the year of the current review, and under certain circumstances such reviews may cover even longer periods.

Risks associated with changes in customs regulations Part of the equipment of the Company required for the construction of communication links and/or rendering telecommunication services is imported and/or manufactured from the components produced abroad. Any change in customs and custom duties regulations may carry risks related to the increased costs of the acquired basic assets and increased delivery period related to the necessary equipment and/or spare parts, which may in return inflict additional costs on the Company as well as increase the likelihood of the network failures.

Risks associated with changes in the licensing requirements of the main operations of the Company or licensing of the rights to use objects with limited circulation The main operations of the Company are subject to licensing according to the current legislation. The list of licensing requirements according to the Federal Law no. 126-FZ “On telecommunication” dated July 7, 2003, is formulated by the Government of the Russian Federation. In view of the Government’s decree of the Russian Federation no. 87 dated February 18, 2005, “On approval of the list of telecommunication services included to license and list of licensing requirements” coming into force (with amendments altered by the Government decree of the Russian Federation no. 837 dated December 29, 2005), the Company took actions to change its earlier (actual) licenses. All the necessary amendments to licenses were completed. Changes in requirements for licensing a business’s operations in the telecommunication industry may lead to delays in renewal of the main licenses of the Company for rendering the telecommunication services or in failure to obtain new licenses, which may negatively affect the Company’s financial performance.

Risks associated with changes in the court practices regarding the issues inherent in the Company’s operations and regarding the outcome of any legal action which the Company is currently involved in Even though there is no case law in the Russian Federation, the court practice plays an important role in the system of law enforcement. The judicial acts, not being sources of the legal system in the proper sense, in certain cases imply compulsory interpretation of the legal norms which is subject to enforcement. In practice, the following regulations are mandatory for legal agencies to refer to: • Decrees of the Plenum of Supreme Court; • Decrees of the Plenum of the Supreme Arbitration Court of the Russian Federation; • Rulings by the Constitutional Court of the Russian Federation. The Company operates exactly in accordance with the current legislation. The negative consequences of changes in the judicial practice are only possible in case of a change in the regulatory authorities’ stand or if the Company exercises its operations in breach of the legislation. The activity of the Merger companies is also exposed to abovementioned legal risks. The management of these risks is realized within the business of the Merger company.

Risks associated with the Company’s operations The change in the Company’s development strategy in view of the structural changes implied by the changes in the majority ownership of the Company and the upcoming integration of Merger

55 RISK MANAGEMENT companies may affect the newly formed Company’s operations. As of the end of 2010, JSC “Svyazinvest” was the holder of the 50,67% of the Company’s ordinary shares. 75% of shares (minus 1 share) of JSC “Svyazinvest” belongs to the Russian Federation represented by the Federal Agency for Managing Federal Property. Changes in the ownership structure of the Company may lead to changes in the Company’s development strategy, which. In turn, may require significant review of the existing business processes of the Company. In April 2011 the reorganization in the way of merger of the Company with the seven interregional telecommunication companies (JSC “CenterTelecom”, JSC “SZT”, JSC “VolgaTelecom”, JSC “UTK”, JSC “Uralsvyaz”, JSC “SibirTelecom”, JSC “Dalsvyaz”) and JSC “Dagsvyazinform” was completed. The Merger companies have a specificity stipulated by the regional peculiarities and the peculiarities of the business processes. Hence, there are risks related with the upcoming integration of the Merger companies and forming efficient business of the Merger company herein. in order to decrease this risk, the Company has drawn up and is now implementing a thourough plan of business integration that is regularly monitored and updated. The financial statement indicators related to the realization of aforementioned risks and dependent on the development strategy of the Company are exposed to this kind of risk. The Company’s operations are also exposed to the financial risks indicated above, and their management is accomplished as part of the business processes of the Merger company.

Risks associated with the renewal of the Company’s licenses on certain business operations The Company has no guarantees that, after the licenses expire,,they will be extended without any additional obligations and/or diminution of rights which may lead to increases in the Company’s expenses and, probably, to restrictions in the services provision area. In case that the Company is not able to extend its existing licenses it will have to reduce the range of services provided which will inevitably lead to the reduction in the number of its subscribers. At the same time, the Company takes all the necessary measures to comply with the licensing requirements. That is why the prediction on renewal of the license for particular operations of the Company is strictly positive, and the risks associated with the failure to extend such licenses are considered minimal.

Risks associated with the current judicial processes which the Company is involved in The legal action in which the Company is involved this way or another as of December 31, 2010, are noted below and may dramatically affect the business processes and financial performance of the Company. In case the court does not rule in the Company’s favour, the Company will incur significant expenses which will negatively affect its financial statement. • In June 20, 2008, the Company filed a case in the Moscow Arbitration Court against the Decision no.2 dated February 8, 2008, by the Interregional Inspectorate of the Federal Tax Service for Large Taxpayers No.7 about imposing additional tax liability on the Company upon the results of the field tax inspection for the 2004-2006; the Company sought full invalidation of the additionally charged taxes and penalties totaling 1,810,019,529.54 rubles. In November 13, 2008, the case was resolved by the court ruling an invalidation of 1,803,094,529.54 rubles. In February 24, 2009, the Arbitration Appeal Court confirmed this decision of the court of first appearance. The Company appealed against those judicial acts filing for the invalidation of the rest of the additional charges. The Federal Arbitration Court confirmed in its decree dated May 27, 2009, the previous rulings of the court of first appearance and the court of appeal. JSC “Rostelecom” appealed to the Supreme Arbitration Court with the petition to review the judicial acts by way of supervision (on the count of those additional charges totaling 6,853,746.00 rubles). The Supreme Arbitration Court in its decision no.VAS- 11654/09 dated September 18, 2009, refused to transfer the case to the Presidium of the Supreme Arbitration Court of the Russian Federation. Based on this decision, JSC “Rostelecom” returned to the Moscow Arbitration Court with the petition to review the decision of the court of first appearance in the light of newly discovered evidence. The Moscow Arbitration Court in its decision dated November 09, 2009, sustained the petition of JSC “Rostelecom” by conclusion on the episode of the case related to JSC “Agropromyshlenniy Bank” that the 216.00 rubles worth of charges must be invalidated, while the rest of the petition’s content (and, hence, the sum of money) was dismissed in the light of newly discovered circumstances. The Ninth Arbitration Court in its decision dated March 4, 2010, confirmed the decision of the Moscow Arbitration Court dated November 9, 2009, and the Company’s appeal was not granted. The Federal Arbitration Court of the Moscow district in its act

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no. KA-A40/5569-10 dated June 1, 2010, disallowed the decision of the Moscow Arbitration Court dated November 13, 2008, as part of the new trial in the light of newly discovered circumstances regarding the conclusions on “Russki Aktseptnyi Bank” LLC and “Artel Business and Telecommunications” limited partership. The court adopted a new judicial act in this part of the case in which the petition of JSC “Rostelecom” was sustained. The resolution of the Ministry of Finance on Large Taxpayers no.7 dated February 8, 2008, in part of clause 2.10 refering to the Company’s contributions to the charter capitals of “Artel Business and Telecommunications” limited partnership and “Russki Aktseptnyi Bank” LLC was declared invalid. • In February 2010, the Interregional Inspectorate of the Federal Tax Service for Large Taxpayers No.7 delivered a complex tax inspection of the Company for the 2007-2008 period and produced Judgment no. 3 dated April 2, 2010, stating a tax offence committed and a corresponding total charge of additional taxes, penalties and charges worth 714,727,286.03 rubles. The Company appealed the Judgment to the Federal Tax Service of the Russian Federation. The Federal Tax Service of the Russian Federation in its decision no. AS-37-9/11482@ dated September 17, 2010 (received by the Company in September 28, 2010), partially disallowed the Judgment no.3 dated April 2, 2010, of the Interregional Inspectorate of the Federal Tax Service for Large Taxpayers No.7, that is – invalidated the following charges: profit taxes of 14,793,081.00 rubles with respective penalties and charges; VAT of 352,475,816.80 rubles with respective penalties and charges; profit tax penalties of 4,983.59 rubles; land tax of 77,472.00 rubles; water tax of 83,308.00 rubles with penalties of 14,838.04 rubles and charges of 10,850.00 rubles; charges on personal income tax of 251.07 rubles. As for the rest, the Judgment dated April 2, 2010, of the Interregional Inspectorate of the Federal Tax Service for Large Taxpayers No.7 was confirmed. The Company filed a case in the Moscow Arbitration Court seeking to declare the Judgment invalid to the extent concerning the invalidation of additional charges totaling 305,387,512.00 rubles. The Moscow Arbitration Court initiated the proceedings on the case no. A4100845/10-4-498 and appointed the preliminary session dated January 19, 2011. In case the Federal Tax Service of the Russian Federation succeeds in confirming the results of its original tax inspection of the period 2007-2008 of JSC “Rostelecom”, the Company will suffer the abovementioned losses having to pay the tax claim which will negatively affect the financial statement of the Company.

Risks associated with possible Company’s liability for third-party debts, including those of the affiliates of the Company The Company occasionally bears the risks associated with the possible liability for debts of third party in the amount of provided assets. In case of nonperformance or improper performance by the debtors warranted by the Company, the Company shall bear shared responsibility with their creditors. The Company’s management team does not expect to incur any significant payables associated with backing up such debtors. The probability of occurrence of the factors which may lead to nonperformance or improper performance with respect to liabilities is minimal as of the date of the accounting quarter end. The risks associated with the possible loss of the single customers who turn over at least 10% of the total sales income of the Company are non-existent, since presently there are no single customers that turn over at least 10% of the total revenue of the Company.

If the demand for certain new products and telecommunication services that the Company has recently introduced or is currently developing and promoting fails to reach an adequate level, the Company’s ability to achieve further revenue growth from these services will be limited. Presently, the Company’s revenue is primarily generated by traditional services, such as DLD and ILD telecommunication and leased line services. Lately, the Company has been developing and promoting new advanced communications products and services, including the Company’s intelligent platforms, VPN services, high speed Internet access and Data Centers. In the conditions of continued decrease in demand for traditional voice services and given the consequences of the economy crisis, demand for both new and existing communication services provided by the Company may fall. The fall in demand for the services may negatively affect the Company’s financial performance.

If the Company fails to fulfill its obligations to its customers or clients completely and/or in time within the framework of its large projects, it may incur significant financial and reputation damages.

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Besides, any delayed implementation of these projects may reduce the pay-off and, as a result, worsen the financial results of the Company. Currently JSC “Rostelecom” has been implementing several complicated projects involving operation of high tech equipment, significant costs and long implementation-in-progress periods. Successful delivery of such projects calls for high level performance at all stages, including planning, cooperation with subcontractors and public authorities, financing and execution. Poor quality or delayed delivery by the Company of these projects, including failures caused by force-majeure, may incur significant financial and reputational damage. In some projects. like the “Sochi-2014” and the “Electronic Government”, the implementation of the project is directly linked to tasks of national importance and has significant social implications. To reduce this risk the offices and internal Company bodies responsible for the most important projects have been specified within the Company; they are to exercise continuous coordination of the operations of the Company and its contractors with the projects’ schedules.

If the Company’s network capabilities are insufficient for data transmission services, the Company may loose significantly in revenue growth rates, while at the same time any further data network development may imply lower return on investment. Active development of the data network-based services is becoming one of the main drivers of growth in the telecommunications market. To guarantee this development it is necessary to significantly expand the data network capacity and, subsequently, throughput, and its functionality and features. In order to reduce this risk JSC “Rostelecom” invests a lot into the development and capacitation of the existing data network. However, if the Company’s predictions on growth of demand for these services turn out to be incorrect, or if the Company fails to implement the data network developments on time, the revenue growth from these services may be limited. Significant increases in volume of the data network traffic that call for investments in the data network development are expected to naturally lead to falling rates per traffic volume unit for end users. In this context, there is a risk of falling returns on investments made into data network, as the per traffic unit rates decline further and the data service market becomes saturated. The activity of the Merger companies is also exposed to the abovementioned country and regional risks. The management of these risks is undertaken within the business of the Merger company.

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CORPORATE GOVERNANCE The development of sound corporate governance practices is one of the key priorities for the management of JSC “Rostelecom”. The principles behind the Company’s corporate governance policies promote transparency to help ensure a stable balance between economic and social objectives and between the interests of the Company, its shareholders and other stakeholders. In its corporate governance practices, JSC “Rostelecom” adheres to domestic and international best practice standards and implements the recommendations of independent rating agencies and consultants to improve these practices in many cases. Following the top recognized standards of the corporate governance as well as information and data handling helps create an atmosphere of trust and confidence among the Company’s employees, as well as increases the efficiency of management decisions and assists the growth of the Company’s investment appeal in the long run. Governance Structure of JSC “Rostelecom” Pursuant to the Charter of JSC “Rostelecom”, the Company is governed by: – the General Shareholders’ Meeting – the Company’s supreme governing body; – the Board of Directors elected by the shareholders of the Company in the General Shareholders’ Meeting responsible for the strategic management of the Company; – the President and the Management Board appointed by the Board of Directors for ensuring management of the daily operations of the Company. Corporate Governance Standards JSC «Rostelecom» has implemented its Corporate Governance Code and the Code of Ethics to ensure that its shareholders have equal access to transparent, comprehensive corporate information and to guarantee compliance with the highest ethical standards. These codes also regulate such matters as conflicts of interest, prohibition of abuse of official powers or insider information, as well as procedures for preparing and disclosing information on operational performance. The Corporate Governance Code and the Code of Ethics were developed by the Company in accordance with the requirements and recommendations of the New York Stock Exchange, US Securities and Exchange Commission and recommendations of the Federal Financial Markets Service of Russia. Compliance with these guidelines is a pre-condition for maintaining a listing of the Company’s securities on the Russian and foreign stock exchanges. JSC “Rostelecom”’s Codes are based on the following corporate governance principles recognized in Russia and worldwide: – observing shareholders’ rights and interests as stated by applicable legislation, norms and requirements, as well as ensuring long-term growth of the shareholder value through improved corporate practices, openness and transparency; – ensuring transparent and efficient management mechanisms and structures, as well as ensuring that senior management undertake their duties competently and in good faith, in accordance with the high corporate governance and business ethics standards; – maintaining an efficient internal control and audit system; – active cooperation with all of the stakeholders in the interest of ensuring long-term sustainable development of the Company. Corporate Governance Ratings On December 29, 2010, the Consortium of the Russian Institute of Directors and the “Expert RA” rating agency (hereinafter referred to as the Consortium) monitored JSC “Rostelecom”’s corporate governance practices over the year 2010. At the conclusion of the monitoring period, the Consortium upgraded the Company’s rating to “8” according to the scale of the National Rating of Corporate Governance. Therefore, according to the Consortium, JSC “Rostelecom” is one of the leaders among Russian companies in the quality of corporate governance. JSC “Rostelecom” has low corporate governance risks. The Company complies with the requirements of the Russian legislation concerning corporate governance, follows the Russian Code of Corporate Conduct in most cases as well as the separate recommendations of the international best practices in corporate governance.

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Compliance with the Code of Corporate Conduct of FCSM of Russia On November 28, 2001, the Russian Government approved the Code of Corporate Conduct. In the course of improving its corporate governance standards, JSC “Rostelecom” takes the recommendations of the Code and embeds them into its own Charter and other internal regulations of the Company in accordance with the current legislation of the Russian Federation. Information on JSC “Rostelecom”’s compliance with the recommendations of the Corporate Conduct Code of the Federal Commission for Securities Market of the Russian Federation is provided in Appendix no.1 to this Annual report and constitutes its integral part.

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SHARE CAPITAL As of December 31, 2010, JSC “Rostelecom”’s Charter Capital comprised 2 428 819,4725 rubles. 728 696 320 ordinary shares (state registration number 1-01-00124-А dated September 9, 2003) and 242 831 469 preference shares, A Type (state registration number 2-01-00124-А dated September 9, 2003), with par value of 0.0025 rubles each were place at at the end of 2010. 0,02% of the ordinary shares and 28,84% of the preference shares among the shares placed were bough- out from the shareholders who didn’t support the reorganization by means of merger of the Interregional Telecommunications Companies and JSC “Dagsvyazinform” with the Company and, as of December 31, 2010, were in the books of the Company. According to the JSC “Rostelecom”’s Charter, that was effective on December 31, 2011, the Company may issue 5 900 000 000 ordinary shares and 532 preference shares, A Type, in addition to the shares already places. The par value of each share is 0,0025 rubles. Ownership Structure of JSC “Rostelecom” As of December 31, 2010, the total number of parties in JSC “Rostelecom”’s shareholders register was 16 423, including 18 nominal holders. Ordinary shares Preference shares JSC «Svyazinvest» 50,67% - Russian legal entities 48,08% 83,74% Russian individuals 1,22% 16,19% Foreign legal entities 0,01% 0,01% Foreign individuals 0,03% 0,05%

Largest Shareholders as of December 31, 2010 of charter capital of ordinary shares JSC Svyazinvest 38,00% 50,67% Vnesheconombank* 22,50% 30,00% NP National Depositary Center* 20,97% 13,41% JSC “Rostelecom”** 7,23% 0,02% JSC ING Bank (Eurasia)* 3,04% 3,54% including JP Morgan Chase Bank as a depositary bank 2,26% 3,02% JSC «Depositary-Clearing Company»* 2,40% 0,70% * nominal holders **bought-out from shareholders

The Dividend Policy The Company shall pay dividends in accordance with the Charter of the JSC “Rostelecom”. In clause 10.3 of the Charter the minimal total value payable as a dividend on preference shares is fixed at 10 (ten) percent of the net profit of the Company following the results of the last accounting period divisible by the number of shares which constitute 25 (twenty five) percent of the Charter Capital of the Company. The Company’s Annual General Shareholders’ Meeting held on June 26, 2010, resolved to pay the following dividends based on year 2009 results: – dividends on preference shares, A Type, in the amount of 2,1005 rubles per share; – dividends on ordinary shares in the amount of 1,4002 rubles per share. The total amount of the dividends paid on preference shares was 510 million rubles, or 10 of the 2009 net profit, and 1 020 million rubles or 20% of the 2009 net profit was distributed among the holders of ordinary shares. The total amount of the dividends on shares exceeded 1 530 million rubles. Following the payment of dividends for 2009, the Company’s debts to shareholders amounted approximately to 10,2 million rubles, which is 0,67% of total value of dividends accrued to the holders of ordinary and preference shares of JSC “Rostelecom” in 2009 and the 9 months of 2010. The extraordinary General Shareholders’ Meeting of the Company held on November 10, 2010, resolved to pay the following dividends for the 9 months of 2010: – dividends on preference shares, A Type, in the amount of 1,6667 rubles per share; – dividends on ordinary shares in the amount of 1,1113 rubles per share.

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The total amount of the dividends paid on preference shares was 329 million rubles, or 8,13% of the net profit for the first 9 months of 2010, and 810 million rubles, or 20% of the net profit for the first 9 months of 2010 was distributed among the holders of ordinary shares. The total amount of the dividends on shares exceeded 1 530 million rubles. Following the payment of dividends for the first 9 months of 2010, the Company’s debts to shareholders amounted approximately to 12,6 million rubles which constitutes 1,11% of the total dividends accrued to the holders of ordinary and preference shares of JSC “Rostelecom” in the first 9 months of 2010. The key rationale behind the non-payment was the shareholders’ failure to submit information on certain changes in their personal data to the register of the Company’s securities holders in accordance with the payment method they had selected, such as: – changes in the shareholder’s residential location for those opting to receive dividends by mail transfer; – lack of details, indication of incorrect bank details and/or changes in bank details for those opting to receive dividends by a bank transfer; – indication of incorrect method for paying the dividends (regarding the shareholders who, while not JSC “Rostelecom”’s employees, incorrectly specified the method of paying out the dividends as “payment in cash, at cash offices of the Company”); – changes in passport details of shareholders (applies to any payment method). JSC “Rostelecom” complies with the resolutions of the Annual General Shareholders’ Meetings and fully performs its obligations pertaining to remittance of dividends to persons entitled to receive them. Moreover, pursuant to clause 5 of Article 44 of the Federal law No.208-FZ “On Joint-Stock Companies” as of October 31, 2002, and clause 13.3. of Article 13 of the JSC “Rostelecom” Charter, a shareholder shall timely advise the Company’s Registrar on any changes in his/her personal details. In case of a shareholder’s failure to provide information on changes in his/her details (on time), JSC “Rostelecom” and the Registrar shall not be held liable for his/her losses inflicted in connection therewith. Upon the expiry of the dividend payout period set by the General Meeting of Shareholders, the Company monitors the shareholder register on a monthly basis and pays outstanding dividends u to the shareholders which have made requisite changes to the register of the Company. Dividend History

6 2007 2008 2009 9 mths 2010 2010 The total amount of dividends, RUB, thou. 2 356 003 2 121 622 1 530 388 1 139 149 105 486 Amount of dividends on one preference share, RUB 3,8809 2,9124 2,1005 1,6667 0,4344

% of net profit 7 10,0 10,0 10,0 8,13 3,05 for preference shares on one ordinary share, RUB 1,9399 1,9410 1,4002 1,1113 0,0000 % of net profit 15,0 20,0 20,0 20,0 0,00 for ordinary shares For reference Amount of net profit, RUB thou. 9 423 904 7 072 057 5 101 583 4 048 144 3 459 752

6 The amount of dividends recommended by the Board of Directors of JSC “Rostelecom” for approval at the Annual General Shareholders’ Meeting upon the year 2010 results. 7 % of the net profit on preference shares is less than 10% as the dividends are not accrued on shares bought-out from the shareholders by the issuer according to clause 3 of Article 72 of the Federal law “On Joints Stock Companies”

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Dividend Payout Trends8

8 The amount of dividend paid for the first 9 months of 2010 recommended by the Board of Directors of JSC “Rostelecom” for approval at the Annual General Shareholders’ Meeting upon the year 2010 results.

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The Company’s Shares on the Russian Market The shares of JSC “Rostelecom” entered the Russian Trading System (RTS) Stock Exchange in 1995, at the same time as when the Company itself entered a new phase of its development, becoming a publicly-traded company. Since then, the Company has actively developed and maintained relationships with the investment community. The Company’s ordinary and preference shares (RTKM, RTKM-002D - RTKM-017D and RTKMP tickers respectively) are currently listed as level A1 securities on the MICEX Stock Exchange and traded on the RTS Stock Exchange. The listing on the MICEX as well as the inclusion of JSC “Rostelecom”’s securities in the calculation of exchanges’ indices demonstrates the ample liquidity of the Company’s securities and ensures the observance of rights and interests of shareholders in accordance with listing requirements. Performance of JSC “Rostelecom”’s Shares, MICEX Index and RTS Index

* Prices of JSC “Rostelecom”’s ordinary shares and the MICEX and RTS indices were assumed to be equal to 100 base points as of December 31, 2009 ** The MICEX weighted average prices for JSC “Rostelecom”’s ordinary shares are used

Volume of JSC “Rostelecom”’s Shares Traded on the Russian Stock Exchanges

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Foreign Market for the Company’s Securities In February 1998 the U.S. Securities and Exchange Commission commenced a Level II American Depositary Receipt (“ADR”) Program for ordinary shares of JSC “Rostelecom”. One ADR is equivalent to and represents the rights of the six ordinary shares of the Company. The JP Morgan Chase Bank is currently the depositary bank servicing the Company’s ADR Program under the deposit agreement between JSC “Rostelecom”, JP Morgan Chase Bank, the holders and the beneficiary owners of the ADRs. The ADRs of JSC “Rostelecom” were listed on the New York Stock Exchange (NYSE) from February 1998 to December 2009. In December 2009, the Board of Directors thoroughly reviewed the Level II ADR Program and decided to delist the ADRs from the NYSE and to deregister them with the U.S. Securities and Exchange Commission. The main reason for this was that the need to comply with the reporting requirements under the U.S. Exchange Act was associated with substantial expenses, while the major market for JSC “Rostelecom”'s securities was by far and large the Russian securities market. After the delisting from the NYSE the ADR Program was transferred to Level I and JSC ”Rostelecom”’s ADRs had begun trading in the U.S. over-the-counter (OTC) market by means of the ”Pink Sheets” electronic system. In March 2010, to maintain a high level of transparency and disclosure in line with the best global practices, JSC “Rostelecom”’s ADRs were listed on the OTCQX International Premier – the highest tier of the U.S. OTC market. The Company’s ADRs are traded outside of listing at the London, Frankfurt and other foreign stock exchanges. As of December 31, 2009, 4% of the Company’s ordinary shares circulated outside the Russian Federation in the form of ADRs. Volume of JSC “Rostelecom”’s Shares Traded on Foreign Stock Exchanges

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THE BOARD OF DIRECTORS Pursuant to the Charter of JSC “Rostelecom”, the Board of Directors is a governing collective executive body responsible for general management of the Company in between the General Shareholders’ Meetings, and consists of 11 members. The following members contributed to the work of the Board of Directors during 2010 and in 2011 till the Annual General Shareholders Meeting of JSC “Rostelecom”: 1. Anatoliy B. Ballo; 2. Vladimir N. Bondarik; 3. Yuriy A. Kudimov; 4. Sergey I. Kuznetsov; 5. Mikhail A. Leshchenko; 6. Aleksey A. Lokotkov; 7. Konstantin V. Malofeev; 8. Mikhail I, Poluboyarinov; 9. Sergey V. Pridantsev; 10. Aleksander Yu. Provorotov; 11. Ivan I. Rodionov; 12. Victor D. Savchenko; 13. Vadim V. Semenov; 14. Yuriy V. Surkov; 15. Anatoliy V. Tikhonov; 16. Yelena V. Umnova; 17. Maksim Yu. Tsyganov; 18. Yevgeny V. Yurchenko. The current members of the Board of Directors were elected on January 22, 2011 at an Extraordinary General Sharehodlers’ Meeting of JSC “Rostelecom”. The persons listed below have been on the Board of Directors of the Company during the following periods: Фамилия, имя и отчество 29.05. 26.06. 22.01. 9 члена Совета директоров 2010 2010 2011 Anatoliy B. Ballo;

Vladimir N. Bondarik (chairman of the board since December 23, 2010) Yuriy A. Kudimov Sergey I. Kuznetsov Mikhail A. Leshchenko Aleksey A. Lokotkov Konstantin V. Malofeev Mikhail I. Poluboyarinov Sergey V. Pridantsev Aleksander Yu. Provorotov Ivan I. Rodionov Victor D. Savchenko Vadim V. Semenov Yuriy V. Surkov Anatoliy V. Tikhonov Yelena V. Umnova

9 This information is purely referential since it defines the time period after the reporting date

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Maksim Yu. Tsyganov Yevgeny V. Yurchenko (chairman of the board till December 22, 2010))

Brief biographies of the members of JSC «Rostelecom»’s Board of Directors are set out in Appendix No.2 “Company Management and Controlling Bodies” of this Annual Report and substitute an integral part thereof.

Activities of the Board of Directors and its Committees in 2010 During 2009, JSC “Rostelecom”’s Board of Directors held 38 meetings, six of which were in praesentia and 32 of which were held in absentia. The decision to hold meetings in praesentia or in absentia is based on the factors such as the speed with which decisions need to be made, the amount of information to be reviewed by the members of the Board of Directors and the extent of discussion required in each particular case regarding the Company’s general development.

Major Resolutions Adopted by the Board of Directors Given the increased competition in the telecommunication segment in 2010, the efforts of the Board of Directors were focused on enhancing the efficiency of the Company’s operations, maintaining its leadership in the telecommunications market, and developing new business vectors. In May 2010, the Board of Directors approved the Program on long-term motivation of the JSC “Rostelecom” employees (hereinafter, the Program). The Program defines the motivation principles of the employees in the “Svyazinvest” group of Companies in order to achieve strategic business goals both within the frame of reorganization of the group of Companies and creation of a single national telecommunication operator on the basis of JSC “Rostelecom” and in the future – to achieve business goals of the Company on regular basis in long-term perspective. The Program also regulates the general order of its own implementation. In May 2010, the Board of Directors of JSC “Rostelecom” took the decision to include the issue of JSC “Rostelecom”’s reorganization by means of the merger with the seven Interregional Telecommunication Companies (ITCs) and JSC “Dagsvyaz” in the agenda of the Annual General Shareholders’ Meeting. Within the context of this issue the Board of Directors also examined and approved and submitted for final approval by the Annual General Shareholders’ Meeting the agreements on the merger of these companies to JSC “Rostelecom”, including the swap ratio of their shares into ordinary shares of the Company, claims on redemption of which shall be submitted to shareholders in case of JSC “Rostelecom”’s reorganization. The repurchase price amounted to 86,21 rubles both for ordinary and preference shares of JSC “Rostelecom”. In December 2010, the Board of Directors approved the deposit to the charter capital of “MOBITEL” LLC of ordinary and preference shares, A Type, of JSC “Rostelecom” which were then at the Company’s disposal. In exchange for the deposit of 6,155,795 thousand rubles, the Company received 41,41% of the Charter capital of “MOBITEL” LLC10. In the accounting period the Board of Directors approved the Company’s budget for 2011 and has been regularly attending to the issues of fulfilling the budget estimations and controling the receivables. Besides, the Board of Directors regularly reviewed issues pertaining to the approval of related party transactions under the Federal law “On Joint-Stock Companies”. The Board also made decisions related to the preparation and execution of the General Shareholders’ Meeting on the year 2009 results and the Extraordinary General Shareholders’ Meetings held on May 29, 2010, November 10, 2010 and January 22, 2011.

Committees of the Board of Directors To improve the Company’s efficiency, the Board of Directors maintains the Strategy Committee, the HR and Remuneration Committee, the Audit Committee, and the Corporate Governance Committee. These committees are elected on an annual basis. As initiatives are proposed, each Committee carries out a detailed analysis from the perspective of its own area of expertise and presents its recommendations to the

10 Following the consolidation of JSC “CenterTelecom”, JSC “SZT”, JSC “VolgaTelecom”, JSC “UTK”, JSC ”Uralsvyazinform”, JSC “SibirTelecom”, JSC “Dalsvyaz” and JSC “Dagsvyazinform” on the basis of JSC «Rostelecom» on April 1, 2011, the Company received 99,99% of the Charter capital of “MOBITEL” LLC.

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Board. This ensures that each decision made by the Board of Directors is well-researched and sufficiently informed. The Strategy Committee In 2010 the Strategy Committee focused on the operational and investment activities of the Company, budgeting issues and investment priorities for 2011, and the management of JSC “Rostelecom”’s assets. The Committee also closely monitored the Company’s performance against budget targets and put great effort into the finalization of the budget for 2011. Members of the Strategy Committee till May 29, 2010: – Anton Yu. Kolpakov; – Sergei I. Kuznetsov; – Mikhail A. Leshchenko; – Konstantin V. Malofeev; – Aleksander Yu.Provotorov; – Yevgeny V.Yurchenko; – Valery V. Degtyarev.

Members of the Strategy Committee from July 13, 2010, till January 22, 2011: – Yuriy A. Kudimov; – Sergei I. Kuznetsov; – Konstantin V. Malofeev; – Aleksander Yu.Provotorov; – Anatoliy V. Tikhonov; – Yevgeny V.Yurchenko.

The HR and Remuneration Committee The basic tasks of the HR and Remuneration Committee in 2010 were to assess candidates to the Board of Directors, the Management Board, the Audit Commission and for managerial positions. The Committee also reviewed and revised remuneration policies for the Board of Directors and the Management Board, for senior management and middle management, and approved the essential terms and conditions of employment contracts with members of the Management Board. Members of the HR and Remuneration Committee till May 29, 2010: – Mikhail A. Leshchenko; – Ivan I. Rodionov; – Maksim Yu. Tsyganov.

Members of the HR and Remuneration Committee since July 13, 2010, till January 22, 2011:

– Vladimir N. Bondarik ; – Aleksey A. Lokotkov; – Mikhail I. Poluboyarinov; – Victor D. Savchenko; – Yevgeny V.Yurchenko.

The Audit Committee In 2010 году the Audit Committee focused on controlling the quality and integrity of information included in the Company’s financial (accounting) statements. The Committee regularly reviewed and evaluated opinions of the Audit Commission and the independent external auditor, monitored the audit practices of the Company and examined draft auditing services agreements. Also the 2010 became a year when the Committee had to pay special attention to improving the Company’s risk management program. Members of the Audit Committee till May 29, 2010:

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– Konstantin V. Malofeev; – Ivan I. Rodionov; – Maksim Yu. Tsyganov.

Members of the Audit Committee since July 13, 2010, till January 22, 2011: – Vladimir N. Bondarik; – Yuriy A. Kudimov; – Aleksey A. Lokotkov; – Konstantin V. Malofeev; – Yelena V. Umnova.

The Corporate Governance Committee In 2010 the Corporate Governance Committee of JSC “Rostelecom” focused primarily on bringing strong corporate governance practices to the Company’s subsidiaries, as well as reviewing and implementing management policies with subsidiaries and affiliates. In 2010 the Committee also played an important role in the preparation for JSC “Rostelecom”’s Annual General Shareholders’ Meeting on the year 2009 results, as well as helpede prepare for the Extraordinary General Shareholders’ Meetings in May 29, 2010 and January 22, 2011. Members of the Corporate Governance Committee till May 29, 2010: – Aleksander Yu.Provotorov; – Victor D. Savchenko; – Valentina F. Veremyanina, Director of Corporate Governance and Legal Department of JSC “Svyazinvest”; – Oxana V. Petrova, Division Head, Corporate Governance and Legal Department of JSC “Svyazinvest”; – Pavel A. Nezhutin, Corporate Secretary of JSC “Rostelecom” . Members of the Corporate Governance Committee since July 13, 2010 till January 22, 2011: – Anatoliy B. Ballo; – Valentina F. Veremyanina, Director of Corporate Governance and Legal Department of JSC “Svyazinvest”; – Sergei I. Kuznetsov; – Pavel A. Nezhutin, Corporate Secretary of JSC “Rostelecom” – Victor D. Savchenko; – Yelena V. Umnova.

Remuneration of the Board of Directors Pursuant to clause 2 of Article 64 of the Federal law “On Joint Stock Companies”, the amount of remuneration payable to the members of the Board of Directors shall be set by resolution at the General Shareholders’ Meeting. In compliance with the requirements of the Russian legislation, the Annual General Shareholders’ Meeting held on June 26, 2010, approved a new revised version of the Regulations on the Board of Directors of JSC “Rostelecom”, which stipulates the manner of payment to the members of the Board of Directors; the decision was also made regarding the “Compensation to the members of the Board of Directors for their duties as members of the Company’s Board of Directors”. The remuneration of the members of the Board of Directors consists of quarterly and annual payments. The quarterly remuneration to each member of the Board of Directors shall be equal to 1 500 000 rubles. The Chairman of the Board of Directors shall receive remuneration of 1.3 times the remuneration of individual Board members. The quarterly remuneration of a member of Board of Directors may be reduced by: – 10%, in case of absence in 25 or less percent (inclusive) of the Board of Directors meetings and absentee meetings held; – 30%, in case of absence in more than 25 yet less than 50 percent (inclusive) of the Board of Directors meetings and absentee meetings held; – 100%, in case of absence in more than 50 percent of the Board of Directors meetings and absentee meetings held.

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If during the quarter there were changes in the composition of the Board of Directors and/or changes in the conditions of performance (commercial/non-commercial) of functions by a member of the Board of Directors the remuneration shall accrue and be paid in proportion to the period of time during which the member of the Board of Directors performed their functions on a commercial basis. Annual remuneration for all members of the Company’s Board of Directors shall be set by resolution of the Annual General Shareholders' Meeting as a percentage of OIBDA upon the completion of the financial statements for the next reporting financial year prepared in accordance with the Russian Accounting Standards. It may not exceed 0.26% of the OIBDA and will be used for determining the amounts of remuneration for the members of the Board of Directors from the moment the Annual General Shareholders’ Meeting is held on the results of the reporting financial year and until the next Annual Shareholders’ General Meeting. Annual remuneration for a member of the Board of Directors shall be determined as the value described above divided by the number of persons elected to the Board of Directors. The annual remuneration of the Chairman shall be 1.3 times this number. Annual remuneration of a member of the Board of Directors shall be reduced by 50% in the event of his/her participation in less than half of the Board of Directors meetings held over his/her term of office. If there were changes in the composition of the Board of Directors and/or changes in the conditions of performance (commercial/non-commercial) of functions by a member of the Board of Directors in between the election in the Annual General Shareholders’ Meeting and the next year’s Meeting, the remuneration shall accrue and be paid in proportion to the period of time during which the member of the Board of Directors performed their functions on a commercial basis. The annual remuneration to each member of the Board of Directors shall be paid no later than 3 months after its approval at the Annual General Shareholders’ Meeting. Members of the Board of Directors of JSC “Rostelecom” who are also members of the Audit Committee will receive an additional quarterly payment amounting to 150,000 rubles for fulfilling these duties. The payment to the Chairman of the Audit Committee shall be 1.25 times this number. A member of the Board of Directors also serving as a member on other Board committees will receive an additional quarterly payment amounting to 126,000 rubles for serving as a member of the Board committee. The payment to the Chairman of each committee shall be 1.25 times this number The quarterly remuneration of a member of a Committee of the Board of Directors may be reduced by: - 10%, in case of absence in 25 or less percent (inclusive) of the Committee meetings held; - 30%, in case of absence in more than 25 yet less than 50 percent (inclusive) of the Committee meetings held; - 100%, in case of absence in more than 50 percent of the Committee meetings held. If during the quarter there were changes in the composition of the Committee, the remuneration to the Committee member shall accrue and be paid in proportion to the period of time during which the member of the Committee performed his/her functions. Members of the Board of Directors who are at the same time employed by the state shall perform their duties on an unpaid basis. Members of the Board of Directors do not receive any additional remuneration or compensation for any expenses incurred during the execution of their duties aside from those agreed upon by the Regulations on the Board of Directors or by the decision at the Annual General Shareholders’ Meeting in other form. Total Board of Directors’ remuneration (including bonuses, commission fees, benefits and/or compensation for expenses, as well as other property distributions) amounted to 92,990,967.00 rubles in 2010.

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THE PRESIDENT AND THE MANAGEMENT BOARD According to the Charter of JSC “Rostelecom”, the Management Board is a governing collective executive body of the Company responsible for its day-to-day management. The number of members and the personnel composition of the Management Board is determined by the Board of Directors. Management Board members are elected by the Board of Directors excluding the Chairman of the management Board. According to the Federal law “On Joint Stock Companies”, the authority of the Chairman of the Management Board is vested with the President. In 2010 and 2011, the Management Board of JSC «Rostelecom» consisted/consists of the following members: 1. Aleksander Yu.Provotorov; 2. Vyatcheslav V. Volkov; 3. Yevgeny V. Gerasimov; 4. Pavel A. Zaytsev; 5. Victor V. Iudin; 6. Anton Yu. Kolpakov; 7. Sergey A. Lukash; 8. Vladimir K. Mironov; 9. Alexsey N. Nichiporenko; 10. Alexander M. Rogovoy; 11. Galina V. Rysakova; 12. Vadim V. Semenov; 13. Dmitry V. Sigalov; 14. Victor V. Strelkov; 15. Vladimir V. Terekhov; 16. Roman A. Frolov; 17. Anton A. Khozyainov.

The following parties were also part of the Management Board at the following times: The full name of the member 14.07. 03.08. 29.09. 10.11. 24.02.

of the Management Board 2010 2010 2010 2010 2011 Vyatcheslav V. Volkov Yevgeny V. Gerasimov Pavel A. Zaytsev Victor V. Iudin

Anton Yu. Kolpakov (Chairman of the Board till July 14, 2010) Sergey A. Lukash Vladimir K. Mironov Alexsey N. Nichiporenko

Aleksander Yu. Provotorov (Chairman of the Board from July 14, 2010) Alexander M. Rogovoy Galina V. Rysakova Vadim V. Semenov Dmitry V. Sigalov Victor V. Strelkov Vladimir V. Terekhov Roman A. Frolov Anton A. Khozyainov

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Brief biographies of the President and the members of JSC “Rostelecom”’s Management Board are set out in Appendix No.2 titled “Company Management and Controlling Bodies” and are an integral part thereof.

Activities of the Management Board and its Committees in 2010 The Management Board of the Company held 48 meetings in 2010, 23 meetings in praesentia and 25 meetings in absentia In 2010 the Management Board monitored the operational activities of the Company with a specific focus on how the current plans are formulated and what decision-making processes are employed in order to pursue the Company’s goals. The Management Board also reviewed budget performance reports and regularly monitored progress on the implementation of marketing and advertising plans. In order to improve operational efficiency, the Management Board adopted certain resolutions in 2010 on the decommissioning of analogue communication lines and facilities. The Management Board has also focused on optimizing the Company’s branches structure. Moreover, to ensure an efficient decision-making process the Management Board thoroughly examined materials and issues prior to submission to the Board of Directors for consideration, including the preliminary approvals of related party transactions. With a view to constantly improving the Company’s corporate governance standards and internal control procedures, the Management Board paid particular attention to JSC “Rostelecom”’s risk management program during 2010. The Management Board also drove the Company’s social responsibility initiatives, undertaking numerous charitable and sponsorship initiatives on behalf of the Company in 2010.

The Committees of the Management Board In 2010, several committees were in place to improve efficiency and support the general activities of the Management Board: the Budget and Investment Committee, the Tender Committee, the Compensations Committee, the Information Disclosure Committee, the Internal Control Committee, the Information Security Committee, and the Beneficence Committee of the Management Board of JSC “Rostelecom”.

The Budget & Investment Committee In 2010 the Budget & Investment Committee analyzed, assessed and made investment decisions related to projects and programs planned for 2010 and 2011. In addition, the Committee completed a thorough review of the 2011 budget of structural subdivisions and branches in order to devise the Consolidated Budget for the Merger company.

The Tender Committee In 2010 the Tender Committee reviewed commercial offers submitted by suppliers and contractors tendering for various projects, including those associated with the construction of communication lines and facilities, in order to find the most viable contractor for the Company’s business. In addition, the Committee provided guidance, coordination and technical management on the procurement of goods, services and labour side of things.

The Compensation Committee The Compensation Committee focused on making improvements to the Company’s efficiency by ensuring the employees are highly-qualified personnel stimulated to achieve the common goals. The Committee took decisions and implemented programs associated with compensation and motivation schemes for the Company’s employees

The Information Disclosure Committee In 2010 the Information Disclosure Committee approved the procedures and conditions of disclosing important (as seen by the Company) information to any third party in order to prevent the non-uniformity and factual divergence of the reported information about JSC “Rostelecom”.

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The Internal Control Committee The objective of the Internal Control Committee is to review issues concerning risk management and development, implementation, operation and improving of systems of internal control of the Company’s operational and financial performance. In 2010, the Internal Control Committee devoted its attention primarily to the issues of optimization of the risk management system.

The Information Security Committee In 2010 the Information Security Committee focused on operational decision-making regarding issues related to information and data and the protection of data and informational resources of JSC “Rostelecom”. The Committee was also responsible for ensuring the Company’s compliance with information security requirements defined by laws and regulations, while still advancing the goals and objectives of the Company.

The Beneficence Committee The Beneficence Committee engages in reviewing appropriate issues and taking decisions on the Company’s charitable donations and participation in social projects.

Remuneration of the President and the Management Board Pursuant to the Regulation on the General Director (President) of JSC “Rostelecom”, the remuneration of the President is defined in a written agreement between the President and the Company, represented by its Board of Directors. The remuneration for the members of the Company’s Management Board is determined by the Board of Directors according to internal documents. At present, a member of the Management Board receives remuneration based on the performance of his/her functions on a quarterly basis. Quarterly remuneration to the Management Board member cannot exceed 733,000 rubles, and quarterly remuneration to the Chairman cannot exceed 879,600 rubles. Quarterly remuneration is subject to approval by the Board of Directors with regard to fulfillment of target goals. In 2010 the overall remuneration of the Management Board members for their duties pursuant to the Regulations on the Management Board amounted to 28,699,280.00 rubles. Other payments to the persons acting as members of the Management Board during 2010, including the President, (including salaries, bonuses, commissions, benefits and/or compensation of expenses, as well as other payouts in the form of property under the Labour Code of the Russian Federation and the employment agreements) amounted to 145,359,238.00 rubles.

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THE AUDIT COMMISSION Pursuant to the Charter of JSC “Rostelecom”, the Audit Commission is an independent authority of the Company responsible for overseeing the Company’s financial and operational activities during the period in between the Annual General Shareholders’ Meetings. At the end of 2009 the Company’s Annual General Shareholders’ Meeting elected five individuals to act as members of the Audit Commission: – Mikhail V. Batmanov; – Svetlana N. Bocharova; – Bogdan I. Golubitsky; – Olga G. Koroleva; – Vyacheskav G. Ulupov. During 2010 Lyudmila A. Arzhannikova also performed the functions of a member of JSC “Rostelecom”’s Audit Commission. Brief biographies of the President and the members of JSC “Rostelecom”’s Management Board are set out in Appendix No.2 titled “Company Management and Controlling Bodies” and are an integral part thereof. The Audit Commission’s Activities in 2010 During 2010, the Audit Commission conducted a review of the Company’s financial and operational activities. The Audit Commission employed selective inspection techniques in order to sample a bit of every field of the Company’s transactions associated with its financial and operational activities. The review was based on documents such as accounting and taxation records, registers and incorporated statements by the Company’s management as necessary. The Audit Commission also reviewed the disclosure and accounting procedures used by JSC “Rostelecom” to report its performance; its accounting methods and principles; procedures to prepare financial statements and the annual report. Remuneration of the members of the Audit Commission The amounts of remuneration payable to members of the Audit Commission and compensation for expenses are set out in the Regulations on the Audit Commission. The members of the Audit Commission are compensated for all proven expenses incurred while executing their duties. Each member of the Audit Commission will receive quarterly remuneration amounting to 350,000 rubles. The quarterly remuneration to the Chairman of the Audit Commission is 1.3 times this number. For the quarter when the Audit Commission has been re-elected or in the event that a committee member resigns as stipulated by the paragraph 8 of the Regulations on the Audit Commission, the quarterly remuneration will be paid in proportion to the term such member(s) exercised the appropriate functions. Overall, the remuneration (including salaries, bonuses, commissions, benefits and/or compensation of expenses, as well as other payouts in the form of property) to the members of the Audit Commission in 2010 amounted to 7,420,000.00 rubles.

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SOCIAL RESPONSIBILITY

«Electronic Government» According to the Regulation by the Government of the Russian Federation JSC “Rostelecom” was appointed as the only contractor of the “Electronic Russia” Project and commissioned to design and construct an Electronic Government infrastructure. The Electronic Government infrastructure includes an integrated web resource of government services, identification and authorization systems, the common register of government services, system of interdepartmental electronic interaction, information and payment gateway and others. In 2010 JSC “Rostelecom” signed an agreement on cooperation for the “e-government” regional segments with more than 50 regions of the Russian Federation. The Company provided a chain of infomats for regional citizens who do not have Internet access. Infomats provide access to all state, regional and local services via the common web resource of government services.

The pan-Russian Population Census Within the pan-Russian population census that took place on October 14-25, 2010, the Company provided the “hot line” service for all the citizens of the country. The Russian citizens of all regions of the Russian Federation could call and ask their questions on the population census. The main goal of the “hot line” was to give the actual information about the pan-Russian population census and, in particular, to explain the procedure and to increase the number of participants as well as to prevent law violations during the course of the census. Besides, the “hot line” allowed the organizers of the census to monitor the general level of awareness of the Russian citizens about the concept behind the population census. More than 300 thousand calls were processed at that period.

Monitoring of the reconstruction after the forest fires According to the Order of the Chairman of the Russian Government Vladimir V. Putin, JSC “Rostelecom”, JSC “CenterTelecom” and JSC “VolgaTelecom” all collaborated in installing and connecting the web- cameras for online monitoring of the processes of reconstruction of the damaged settlements. In this manner it was easier to control the work being done in the regions . The cameras transmitted to the office of the Chairman of the Russian Government Vladimir. V. Putin located in the building of the Government House as well as to the Situation center of the Ministry of Regional Development of the Russian Federation. Besides, the translation was available to all the Internet users through the official website of the Russian Federation government.

Monitoring of the Olympic Objects construction JSC “Rostelecom” is the General partner of the XXII Winter Olympic Games 2014 in Sochi in the “Telecommunications” category. As part of the preparation for the Games, JSC “Rostelecom” provided digital links for organizing the video- monitoring system on the Olympic construction sites. This system ensured effective control on construction.

Internet for the youth camp “Mashuk” JSC “Rostelecom” performed as the official telecommunication partner of the Pan-Caucasian educational youth camp “Mashuk-2010”, which took place in Pyatigorsk. As a partner, the Company organized 40 networked stations connected to the Internet and provided stable Internet access throughout the territory of the camp with the help of Wi-Fi technology.

Unique network for the “Orlyonok” children’s center JSC “Rostelecom” is the General partner of the Pan-Russian children’s center “Orlyonok”. As a partner. the Company organized a unique video conference for the students of the Center and their peers from the “Ocean” Children’s Center of Primorsky krai and the “Artek” International Children’s center (Ukraine) during the commemoration of the Center’s 50th anniversary. JSC “Rostelecom” constructed the modern

75 CORPORATE GOVERNANCE telecommunication network throughout the Center. This new network connected not only campuses and other objects but also gave the students an opportunity to use such modern services as high-speed Internet access or video conferencing with any city of the world.

Children’s Hot Line In September 2010 JSC “Rostelecom” provided a general telephone number to organize a confidential hot line for children. At first the hot lines were organized in 21 regions of the Russian Federation. By the end of 2010 the hot lines for children seeking advice and support covered all of the country.

“A world with no barriers and boarders” Admitting its social responsibility, the Company actively supports one of the most unprotected and, sadly, neglected levels of population – children with disabilities. Thus, the Company provided Internet access with the “Home Internet” service, a year’s worth of traffic and laptops for hundreds of disabled children on home schooling in the Ural region.

Help to children living in orphanages Providing support to the inmates of orphan homes is the tradition of the Company. The project is of federation-wide importance and span and it seeks to provide help and assistance to children living in orphanages, such as material aid, gathering and bundling clothes by the Company’s volunteers, providing networks for remote education, organizing meetings with psychologists.

Supporting talented children The Company keeps on supporting talented children outstanding among their peers in middle- and high- schools. The Company hosts different competitions in the regions to promote the creativity of the pupils of middle- and high-schools associated with modern computer technologies, involving them in practical application of computer technologies and computer graphics.

Support of the veterans and the 65th Victory anniversary The 2010 was the year of the 65th anniversary of the Soviet Victory in the Great Patriotic War. JSC “Rostelecom” and its “Zebra Telecom” subsidiary held the traditional meeting with the Russian Committee of the Veterans of War and Military Service the day before. In 2010 the veterans received new universal calling cards by “Zebra Telecom” that allow making free calls to other cities not only from landline, but from mobile phones, too. As part of the commemoration of victory anniversary, JSC “Rostelecom” organized the first video conference for the Veterans of World War II from different Russian cities and veterans of the countries of Anti-Hitlerite coalition. Besides, JSC “Rostelecom” provided the television company “Pervyi Kanal” (“Channel 1”) with 10 free smart telephone numbers in the “8-800“ code format to poll viewer votes in the competition for the best patriotic song called “Spring of Victory”. Ther are, of course, other dates from the World War II to be remembered, so JSC “Rostelecom” organized a series of multichannel video conferences for the veterans, such as: in honour of the 66th Anniversary of the end of the Leningrad blockade, in honour of the 67th Anniversary of the Stalingrad victory, and in honour of the 65th Anniversary of Japan’s surrender in the World War II.

Computer literacy education for pensioners The project on computer literacy education for seniors is one of the biggest projects of the Company’s undertaking. The seniors had an opportunity to find out how they can resolve their routine problems, such as: reading the news, reading newspapers and books, making appointments with medical establishments, communicating with relatives and friends, discovering changes in pension-related legislation and many others.

A computer for a teacher In 2010 the company rendered aid to teachers and directors of educational institutions as part of the programs on supporting the teaching staff in a number of regions. These programs are expected to introduce the employees of the education sector to the modern technologies as well as to increase the accessibility of Internet for teachers.

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The teachers shall freely use the modern technologies and have access to information provided by the Internet. Within the project, the teachers received discounts for Internet connection, free traffic, and zero interest credit schemes for hardware/PC purchases.

Supporting the Russian scientists JSC “Rostelecom” passed the Russian section of the “Russia–Japan–South Korea” submarine cable network to the Pacific Oceanology institute SIO RAS named in the honour of I.V. Ilichev free of charge. The system was put into operation in 1995. The scientists of the Pacific Oceanology institute intend to use the provided line for conducting research into the geomagnetic field of the Earth.

Supporting national art Since 2008, the representatives of JSC “Rostelecom” are the members of the Board of Guardians of the Russian State Academic Theatre “Bolshoi Theatre”. The Board of Guardians undertakes to raise resources outside of the Theatre’s budget, to assist the Bolshoi Theatre in new stagings, in tour organization, in attracting stars and young talents, as well as in improvements of the management system, financial and business operations of the theater. Thanks to the Company, thousands of spectators in Moscow and other Russian cities could personally take in the talent of both experienced and novice masters of the world-renowned Russian ballet.

The Company’s Personnel JSC “Rostelecom”’s success in an increasingly competitive environment is a testament to the diligence and efficiency of its employees. That is why the Company places a great deal of importance on providing the best educational and training programs to its staff. In 2010 the Company continued its in-house and distant learning programs and training workshops aimed at increasing the professional competence of its employees. Over the last year, more than 11,000 employees of JSC “Rostelecom” attended retraining and qualification courses. The In-House Training Institute provided training for over 2,000 staff regarding sales and customer support, as well as time and stress management programs. One of the most popular upcoming trends of personnel development in 2010 turned out to be the development of the corporate system of intercommunications. Over the previous year the Company managed to set up unique tools and channels of communication designed to distribute the corporate information among the employees at all levels of the organizational structure. The telecommunication infrastructure conceived and implemented in the General directorate and the Company’s branches allowed to control the internal information transmission; to feed and gather information. Introduction of new tools to the functional blocks and subdivisions of the Company ensured effective and on-target information exchange both in the Company and its separate management vertical communication lines. The tools and infrastructure created enable solving such complex issues as forming and “breeding” the corporate culture, or creating an integrated informational space the Merger company-wide. Over the accounting period 25 employees of the Company were awarded the “Master of network” title, while 18 employees received the “Honorary radioman” badge and 25 employees received the highest corporate award – the “Golden badge” of JSC “Rostelecom”. JSC “Rostelecom”’s non-state pension insurance program is an additional benefit for its employees. The Company also offers Voluntary Medical Insurance and accident insurance programs for its employees at all its facilities. In accordance with the collective Labour Contract all the employees are entitled to social benefits and compensations. Over the accounting period the employees received compulsory medical insurance. According to the procedure stated in the Regulations on social programs of the Company, JSC “Rostelecom” is responsible for implementing corporate programs of the voluntary health insurance and the industrial injury insurance. In 2010 the employees’ children went on vacation to various Russian children’s health-centers, including the Pan-Russian “Orlyonok” Children’s Center on the Blacksea coast. Over 200 employees of JSC “Rostelecom” and members of their families received reduced fare tickets to the “Bekasovo” recreation center and the “Molniya” health center. Great attention was paid to the development and strengthening of the corporate culture of the Company. In October 2010, the Company hosted an Open Championship (so-called “Spartakiada”) among the teams of

77 CORPORATE GOVERNANCE the Company’s branches. The teams of JSC “Rostelecom” took part in sector tournaments of mini-football, skiing and ping-pong. Occupation-related “Effective sales” contests for the Company’s sales staff, “Safe Driving” contests for the drivers, and competition of professional mastership for specialists on installing and measuring the fiber-optic cables were also held to improve professional knowledge and experience. The Company also organized creative competitions – a “Soldiers march” contest for children’s drawings and a “Faster, higher, stronger!” photo contest. The celebratory events dedicated to the Victory day and New Year were held, too. Tackling education support, JSC “Rostelecom” rewards the best students of core professional specializations of several educational institutions in the Russian Federation by granting them individual scholarships. In 2010 17 students of various institutions throughout the country received those scholarships.

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THE COMPANY’S SIGNIFICANT TRANSACTIONS

Related Party Transactions In 2010 the Company entered into a number of related party transactions. Information on these transactions, as well as information on their preliminary approval by the JSC “Rostelecom”’s Board of Directors is provided in Annex No.3 to this Annual Report and is an integral part hereof. A government contract for designing and constructing the “Electronic Government” infrastructure In October 20, 2010, the Board of Directors approved the related party transaction associated with a government contract on designing and constructing the “Electronic Government” infrastructure within the execution of the “Electronic Russia” Federal Target Program (2002-2010) between the Ministry of Communications and Mass Media and JSC “Rostelecom” in 2010. The price of the scientific and technical work, developmental work and other kind of work together with the software and hardware imposed by this contract upon the Company comprised 1,152,800.00 rubles, including VAT. The interested party, in accordance with Article 81 of the Federal law “On Joint Stock Companies”, is: JSC “Svyazinvest”, the shareholder holding more than 20% of the voting shares of JSC “Rostelecom”, since an affiliate of JSC “Svyazinvest”, namely O.I. Shyogolev, a member of the Board of Directors of JSC “Svyazinvest”, is the Head of the Ministry of Communications and Mass Media. In 2010 the Company also entered into a number of transactions which were related party transactions subject-matter of which is the assets and services whose cost amounts to more than two (2) percent of the balance value of assets of JSC “Rostelecom”.

Related party transactions (hereinafter, Related Party Transactions): securities sale and purchase contract between JSC “Rostelecom” and JSC “KOMSTAR – OTS” (hereinafter, Contract-1), and securities sale and purchase contract between JSC “Rostelecom” and MGTS FINANCE S.A. (hereinafter, Contract-2). These related party transactions subject-matter of which is the assets and services whose value amounts to more than 2 (two) percent of the book value of the assets of JSC “Rostelecom” were preliminary approved by the General Shareholders’ Meeting of the Company on June 26, 2010, and effected on September 30, 2010. Contract -1: JSC “KOMSTAR – OTS” (hereinafter, Seller-1) shall undertake to transfer into ownership of JSC “Rostelecom” (hereinafter, Buyer) 3 378 173 750 (three billion three hundred seventy eight million one hundred seventy three thousand seven hundred fifty) ordinary registered book-entry shares of JSC “Svyazinvest” with the par value of 1 (one) ruble each, registered under no. 73-1“P”-8400, which is 17,31 (seventeen point thirty one) percent of the total placed registered non-documentary shares and the charter capital of JSC “Svyazinvest” (hereinafter, Shares-1), and the Buyer shall undertake to accept Shares-1 from the Seller-1 and transfer the acquisition costs of 18,000,000,000.00 (eighteen billion) rubles to the account of Seller-1. Contract-2: MGTS FINANCE S.A. (JSC “MGTS Finance”) (hereinafter, Seller-2) shall undertake to transfer into ownership of JSC “Rostelecom” (hereinafter, Buyer) 1 501 410 556 (one billion five hundred and one million four hundred ten thousand five hundred fifty six) ordinary registered book-entry shares of JSC “Svyazinvest” with the par value of 1 (one) ruble each, registered under no. 73-1“P”-8400, which is 7,69 (seven point sixty nine) percent of the total placed registered non-documentary shares and the charter capital of JSC “Svyazinvest” (hereinafter, Shares-2), and the Buyer shall undertake to accept Shares-2 from the Seller-2 and transfer the acquisition costs of 8,000,000,000.00 (eight billion) rubles to the account of the Seller-2. JSC “Svyazinvest”, as the shareholder holding more than 20% of voting shares of JSC “Rostelecom”, is recognized in these transactions as the interested party since an affiliate of JSC “Svyazinvest”, namely S.V. Pridantsev, a member of the Board of Directors of JSC “Svyazinvest”, is a member of the Board of Directors, Chairman of the Board and the President (sole executive body) of JSC “KOMSTAR-OTS” as well as an affiliated person of MGTS FINANCE S.A.

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Major Transactions In 2010 the Company entered into a number of transactions considered by the Federal law “On Joint Stock Companies” as major: Opening of non-renewable credit lines In June 25, 2010, the Board of Directors of the Company approved the related transactions subject- matter of which is the assets and services whose value ranges from 25 to 50 percent of the Company's book asset value – that is, 6 agreements on opening of non-renewable credit lines between JSC “Rostelecom” and JSC “Sberbank Rossii” with a total limit 30 billion rubles for a term of 24 to 36 months. Related transactions: additional agreement no. 1 to the securities sale and purchase contract between JSC “Rostelecom” and JSC “KOMSTAR – OTS” (Contract-1) and additional agreement no.1 to the securities sale and purchase contract between JSC “Rostelecom” and MGTS FINANCE S.A. (Contract-2). In September 10, 2010, the Board of Directors of the Company approved the related party transactions subject-matter of which was the assets and services whose value ranges from 25 to 50 percent of the Company's book asset value. These related transactions specify the terms of the Contract-1 and Contract-2 and procedures on the execution of the Contract-1 and Contract-2.

Other major transactions At the same time the Company entered into the following major transactions as well as transactions related to purchasing, assignment or potential assignment by the Company expressly or by implication of the assets whose value ranges from 1 to 25 percent of the Company's book asset value pursuant to the Company's financial statements as of the last reporting date. These transactions are subject to preliminary approval by the Board of Directors according to clause 31.6 of the Company’s Charter: Trust agreement: In May 2010 the Board of Directors of the Company approved a transaction related to purchasing, assignment or potential assignment by the Company expressly or by implication of the assets whose value ranges from 1 to 25 percent of the Company's book asset value, such as the trust agreement on the management of a closed mutual investment fund of shares of “Gazprombank–Telecommunications” made with the holding company – JSC “Gazprom–Asset management” for the amount of 67 400 000 (sixty seven billion and four hundred thousand) US dollars’ real equivalent as of the date of the money transfer. Irrevocable offers of the JSC “Rostelecom” In September 2010 the Board of Directors of the Company approved 22 transactions on purchasing, assignment or potential assignment by the Company expressly or by implication of the assets whose value ranges from 1 to 25 percent of the Company's book asset value, that is – the 14 transactions that would be completed once the irrevocable offers of JSC “Rostelecom” are accepted by the JSC “KOMSTAR – OTS” and MGTS FINANCE S.A. (JSC “MGTS Finance”); and 8 transactions that would be completed once the irrevocable offers of JSC “KOMSTAR – OTS” and of MGTS FINANCE S.A. (JSC “MGTS Finance”) are accepted by JSC “Rostelecom”. Auditing Services In September 2010 the Board of Directors of the Company approved the agreement for audit services between JSC «Rostelecom» and JSC “KPMG” to inspect to the accounting statements prepared according to the Russian Accounting Standards (Minutes No.09 dated September 30, 2010). In accordance with this agreement, the independent external auditor approved by the Annual General Shareholders’ Meeting on June 26, 2010, shall render auditing services to the Company with respect to the Company’s 2010 RAS accounting statements. The amount of the independent auditor’s remuneration amounted to 53,100,000.00 rubles, including the 8,100,000.00 rubles’ worth of VAT. Deposit to the charter capital of “MOBITEL” LLC In December 2010 the Board of Directors of the Company approved the contribution to the charter capital of “MOBITEL” LLC of ordinary and preference shares, A Type, of JSC “Rostelecom”, which were at the disposal of the Company. In exchange for the deposit valued at 6,155,795 thousand rubles the Company received 41,41% of the charter capital of “MOBITEL” LLC.

80 CORPORATE GOVERNANCE

Contract on the supply of equipment, execution of works and rendering of services with JSC “Envision Group” In June 2010 the Board of Directors approved the contract with JSC “Envision Group” which implies supplying equipment, executing necessary work(s) and rendering services associated with purchasing and installing the equipment for a transport network, which is part of a “Growth of the data communications network IP/MPLS of JSC “Rostelecom” in 2010 (second stage, first phase)” investment project.

81 CONTACT INFORMATION

CONTACT INFORMATION

JSC “ROSTELECOM” Full company name: Joint Stock Company for Long-Distance and International Telecommunications “Rostelecom”

Abbreviated company name: JSC “Rostelecom”

Registration number and state registration date: No.021.833 dated September 23, 1993

Legal address: 15 Dostoyevskogo street, Saint Petersburg, 191002, Russian Federation Mailing address: 14 Pervaya Tverskaya-Yamskaya street, Moscow, 125047, Russian Federation Contact phone / fax: +7 (499) 972 8283 / +7 (499) 972 8222 E-mail address: [email protected] Website: www.rt.ru

Director of External Director of Investors Relations Corporate Secretary Communication Oleg V. Rumyantsev Mariya S. Eliseeva Pavel A. Nezhutin Phone: +7 (499) 995 9784 Phone.: +7 (499) 995 9780 Phone: +7 (499) 995 9840 Fax: +7 (499) 995 9877 Fax: +7 (499) 995 9877 Fax: +7 (499) 995 9777

The Branch The Address Central Macroregional Branch 23 Proletarskaya street, Khimki, Moscow region,141400 North-Western Macroregional 14/26 Gorokhavaya street, Saint Petersburg, 191186 Branch Telecommunication building, M. Gorky square, Nizhniy Novgorod, Volga Macroregional Branch 603000 Southern Macroregional Branch 59 Krasnaya street, Krasnodar, 350000 Ural Macroregional Branch 11 Moskovskaya atreet, Yekaterinburg, 320014 Siberian Macroregional Branch 53 M. Gorkogo street, Novosibirsk, 630099 Far-Eastern Macroregional Branch 57 Svetlanskaya street, Vladivostok, 690091 Training Center Bekasovo, Naro-Fominsk District, 143380

Representative Offices in Geneva 94 Rue de Lausanne, 1202 Geneva, Switzerland

82 CONTACT INFORMATION

THE REGISTRAR Name: Joint Stock Company “United Registration Company” (JSC URC)

Legal address: 19 Leninskaya sloboda street, Moscow, Russian Federation

Mailing address: 115280, Moscow, P.O. Box 151 (for “Obyedinennaya Registratsionnaya Kompaniya”)

Office: 19 Leninskaya Sloboda street, Omega Plaza Business Center, 4th floor, Moscow, Russian Federation, 115280

Contact phones/fax: +7 (495) 775 1820

License: Russian FCSM perpetual License for exercising registrar’s activities No.10-000-1-00314 dated March 30, 2004

E-mail address: [email protected]

Website: www.ork-reestr.ru

THE INDEPENDENT AUDITOR Name: JSC “KPMG”

Legal address: 18/1 Olympiysky avenue, Room 3035, Moscow, Russian Federation, 129110

Mailing address: 10 Presnenskaya Embankment, Block C, floor 31, Moscow, Russian Federation, 123317

Contact phones/fax: +7 (495) 937-44-77 / +7 (495) 937-44-00/99

Member of selfregulated auditor organization: Member of Non-profit partnership “Audit chamber of Russia”. The general registration number in the state register of auditors and auditing organizations is 10301000804.

E-mail address: [email protected]

Website: www.kpmg.ru

83 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

APPENDIX NO.1 INFORMATION ON COMPLIANCE WITH RECOMMENDATIONS CONTAINED IN THE CODE OF CORPORATE CONDUCT OF FCSM OF RUSSIA

Compliant or No. Provision of FCSM’s Corporate Conduct Code Notes Non- Compliant General Shareholders Meeting 1. Notice to shareholders on intent to convene the general Compliant Article 18.4. of Rostelecom’s shareholders meeting no less than 30 days before the Charter1. meeting date regardless of the agenda items unless the law determines a larger notice period. 2. Opportunity for shareholders to study the list of persons Compliant Article 35.3. of Rostelecom’s entitled to participate in the general shareholders meeting Charter1. beginning from the day of the notice until the in-presence general shareholders meeting is closed. In case of an in- absentia general shareholders meeting - until the end of voting bulletin acceptance period. 3. Opportunity for shareholders to study information Compliant This provision is set in Rostelecom’s (materials) relevant to the general shareholders meeting by Corporate Governance Code2 (see means of electronic telecommunications, including the section “Participation of Shareholders Internet. in the Management of the Company”). 4. Opportunity for shareholders to put issues on the general Compliant Clause 3.1 and Clause 3.6. of the meeting agenda or request a convocation of a general Regulations on Rostelecom’s shareholders meeting without a statement from the General Shareholders Meeting3. shareholders’ register, if such shareholder’s title to the shares is attested by a shareholders’ register. Where the shareholder’s title to the shares is attested by a DEPO account, a statement from the DEPO account will suffice in order to exercise the above rights. 5. Stipulation of provisions in the Company’s Charter or Compliant This provision is set in Rostelecom’s internal documents requiring the presence at a Corporate Governance Code2 (see shareholders meeting of the general director, management section “Participation of Shareholders board members, board of directors members, audit in the Management of the committee members, as well as an auditor of the Company”). Company. 6. Mandatory presence of candidates at the general Compliant This provision is set in Rostelecom’s shareholders meeting when election of board directors and Corporate Governance Code2 (see audit committee members, as well as approval of the section “Participation of Shareholders Company’s auditor are considered. in the Management of the Company”). 7. Stipulation in the Company’s internal documents of a Compliant Article 9. of the Regulations on procedure regulating registration of general shareholders Rostelecom’s General Shareholders meeting’s participants. Meeting3. Board of Directors 8. Stipulation in the Company’s Charter of an authority of the Compliant Clause 23.3.1. of Article 23 of board of directors to approve the Company’s financial and Rostelecom’s Charter1. economic plan (budget) on an annual basis. 9. Existence of a risk management procedure approved by Compliant Risk Management Policy approved the board of directors. by Minutes No.12 of the absentee voting of Rostelecom’s Board of Directors dated March 20, 2007. 10. Stipulation in the Company’s Charter of the board of Non- According to Article 23.3.18. of directors’ right to decide on suspension of powers of the Applicable Rostelecom’s Charter1, the Board of general director appointed at the general shareholders Directors has the right to decide on meeting. appointment and early dismissal of the President. 11. Stipulation in the Company’s Charter of the board of Compliant Articles 23.3.23., 23.3.24. of directors’ right to establish criteria for qualification and the Rostelecom’s Charter1, as well as size of remuneration of the general director, management Rostelecom’s Corporate Governance Code2 (see section “Selection,

1 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

board members, and heads of main Company’s divisions. Evaluation and Retention of the CEO and members of the Management Board”). 12. Stipulation in the Company’s Charter of the board of Compliant Article 23.3.23. of Rostelecom’s directors’ right to approve agreements with the general Charter1. director and members of management board. 13. Stipulation in the Company’s Charter or internal documents Compliant This provision is set in Rostelecom’s of the requirement that approving agreements with the Corporate Governance Code2 (see general director (management company or manager) and section “Selection, Evaluation and members of management board, the votes of the board of Retention of the CEO and members directors’ members, who also serve as general director of the Management Board”). and management boards’ members, are not taken into consideration. 14. Presence on the board of directors of at least three Compliant During 2010 at least three members Independent Directors who qualify for requirements of the of Rostelecom’s Board of Directors Corporate Conduct Code. qualified for requirements of the Corporate Conduct Code. 15. No persons on the board of directors found guilty of Compliant Observed in practice. This provision economic crimes or crimes against government or local is set in Rostelecom’s Corporate authorities, government interests, or persons who were Governance Code2 (see section administratively liable for crimes related to violations in “Composition of the Board of business, finance, taxes and levies, or securities market. Directors”). 16. No persons on the Company’s board of directors, being Compliant Observed in practice. This provision participants, general directors (top managers), members of is set in Rostelecom’s Corporate governing bodies, or employees of any entity that is Governance Code2 (see section competing with the Company. “Composition of the Board of Directors”). 17. Stipulation in the Company’s Charter of a requirement for Compliant Article 24.3. of Rostelecom’s elect the board of directors’ members by cumulative vote. Charter1. 18. Stipulation in the Company’s internal documents of an Compliant This provision is contained in OJSC obligation of board of directors’ members to refrain from Rostelecom Corporate Governance actions that will lead or might potentially lead to conflicts Code2 (Section titled Responsibility of between their interests and the Company’s interests; and Members of the Board of Directors) should such conflicts of interest arise, an obligation to and Code of Ethics4. inform the board of directors of them. 19. Stipulation in the Company’s internal documents of an Compliant This provision is set in Corporate obligation of board of directors members to notify the board Governance Code2 (see section of directors in writing about intentions to make transactions “Responsibility of Directors”) and in with securities of a company, in which they are board of the Insider Trading Policy 5. directors members or board of directors members in its subsidiaries (affiliates), as well as to disclose information about the transactions they made with such securities. 20. Stipulation in the Company’s internal documents of a Compliant This provision is set in Rostelecom’s requirement for hold meetings of the board of directors at Corporate Governance Code2 (see least once every six weeks. section “Organization of Board of Directors Activity”). 21. Conducting of the board of directors’ meetings in a year, Compliant Observed in practice (38 meetings for which the Company’s annual report is being prepared, during 2010). at least once every six weeks. 22. Stipulation in the Company’s internal documents of a Compliant Article 26 of Rostelecom’s Charter1 procedure of conducting the board of directors’ meetings. and Article 6 of the Regulations on the Rostelecom’s Board of Directors6. 23. Stipulation in the Company’s internal documents of the Compliant This provision is set in Rostelecom’s necessity for the board of directors to approve all Company Corporate Governance Code2 (see transactions worth more than 10 percent of the Company section “Management Board assets, except for deals made in the ordinary course of Responsibility”) and Article 31.6. of business. Rostelecom’s Charter1. Also pursuant to Article 31.6 of Rostelecom’s Charter1 transactions from 1 to 25 percent of the Company assets shall be preliminary approved by the Board of Directors. 24. Stipulation in the Company’s internal documents of the Compliant This requirement is contained in

2 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

board of directors’ right to obtain from executive bodies paragraph 3.4. of the Regulations on and heads of the Company’s major divisions the the Board of Directors of the information required to assist the board of directors in Rostelecom6. fulfilling its duties, as well as responsibility for failure to This provision is also set in submit such information. Rostelecom’s Corporate Governance Code2 (see section “Management Board Responsibility”). 25. Existence of the board of directors’ committee on strategic Compliant The Board of Directors established planning or assignment of this committee’s functions to the Strategy Committee on another committee (excluding the audit committee and the September 16, 2003. Current personnel and compensation committee). members of the Strategy Committee were elected on February 24, 2011 (according to the Minutes No.3 dated February 28, 2011, of the Board of Directors). 26. Existence of the board of directors’ committee (audit Compliant The Board of Directors established committee), which advises the board of directors on the Audit Committee on December selection of an auditor for the Company and cooperates 21, 2004. Current members of the with the auditor and the Company’s audit committee. Audit Committee were elected on February 24, 2011 (according to the Minutes No.3 dated February 28, 2011, of the Board of Directors). 27. Presence of only independent and Non-Executive Compliant This requirement is contained in Directors on the audit committee. paragraph 3.2. of the Regulations on Board of Directors’ Audit Committee of Rostelecom7; decision on item 25 of the Minutes No.3 dated February 28, 2011 of the Board of Directors. 28. An Independent Director’s chairmanship of the audit Compliant Decision on item 9 of the Minutes committee. No.2 dated June 3, 2009, of the Board of Directors and item 6 of the Minutes No.2 dated July 13, 2010, of the Board of Directors. 29. Stipulation in the Company’s internal documents of the Compliant This provision is set in Rostelecom’s right of all audit committee members to have access to any Corporate Governance Code2 (see of the Company’s documents and information on a non- section “Board of Directors’ Audit disclosure basis. Committee”) and Article 4.15 of the Regulations on the Audit Committee of the Rostelecom’s Board of Directors7. 30. Establishment of the board of directors’ committee Compliant The Board of Directors established (nomination and remuneration committee), which will the Nominations and Remuneration develop the selection criteria for candidates to the board of Committee on September 16, 2003. directors and develop the Company’s remuneration policy. Current members of the Nominations and Remuneration Committee on were elected on February 24, 2011 (according to the Minutes No.3 dated February 28, 2011, of the Board of Directors). 31. An Independent Director’s chairmanship of the personnel Compliant Since September 16, 2003, till and compensation committee. present the Chairman of Nominations and Remuneration Committee is an Independent Director; decision on item No.4 of Minutes of the Board of Directors No.1 dated February 1, 2011 32. No Company’s executives in the nomination and Compliant The provision is embodied in Article 3 remuneration committee. of the Regulations on Nominations and Remuneration Committee of the Board of Directors of Rostelecom8; decision on item 26 of Minutes No.3 dated February 28, 2011, of the Board of Directors. 33. Establishment of the board of directors’ committee for risks Non- The Audit Committee of the Board of or assignment of this committee’s functions to another Compliant Directors of Rostelecom was charged

3 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

committee (excluding the audit committee and the with performing this function7. nomination and remuneration committee). 34. Establishment of the board of directors’ committee for Compliant The Corporate Governance corporate conflict settlement or assignment of this Committee of OJSC Rostelecom committee’s functions to another committee (excluding the Board of Directors was charged with audit committee and the nomination and remuneration performing this function. See Article 2 committee). of the Regulation on the Corporate Governance Committee of OJSC Rostelecom Board of Directors9. 35. No Company’s executives on the committee for corporate Compliant On February 24, 2011, the Board of conflict settlement. Directors appointed members to the Corporate Governance Committee of OJSC Rostelecom Board of Directors (Minutes of the Board of Directors No.3 as of February 28, 2011). 36. An Independent Director’s chairmanship of the committee Non- During 2010, the Board of Directors for corporate conflict settlement. Compliant was chaired by non-executive directors. 37. Existence of the Company’s internal documents approved Compliant On September 18, 2009, the Board of by the board of directors, providing for the procedure of Directors approved the Regulations creation and functioning of the board of directors’ on the Audit Committee7, committees. Nominations and Remuneration Committee8 and Corporate Governance Committee9. On July 23, 2009, the Board of Directors approved the Regulations on the Strategy Planning Committee10. 38. Stipulation in the Company’s Charter of the procedure of Partially Regulation on the Board of Directors6 designating the board of directors’ quorum, which will compliant provides for mandatory notification of provide for mandatory participation of Independent the Board members, including Directors in the board of directors’ meetings. independent directors, of upcoming meetings. Executive Bodies 39. Existence of the Company’s collective executive body Compliant Article 27.1. of Rostelecom’s Charter. (management board). 40. Stipulation in the company’s charter or internal documents Partially Regulations on operations of mandatory approval of real estate transactions and loan compliant documenting and control procedures agreements by the management board, if these deals are with respect to fixed assets not considered as major and do not belong to day-to-day accounting of Rostelecom General business of the company. management and affiliated branched determine competence of the Company Board regarding to acquisition and retirement of assets including real property facilities. 41. Stipulation in the Company’s internal documents of the Compliant This provision is set in Rostelecom’s procedure of coordinating transactions those are beyond Corporate Governance Code2 (see the scope of the Company’s financial and economic plan. section “Management Board Responsibility”). 42. No persons in executive bodies, being participants, general Compliant Conformed to in practice. This directors (top managers), management body member or provision is set in Rostelecom’s employees of any legal entity that is competing with the Corporate Governance Code2 (see Company. section “Management Board and Its Committees”). 43. No persons in executive bodies found guilty of economic Compliant Conformed to in practice. This crimes or crimes against government or local authorities, provision is set in Rostelecom’s government interests, or persons who were Corporate Governance Code2 (see administratively liable for crimes related to violations with section “Management Board and Its business, finance, taxes and duties or securities market. If Committees”). the sole executive body’s functions are fulfilled by a management company or a manager, the general director and management board members of a management company or manager must meet the requirements set for a general director and management board members of the

4 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

Company. 44. Stipulation in the Company Charter or internal documents Non- Rostelecom’s internal documents do of a ban on a management company (manager) from Applicable not provide for a management performing similar functions in a competing company, as company. well as establishing other property relations with the Company except for providing services of a management organization (manager). 45. Stipulation in the Company’s internal documents of an Compliant This provision is set in Rostelecom’s obligation of executive bodies to refrain from actions that Corporate Governance Code2 (see will lead or potentially lead to conflicts between their section “Management Board and Its interests and the Company’s interests; and should such Committees”). conflicts of interest arise, an obligation to inform the board of directors of them. 46. Stipulation in the Company’s Charter or internal documents Non- Rostelecom’s internal documents do of the criteria for selection of a management company. Applicable not provide for a management company. 47. Monthly reports of executive bodies on their deliverables to Partially The Company’s Board of Directors the board of directors. compliant deems it reasonable to consider at its meeting quarterly reports of the Management Board. 48. Stipulation in agreements between the Company and the Compliant Conformed to in practice. This norm general director (management company, manager), as well is embodied in Corporate as between the Company and management board Governance Code of Rostelecom2 members of the responsibility for violating regulations on (Section “Management Board and its confidential and insider information use. Committees”), in contract with the Rostelecom’s President and in contracts with the members of the Company’s Management Board. Company Secretary 49. Existence in the Company of a special official (the Compliant Decision on item No.1 of Minutes of Company corporate secretary), whose task is to facilitate the Board of Directors No.5 dated adherence by the Company bodies and executives to September 24, 2008; Regulations on requirements that guarantee the exercise of rights and Corporate Secretary of Rostelecom11. legal interests of the Company. 50. Stipulation in the Company’s Charter or internal documents Compliant Article 23.3.29. of Rostelecom’s of the procedure of appointing (electing) the Company Charter1. secretary and establishing the secretary’s duties. Section 2 of Regulations on Corporate Secretary of Rostelecom11. 51. Stipulation in the Company’s Charter of requirements for Partially Article 27.11. of Rostelecom’s secretary candidates. compliant Charter1 designate the special person to assure the compliance by the Company’s executive bodies with applicable regulations and procedures aimed to protect the legal rights and interests of shareholders. Requirements to the candidacy for Rostelecom’s Corporate Secretary are contained in Section 2 of Provision on Corporate Secretary of Rostelecom11. Major Corporate Activities 52. Stipulation in the Company’s Charter or internal documents Compliant This provision is set in Rostelecom’s of a requirement for approve large deals (worth 25-50 Corporate Governance Code2 (see percent of the Company assets value) before they are section “Major Corporate Activities”). made. 53. Mandatory engagement of an independent appraiser to Compliant This provision is set in Rostelecom’s appraise the market value of property that is the subject of Corporate Governance Code2 (see large deals. section “Major Corporate Activities”). 54. Stipulation in the Company’s Charter of a ban on taking Non- Rostelecom’s Charter1 does not any measures, when acquiring major stakes in the Applicable contain provisions aimed to protect Company (acquisition), aimed to protect the interests of the interests of executive bodies executive bodies (members of executive bodies) and board (members of executive bodies) and of directors members of the Company, as well as board of directors members, when

5 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

worsening the shareholders’ position (in particular, a ban acquiring major stakes in the on the board of directors to make decisions, prior to the Company. assumed end date of share purchase, on issue of This provision is set in Rostelecom’s securities convertible into shares or securities that grant Corporate Governance Code2 (see the right to acquire the Company shares even if the right to section “Major Corporate Activities”). make such a decision is stipulated in the Charter). 55. Stipulation in the Company’s Charter of a requirement for Partially This provision is set in Rostelecom’s mandatory engagement of an independent appraiser to compliant Corporate Governance Code2 (see appraise the current market value of shares and possible section “Major Corporate Activities”). changes in their market value as a result of acquisition of the Company. 56. No release in the Company’s Charter of purchasers from Compliant This provision is not set in the an obligation to offer shareholders the opportunity to sell Company’s Charter1. their ordinary shares of the Company (securities convertibles into ordinary shares) upon acquisition. 57. Stipulation in the Company’s Charter or internal documents Compliant This provision is set in Rostelecom’s of a requirement for mandatory engagement of an Corporate Governance Code2 (see independent appraiser to determine the share conversion section “Major Corporate Activities”). ratio in the Company reorganization. Information Disclosure 58. Existence of a document approved by the board of Compliant The Board of Directors approved the directors that makes the rules for and approaches to Information Disclosure Policy (new disclosure of information about the Company (the version No.1) on December 29, Information Policy Regulations). 200812. 59. Stipulation in the Company’s internal documents of a Partially Insider Trading Policy of OJSC requirement for disclose information about the purpose of Compliant Rostelecom5 placing shares, about persons who intend to buy these shares, including a large stake, as well as about intentions of Company executives to buy the Company shares to be placed. 60. Stipulation in the Company’s internal documents of a list of Compliant Article 18.5. of Rostelecom’s documents, materials and other information to be Charter1. submitted to the shareholders for solving issues put on the agenda of a general shareholders meeting. 61. Existence of the Company’s website and regular Compliant www.rt.ru publication of information about the Company on the website. 62. Stipulation in the Company’s internal documents of a Compliant This provision is set in Rostelecom’s requirement for disclose information about the Company’s Corporate Governance Code2 (see deals with persons who, according to the Charter, are the section on Company Information Company’s top executives, as well as about the Policy) and Insider Trading Policy of Company’s deals with organizations, in which the OJSC Rostelecom5. Company top executives directly or indirectly hold 20 percent or larger stakes, or on which these executives are able to exert essential influence. 63. Stipulation in the Company’s internal documents of a Compliant This provision is set in Rostelecom’s requirement for disclose information about all deals, which Corporate Governance Code2 (see may influence the market value of Company shares. section on Company Information Policy). 64. Existence of an internal document approved by the board Compliant Insider Trading Policy of OJSC of directors that describes how to use essential information Rostelecom5. about the Company’s activity, shares and other securities, and also about transactions with them, which is not publicly accessible and the disclosure of which may essentially influence the market value of the Company shares and other securities. Financial and Business Control 65. Existence of procedures approved by the board of Compliant This norm is contained in Regulations directors for internal control over the Company’s financial on Internal Control System over and economic activity. Financial Reporting of Rostelecom14. 66. Existence of a special division in the Company that Compliant Internal Audit Department; Statute of facilitates adherence to the procedures of internal control Internal Audit Department13 (a control and auditing service).

6 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

67. Stipulation in the Company’s internal documents of the Compliant This norm is contained in Regulations control and auditing service’s obligation to inform the audit on Internal Control System over committee about irregularities found, as well as an Financial Reporting of Rostelecom14. obligation of the service head to regularly report to the audit committee on implementation of the Company’s financial and economic plan and deviations from the plan. 68. No persons in the Company control and auditing service Compliant Observed in practice. found guilty of economic crimes or crimes against government or local authorities, government interests, or persons who were administratively liable for crimes related to violations with business, finance, taxes and duties or securities market. 69. No persons in the control and auditing service, being Compliant Observed in practice. members of the Company executive bodies, as well as being participants, general directors (top managers), management body member or employees of any legal entity that is competing with the Company. 70. Stipulation in the Company’s internal documents of a Compliant This provision is set out in period for submitting documents and materials to the Regulations on Internal Control control and auditing service, required for assessing a System over Financial Reporting of financial and economic transaction made, as well as Rostelecom14. responsibility of Company executives and employees for failure to submit the above papers prior to the deadline. 71. Stipulation in the Company’s internal documents of the Compliant This provision is set out in control and auditing service’s obligation to inform the audit Regulations on Internal Control committee (or in its absence, the board of directors) about System over Financial Reporting of irregularities. Rostelecom14. 72. Stipulation in the Company’s Charter of a requirement for Partially Assessment of practicability of the control and auditing service to assess advisability for compliant performed operations not provided for making transactions (nonstandard transactions) that are in the Rostelecom’s year budget shall not included in the Company’s financial and economic be made by the Board of Directors plan. and Management Board of the Company. This provision is set out in the Corporate Governance Code2 (Section “Responsibility of the Management Board”). 73. Stipulation in the Company’s internal documents of the Compliant This provision is set in Rostelecom’s procedure of coordinating nonstandard transactions with Corporate Governance Code2 (see the board of directors. section “Management Board Responsibility”). 74. Existence of an internal document approved by the board Not This requirement is in conflict with the of directors that describes the procedure of auditing the applicable Federal Law No.208-FZ on Joint- Company’s financial and economic activity by the audit stock Companies as of December 26, committee. 1995. In accordance with this law Regulations on Audit Commission of Rostelecom15 are approved by Annual General Meeting of Shareholders of OJSC Rostelecom. 75. Review by the audit committee of the auditors’ opinion Compliant This requirement is included in the prior to presentation thereof to the shareholders at a Regulations on the Audit Committee general meeting. of the Board of Directors7. Dividends 76. Existence of an internal document approved by the board Compliant Rostelecom’s Dividend Policy16. of directors, based on which the board of directors passes recommendations for the size of dividends (the Dividend Policy Regulations). 77. Stipulation in the Dividend Policy Regulations on the Compliant Rostelecom’s Dividend Policy16. procedure of determining a minimum amount of the Company’s net profits allocated for dividend payment, and conditions, under which dividends are fully or partially paid on preferred shares; the size of dividends on these preferred shares is set in the Company’s Charter. 78. Publication of information about the Company’s Dividend Compliant www.rt.ru Policy and changes therein in a bulletin stipulated in the

7 COMPLIANCE WITH RECOMMENDATIONS ISSUED BY FCSM OF RUSSIA

Company’s Charter for publication of statements about general shareholders meetings, as well as publication of this information on the Company’s website.

1 Charter. of OJSC Rostelecom (restated version No.10) approved by the Annual General Meeting of Shareholders of OJSC Rostelecom on May 30, 2009 (pursuant to Minutes No.1 as of June 11, 2009), including Amendments No.1 and No.2 (pursuant to Minutes No.1 as of June 30, 2010), Amendments No.3 (pursuant to Minutes No.1 as of January 26, 2011) and Amendments No.4 (pursuant to Minutes No.5 as of March 15, 2011) 2 Corporate Governance Code of OJSC Rostelecom approved by the Board of Directors of OJSC Rostelecom on December 27, 2007 (pursuant to Minutes No.12 as of December 29, 2007) 3 Regulations on the General Shareholders’ Meeting of OJSC Rostelecom (restated version No.4) approved by the Annual General Meeting of Shareholders of OJSC Rostelecom on June 26, 2010 (pursuant to Minutes No.1 as of June 30, 2010) 4 Code of Ethics of OJSC Rostelecom approved by the Board of Directors of OJSC Rostelecom on December 27, 2007 (pursuant to Minutes No.12 as of December 29, 2007) 5 Insider Trading Policy of OJSC Rostelecom (restated version No.1) approved by the Board of Directors of OJSC Rostelecom on December 29, 2008 (pursuant to Minutes No.14 as of December 30, 2008) 6 Regulations on the Board of Directors of OJSC Rostelecom (restated version No.9) approved by the Annual General Meeting of Shareholders of OJSC Rostelecom on June 26, 2010 (pursuant to Minutes No.1 as of June 30, 2010) 7 Regulations on the Audit Committee of OJSC Rostelecom Board of Directors (restated version No.2) approved by the Board of Directors of OJSC Rostelecom on September 18, 2009 (pursuant to Minutes No.11 as of September 21, 2009) 8 Regulations on the Nominations and Remuneration Committee of OJSC Rostelecom Board of Directors (restated version No.1) approved by the Board of Directors of OJSC Rostelecom on September 18, 2009 (pursuant to Minutes No.11 as of September 21, 2009)) 9 Regulations on the Corporate Governance Committee of OJSC Rostelecom Board of Directors (restated version No.2) approved by the Board of Directors of OJSC Rostelecom on September 18, 2009 (pursuant to Minutes No.11 as of September 21, 2009) 10 Regulations on the Strategy Committee of OJSC Rostelecom Board of Directors (restated version No.2) approved by the Board of Directors of OJSC Rostelecom on July 23, 2009 (pursuant to Minutes No.5 as of July 24, 2009) 11 Regulations on Corporate Secretary and Corporate Department approved by the Board of Directors of OJSC Rostelecom on September 19, 2008 (pursuant to Minutes No.5 as of September 24, 2008) 12 Information Disclosure Policy of OJSC Rostelecom (restated version No.1) approved by the Board of Directors of OJSC Rostelecom on December 29, 2008 (pursuant to Minutes No.14 as of December 30, 2008) 13 Statute of OJSC Rostelecom Internal Audit Department (restated version No.2) approved by the Board of Directors of OJSC Rostelecom on September 9, 2009 (pursuant to Minutes No.10 as of September 9, 2009) 14 Regulations on Internal Control System over Financial Reporting of OJSC Rostelecom approved by the Board of Directors of OJSC Rostelecom on December 26, 2005 (pursuant to Minutes No.12 as of December 29, 2005) 15 Regulations on the Audit Commission of OJSC Rostelecom (restated version No.2) approved by the Annual General Meeting of Shareholders of OJSC Rostelecom on June 9, 2008 (pursuant to Minutes No.1 as of June 24, 2008) 16 Dividend Policy of OJSC Rostelecom (restated version No.1) approved by the Board of Directors of OJSC Rostelecom on April 30, 2009 (pursuant to Minutes No.24 as of May 4, 2009)

8 BOARD OF DIRECTORS

APPENDIX NO.2 COMPANY MANAGEMENT AND CONTROLLING BODIES

BOARD OF DIRECTORS

Vladimir Bondarik, Chairman of the Board of Directors from December 23, 2010 Mr. Bondarik was born in 1957. In 1980 he graduated from Moscow Institute of Physics and Technology where he specialized in radioelectronic devices and obtained a qualification of Engineer-Physicist. The table below provides the list of offices Mr. Bondarik held in the recent 5 years and his current position: Period Organization Office Deputy General Director, Managing 2005 – 2008 LLC RoilSystems Director, General Director 2008 – 2009 LLC Roilcom General Director 2009 – 2010 OJSC Rostelecom Member of the Board of Directors Deputy General Director, Member of 2009 – current OJSC Svyazinvest the Management Board Ministry of Communications and Mass Media of Advisor to Minister on a voluntary 2009 – current Russian Federation basis 2009 – 2011 OJSC Svyazintech Member of the Board of Directors 2010 – current OJSC RTcomm.RU Member of the Board of Directors 2010 – current OJSC Rostelecom Chairman of the Board of Directors 2010 – current OJSC Vitanet Chairman of the Board of Directors As of December 31, 2010, Mr. Bondarik had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Bondarik made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Anatoly Ballo, Member of the Board of Directors from May 29, 2010 Mr. Ballo was born in 1961. He graduated from Moscow Finance Institute where he specialized in international financial relations and obtained a qualification of Economist. The table below provides the list of offices Mr. Ballo held in the recent 5 years and his current position: Period Organization Office Head of Structure Financing 2005 – 2007 USSR Vnesheconombank Department, Invest-Banking Director 2006 – 2008 CJSC Hotel Development Member of the Board of Directors 2006 – 2010 OJSC IFC Member of the Board of Directors 2007 – 2010 OJSC North-West Metallurgical Works Member of the Board of Directors 2007 – 2010 «PETROL» A.D. Chairman of the Supervisory Board 2007 – 2010 «RAFINERIJA UNJA MODRICA» A.D. Chairman of the Supervisory Board 2007 – 2010 «RAFINERIJA NAFTE» A.D. Chairman of the Supervisory Board State Corporation «Bank for Development and Member of the Management Board – 2007 – current Foreign Economic Affairs (Vnesheconombank)» Deputy Chairman 2007 – current OJSC Euraziysky Chairman of the Board of Directors 2007 – current CJSC Kraslesinvest Chairman of the Board of Directors 2007 – current OJSC NK Severnoe Siyanie Member of the Board of Directors 2007 – current OJSC Household Appliances Works Member of the Board of Directors 2008 – 2010 Eco Telecom Limited Member of the Board of Directors 2008 – current Malev Zrt. Chairman of the Supervisory Board OJSC Corporation for Krasnoyarsk Region 2008 – current Member of the Board of Directors Development 2008 – current OJSC VEB-Leasing Chairman of the Board of Directors 2008 – current OJSC RusHydro Member of the Board of Directors 2009 – current OJSC Russian Agricultural Bank Member of the Supervisory Board 2009 – current CJSC GlobexBank Member of the Board of Directors

1 BOARD OF DIRECTORS

2009 – current LLC VEB-Invest Chairman of the Board of Directors 2009 – current OJSC Corporation for Samara Region Development Member of the Board of Directors 2009 – current OJSC OGK-1 Member of the Board of Directors 2010 – current LLC VEB-Capital Member of the Supervisory Board 2010 – current LLC VEB-Engineering Member of the Board of Directors 2010 – current Machinery & Industrial Group N.V. Member of the Board of Directors 2010 – current OJSC Angstrem Member of the Board of Directors 2010 – current OJSC Angstrem-T Member of the Board of Directors 2010 – current OJSC Angstrem-M Member of the Board of Directors 2010 – current OJSC Ammonium Member of the Board of Directors 2010 – current OJSC Rostelecom Member of the Board of Directors Chairman of the Investments 2010 – current OJSC RusHydro Committee of the Board of Directors 2011 – current LLC Resad Member of the Board of Directors As of December 31, 2010, Mr. Ballo had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Ballo made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Yuri Kudimov, Member of the Board of Directors from June 26, 2010 Mr. Kudimov was born in 1953. In 1979 he graduated from Lomonosov Moscow State University where he specialized in journalism. In 1998 Mr. Kudimov graduated from Dauling College (USA) where he obtained a degree of Master of Banking and International Financial Systems. The table below provides the list of offices Mr. Kudimov held in the recent 5 years and his current position: Period Organization Office President, Chairman of the 2005 – 2008 OJSC NRBank Management Board 2008 – 2009 OJSC NRBank Chairman of the Board of Directors 2010 – current LLC VEB-Capital General Director 2010 – current OJSC Rostelecom Member of the Board of Directors 2011 – current OJSC Svyazinvest Member of the Board of Directors As of December 31, 2010, Mr. Kudimov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Kudimov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Sergey Kuznetsov, Member of the Board of Directors until June 25, 2010 Mr. Kuznetsov was born in 1953. He graduated from North-Western Polytechnics Institute where he specialized in computer technologies. Mr. Kuznetsov was trained in Columbia University business school and completed a business administration course at Duke University’s Fuqua School of Business. The table below provides the list of offices Mr. Kuznetsov held in the recent 5 years and his current position: Period Organization Office Deputy General Director, Member of 2004 – 2006 OJSC Svyazinvest the Management Board 2004 – 2006 OJSC Telecominvest Member of the Board of Directors 2005 – 2006 OJSC Southern Telecommunication Company Chairman of the Board of Directors 2005 – 2006 OJSC Central Telegraph Chairman of the Board of Directors 2005 – 2006 OJSC SibirTelecom Chairman of the Board of Directors 2005 – 2006 OJSC Dalsvyaz Chairman of the Board of Directors 2005 – 2006 OJSC Uralsvyazinform Chairman of the Board of Directors 2005 – 2006 OJSC VolgaTelecom Member of the Board of Directors 2005 – 2009 OJSC Rostelecom Member of the Board of Directors 2005 – 2009 OJSC CenterTelecom Member of the Board of Directors 2006 – 2009 OJSC VolgaTelecom Chairman of the Board of Directors 2006 – 2009 OJSC SibirTelecom Member of the Board of Directors 2007 – current CJSC BaltAutoSearch Chairman of the Board of Directors

2 BOARD OF DIRECTORS

Member of the Independent Directors’ 2007 – current Russian Union of Industrialists and Entrepreneurs National Register 2009 – 2010 OJSC Rostelecom Member of the Board of Directors As of December 31, 2010, Mr. Kuznetsov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Kuznetsov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Mikhail Leshchenko, Member of the Board of Directors until May 28, 2010 and from January 22, 2011 Mr. Leshchenko was born in 1975. In 1997 he graduated from St. Petersburg State Economics and Finance Institute where he specialized in world economy and obtained a qualification of Economist. The table below provides the list of offices Mr. Leshchenko held in the recent 5 years and his current position: Period Organization Office 2006 – 2006 LLC Marshall Capital Deputy General Director 2007 – 2008 LLC Marshall Consulting Deputy General Director Ministry of Communications and Mass Media of 2008 – 2009 Advisor to Minister Russian Federation 2009 – 2009 OJSC Svyaz-Bank Member of the Board of Directors 2009 – 2010 OJSC Rostelecom Member of the Board of Directors 2009 – 2010 OJSC North-West Telecom Member of the Board of Directors 2009 – 2010 OJSC Uralsvyazinform Member of the Board of Directors 2009 – 2010 OJSC CenterTelecom Member of the Board of Directors 2009 – 2010 OJSC SibirTelecom Member of the Board of Directors 2009 – 2010 OJSC Dalsvyaz Member of the Board of Directors 2009 – 2010 OJSC Central Telegraph Member of the Board of Directors 2009 – 2010 OJSC Svyazinvest Member of the Board of Directors 2009 – 2011 OJSC VolgaTelecom Member of the Board of Directors 2009 – 2011 OJSC Southern Telecommunication Company Member of the Board of Directors 2009 – current OJSC Giprosvyaz Member of the Board of Directors 2009 – current OJSC Svyazinvest Deputy General Director 2009 – current OJSC Svyazinvest Member of the Management Board 2009 – current CJSC BaikalWestCom Chairman of the Board of Directors 2010 – 2010 CJSC Stack GSM Chairman of the Board of Directors 2011 – 2011 OJSC North-West Telecom Member of the Board of Directors 2011 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2011 – 2011 OJSC CenterTelecom Member of the Board of Directors 2011 – 2011 OJSC SibirTelecom Member of the Board of Directors 2011 – 2011 OJSC Dalsvyaz Member of the Board of Directors 2011 – current OJSC Rostelecom Member of the Board of Directors 2011 – current LLC Southern-Ural Telephone Company Member of the Board of Directors 2011 – current OJSC NTC Member of the Board of Directors As of December 31, 2010, Mr. Leshchenko had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Leshchenko made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Alexey Lokotkov, Member of the Board of Directors until May 28, 2010 and from June 26, 2010 until January 21, 2011 Mr. Lokotkov was born 1950. In 1977 he graduated from All-Union Extramural Construction Engineering Institute with a degree in Construction Engineering. Candidate of technical science, associate professor. The table below provides the list of offices Mr. Lokotkov held in the recent 5 years and his current position: Period Organization Office Deputy General Director – Financial 2000 – 2006 OJSC CenterTelecom Director 2007 – 2008 OJSC Soyuz-TelephoneStroy Deputy General Director

3 BOARD OF DIRECTORS

Deputy General Director, Member of 2009 – 2010 OJSC Svyazinvest the Management Board 2009 – 2010 OJSC Svyazintech Chairman of the Board of Directors 2009 – 2010 OJSC Rostelecom Member of the Board of Directors 2009 – 2010 OJSC Dagsvyazinform Member of the Board of Directors 2009 – 2011 OJSC Southern Telecommunication Company Member of the Board of Directors 2009 – 2011 OJSC SibirTelecom Member of the Board of Directors 2009 – 2011 OJSC CenterTelecom Member of the Board of Directors 2009 – current OJSC Giprosvyaz Member of the Board of Directors Russian Foundation for the History of 2009 – current Member of the Management Board Telecommunications 2009 – current OJSC Recreation complex Orbita Member of the Board of Directors 2010 – 2011 OJSC Rostelecom Member of the Board of Directors As of December 31, 2010, Mr. Lokotkov owned 24 ordinary and 145 preferred shares of the Company, which constitutes 0.000017% of the Company’s charter capital or 0.000003% of the Company’s ordinary shares.

Konstantin Malofeev, Member of the Board of Directors Mr. Malofeev was born in 1974. In 1996 he graduated from Lomonosov Moscow State University with a degree in Law. The table below provides the list of offices Mr. Malofeev held in the recent 5 years and his current position: Period Organization Office 2006 – 2008 LLC Marshall Capital Advisor to General Director Deputy Chairman of the Board of 2007 – 2010 OJSC NUTRINVESTHOLDING Directors Autonomous Noncommercial Educational 2007 – current Chairman of the Supervisory Board Organization “Saint Vasily Veliky Gymnasium” 2009 – 2011 OJSC Svyazinvest Member of the Board of Directors 2009 – 2011 MarCap Advisors Limited Managing Partner 2009 – current OJSC Rostelecom, Member of the Board of Directors 2010 – 2011 OJSC NUTRINVESTHOLDING Chairman of the Board of Directors 2011 – current MarCap Investments Group Limited Managing Partner As of December 31, 2010, Mr. Malofeev had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Malofeev made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Mikhail Poluboyarinov, Member of the Board of Directors from May 29, 2010 Mr. Poluboyarinov was born in 1966. In 1983 he graduated from Moscow Finance Institute (Financial Academy under the Government of the Russian Federation), faculty of credit and economics and obtained the qualification of Economist. In 1998 Mr. Poluboyarinov graduated from Plekhanov Russian Economic Academy postgraduate study and obtained a Ph.D. in Economics. The table below provides the list of offices Mr. Poluboyarinov held in the recent 5 years and his current position: Period Organization Office Deputy General Director on Finance 2003 – 2009 OJSC Aeroflot – Russian Airlines and Planning 2006 – 2010 OJSC Terminal Chairman of the Board of Directors State Corporation «Bank for Development and 2009 – current Head of Infrastructure Department Foreign Economic Affairs (Vnesheconombank)» 2010 – current OJSC Northern Caucasus Resorts Member of the Board of Directors 2010 – current OJSC Rostelecom Member of the Board of Directors As of December 31, 2010, Mr. Poluboyarinov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Poluboyarinov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

4 BOARD OF DIRECTORS

Alexander Provotorov, Member of the Board of Directors, Deputy Chairman of the Board of Directors until May 28, 2010 Mr. Provotorov was born in 1974. In 1996 he graduated from Lomonosov Moscow State University with a degree in Law. The table below provides the list of offices Mr. Provotorov held in the recent 5 years and his current position: Period Organization Office 2006 – 2008 LLC Marshall Capital General Director 2009 – 2009 MarCap Advisors Limited, Moscow branch Senior Managing Director 2009 – 2009 CJSC PTT Member of the Board of Directors 2009 – 2010 OJSC MGTS Member of the Board of Directors 2009 – 2010 CJSC AKOS Chairman of the Board of Directors 2009 – 2010 LLC MibiTel Member of the Board of Directors 2009 – 2010 OJSC Svyazinvest Deputy General Director 2009 – 2010 CJSC Cellular Communications of Nizhny Novgorod Chairman of the Board of Directors 2009 – 2011 OJSC CenterTelecom Member of the Board of Directors 2009 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2009 – 2011 OJSC North-West Telecom Member of the Board of Directors 2009 – current OJSC Svyazinvest Member of the Management Board 2009 – current OJSC Rostelecom Member of the Board of Directors 2009 – current OJSC Central Telegraph Member of the Board of Directors 2009 – current OJSC Rosinfocominvest Member of the Board of Directors 2009 – 2010 OJSC Giprosvyaz Chairman of the Board of Directors 2010 – current CJSC AKOS Member of the Board of Directors 2010 – current CJSC Cellular Communications of Nizhny Novgorod Member of the Board of Directors 2011 – current OJSC Svyazinvest Member of the Board of Directors 2011 – current OJSC NTC Chairman of the Board of Directors As of December 31, 2010, Mr. Provotorov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Provotorov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Ivan Rodionov, Member of the Board of Directors until May 28, 2010 and from January 22, 2011 Mr. Rodionov was born in 1953. In 1978 he graduated from Lomonosov Moscow State University where he specialized in national economy planning and obtained a qualification of Economist. The table below provides the list of offices Mr. Rodionov held in the recent 5 years and his current position: Period Organization Office 1997 – 2006 AIG-Brunswick Capital Management Managing Director 2000 – current OJSC IBS Group Holding Member of the Board of Directors 2001 – 2011 OJSC North-West Telecom Member of the Board of Directors Professor of Economics and Enterprise 2003 – current State University Higher School of Economics Finance Department 2004 – 2006 AIG-Interros RCF Advisor Managing Director 2004 – current OJSC FosAgro Member of the Board of Directors 2005 – 2007 OJSC MGTS Member of the Board of Directors Member of the Board of Directors, 2005 – current OJSC Energo – Machine-building Alliance Chairman of the Board of Directors Professor of Finance and Credit 2006 – current Russian State University of Humanities Department 2009 – 2010 OJSC Rostelecom Member of the Board of Directors 2009 – current OJSC Svyazinvest Member of the Board of Directors 2009 – current OJSC IC Rusinvest Member of the Board of Directors 2011 – current OJSC Rostelecom Member of the Board of Directors As of December 31, 2010, Mr. Rodionov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Rodionov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

5 BOARD OF DIRECTORS

Viktor Savchenko, Member of the Board of Directors until January 21, 2011 Mr. Savchenko was born in 1960. In 1986 he graduated from Lomonosov Moscow State University with a degree in Law. The table below provides the list of offices Mr. Savchenko held in the recent 5 years and his current position: Period Organization Office 2001 – 2006 OJSC Svyazinvest Head of Legal Department 2002 – 2010 OJSC MGTS Member of the Board of Directors 2003 – 2006 OJSC Central Telegraph Member of the Management Board 2005 – 2006 OJSC Svyazinvest Member of the Management Board 2005 – 2006 OJSC CenterTelecom Member of the Management Board 2005 – 2006 OJSC Svyazintech Member of the Board of Directors Managing Director – Director of 2006 – 2009 OJSC Svyazinvest Corporate Governance and Legal Department 2006 – 2009 OJSC CenterTelecom Member of the Board of Directors 2006 – 2011 OJSC VolgaTelecom Member of the Board of Directors 2008 – 2011 OJSC RTcomm.RU Member of the Board of Directors Deputy General Director, Member of 2009 – 2010 OJSC Svyazinvest the Management Board 2009 – 2010 OJSC Rostelecom Member of the Board of Directors 2009 – 2010 OJSC Dagsvyazinform Member of the Board of Directors 2010 – 2010 OJSC Altaisvyaz Chairman of the Board of Directors 2010 – 2011 OJSC CenterTelecom Member of the Board of Directors 2010 – current CJSC Eniseitelecom Chairman of the Board of Directors 2010 – current CJSC Saratov Public Telephone Chairman of the Board of Directors As of December 31, 2010, Mr. Savchenko had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Savchenko made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Yuri Surkov, Member of the Board of Directors until June 25, 2010 Mr. Surkov was born in 1977. He graduated from Financial Academy under the Government of the Russian Federation with a degree in Finance and Credit. The table below provides the list of offices Mr. Surkov held in the recent 5 years and his current position: Period Organization Office Economist, Deputy Head of 2004 – 2007 USSR Vnesheconombank Department, Head of Department State Corporation «Bank for Development and Deputy Head of Infrastructure 2007 – current Foreign Economic Affairs (Vnesheconombank)» Department As of December 31, 2010, Mr. Surkov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Surkov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Anatoly Tikhonov, Member of the Board of Directors from May 29, 2010 Mr. Tikhonov was born in 1969. He graduated from Lomonosov Moscow State University with a degree in Law. The table below provides the list of offices Mr. Tikhonov held in the recent 5 years and his current position: Period Organization Office Deputy Governor – Head of External 2003 – 2008 Administration of Krasnoyarsk Region Relations and Investments Department OJSC Corporation for Krasnoyarsk Region 2006 – 2008 Member of the Board of Directors Development Deputy Governor –Deputy Chairman of 2008 – 2008 Government of Krasnoyarsk Region Government

6 BOARD OF DIRECTORS

2008 – 2009 OJSC Corporation for Samara Region Development Member of the Board of Directors State Corporation «Bank for Development and Member of the Management Board – 2008 – current Foreign Economic Affairs (Vnesheconombank)» Senior Deputy Chairman 2009 – current United Company RUSAL Limited Member of the Board of Directors 2009 – current OJSC Sheremetievo International Airport Member of the Board of Directors 2009 – current LLC VEB-Engineering Member of the Board of Directors 2009 – current CJSC ALROSA Member of the Supervisory Board 2009 – current OJSC Svyaz-Bank Chairman of the Board of Directors 2010 – current OJSC Rostelecom Member of the Board of Directors OJSC Corporation for Northern-Caucasus 2010 – current Member of the Board of Directors Development As of December 31, 2010, Mr. Tikhonov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Tikhonov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Yelena Umnova, Member of the Board of Directors until January 21, 2011 Ms. Umnova was born in 1954. In 1976 she graduated from Voronezh Polytechnic Institute with a degree in Economics and Engineering Industry. The table below provides the list of offices Ms. Umnova held in the recent 5 years and her current position: Period Organization Office Head of Business Integration and Subsidiaries Governance Division; 2005 – 2007 OJSC Comstar-UTS Deputy Head of Corporate Governance Department 2005 – 2007 OJSC Tumenneftegazsvyaz Member of the Board of Directors 2005 – 2007 CJSC Konversia-Svyaz Member of the Board of Directors 2005 – 2007 LLC Astelit Member of the Board of Directors 2005 – 2007 CJSC Port Telecom Member of the Board of Directors 2007 – 2008 OJSC Etalon Factory Financial Director 2008 – 2009 Sberbank, Tambov branch Deputy Managing Director Deputy General Director, Member of 2009 – 2010 OJSC Svyazinvest the Management Board 2009 – 2011 OJSC Rostelecom Member of the Board of Directors 2009 – 2011 OJSC CenterTelecom Member of the Board of Directors 2009 – 2011 OJSC North-West Telecom Member of the Board of Directors 2009 – 2011 OJSC Southern Telecommunication Company Member of the Board of Directors 2009 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2009 – 2011 OJSC Dalsvyaz Member of the Board of Directors 2009 – 2011 OJSC Giprosvyaz Member of the Board of Directors 2010 – 2011 OJSC Svyazintech Chairman of the Board of Directors As of December 31, 2010, Ms. Umnova had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Ms. Umnova made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Yevgeny Yurchenko, Chairman of the Board of Directors until December 22, 2010, Member of the Board of Directors until January 21, 2011 Mr. Yurchenko was born in 1968. In 1994 he graduated from Voronezh State University with a degree in Economics. The table below provides the list of offices Mr. Yurchenko held in the recent 5 years and his current position: Period Organization Office Deputy General Director for 2005 – 2007 OJSC Comstar-UTS Investments and Regional Development 2005 – 2007 OJSC Tumenneftegazsvyaz Chairman of the Board of Directors 2005 – 2007 CJSC Konversia-Svyaz Chairman of the Board of Directors

7 BOARD OF DIRECTORS

2005 – 2007 LLC TC Overta Chairman of the Board of Directors 2007 – 2009 Sberbank, Tambov branch Managing Director General Director, Chairman of the 2009 – 2010 OJSC Svyazinvest Management Board 2009 – 2010 OJSC Rostelecom Chairman of the Board of Directors 2009 – 2010 OJSC North-West Telecom Chairman of the Board of Directors 2009 – 2010 OJSC VolgaTelecom Chairman of the Board of Directors 2009 – 2010 OJSC Southern Telecommunication Company Chairman of the Board of Directors 2009 – 2010 OJSC Uralsvyazinform Chairman of the Board of Directors 2009 – 2010 OJSC Central Telegraph Chairman of the Board of Directors 2009 – 2010 OJSC MGTS Member of the Board of Directors 2009 – 2011 OJSC CenterTelecom Chairman of the Board of Directors 2009 – 2011 OJSC Dalsvyaz Chairman of the Board of Directors 2009 – current NPF Telecom-Soyuz Member of the Fund Board 2010 – 2011 OJSC Rostelecom Member of the Board of Directors 2010 – 2011 OJSC North-West Telecom Member of the Board of Directors 2010 – 2011 OJSC VolgaTelecom Member of the Board of Directors 2010 – 2011 OJSC Southern Telecommunication Company Member of the Board of Directors 2010 – 2011 OJSC Svyazinvest Member of the Board of Directors 2010 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2010 – 2011 OJSC Central Telegraph Member of the Board of Directors As of December 31, 2010, Mr. Yurchenko had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Yurchenko made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Maxim Tsyganov, Member of the Board of Directors until May 28, 2010 Mr. Tsyganov was born in 1972. In 1994 he graduated from St. Petersburg State Economics and Finance Institute where he obtained a qualification of Economist. The table below provides the list of offices Mr. Tsyganov held in the recent 5 years and his current position: Period Organization Office 2002 – 2006 CJSC LenRosInvest General Director OJSC KIT Finance Investment Bank (before 2003 – 2007 Member of the Board of Directors September 1, 2005 – OJSC Web-Invest Bank) 2004 – 2007 OJSC Magistral Finance Leasing Company Member of the Board of Directors OJSC Branch of KIT Finance Investment bank 2005 – 2008 (before September 1, 2005 – OJSC Web-Invest Managing Director Bank) 2006 – 2007 LLC KIT Finance General Director Managing Director, Member of the 2007 – 2008 OJSC KIT Finance Investment Bank Management Board 2007 – 2008 LLC KIT Fortis Investment Consulting Member of the Board of Directors 2007 – 2008 OJSC KIT Fortis Investments Member of the Board of Directors 2008 – 2008 OJSC KIT Finance Investment Bank Deputy General Director President, Member of the Board of 2008 – 2009 LLC KIT Finance Directors 2006 – current KIT Finance Europe Member of the Board of Directors 2007 – 2010 OJSC CenterTelecom Member of the Board of Directors 2007 – 2010 OJSC Rostelecom Member of the Board of Directors 2007 – current NPF Promagrofond Member of the Board of Directors Self-regulatory organization National Securities 2007 – current Member of the Board of Directors Market Association (SRO NSMA) 2008 – current OJSC KIT Finance Investment Bank Advisor to General Director 2009 – current LLC KIT Finance IB General Director As of December 31, 2010, Mr. Tsyganov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Tsyganov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

8 BOARD OF DIRECTORS

No members of the Board of Directors of the Company have been brought to administrative responsibility for breaches of law in the spheres of finance, taxes and levies, securities market, or to criminal responsibility (no members of the Board of Directors of the Company have had any previous conviction record) for crimes in the sphere of economics or for crimes against the state authority, and among the members of the Board of Directors of the Company there are no persons who held any positions in managing bodies of entities over the period when bankruptcy proceedings were initiated against, and/or any bankruptcy procedures were applied in respect of such entities pursuant to the Russian laws and regulations.

9 PRESIDENT AND MANAGEMENT BOARD

PRESIDENT AND MANAGEMENT BOARD

Alexander Provotorov, President, Chairman of the Management Board from July 14, 2010 For information on A. Provotorov please refer to section Board of Directors of this Exhibit.

Vyacheslav Volkov, Member of the Management Board until August 02, 2010 Mr. Volkov was born in 1973. In 2003 he graduated from Modern University for the Humanities where he specialized in management. The table below provides the list of offices Mr. Volkov held in the recent 5 years and his current position: Period Organization Office Advisor to General Director, Deputy 2005 – 2009 OJSC Dalsvyaz General Director – Business Development Director 2009 – 2009 OJSC Rostelecom Sales Director 2009 – 2010 OJSC RTcomm.RU Member of the Board of Directors 2009 – 2010 CJSC Zebra Telecom Member of the Board of Directors 2009 – 2010 CJSC MC NTT Member of the Board of Directors Deputy General Director for Business 2009 – 2010 OJSC Rostelecom Development As of December 31, 2010, Mr. Volkov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Volkov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Yevgeny Gerasimov, Member of the Management Board Mr. Gerasimov was born in 1965. In 1987 he graduated from the Leningrad Telecommunications Institute where he specialized in Radio Communications and Broadcasting. The table below provides the list of offices Mr. Gerasimov held in the recent 5 years and his current position: Period Organization Office Deputy General Director – North-West 2005 – 2010 OJSC Rostelecom Branch Director 2006 – current OJSC Rostelecom Member of the Management Board Vice-President – North-West Branch 2010 – current OJSC Rostelecom Director 2010 – current CJSC Rosmedia Chairman of the Board of Directors As of December 31, 2010, Mr. Gerasimov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Gerasimov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Pavel Zaitsev, Member of the Management Board from November 10, 2010 Mr. Zaitsev was born in 1977. In 2000 he graduated from Ural State Technical University with a degree in Informational systems in Economics. The table below provides the list of offices Mr. Zaitsev held in the recent 5 years and his current position: Period Organization Office 2005 – 2007 CJSC Uraltelecomservice General Director Advisor to Yekaterinburg Branch 2007 – 2008 OJSC Uralsvyazinform Director 2008 – 2009 CJSC Uraltelecomservice General Director 2009 – 2010 OJSC Uralsvyazinform Member of the Management Board Deputy General Director – Sales 2009 – 2010 OJSC Uralsvyazinform Director 2010 – current LLC Southern-Urals Telephone Company Member of the Board of Directors

10 PRESIDENT AND MANAGEMENT BOARD

Vice-President – Sales Director, 2010 – current OJSC Rostelecom Member of the Management Board 2010 – current CJSC Westelcom Member of the Board of Directors 2011 – current CJSC GlobalTel Member of the Board of Directors 2011 – current OJSC NTC Member of the Board of Directors As of December 31, 2010, Mr. Zaitsev had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Zaitsev made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Viktor Iudin, Member of the Management Board Mr. Iudin was born in 1967. In 1988 he graduated from Moscow Railway Engineering Institute. The table below provides the list of offices Mr. Iudin held in the recent 5 years and his current position: Period Organization Office Deputy General Director – Central 2005 – 2009 OJSC Rostelecom Branch Director 2009 – 2010 OJSC Rostelecom Senior Deputy General Director 2009 – current CJSC Globus-Telecom Chairman of the Board of Directors 2010 – current OJSC Rostelecom Senior Vice-President As of December 31, 2010, Mr. Iudin had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Iudin made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Anton Kolpakov, Chairman of the Management Board until July 13, 2010, Member of the Management Board until November 09, 2010 Mr. Kolpakov was born in 1971. He graduated from St. Petersburg State Academy of Aerospace Instrumentation where he specialized in aircraft devices and measuring and computing complexes. The table below provides the list of offices Mr. Kolpakov held in the recent 5 years and his current position: Period Organization Office 2005 – 2006 CJSC AKOS Member of the Management Board Deputy General Director – Business 2005 – 2007 OJSC Dalsvyaz Development Director, Member of the Management Board NP Center for Studies of Telecommunications 2007 – 2008 Member of the Partnership Board Development Issues General Director, Chairman of the 2007 – 2009 OJSC Dalsvyaz Management Board 2007 – 2009 CJSC AKOS Chairman of the Board of Directors General Director, Chairman of the 2009 – 2010 OJSC Rostelecom Management Board 2009 – 2010 CJSC Zebra Telecom Chairman of the Board of Directors 2009 – 2010 CJSC GlobalTel Chairman of the Board of Directors 2009 – 2011 OJSC RTcomm.RU Member of the Board of Directors Russian Foundation for the History of Member of the Foundation 2009 – current Telecommunications Management Board As of December 31, 2010, Mr. Kolpakov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Kolpakov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Sergey Lukash, Member of the Management Board from September 29, 2010 Mr. Lukash was born in 1957. In 1976 he graduated from Alma-Ata communications technical school, in 1986 - All-Union Extramural Electrotechnical Institute with a degree in Radio and Broadcasting. In 1997 Mr. Lukash graduated from Russian Academy of Civil Service with a degree in State and Municipal Management.

11 PRESIDENT AND MANAGEMENT BOARD

The table below provides the list of offices Mr. Lukash held in the recent 5 years and his current position: Period Organization Office 2005 – 2006 Ministry of Justice of Russian Federation Ministry Assistant 2006 – 2006 Russian Prosecutor General's Office Senior Assistant to Prosecutor General Senior Deputy General Director, Acting 2008 – 2009 Federal Unitary Enterprise Communication-Security General Director Deputy General Director, Member of 2009 – 2010 OJSC Svyazinvest the Management Board General Director, Chairman of the 2010 – 2011 OJSC Uralsvyazinform Management Board, Member of the Board of Directors Vice-President, Director of Ural 2010 – current OJSC Rostelecom Macroregional Branch 2011 – current OJSC Svyazinvest Member of the Board of Directors 2011 – current OJSC NTC Member of the Board of Directors As of December 31, 2010, Mr. Lukash had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Lukash made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Vladimir Mironov, Member of the Management Board until September 28, 2010 Mr. Mironov was born in 1956 in Leningrad. He graduated from the Leningrad Railway Engineering Institute with a degree in Electrical engineering. The table below provides the list of offices Mr. Mironov held in the recent 5 years and his current position: Period Organization Office 2003 – 2006 LLC RTK-Siberia Member of the Board of Directors 2002 – 2010 OJSC Rostelecom Deputy General Director 2010 – current OJSC Rostelecom Vice-President As of December 31, 2010, Mr. Mironov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Mironov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Alexey Nichiporenko, Member of the Management Board from August 3, 2010 Mr. Nichiporenko was born in 1966. In 1988 he graduated from Leningrad Higher Marine Engineering Academy with a degree in Radio Engineering. In 1999 Mr. Nichiporenko graduated from St. Petersburg International Institute of Management with a degree in Management. The table below provides the list of offices Mr. Nichiporenko held in the recent 5 years and his current position: Period Organization Office 2004 – 2009 OJSC MegaFon Senior Deputy General Director 2008 – 2009 CJSC MegaFon International General Director 2009 – 2010 OJSC Svyazinvest Advisor to General Director 2010 – 2010 OJSC Rostelecom Senior Deputy General Director 2010 – 2010 CJSC Stack GSM Member of the Board of Directors 2010 – 2010 OJSC Altaisvyaz Member of the Board of Directors 2009 – current CJSC NSS Member of the Board of Directors 2009 – current CJSC BaikalWestCom Member of the Board of Directors 2009 – current CJSC Eniseitelecom Member of the Board of Directors 2009 – current CJSC AKOS Member of the Board of Directors 2009 – current CJSC Volgograd GSM Member of the Board of Directors Senior Vice-President, Member of the 2010 – current OJSC Rostelecom Management Board 2010 – current CJSC Orenburg GSM Member of the Board of Directors 2010 – current CJSC Saratov Public Telephone Member of the Board of Directors 2010 – current CJSC BIT Member of the Board of Directors

12 PRESIDENT AND MANAGEMENT BOARD

2011 – current OJSC NTC Member of the Board of Directors As of December 31, 2010, Mr. Nichiporenko had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Mironov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Galina Rysakova, Member of the Management Board Ms. Rysakova was born in 1967. In 1999 she graduated from the Lomonosov Moscow State University with a degree in Law. The table below provides the list of offices Ms. Rysakova held in the recent 5 years and her current position: Period Organization Office Deputy General Director – Director for 2003 – 2006 OJSC Rostelecom Organizational Development and Human Resources Management 2003 – current OJSC Rostelecom Member of the Management Board 2005 – current CJSC Insurance Company Costars Member of the Board of Directors Director of Department of 2006 – current OJSC Rostelecom Organizational Development and Human Resources Management 2008 – 2009 OJSC RTcomm.RU Member of the Board of Directors 2010 – current Malachite Resort Member of the Board of Directors As of December 31, 2010, Ms. Rysakova had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Ms. Rysakova made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Vadim Semenov, Member of the Management Board Mr. Semenov was born in 1965 in Leningrad. In 1997 he graduated from the St. Petersburg A.A. Zhdanov State University with a degree in Law. The table below provides the list of offices Mr. Semenov held in the recent 5 years and his current position: Period Organization Office Head of Legal Department, 2003 – 2009 OJSC MegaFon Director for Legal Affairs, Deputy Director for Legal Affairs Deputy General Director for Legal and 2009 – 2009 OJSC Gazprom, Subsidiary ElectroGaz Corporate Affairs Advisor to General Director, Deputy General Director for Corporate 2009 – 2010 OJSC Rostelecom Development, Member of the Management Board 2009 – 2011 OJSC Rostelecom Member of the Management Board 2010 – 2010 CJSC Westelcom Member of the Board of Directors 2010 – 2011 CJSC GlobalTel Member of the Board of Directors 2010 – current CJSC INCOM Chairman of the Board of Directors 2010 – current OJSC MMTS-9 Chairman of the Board of Directors 2010 – current Malachite Resort Member of the Board of Directors General Director, Chairman of the 2010 – current OJSC Svyazinvest management Board 2010 – current CJSC Sky Link Chairman of the Board of Directors 2011 – 2011 OJSC Central Telegraph Chairman of the Board of Directors 2011 – 2011 OJSC CenterTelecom Chairman of the Board of Directors 2011 – 2011 OJSC North-West Telecom Chairman of the Board of Directors 2011 – 2011 OJSC Southern Telecommunication Company Chairman of the Board of Directors 2011 – 2011 OJSC SibirTelecom Chairman of the Board of Directors 2011 – 2011 OJSC Uralsvyazinform Chairman of the Board of Directors 2011 – 2011 OJSC Dalsvyaz Chairman of the Board of Directors 2011 – 2011 OJSC VolgaTelecom Chairman of the Board of Directors

13 PRESIDENT AND MANAGEMENT BOARD

2011 – current OJSC RTcomm.RU Member of the Board of Directors As of December 31, 2010, Mr. Semenov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Semenov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Dmitry Sigalov, Member of the Management Board until August 02, 2010 Mr. Sigalov was born in 1973 in Leningrad. In 1996 he graduated from the St. Petersburg State University with a diploma in Law. From 1997 to 2000, Dmitry V. Sigalov continued postgraduate education at St. Petersburg State University, majoring in Commercial Law. He received a degree of Candidate in Law at Moscow Humanities University. The table below provides the list of offices Mr. Sigalov held in the recent 5 years and his current position: Period Organization Office Deputy General Director for Legal 2003 – 2006 OJSC Rostelecom Affairs 2003 – 2006 OJSC Rostelecom Member of the Management Board 2006 – current OJSC Rostelecom Head of Legal Affairs Department 2007 – 2010 OJSC Rostelecom Member of the Management Board As of December 31, 2010, Mr. Sigalov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Sigalov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Viktor Strelkov, Member of the Management Board Mr. Strelkov was born in 1968 in Moscow. In 1991 he graduated from Moscow University of Aerospace Technology with a degree in mathematics. The table below provides the list of offices Mr. Strelkov held in the recent 5 years and his current position: Period Organization Office Trainee, Consultant, Senior Consultant, Head of Consultation 1995 – 2006 CJSC Hewlett Packard Group, Head of Project Management Group 2006 – 2007 LLC Intelotec Group General Director 2007 – 2009 CJSC Sitronics Telecom Solutions Head of Marketing Department 2009 – 2009 OJSC Sitronics Chief Architect 2009 – 2010 OJSC Rostelecom Advisor to General Director Head of Information Technologies 2009 – current OJSC Rostelecom Department 2010 – current CJSC Zebra Telecom Chairman of the Board of Directors 2011 – current OJSC Svyazintech Member of the Board of Directors As of December 31, 2010, Mr. Strelkov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Strelkov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Vladimir Terekhov, Member of the Management Board Mr. Terekhov was born in 1958 in Kherson. In 1981 he graduated from the Kiev Higher Military Engineering Telecommunications College with a diploma in radio communications, and in 1990, continued his studies at the Military Telecommunications Academy. The table below provides the list of offices Mr. Terekhov held in the recent 5 years and his current position: Period Organization Office 2003 – 2008 OJSC Rostelecom Senior Deputy General Director 2003 – current OJSC Rostelecom Member of the Management Board 2004 – 2008 OJSC RTcomm.RU Member of the Board of Directors 2005 – 2008 CJSC GlobalTel Member of the Board of Directors

14 PRESIDENT AND MANAGEMENT BOARD

2004 – 2007 CJSC RusTel Member of the Board of Directors 2008 – 2009 OJSC Rostelecom Deputy General Director Deputy General Director – Technical 2009 – 2010 OJSC Rostelecom Director 2009 – 2010 OJSC MMTS-9 Member of the Board of Directors 2010 – current OJSC Rostelecom Vice-President - Technical Director As of December 31, 2010, Mr. Terekhov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Terekhov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Roman Frolov, Member of the Management Board Mr. Frolov was born in 1976. In 1997, he graduated from Plekhanov Russian Economic Academy, where he specialized in Finance and Credit, and in 2000 he completed the Post-Graduate Program at this Academy. The table below provides the list of offices Mr. Frolov held in the recent 5 years and his current position: Period Organization Office 2003 – 2006 OJSC Rostelecom Deputy Chief Accountant Chief Accountant, 2006 – current OJSC Rostelecom Member of the Management Board As of December 31, 2010, Mr. Frolov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Frolov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Anton Khozyainov, Member of the Management Board Mr. Khozyainov was born in 1974. In 1997 he graduated from Moscow Electronics and Mathematics Institute (Technical University) with a degree in Mathematics. The table below provides the list of offices Mr. Khozyainov held in the recent 5 years and his current position: Period Organization Office 2005 – 2008 LLC Marshall Capital Partners Financial Director 2009 – 2009 CJSC MTs NTT Adviser to General Director Deputy General Director – Financial 2009 – 2010 OJSC Rostelecom Director 2009 – 2010 CJSC Zebra Telecom Member of the Board of Directors 2009 – 2010 OJSC MMTS-9 Member of the Board of Directors 2009 – current OJSC RTcomm.RU Member of the Board of Directors 2009 – current CJSC GlobalTel Member of the Board of Directors 2009 – current OJSC MMTS-9 Member of the Board of Directors 2009 – current CJSC MTs NTT Chairman of the Board of Directors Vice-President for Economics and 2010 – current OJSC Rostelecom Finance 2010 – current Malachite Resort Member of the Board of Directors 2011 – current OJSC NTC Member of the Board of Directors As of December 31, 2010, Mr. Khozyainov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Khozyainov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

No members of the Management Board of the Company have been brought to administrative responsibility for breaches of law in the spheres of finance, taxes and levies, securities market, or to criminal responsibility (no members of the Management Board of the Company have had any previous conviction record) for crimes in the sphere of economics or for crimes against the state authority, and among the members of the Management Board of the Company there are no persons who held any positions in managing bodies of profit-making entities over the period when bankruptcy proceedings were initiated against, and/or any bankruptcy procedures were applied in respect of such entities pursuant to the Russian laws and regulations.

15 AUDIT COMMISSION

AUDIT COMMISSION

Olga Koroleva, Chairman of the Audit Commission Ms. Koroleva was born in 1950. She graduated from Tomsk State University where she specialized in economy. She holds a candidate degree in Economic sciences. In 1985 she got a post-graduate education at All-USSR Extramural Financial and Economic Institute. The table below provides the list of offices Ms. Koroleva held in the recent 5 years and her current position: Period Organization Office 2005 – 2006 OJSC Giprosvyaz Head of the Audit Commission 2005 – 2006 CJSC MTs NTT Head of the Audit Commission 2005 – 2006 OJSC Uralsvyazinform Head of the Audit Commission 2005 – current OJSC Svyazinvest Chief Accountant 2005 – 2007 OJSC Central Telegraph Head of the Audit Commission 2005 – 2011 OJSC VolgaTelecom Head of the Audit Commission 2005 – 2011 OJSC Dalsvyaz Head of the Audit Commission 2006 – 2007 CJSC BaikalWestCom Head of the Audit Commission 2006 – 2011 OJSC CenterTelecom Head of the Audit Commission 2006 – 2011 OJSC SibirTelecom Head of the Audit Commission 2006 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2006 – current OJSC Rostelecom Head of the Audit Commission 2007 – 2008 CJSC Eniseitelecom Member of the Audit Commission 2007 – 2009 OJSC North-West Telecom Member of the Board of Directors 2009 – 2009 OJSC North-West Telecom Chairman of the Board of Directors As of December 31, 2010, Ms. Koroleva had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Ms. Koroleva made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Lyudmila Arzhannikova, Member of the Audit Commission until June 25, 2010 Ms. Arzhannikova was born in 1960. In 1984 she graduated from Moscow Electrotechnical University for Telecommunications with qualification of a Telecommunications Engineer. The table below provides the list of offices Ms. Arzhannikova held in the recent 5 years and her current position: Period Organization Office 2004 – 2006 CJSC Telecom Member of the Board of Directors Head of Telecommunication Network 2005 – 2006 OJSC Svyazinvest Development Division of Telecommunication Department 2005 – 2006 OJSC SibirTelecom Member of the Management Board 2005 – 2006 CJSC AKOS Member of the Audit Commission 2005 – 2007 OJSC Dalsvyaz Member of the Audit Commission 2005 – 2007 CJSC Kurgan Cellular Telephone Member of the Audit Commission Deputy Head of Division – Head of 2006 – 2007 OJSC Svyazinvest Operators Cooperation Group of Strategic Development Department 2007 – current OJSC VolgaTelecom Member of the Audit Commission Head of Division for Coordination with 2008 – current OJSC Svyazinvest Regulating and Overseeing Bodies, Strategic Management Department As of December 31, 2010, Ms. Arzhannikova had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Ms. Arzhannikova made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

16 AUDIT COMMISSION

Mikhail Batmanov, Member of the Audit Commission Mr. Batmanov was born in 1978. In 2001 he graduated from Tver State University with qualification of a lawyer. In 2008 he obtained MCIArb certificate (Member of the Charted Institute of Arbitrators). The table below provides the list of offices Mr. Batmanov held in the recent 5 years and his current position: Period Organization Office 2005 – 2006 CJSC Westelcom Member of the Audit Commission 2005 – 2006 CJSC AKOS Member of the Audit Commission 2005 – 2006 OJSC Svyazinvest Head of Division of Legal Department 2005 – 2007 OJSC Central Telegraph Member of the Audit Commission 2005 – 2007 CJSC CenTel Member of the Audit Commission 2006 – 2006 OJSC CenterTelecom Member of the Management Board 2006 – 2007 OJSC Dalsvyaz Member of the Audit Commission 2006 – 2007 LLC North-West Giprosvyaz Member of the Audit Commission Head of Division of Corporate 2006 – 2009 OJSC Svyazinvest Governance and Legal Department 2007 – 2008 OJSC SibirTelecom Member of the Audit Commission 2007 – 2008 OJSC Uralsvyazinform Member of the Board of Directors 2007 – 2008 OJSC Svyazintech Member of the Board of Directors 2007 – 2008 OJSC Central Telegraph Head of the Audit Commission 2009 – 2009 OJSC Central Telegraph Member of the Board of Directors 2007 – current CJSC Mobile Telecommunications Member of the Board of Directors 2008 – 2010 OJSC Southern Telecommunication Company Member of the Audit Commission 2008 – current OJSC Rostelecom Member of the Audit Commission Deputy Head of Department, Head of 2009 – 2009 OJSC Svyazinvest Corporate Governance and Legal Division Deputy Director of Corporate 2009 – current OJSC Svyazinvest Governance and Legal Department 2009 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2009 – current OJSC SakhaTelecom Member of the Board of Directors 2010 – 2011 OJSC Southern Telecommunication Company Member of the Board of Directors 2010 – current CJSC Orenburg GSM Member of the Board of Directors 2010 – current CJSC AKOS Member of the Board of Directors As of December 31, 2010, Mr. Batmanov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Batmanov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Svetlana Bocharova, Member of the Audit Commission Ms. Bocharova was born in 1970. She graduated from the Moscow State University with qualification of a lawyer. She holds a Candidate’s degree in Law. The table below provides the list of offices Ms. Bocharova held in the recent 5 years and her current position: Period Organization Office Head of Tax Division of Accounting 2003 – current OJSC Svyazinvest Department 2004 – 2005 CJSC Registrator-Svyaz Member of the Audit Commission 2004 – 2006 OJSC Uralsvyazinform Member of the Audit Commission 2005 – 2006 OJSC CenterTelecom Member of the Audit Commission 2005 – 2007 OJSC Svyazintech Member of the Audit Commission 2005 – 2007 CJSC PenzaMobile Member of the Audit Commission 2006 – 2007 OJSC Rostelecom Member of the Audit Commission 2006 – 2007 CJSC Samara Telecom Member of the Audit Commission 2006 – 2007 CJSC MTS NTT Member of the Audit Commission 2006 – 2007 LLC BIT Member of the Audit Commission 2006 – 2008 OJSC Uralsvyazinform Head of the Audit Commission

17 AUDIT COMMISSION

2006 – 2008 OJSC Dalsvyaz Member of the Audit Commission 2007 – 2008 OJSC North-West Telecom Member of the Audit Commission 2007 – 2008 OJSC Cellular Communications of Nizhny Novgorod Member of the Audit Commission 2008 – 2009 OJSC North-West Telecom Head of the Audit Commission 2008 – current OJSC Rostelecom Member of the Audit Commission 2008 – 2011 OJSC VolgaTelecom Member of the Audit Commission 2009 – 2011 OJSC North-West Telecom Member of the Audit Commission As of December 31, 2010, Ms. Bocharova had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Ms. Bocharova made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Bogdan Golubitsky, Member of the Audit Commission Mr. Golubitsky was born in 1979. In 2000 he graduated from Moscow Technical University of Communications and Informatics with a degree in Economics. The table below provides the list of offices Mr. Golubitsky held in the recent 5 years and his current position: Period Organization Office Director of Economic Planning and Budgeting Department (before 2008 – 2000 – current OJSC Svyazinvest Specialist, Senior Specialist, Chief Specialist, Head of Division) 2005 – 2006 CJSC Urals Telephone Company Member of the Audit Commission 2005 – 2007 OJSC VolgaTelecom Member of the Audit Commission 2005 – 2008 OJSC Uralsvyazinform Member of the Audit Commission 2006 – 2007 CJSC NSS Member of the Audit Commission 2006 – 2007 OJSC Giprosvyaz Member of the Board of Directors 2007 – 2009 OJSC Central Telegraph Member of the Board of Directors 2008 – 2009 OJSC Dalsvyaz Member of the Board of Directors 2008 – 2009 OJSC Southern Telecommunication Company Head of the Audit Commission 2009 – 2009 OJSC Dalsvyaz Chairman of the Board of Directors 2009 – 2011 OJSC SibirTelecom Member of the Board of Directors 2009 – 2011 OJSC RTcomm.RU Member of the Board of Directors 2009 – current OJSC Rostelecom Member of the Audit Commission 2010 – 2011 OJSC Uralsvyazinform Member of the Board of Directors 2010 – current CJSC Sky Link Member of the Board of Directors 2010 – current OJSC Svyazinvest Member of the Management Board 2011 – 2011 OJSC Dalsvyaz Member of the Board of Directors As of December 31, 2010, Mr. Golubitsky had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Golubitsky made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

Vyacheslav Ulupov, Member of the Audit Commission from June 26, 2010 Mr. Ulupov was born in 1952. In 1979 he graduated from Lomonosov Moscow State University with a degree in Economics. The table below provides the list of offices Mr. Ulupov held in the recent 5 years and his current position: Period Organization Office 2003 – 2007 USSR Vnesheconombank Head of Internal Check and Audit State Corporation «Bank for Development and 2007 – current Head of Internal Check Service Foreign Economic Affairs (Vnesheconombank)» 2009 – current OJSC Rostelecom Member of the Audit Commission As of December 31, 2010, Mr. Ulupov had no interest in charter capital of the Company or in any of its subsidiaries or affiliates. In 2010, Mr. Ulupov made no transactions with the Company’s securities or any securities of its subsidiaries or affiliates.

18 TRANSACTIONS WITH AFFILIATES

APPENDIX # 3 LIST OF RELATED PARTY TRANSACTIONS UNDER THE FEDERAL LAW # 208-FZ “ON JOINT STOCK COMPANIES” DATED DECEMBER 26, 1995 IN 2010

JSC “Rostelecom” informs that, in accordance with item 7 of Article 83 and item 1 of Article 77 of the Federal law #208-FZ “On Joint Stock Companies” dated December 26, 1995, “should the price (money value) of the property as well as the price of placing or redeeming equity securities of the Company be specified by the decision of the Board of Directors (Supervisory Board) of the Company, they must be defined on the basis of their market value in accordance with this Federal law”.

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 1. Addendum #1 to the The Board of Directors Agreement on JSC “Svyazinvest” – the shareholder holding more than Explicate clause 1.11 of Article “Terms and Definitions” of the Agreement in a Minutes #24 dated interconnecting the data 20% of voting shares of JSC “Rostelecom”, whose revised version. Explicate clause 3.3.7 of Article “Rights and obligations of the February 8, 2010 transmission networks affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of Parties” of the Agreement in a revised version. Explicate Appendix #1 to the between JSC the Board of Directors of JSC “Rostelecom”, member of Agreement (revised version 2) according to Appendix #1 to the Addendum. “Rostelecom” and JSC the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, Explicate Appendix #3 to the Agreement (revised version 2) according to “Dalsvyaz” member of the Board of Directors of JSC “Rostelecom”, Appendix #2 to the Addendum. Enclosing Appendix #9 “Intelligent platform member of the Board of Directors of JSC “Dalsvyaz”; E.V. codes of JSC “Rostelecom” to the Agreement in the version as defined by Yurchenko, Chairman of the Board of JSC “Rostelecom”, Appendix #3 to the Addendum. The transaction price is set in Appendix #1 to Chairman of the Board of JSC “Dalsvyaz”. the Addendum. The Addendum shall come into force once signed.

2. Addendum #1 to the The Board of Directors Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement (revised version 2) in accordance with Minutes #24 dated “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. Enclose Appendix #4 (version defined by February 8, 2010 “Dalsvyaz” affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of Appendix #2 to the Addendum) to the agreement. The transaction price: the Board of Directors of JSC “Rostelecom”, member of monthly service costs of leasing the cable ductworks is set in accordance with the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, Appendix #1 to the Agreement in the revised version as defined by the member of the Board of Directors of JSC “Rostelecom”, Addendum. The Addendum shall come into force once signed by both Parties. member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “Dalsvyaz”.

3. Addendum #1 to the Explicate Appendices #1 and #2 to the Agreement in the revised versions of The Board of Directors Agreement on cable JSC “Svyazinvest” – the shareholder holding more than respective Appendices #1 and #2 to the Addendum. The services price is Minutes #24 dated allocations in the cable 20% of voting shares of JSC “Rostelecom”, whose specified by the Addendum. The Addendum shall come into force once signed February 8, 2010 ductworks between JSC affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of by the authorized representatives of the Parties upon condition of prior “Rostelecom” and JSC the Board of Directors of JSC “Rostelecom”, member of approval by the Board of Directors of JSC “Dalsvyaz” and the Board of “Dalsvyaz” the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, Directors of JSC “Rostelecom”. The commencing date of the discharge of the member of the Board of Directors of JSC “Rostelecom”, obligations under the Addendum is the date of signing the Act (Appendix #2 to member of the Board of Directors of JSC “Dalsvyaz”; E.V. the Addendum #1 to the Agreement). Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “Dalsvyaz”.

1 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction The Board of Directors 4. Agency contract between The Agent (JSC “Rostelecom”) for the account of, for and on behalf of the JSC “Rostelecom” and JSC “Svyazinvest” – the shareholder holding more than Minutes #24 dated Principal (JSC “Sibirtelecom”) shall perform legal acts and other actions, that JSC “Sibirtelecom” 20% of voting shares of JSC “Rostelecom”, whose February 8, 2010 affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member is: search for potential Subscribers and collect applications from them to of the Board of Directors of JSC “Rostelecom”, member execute engagement Agreements on telecommunication services. If there is of the Board of Directors of JSC “Sibirtelecom”; A.A. technical capability to provide access to local telecommunications, to execute Lokotkov, member of the Board of Directors of JSC engagement Agreements on telecommunication services with the Subscribers “Rostelecom”, Deputy Chairman of the Board of Directors using standard paperwork as specified in Appendices #3 and #4; to carry out of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the negotiations with potential Subscribers aiming to reach agreement on the terms Board of Directors of JSC “Rostelecom”, Chairman of the of the abovesaid Agreement, to provide the Subscribers with information Board of Directors of JSC “Sibirtelecom”. necessary for executing and implementing the Agreement. The transaction price: the agent's fees are specified by the Contract and are paid monthly upon receipt of payments from the Subscribers. The Contract shall come into force once signed and is valid for one year. If none of the Parties notifies the other Party in written form about the dissolution of the Contract, it is considered extended for the same period and upon same terms. If the terms of this section are observed, the extension of the Contract is possible for an unlimited number of times.

5. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than “Rostelecom” leases the optic fibers (hereinafter, the OFs) to “Uralsvyazinform” The Board of Directors optical fibers between JSC 20% of voting shares of JSC “Rostelecom”, whose throughout the sections and given the prices as defined by Appendix #2 to the Minutes #24 dated “Rostelecom” and JSC affiliate is JSC “Uralsvyazinform”; M.A. Leschenko, Agreement, and “Uralsvyazinform” shall undertake to pay for the leased OFs in February 8, 2010 “Uralsvyazinform” member of the Board of Directors of JSC “Rostelecom”, accordance with the terms of the Agreement. The transaction price (monthly) is member of the Board of Directors of JSC specified in Appendix #2 to the Agreement. The maturity date is set in the “Uralsvyazinform”; Yu.A. Provotorov, member of the manner that “Rostelecom” obliges to lease the OFs (as listed in Appendix #2 to Board of Directors of JSC “Rostelecom”, member of the the Agreement) to “Uralsvyazinform” no later than in 30 days from the moment Board of Directors of JSC “Uralsvyazinform”; E.V. the Agreement is signed under the Accepance Certificate conditions (see Umnova, member of the Board of Directors of JSC Appendix #3 to the Agreement). “Rostelecom”, member of the Board of Directors of JSC The Agreement shall come into force once signed by both Parties. The “Uralsvyazinform”; E.V. Yurchenko, Chairman of the Agreement is valid until December 31, 2010. If none of the Parties notifies the Board of Directors of JSC “Rostelecom”, Chairman of the other Party in written form about the dissolution of the Agreement, it is Board of Directors of JSC “Uralsvyazinform”. considered automatically extended for the next year.

6. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than “Uralsvyazinform” leases the optic fibers (hereinafter, the OFs) to “Rostelecom” The Board of Directors optical fibers between JSC 20% of voting shares of JSC “Rostelecom” whose affiliate throughout the sections and given the prices as defined by Appendix #2 to the Minutes #24 dated “Rostelecom” and JSC is JSC “Uralsvyazinform”; M.A. Leschenko, member of Agreement, and “Rostelecom” shall undertake to pay for the leased OFs in February 8, 2010. “Uralsvyazinform” the Board of Directors of JSC “Rostelecom”, member of accordance with the terms of the Agreement. The transaction price: the Board of Directors of JSC “Uralsvyazinform”; Yu.A. “Rostelecom” shall pay to “Uralsvyazinform” for the leased OFs the amount Provotorov, member of the Board of Directors of JSC specified in Appendix #2 to the Agreement on a monthly basis during the term “Rostelecom”, member of the Board of Directors of JSC of the Agreement. The Agreement shall come into force once signed by both “Uralsvyazinform”; E.V. Umnova, member of the Board of Parties. The Agreement is valid until December 31, 2010. If none of the Parties Directors of JSC “Rostelecom”, member of the Board of notifies the other Party in written form about the dissolution of the Agreement, it Directors of JSC “Uralsvyazinform”; E.V. Yurchenko, is considered automatically extended for the next year. Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”. 2 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

7. Agreement on securing JSC “Svyazinvest” – the shareholder holding more than The Contractor provides the Customer with technical support and servicing The Board of Directors the functioning of the 20% of voting shares of JSC “Rostelecom”, whose required for the equipment installed and installable at the objects of the Minutes #24 dated equipment between JSC affiliate is JSC “MC NTT”; V.V. Volkov, member of the Contractor to function properly in accordance with Appendices #2/1, #2/2, #2/3, February 8, 2010. “Rostelecom” and JSC Management Board of JSC “Rostelecom”, member of the #2/4, and #3 to the Agreement. The date of the beginning of service provision “MC NTT” Board of Directors of JSC “MC NTT”; A.A. Khozyainov, under the Agreement shall be the date when the Customer forwards the member of the Management Board of JSC “Rostelecom”, request to release technical specification to the Contractor. The termination member of the Board of Directors of JSC “MC NTT”. date of the service provision under the Agreement shall be the date when the Acceptance Certificate is signed for the dismantled equipment. The transaction price is specified in Appendices #2/1, #2/2, #2/3, #2/4, and #3 to the Agreement. The Agreement shall come into force once signed by both Parties and is valid for one year. The Agreement is considered to be automatically extended for the next period if none of the Parties notifies the other Party in written form about the dissolution of the Agreement at least 30 calendar days prior to the expiry date of the Agreement. If the terms of this section are observed, the extension of the Agreement is possible an unlimited number of times.

8. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Explicatie Appendices #1 and #2 to the Agreement in the revised versions of Minutes #24 dated “Rostelecom” and JSC affiliate is JSC “MC NTT”; V.V. Volkov, member of the respective Appendices #1 and #2 to the Addendum. The service price is February 8, 2010. “MC NTT” Management Board of JSC “Rostelecom’, member of the specified by the Addendum. The Addendum shall come into force once signed Board of Directors of JSC “MC NTT”; A.A. Khozyainov, by the Parties. member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “MC NTT”.

9. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement on the lease of 20% of voting shares of JSC “Rostelecom”, whose Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 Minutes #24 dated optical fibers between JSC affiliate is JSC “MC NTT”; V.V. Volkov, member of the to the Addendum. The service price is specified in Appendix #1 (as attached) February 8, 2010 “Rostelecom” and JSC Management Board of JSC “Rostelecom member of the to the Addendum. The Addendum shall come into force form the moment of “MC NTT” Board of Directors of JSC “MC NTT”; A.A. Khozyainov, being signed by the Parties, provided that it has been approved by the member of the Management Board of JSC “Rostelecom”, authorized representatives of the Parties in cases under the current legislation member of the Board of Directors of JSC “MC NTT”. of the Russian Federation.

10. Addendum to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #2/1 to the Agreement in the revised version of Appendix The Board of Directors Agreement on the lease of 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. The service price is specified in the Addendum. The Minutes #24 dated the DLD allocated digital affiliate is JSC “MC NTT”; V.V. Volkov, member of the Addendum shall come into force form the moment of being signed by the February 8, 2010 channels between JSC Management Board of JSC “Rostelecom”, member of the Parties. “Rostelecom” and JSC Board of Directors of JSC “MC NTT”; A.A. Khozyainov, “MC NTT” member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “MC NTT”.

3 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 11. Addendum to the The Board of Directors Agreement on JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 Minutes #25 dated interconnecting the data 20% of voting shares of JSC “Rostelecom”, whose to the Addendum, as agreed by the Parties. The transaction price is specified March 5, 2010 transmission networks affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member by the Addendum. The Addendum shall come into force form the moment of between JSC of the Board of Directors of JSC “Rostelecom”, member being signed by the Parties and shall be valid till the date of expiry of the “Rostelecom” and JSC of the Board of Directors of JSC “Sibirtelecom”; A.A. Agreement. “Sibirtelecom” Lokotkov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Derectors of JSC “Sibirtelecom”.

12. Agreement on rendering The Contractor (JSC “Sibirtelecom”), under the terms of the Agreement, shall Board of Directors the services of organizing JSC “Svyazinvest” – the shareholder holding more than render the following services to the Customer (JSC “Rostelecom”): Minutes #25 dated and providing the 20% of voting shares of JSC “Rostelecom”, whose arrangement of the traffic forwarding of the equipment; conducting the traffic March 5, 2010 forwarding of the affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member forwarding of the equipment. The Customer shall accept the services provided equipment traffic between of the Board of Directors of JSC “Rostelecom”, member under the Agreement and shall pay for the service in accordance with Article 4 JSC “Rostelecom” and of the Board of Directors of JSC “Sibirtelecom”; A.A. “Payment terms and procedures” of the Agreement. The date of commencing JSC “Sibirtelecom” Lokotkov, member of the Board of Directors of JSC and terminating the traffic forwarding services is set in corresponding Acts of “Rostelecom”, Deputy Chairman of the Board of Directors the installation and dismantling, respectively, of the equipment employed in the of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the traffic forwarding, with such Acts drawn up in standard form as specified in Board of Directors of JSC “Rostelecom”, Chairman of the Appendix #2 to the Agreement. The Agreement shall come into force form the Board of Directors JSC “Sibirtelecom”. moment of being signed by the Parties and shall be valid until December 31, 2010. The Agreement is considered to be automatically extended for one year, if none of the Parties notifies the other Party in written form about the dissolution of the Agreement at least 30 calendar days prior to the expiry of the Agreement. The Agreement can be extended an unlimited number of times.

13. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than As stated by the Agreement, “Rostelecom” renders the following services to The Board of Directors communication channels 20% of voting shares of JSC “Rostelecom”, whose “Uralsvyazinform”: leasing communication channels prepared by the date of Minutes #25 dated between JSC affiliate is JSC “Uralsvyazinform”; M.A. Leschenko, signing the Agreement, which are listed in Appendix #1b to the Agreement; March 5, 2010 “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, leasing the communication channels listed in Appendix #7 to the Agreement. “Uralsvyazinform” member of the Board of Directors of JSC The transaction price is specified in Appendices #1a and #1b to the “Uralsvyazinform”; Yu.A. Provotorov, member of the Agreement. The expenditure limit for the services provided by “Rostelecom” is Board of Directors of JSC “Rostelecom”, member of the set by the Agreement. The Agreement shall come into force from the moment Board of Directors of JSC “Uralsvyazinform”; E.V. of being signed by the Parties and shall be valid until December 31, 2010. If Umnova, member of the Board of Directors of JSC none of the Parties notifies the other Party in written form about the dissolution “Rostelecom”, member of the Board of Directors of JSC of the Agreement at least 30 days prior to its expiry, it shall be considered “Uralsvyazinform”; E.V. Yurchenko, Chairman of the automatically extended for the next calendar year. As long as the terms of this Board of Directors of JSC “Rostelecom”, Chairman of the section are observed, the extension of the Agreement is possible an unlimited Board of Directors of JSC “Uralsvyazinform”. number of times.

4 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 14. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose Articles 3.2, 12.1, 13.1 of the Agreement shall be supplemented with new Minutes #25 dated interconnecting the affiliate is JSC “Rossiyskaya telekommunikatsionnaya clauses. Explicating Appendix #1 to the Agreement in the revised version of March 5, 2010 telecommunication set” /“Russian telecommunications network“/. tAppendix #1 to the Addendum. The service price is specified by the networks between JSC Addendum. The Addendum shall come into force form the moment of being “Rostelecom” and JSC signed by the Parties upon approval of the Boards of Directors of both Parties. “Rossiyskaya telekommunikatsionnaya set” /“Russian telecommunications network“/

15. Agreement on JSC “Svyazinvest” – the shareholder holding more than The Board of Directors interconnecting the data 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom” shall render the services (interconnection, Internet traffic transfer Minutes #25 dated transmission networks affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, and additional services) to the Operator (JSC “GLOBUS-TELECOM”), and the March 5, 2010. between JSC member of the Management Board of JSC “Rostelecom”, Operator shall receive and pay for the services according to the terms of the “Rostelecom” and JSC member of the Board of Directors of JSC “GLOBUS- Agreement. Technical and informational terms of network interconnection “GLOBUS-TELECOM” TELECOM”; A.A. Khozyainov, member of the associated with the Parties are specified in Appendices #8 and #9 to the Management Board of JSC “Rostelecom”, member of the Agreement, and in the Orders, signed by the Parties. The Agreement shall Board of Directors of JSC “GLOBUS-TELECOM”. come into force form the moment of being signed by the Parties and shall be valid for one year. The signing date is considered to be the date printed at the first page of the Agreement. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about the wish to terminate or revise the Agreement at least 30 calendar days prior to the expiry of the Agreement.

16. Addendum #10 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “GLOBUS-TELECOM”) by order of the Customer (JSC The Board of Directors Agreement on providing 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) shall increase the digital communication channel from 30 Mbit/s Minutes #25 dated the allocated digital affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, to 70 Mbit/s previously arranged as specified in the Addendum #8. The March 5, 2010. channels and routes member of the Management Board of JSC “Rostelecom”, Addendum #8 with Appendices #1/8, #2/8, and #3/8 shall be considered void between JSC member of the Board of Directors of JSC “GLOBUS- from the date the Addendum is signed. The form, scope and period of the “Rostelecom” and JSC TELECOM”; A.A. Khozyainov member of the channels provided to the Customer, as well as the prices agreed upon for the “GLOBUS-TELECOM” Management Board of JSC “Rostelecom”, member of the communication channels, are set out in the Service Order #13. The price for Board of Directors of JSC “GLOBUS-TELECOM”. the rendered services is specified in the Addendum. The period of exploitation of the communication channels is set for one year from the moment of interconnection, and automatic prolongation shall be due, if none of the Parties announce the termination of the rendering of services at least 30 days prior to the expiry date. The date of interconnection is determined in accordance with Appendix #2/10 to the Addendum. The Addendum shall come into force once signed.

5 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 17. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.1 of the Contract in a revised version. Explicate clause #1 The Board of Directors Contract of sublease of 20% of voting shares of JSC “Rostelecom”, whose of the “Munites on the contract value negotiations” (Appendix #2 to the Minutes #25 dated non-residential premises affiliate is JSC “MC NTT”; V.V. Volkov, member of the Contract) in the revised version. Supplement the Contract of sublease with March 5, 2010 between JSC Management Board of JSC “Rostelecom”, member of the Appendix #4 in a revised version attached to the Addendum. The transaction “Rostelecom” and JSC Board of Directors of JSC “MC NTT”; A.A. Khozyainov, price is set by the Addendum. This Addendum shall come into force once “MC NTT” member of the Management Board of JSC “Rostelecom”, signed by both Parties. member of the Board of Directors of JSC “MC NTT”.

18. Contract of lease of non- JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Rostelecom”) shall lease to the Lessee (JSC “RTKomm. U”) The Board of Directors residential premises 20% of voting shares of JSC “Rostelecom”, whose non-residential premises at a charge. The area leased and the monthly rental Minutes #25 dated between JSC affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of price are specified by the Contract. The Contract shall come into force once March 5, 2010. “Rostelecom” and JSC the Management Board of JSC “Rostelecom”, member of signed by both Parties and shall be valid for 11 months. If none of the Parties “RTKomm.RU” the Board of Directors of JSC “RTKomm.RU”; A.Yu. notifies the other Party about the dissolution of the Contract, it is considered Kolpakov, member of the Management Board of JSC automatically extended under the same terms for an indefinite period. “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

19. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Exclude clause #2.1.7 from the Contract. The Board of Directors Contract of lease of non- 20% of voting shares of JSC “Rostelecom”, whose Explicate clause #1 of the “Munites on the contract value negotiations” to the Minutes #25 dated residential premises affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of Contract in a revised version. The “Terms, extension procedures and dissolution March 5, 2010 between JSC the Management Board of JSC “Rostelecom”, member of of the Contract” Article 5 shall be supplemented with clauses #5.#13, #5.#14. “Rostelecom” and JSC the Board of Directors of JSC “RTKomm.RU”; A.Yu. Explicate clause #4.6 of Article #4 on “Payment procedures” and clause #2 of “RTKomm.RU” Kolpakov, member of the Management Board of JSC the “Munites on the contract value negotiations” to the Contract in a revised “Rostelecom”, member of the Board of Directors of JSC version. Supplement Article 4 on “Payment procedures” with clause #4.1#2. “RTKomm.RU”; V.D. Savchenko, member of the Board of Supplement Article 3 on “Rights and obligations of the Lessee” with clause Directors of JSC “Rostelecom”, member of the Board of #3.1.18. The rental price is specified by the Addendum. The Addendum shall Directors of JSC “RTKomm.RU”; A.A. Khozyainov, come into force once signed by the Parties. member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

20. Addendum #2 to the The Board of Directors Agreement on JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.2 on “Service costs of termination of DLD calls made with Minutes #27 dated interconnecting the 20% of voting shares of JSC “Rostelecom”, whose the networks of other operators employing the DEF codes of geographically March 19, 2010 telecommunication affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of undetermined numbering areas” of Appendix #1 to the Agreement in a revised networks between JSC the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, version. The Addendum shall come into force once signed. “Rostelecom and JSC member of the Board of Directors of JSC “Rostelecom”, “Dalsvyaz” member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “Dalsvyaz”.

6 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 21. Addendum #8 to the Explicate clauses #6.6.2, #6.7.1 of the Agreement and clause #5 of Appendix The Board of Directors Agreement on network JSC “Svyazinvest” – the shareholder holding more than #5 in a revised version. Supplement the Agreement with Appendix #10 on Minutes #27 dated interaction between JSC 20% of voting shares of JSC “Rostelecom”, whose “Codes of intelligent platform of JSC “Rostelecom”” in the version according to March 19, 2010 “Rostelecom” and JSC affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of Appendix #1 to the Addendum. The Addendum shall come into force once “Dalsvyaz” the Board of Directors of JSC “Rostelecom”, member of signed. the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “Dalsvyaz”.

22. Addendum to the While rendering services of termination of the DLD calls made with the The Board of Directors Agreement on JSC “Svyazinvest” – the shareholder holding more than networks of other operators by employing the DEF codes of geographically Minutes #27 dated interconnecting the 20% of voting shares of JSC “Rostelecom”, whose undetermined numbering areas, “Rostelecom” will invoke tariffication of each March 19, 2010 telecommunication affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of operator’s outgoing traffic (JSC “Akos” and JSC “Dalsvyaz”) based upon total networks between JSC the Board of Directors of JSC “Rostelecom”, member of traffic volume of the group of companies of JSC “Dalsvyaz”. “Rostelecom” and JSC the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, “Akos” and to the member of the Board of Directors of JSC “Rostelecom”, Agreement on member of the Board of Directors of JSC “Dalsvyaz”; E.V. interconnecting the Yurchenko, Chairman of the Board of JSC “Rostelecom”, telecommunication Chairman of the Board of JSC”Dalsvyaz”. networks between JSC “Rostelecom” and JSC “Dalsvyaz”, signed by JSC “Rostelecom”, JSC “Akos” and JSC “Dalsvyaz”

23. Addendum #6 to the Explicate Appendix #10 – “List of subscriber numbers of the user equipment of The Board of Directors Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than the Buryatiya branch of JSC “Sibirtelecom”” – to the Agreement in the revised Minutes #27 dated the DLD/ILD 20% of voting shares of JSC “Rostelecom”, whose version as set out by Appendix #1 to the Addendum. Explicate Appendix #6 – March 19, 2010 telecommunication affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member “List of subscriber numbers of the user equipment of the Kemerovo branch of services with preliminary of the Board of Directors of JSC “Rostelecom”, member JSC “Sibirtelecom”” – to the Agreement in the revised version as set out by selection of the operator of the Board of Directors of JSC “Sibirtelecom”; A.A. Appendix #2 to the Addendum. Explicate Appendix #5 – “List of subscriber between JSC Lokotkov, member of the Board of Directors of JSC numbers of the user equipment of the Novosibirsk branch of JSC “Rostelecom” and JSC “Rostelecom”, Deputy Chairman of the Board of Directors “Sibirtelecom”” – to the Agreement in the revised version as set out by “Sibirtelecom” of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Appendix #3 to the Addendum. Explicate Appendix #3 – “List of subscriber Board of Directors of JSC “Rostelecom”, numbers of the user equipment of the Omsk branch of JSC “Sibirtelecom”” – to Chairman of the Board of Directors of JSC “Sibirtelecom”. the Agreement in the revised version as set out by Appendix #4 to the Addendum. Explicate Appendix #4 – “List of subscriber numbers of the user equipment of the Tomsk branch of JSC “Sibirtelecom”” – to the Agreement in the revised version as set out by Appendix #5 to the Addendum. The Addendum shall come into force once signed by both Parties and shall be valid until the expiry of the Agreement.

7 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 24. Addendum #7 to the Explicate Appendix #2– “List of subscriber numbers of the user equipment of The Board of Directors Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than the General management of JSC “Sibirtelecom”” – to the Agreement in the Minutes #27 dated the DLD/ILD 20% of voting shares of JSC “Rostelecom”, whose revised version as set out by Appendix #1 to the Addendum. The Addendum March 19, 2010 telecommunication affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member shall come into force once signed by both Parties and shall be valid until the services with preliminary of the Board of Directors of JSC “Rostelecom”, member expiry of the Agreement selection of the operator of the Board of Directors of JSC “Sibirtelecom”; A.A. between JSC Lokotkov, member of the Board of Directors of JSC “Rostelecom” and JSC “Rostelecom”, Deputy Chairman of the Board of Directors “Sibirtelecom” of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

25. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendices #6.1 and #6.2. Alter clause #13.4 The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose of the Agreement and introduce the amendments in a new version. The Minutes #27 dated interconnecting the affiliate is JSC “CenterTelecom”; M.A. Leschenko, Addendum shall come into force once signed by the Parties. March 19, 2010 telecommunication member of the Board of Directors of JSC “Rostelecom”, networks between JSC member of the Board of Directors of JSC “Rostelecom” and JSC “CenterTelecom”; A.A. Lokotkov, member of the Board of “CenterTelecom” Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; M.Yu. Tsyganov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “CenterTelecom”.

26. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Alter clauses #2.1.2 and #2.1.6 of Appendix #1 to the Agreement and introduce The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose the amendments in new versions. The Addendum shall come into force once Minutes #27 dated nterconnecting the affiliate is JSC “CenterTelecom”; M.A. Leschenko, signed by the Parties. March 19, 2010 telecommunication member of the Board of Directors of JSC “Rostelecom”, networks between JSC member of the Board of Directors of JSC “Rostelecom” and JSC “CenterTelecom”; A.A. Lokotkov, member of “CenterTelecom” the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; M.Yu. Tsyganov,

8 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “CenterTelecom”.

27. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Alter clause #2.1.2 of Appendix #1 to the Agreement and introduce the The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose amendments in a new version. Supplement Appendix #1 with clauses #2.1.5 Minutes #27 dated nterconnecting the affiliate is JSC “CenterTelecom”; M.A. Leschenko, and #2.1.6. March 19, 2010 telecommunication member of the Board of Directors of JSC “Rostelecom”, networks between JSC member of the Board of Directors of JSC “Rostelecom” and JSC “CenterTelecom”; A.A. Lokotkov, member of the Board of “CenterTelecom” Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; M.Yu. Tsyganov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “CenterTelecom”.

28. Addendum #5 to the JSC “Svyazinvest” – the shareholder holding more than Supplement Appendix #9 to the Agreement with Article 10 on “Submission of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose overdue receivables to a collecting agency”. Supplement Appendix #9 to the Minutes #27 dated “Rostelecom” and JSC affiliate is JSC “UTK”; M.A. Leschenko, member of the Agreement with forms 10, 11, 12, 13 in the revised versions attached to this March 19, 2010 “UTK” Board of Directors of JSC “Rostelecom”, member of the Addendum. Supplement Appendix #2 to the Agreement with the paragraph of Board of Directors of JSC “UTK”; A.A. Lokotkov, member clause #10 on “Preparation of the debtors register at submission of overdue of the Board of Directors of JSC “Rostelecom”, member receivables to a collectors agency” in a new version. Supplement the of the Board of Directors of JSC “UTK”; E.V. Umnova, Agreement with clause #1.13. The Addendum and all its Appendices shall member of the Board of Directors of JSC “Rostelecom”, come into force once signed by the Parties. member of the Board of Directors of JSC “UTK”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “UTK”.

9 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 29. Addendum #6 to the JSC “Svyazinvest” – the shareholder holding more than The Parties arranged to explicate clause #1.12 of the Agreement in new The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose version. The Addendum and all its Appendices shall come into force once Minutes #27 dated “Rostelecom” and JSC affiliate is JSC “UTK”; M.A. Leschenko, member of the signed by the Parties. March 19, 2010 “UTK” Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “UTK”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “UTK”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “UTK”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “UTK”.

30. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Operator (JSC “UTK”) shall perform the following acts on behalf and at the The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose expense of ROSTELECOM (JSC “Rostelecom”) under the Agreement: keep Minutes #27 dated “UTK” affiliate is JSC “UTK”; M.A. Leschenko, member of the records and execute tariffication of the communication services, access to March 19, 2010 Board of Directors of JSC “Rostelecom”, member of the which is provided through the telecommunication service Card; receive Board of Directors of JSC “UTK”; A.A. Lokotkov, member payment for the telecommunication services, access to which is provided of the Board of Directors of JSC “Rostelecom”, member through the telecommunication service Card; examine claims of the customers of the Board of Directors of JSC “UTK”; E.V. Umnova, concerning the telecommunication service, access to which is provided through member of the Board of Directors of JSC “Rostelecom”, the telecommunication service Card. The transaction price is stipulated by this member of the Board of Directors of JSC “UTK”; E.V. Agreement. The Addendum shall come into force once signed by the Parties Yurchenko, Chairman of the Board of Directors of JSC and shall be valid for one year. The Addendum is considered to be “Rostelecom”, Chairman of the Board of Directors of JSC automatically extended for the next year, if none of the Parties notifies the “UTK”. other Party about its dissolution at least 30 calendar days prior to the expiry of the Agreement.

31. Addendum #168 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a project on Expanding the IP/MPLS The Board of Directors framework Agreement 20% of voting shares of JSC “Rostelecom”, whose data communication network of JSC “Rostelecom” in 2010”. Phase 1, stage 4, Minutes #27 dated between JSC affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, starting complex 1 as set out in the Task of developing a working (Appendix #3 March 19, 2010 “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, to the Addendum). The transaction price is specified by the Addendum. The “GIPROSVYAZ” Deputy Chairman of the Board of Directors of JSC Addendum shall come into force once signed by the Parties. “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

32. Addendum #170 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a project on Expanding the IP/MPLS The Board of Directors framework Agreement 20% of voting shares of JSC “Rostelecom”, whose data communication network of JSC “Rostelecom” in 2010”. Phase 1, stage 2, Minutes #27 dated between JSC affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, starting complex 1 as set out in the Task of developing a working (Appendix #3 March 19, 2010 10 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, to the Addendum). The transaction price is specified by the Addendum. The “GIPROSVYAZ” Deputy Chairman of the Board of Directors of JSC Addendum shall come into force once signed by the Parties. “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ.”

33. Addendum #171 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a project on Expanding the IP/MPLS The Board of Directors framework Agreement 20% of voting shares of JSC “Rostelecom”, whose data communication network of JSC “Rostelecom” in 2010”. Phase 1, stage 5, Minutes #27 dated between JSC affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, starting complexes 2 and 3 as set out in the Task of developing a working March 19, 2010 “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, (Appendix #3 to the Addendum). The transaction price is specified by the “GIPROSVYAZ” Deputy Chairman of the Board of Directors of JSC Addendum. The Addendum shall come into force once signed by the Parties. “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

34. Agreement on design and JSC “Svyazinvest” – the shareholder holding more than The Customer (JSC “GLOBUS-TELECOM”) commissions, and the Contractor The Board of Directors survey works between 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”) undertakes obligations on creating the Working project Minutes #27 dated JSC “Rostelecom” and affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, “Interconnection of the network of JSC “GLOBUS-TELECOM” to the backbone March 19, 2010 JSC “GLOBUS- member of the Management Board of JSC “Rostelecom”, network of JSC “Rostelecom” as of the address of 26 Suschevsky Val”. The TELECOM” member of the Board of Directors of JSC “GLOBUS- requirements of the Technical draft, which are specified in Appendix #1 to the TELECOM”; A.A. Khozyainov, member of the Agreement may be changed during the working process as provided for in the Management Board of JSC “Rostelecom”, member of the Agreement, if mutually agreed by the Parties. The transaction price is specified Board of Directors of JSC “GLOBUS-TELECOM”. by the Agreement. The commencing date is the date when advanced payment is received into the Contractor’s current account. The deadline under the Agreement is 60 working days from the date of the advanced payment being received. The Agreement shall come into force once signed by the Parties and shall be valid until full and proper fulfillment of the obligations by the Parties under the Agreement.

35. Addendum #11 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor upon the Customer’s order shall provide 1 (one) digital The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose communication channel of 10 Mbit/s in accordance with the terms of license Minutes #27 dated allocated digital channels affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, #66604 dated April 17, 2009, for “Telecommunication services on providing the March 19, 2010 and routes between JSC member of the Management Board of JSC “Rostelecom”, communication channels”, issued by the Federal Service for Supervision of “Rostelecom” and JSC member of the Board of Directors of JSC “GLOBUS- Communications”, and the Customer shall pay for the services in accordance “GLOBUS-TELECOM” TELECOM”; A.A. Khozyainov, member of the with the terms of the Agreement. The form, scope and period of the channels 11 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Management Board of JSC “Rostelecom”, member of the provided to the Customer, as well as the price for the communication channels Board of Directors of JSC “GLOBUS-TELECOM”. agred upon are set out in the Service order #14. The technical requirements for the communication channels are set out in Appendix #1/11 to the Addendum, which is an integral part of the Agreement. The transaction price is specified by the Addendum. The Addendum shall come into force once signed.

36. Addendum #12 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor upon the Customer’s order shall provide 1 (one) digital The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose communication channel of 100 Mbit/s in accordance with the terms of license Minutes #27 dated allocated digital channels affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, #66604 dated April 17, 2009, for “Telecommunication services on providing the March 19, 2010 and routes between JSC member of the Management Board of JSC “Rostelecom”, communication channels”, issued by the Federal Service for Supervision of “Rostelecom” and JSC member of the Board of Directors of JSC “GLOBUS- Communications”, and the Customer shall pay for the services in accordance “GLOBUS-TELECOM” TELECOM”; A.A. Khozyainov, member of the with the terms of the Agreement. The form, scope and period of the channels Management Board of JSC “Rostelecom”, member of the provided to the Customer, as well as the price for the communication channels Board of Directors of JSC “GLOBUS-TELECOM”. agred upon are set out in the Service order #15. The technical requirements for the communication channels are set out in Appendix #1/12 to the Addendum, which is an integral part of the Agreement. The transaction price is specified by the Addendum. The Addendum shall come into force once signed.

37. JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agency agreement on 20% of voting shares of JSC “Rostelecom”, whose Uralsvyazinform (JSC “Uralsvyazinform”) commissions the Agent (JSC Minutes #30 dated April making Agreements on affiliate is JSC “Uralsvyazinform”; M.A. Leschenko, “Rostelecom”) and the Agent undertakes to perform any legal and de facto acts 4, 2010 rendering the services member of the Board of Directors of JSC “Rostelecom”, on behalf and at the expense of Uralsvyazinform for remuneration as provided for local and intrazonal for by clause #3.2.1 of the Contract. The Agent upon the terms of the Contract member of the Board of Directors of JSC telecommunications “Uralsvyazinform”; Yu.A. Provotorov, member of the (including “Procedures for concluding Contracts with “Subscribers” – Appendix between JSC Board of Directors of JSC “Rostelecom”, member of the #2 to the Contract), on behalf and at the expense of Uralsvyazinform, shall “Rostelecom” and JSC Board of Directors of JSC “Uralsvyazinform”; E.V. negotiate Contracts with Subscribers solely by employing the form as attached “Uralsvyazinform” Umnova, member of the Board of Directors of JSC to the Contract (Appendix #1). The transaction price is calculated in accordance with Appendix #3 to the Contract. The Contract shall come into “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”, E.V. Yurchenko, Chairman of the force once signed by the Parties and shall be concluded for an indefenite Board of Directors of JSC “Rostelecom”, Chairman of the period. Board of Directors of JSC “Uralsvyazinform”. 38. The Agent (JSC “Rostelecom”) undertakes to perform any legal and de facto The Board of Directors Agency agreement JSC “Svyazinvest” – the shareholder holding more than acts on behalf and at the expense of the Principal (JSC “Dalsvyaz”) for Minutes #31 dated April between JSC 20% of voting shares of JSC “Rostelecom”, whose remuneration in the area of the Principal’s responsibility: collect applications 12, 2010 “Rostelecom” and JSC affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of from the third parties – legal entities and sole proprietors – for negotiating “Dalsvyaz” the Board of Directors of JSC “Rostelecom”, member of Agreements on rendering by the Principal the services for local and intrazonal the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, telecommunications (hereinafter, the Telecommunication Services) with member of the Board of Directors of JSC “Rostelecom”, providing access to the local telephone communication network as well as the member of the Board of Directors of JSC “Dalsvyaz”; E.V. addendums on providing the subscriber with an additional number in the area Yurchenko, Chairman of the Board of Directors JSC of the Principal’s coverage; negotiate Agreements on providing the “Rostelecom”, Chairman of the Board of Directors of JSC Telecommunication Services with access to local telephone communication “Dalsvyaz”. and addendums (according to the tariffs specified in the Principal’s official price list) on providing the subscriber with a n additional number in the area of the 12 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Principal’s coverage. The transaction price is specified by the Contract. The Contract shall come into force once signed.

39. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clauses #1.13, #3.3.7 in revised versions. Explicate Appendix #1 to The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose the Agreement in revised version 2 according to Appendix #1 to the Minutes #31 dated April interconnecting the affiliate is CSC “Akos”. Addendum. Explicate Appendix #1.1 to the Agreement in revised version 2 12, 2010 telecommunication according to Appendix #2 to the Addendum. Explicate Appendix #3 to the networks between JSC Agreement in revised version 2 according to Appendix #3 to the Addendum. “Rostelecom” and JSC Explicate clause #3.1 of Appendix #5 in revised version. The transaction price “Akos” is specified in Appendices #1 and #2 to the Addendum. The Addendum shall come into force once signed.

40. Agreement on The Operator (JSC “VolgaTelecom”) shall undertake to render the service on a The Board of Directors interconnecting the JSC “Svyazinvest” – the shareholder holding more than zonal interconnection level, in accordance with the connection conditions Minutes #31 dated April telecommunication 20% of voting shares of JSC “Rostelecom”, whose described in the Agreement, to Rostelecom (JSC “Rostelecom”). The Operator 12, 2010 networks between JSC affiliate is JSC “VolgaTelecom”; M.A. Leschenko, member shall provide services to Rostelecom on traffic transfer and Rostelecom shall “Rostelecom” and JSC of the Board of Directors of JSC “Rostelecom”, member pay for the services. The transaction price: the Parties shall pay for the “VolgaTelecom” of the Board of Directors of JSC “VolgaTelecom”; V.D. interconnection service and service for traffic transfer according to Appendix #1 Savchenko, member of the Board of Directors of JSC to the Agreement. The commencing date of rendering the services under the “Rostelecom”, member of the Board of Directors of JSC Agreement is specified by the “Act of commencing the provision of services”. “VolgaTelecom”; E.V. Yurchenko, Chairman of the Board The standard form of the Act is specified in Appendix #7 to the Agreement. The of Directors of JSC “Rostelecom”, Chairman of the Board Agreement shall come into force once signed by the Parties and shall be valid of Directors of JSC “VolgaTelecom”. until December 31, 2010. The Addendum is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about its with to terminate at least 30 calendar days prior to the expiry of the Agreement.

41. Agreement on The Operator (JSC “VolgaTelecom”) shall undertake to render the service on a The Board of Directors interconnecting the JSC “Svyazinvest” – the shareholder holding more than zonal interconnection level, in accordance with the connection conditions Minutes #31 dated April telecommunication 20% of voting shares of JSC “Rostelecom”, whose described in the Agreement, to Rostelecom (JSC “Rostelecom”). The Operator 12, 2010 networks between JSC affiliate is JSC “VolgaTelecom”; M.A. Leschenko, member shall provide services to Rostelecom on traffic transfer and Rostelecom shall “Rostelecom” and JSC of the Board of Directors of JSC “Rostelecom”, member pay for the services. The transaction price: the Parties shall pay for the “VolgaTelecom” of the Board of Directors of JSC “VolgaTelecom”; V.D. interconnection service and service for traffic transfer according to Appendix #1 Savchenko, member of the Board of Directors of JSC to the Agreement. The commencing date of rendering the services under the “Rostelecom”, member of the Board of Directors of JSC Agreement is specified by the “Act of commencing the provision of services”. “VolgaTelecom”; E.V. Yurchenko, Chairman of the Board The standard form of the Act is specified in Appendix #7 to the Agreement. The of Directors of JSC “Rostelecom”, Chairman of the Board Agreement shall come into force once signed by the Parties and shall be valid of Directors of JSC “VolgaTelecom”. until December 31, 2010. The Addendum is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about its with to terminate at least 30 calendar days prior to the expiry of the Agreement. 13 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

42. Agreement on the lease of The Contractor (JSC “Sibirtelecom”) shall lease to the Customer (JSC The Board of Directors a section of line and cable JSC “Svyazinvest” – the shareholder holding more than “Rostelecom”) part of allotted line and cable constructions in the telephone Minutes #31 dated April constructions in the 20% of voting shares of JSC “Rostelecom”, whose cable ductworks (hereinafter, the Ductworks) for locating a cable with the 12, 2010 telephone cable ductworks affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member purpose of its exploitation in accordance with project documentation developed to house a cable between of the Board of Directors of JSC “Rostelecom”, member by the Customer and agreed by the Contractor. The Ductworks are listed in JSC “Rostelecom” and of the Board of Directors of JSC “Sibirtelecom”; A.A. Appendix #2 to the Agreement. The Channels to be leased within the frame of JSC “Sibirtelecom” Lokotkov, member of the Board of Directors of JSC the Agreement are listed in Appendix #2a. The Customer shall pay the “Rostelecom”, Deputy Chairman of the Board of Directors channels’ leasing on the basis of the “Calculation of prices for the leased of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the channels” – as set out in Appendices #2 and #2a to the Agreement. The Board of Directors of JSC “Rostelecom”, Chairman of the transaction price is specified in Appendices #2 and #2a. The Agreement shall Board of Directors of JSC “Sibirtelecom”. come into force once signed by the authorized representatives of the Parties and shall be valid for the next 12 (twelve) months once signed. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about its wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

43. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #10on “Scheme of interconnection The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose of the JSC “Rostelecom”’s network to the mobile communication network of the Minutes #31 dated April interconnecting the affiliate is JSC “CenterTelecom”; M.A. Leschenko, GSM 900/1800 standard of the Tambov branch of JSC “CenterTelecom” in 12, 2010 telecommunication member of the Board of Directors of JSC “Rostelecom”, Tambov” in revised version of Appendix #1 to the Agreement. Alter clauses networks between JSC member of the Board of Directors of JSC #4.1, #4.1.4, #6.2 of the Addendum in respective revised version. The “Rostelecom” JSC “CenterTelecom”; A.A. Lokotkov, member of the Board of Addendum shall come into force once signed by the Parties. “CenterTelecom” Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; M.Yu. Tsyganov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “CenterTelecom”.

44. Amendment #3 to the JSC “Svyazinvest” – the shareholder holding more than The Parties arranged to index the prices on the execution of work under the The Board of Directors Frame Contract between 20% of voting shares of JSC “Rostelecom”, whose Contract and shall be governed by current prices of the Contract with a Minutes #31 dated April JSC “Rostelecom” and affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, multiplying factpr of 1,24 during the design and exploration works. The cost of 12, 2010 JSC “GIPROSVYAZ” member of the Board of Directors of JSC “Rostelecom”, design and exploration works on any one starting complex, phase or stage of Deputy Chairman of the Board of Directors of JSC the construction of the object of the investment plan by JSC “Rostelecom” 14 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of cannot exceed the amount stipulated by the Addendum #3. The Addendum #3 Directors of JSC “Rostelecom”, Deputy Chairman of the shall come into force once signed by the Parties and refers solely to the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Addendums to the Contract which will be closed after the date of this Provotorov, member of the Board of Directors of JSC Addendum being signed. “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

45. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than The Parties agreed to alter clause #1.1 of the Addendum #1 to the Agreement The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose and reflect the alteration in the revised version. The Addendum shall come into Minutes #31 dated April interconnecting the affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, force once signed by both Parties. 12, 2010 telecommunication Chairman of the Management Board of JSC networks between JSC “Rostelecom”, member of the Board of Directors of JSC “Rostelecom” and JSC “ZEBRA TELECOM”; V.V. Volkov, member of the “ZEBRA TELECOM” Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; A.A. Khozyainov, Member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

46. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Moskovkiy tsentr novyh tekhnologyi telekommunikatsyi”) The Board of Directors services between JSC 20% of voting shares of JSC “Rostelecom”, whose shall undertake to render services to the Customer (JSC “Rostelecom”) in Minutes #31 dated April “Rostelecom” and JSC affiliate is JSC “Moskovkiy tsentr novyh tekhnologyi accordance with the Addendum #1 of the Agreement, and the Customer shall 12, 2010 “Moskovkiy tsentr novyh telekommunikatsyi” /“Moscow center of new pay for the services upon the terms of the Agreement. The transaction price is tekhnologyi telecommunication technologies”/; V.V. Volkov, member specified in the Addendum #2 to the Agreement. The commencing date of telekommunikatsyi” of the Management Board of JSC “Rostelecom”, member provision of services is the date of signing the “Act of commencement of /“Moscow center of new of the Board of Directors of JSC ““Moskovkiy tsentr novyh services”. The services are to be rendered prior to the expiry of the Agreement. telecommunication tekhnologyi telekommunikatsyi””; A.A. Khozyainov, The Agreement shall come into force once signed and shall be valid until technologies”/ member of the Management Board of JSC “Rostelecom”, December 31, 2010. The Agreement is considered to be automatically member of the Board of Directors of JSC ““Moskovkiy extended for the next year, if none of the Parties notifies the other Party about tsentr novyh tekhnologyi telekommunikatsyi””. its wish to dissolute of the Agreement at leasyt 30 calendar days prior to the expiry of the Agreement.

47. Addendum #5 to the JSC “Svyazinvest” – the shareholder holding more than Explicate the name of the Agreement in a revised version. Explicate clauses The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #1.1, #3.2, and #3.9 of the Agreement in respective new versions. Supplement Minutes #31 dated April “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of the Agreement with the Addendum #1.38 in the revised version of Appendix #1 12, 2010 “RTKomm.RU” the Management Board of JSC “Rostelecom”, member of to the Addendum. The transaction price is specified in Appendix #1 to the the Board of Directors of JSC “RTKomm.RU”; A.Yu. Addendum. The Addendum shall come into force once signed by the Parties. Kolpakov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of 15 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

48. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Exclude clause #9.3 from the Agreement. Explicate clause #12.1 of the The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose Agreement in the revised version. The Addendum shall come into force once Minutes #32 dated April interconnecting the affiliate is JSC “MGTS”; A.Yu. Provotorov, member of the signed. 23, 2010 telecommunication Board of Directors of JSC “Rostelecom”, member of the networks between JSC Board of Directors of JSC “MGTS”; V.D. Savchenko, “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, “MGTS” member of the Board of Directors of JSC “MGTS”; E.V. Yurchenko, the Chairman of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “MGTS”.

49. Addendum #2 to the Explicate clause #4.4 of the Agreement in the revised version. Explicate the The Board of Directors Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Addendum #2 to the Agreement in revised version 3 according to Appendix #1 Minutes #34 dated April “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose to the Addendum. Explicate Appendix #3 to the Agreement in revised version 2 29, 2010 “Dalsvyaz” affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of in accordance with Appendix #2 to the Agreement. The transaction price is the Board of Directors of JSC “Rostelecom”, member of specified by the Addendum. The Addendum shall come into force once signed. the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

50. Agreement on the lease of The Contractor (JSC “Sibirtelecom”) shall lease to the Customer (JSC The Board of Directors a section of the line and JSC “Svyazinvest” – the shareholder holding more than “Rostelecom”) an allotted section of the line and cable constructions in the Minutes #34 dated April cable constructions in the 20% of voting shares of JSC “Rostelecom”, whose telephone cable ductworks for locating a cable as prescribed by the project 29, 2010 telephone cable ductworks affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member documentation, as developed by the Customer and agreed by the Contractor, to house a cable between of the Board of Directors of JSC “Rostelecom”, member and the Customer shall accept and pay for the leasing on the basis of the JSC “Rostelecom” and of the Board of Directors of JSC “Sibirtelecom”; A.A. “Price calculation for the Channels leased to the Customer” – Appendix #2 to JSC “Sibirtelecom” Lokotkov, member of the Board of Directors of JSC the Agreement. The transaction price is specified by the Agreement. The “Rostelecom”, Deputy Chairman of the Board of Directors Agreement shall come into force once signed by the authorized representatives of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the of the Parties and shall be valid for the next 12 (twelve) months once signed. Board of Directors of JSC “Rostelecom”, Chairman of the The Agreement is considered to be automatically extended for the next year, if Board of Directors of JSC “Sibirtelecom”. none of the Parties notifies the other Party about its wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

51. Agreement on the lease of The Contractor (JSC “Sibirtelecom”) shall lease to the Customer (JSC The Board of Directors a section of the line and JSC “Svyazinvest” – the shareholder holding more than “Rostelecom”) an allotted section of the line and cable constructions in the Minutes #34 dated April cable constructions in the 20% of voting shares of JSC “Rostelecom”, whose telephone cable ductworks for locating a cable as prescribed by the project 29, 2010 telephone cable ductworks affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member documentation, as developed by the Customer and agreed by the Contractor, to house a cable between of the Board of Directors of JSC “Rostelecom”, member and the Customer shall accept and pay for the leasing on the basis of the of the Board of Directors of JSC “Sibirtelecom”; A.A. 16 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction JSC “Rostelecom” and Lokotkov, member of the Board of Directors of JSC “Price calculation for the Channels leased to the Customer” – Appendix #2 to JSC “Sibirtelecom” “Rostelecom”, Deputy Chairman of the Board of Directors the Agreement. The channels to be leased for exploitation are specified in the of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Addundum #2 to the Agreement, as is the transaction price. Once the Board of Directors of JSC “Rostelecom”, Chairman of the Agreement on cable exploitation is signed, the Agreement on temporary use of Board of Directors of JSC “Sibirtelecom”. the telephone cable ductworks shall be void. The Agreement shall come into force once signed by the authorized representatives of the Parties and shall be valid for the next 12 (twelve) months once signed. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

52. Agreement on the lease of The Contractor (JSC “Sibirtelecom”) shall lease to the Customer (JSC The Board of Directors a section of line and cable JSC “Svyazinvest” – the shareholder holding more than “Rostelecom”) an allotted section of the line and cable constructions in the Minutes #34 dated April constructions in the 20% of voting shares of JSC “Rostelecom”, whose telephone cable ductworks for locating a cable as prescribed by the project 29, 2010 telephone cable ductworks affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member documentation, as developed by the Customer and agreed by the Contractor, to JSC “Rostelecom” to of the Board of Directors of JSC “Rostelecom”, member and the Customer shall accept and pay for the leasing on the basis of the house a cable in Abakan of the Board of Directors of JSC “Sibirtelecom”; A.A. “Price calculation for the Channels leased to the Customer” – Appendix #2 to between JSC Lokotkov, member of the Board of Directors of JSC the Agreement. The transaction price is specified by the Agreement. The “Rostelecom” and JSC “Rostelecom”, Deputy Chairman of the Board of Directors Agreement shall come into force once signed by the authorized representatives “Sibirtelecom” of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the of the Parties and shall be valid for the next 12 (twelve) months once signed. Board of Directors of JSC “Rostelecom”, Chairman of the The Agreement is considered to be automatically extended for the next year, if Board of Directors of JSC “Sibirtelecom”. none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

53. Agreement on JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) shall provide the Operator (JSC The Board of Directors interconnecting the 20% of voting shares of JSC “Rostelecom”, whose “Kostromskaya gorodskaya telefonnaya set”) with the services of Minutes #34 dated April telecommunication affiliate is JSC “Kostromskaya gorodskaya telefonnaya interconnection on the DLD communication level as defined by the Agreement 29, 2010 networks on the DLD level set” /”Telephone urban network of Kostroma”/. (Article 5), and the Operator shall pay for the services. The Operator shall between JSC provide Rostelecom the traffic throughput and servicec associated with “Rostelecom” and JSC disclosure and updating (actualization) of the information on the Subscribers, “Kostromskaya and Rostelecom shall undertake to pay for the services. The transaction price gorodskaya telefonnaya is specified in the Agreement. The Agreement shall come into force once set” /”Telephone urban signed and shall be valid for one year onwards. The Agreement is considered network of Kostroma”/ to be automatically extended for the next year, if none of the Parties notifies the other Party about its wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

54. Addendum #6 to the JSC “Svyazinvest” – the shareholder holding more than Alter clauses #1.13, # 7.1, 7.2. The Board of Directors Agency Contract between 20% of voting shares of JSC “Rostelecom”, whose Alter clauses #2.3 and #2.4 of Article 2 of Appendix #2 and explicate the Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, alterations in the respective revised versions. The Addendum shall come into 29, 2010 JSC “GLOBUS- member of the Management Board of JSC “Rostelecom”, force once signed by both Parties. TELECOM” member of the Board of Directors of JSC “GLOBUS- TELECOM”;A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS-TELECOM”. 17 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

55. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Alter Article 1, Article 2, Article 3. Alter Appendix #1 to the Contract and The Board of Directors Agency Contract between 20% of voting shares of JSC “Rostelecom”, whose explicate the alterations in a revised version of Appendix #1 to the Addendum. Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, Alter Appendix #2 to the Contract and explicate the alterations in a revised 29, 2010 JSC “GLOBUS- member of the Management Board of JSC “Rostelecom”, version of Appendix #2 to the Addendum. The Addendum shall come into force TELECOM” member of the Board of Directors of JSC “GLOBUS- once signed. Соглашение TELECOM”;A.A. Khozyainov, member of the вступает в силу с момента подписания. 2.3. Соглашение Management Board of JSC “Rostelecom”, member of the вступает в силу с момента подписания. Соглашение Board of Directors of JSC “GLOBUS-TELECOM”. вступает в силу с момента подписания.

56. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Alter Article 1 on the “Subject of a contract” of the Contract and explicate the The Board of Directors Agency Contract between 20% of voting shares of JSC “Rostelecom”, whose alterations in a revised version. Alter Appendix #1 to the Contract and explicate Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, the alterations in a revised version of Appendix #1 to the Addendum. Appendix 29, 2010 JSC “GLOBUS- member of the Management Board of JSC “Rostelecom”, #2 to the Contract shall be altered and revised to read in the revised version of TELECOM” member of the Board of Directors of JSC “GLOBUS- Appendix #2 to the Addendum. The rates of agent remuneration is specified in TELECOM”;A.A. Khozyainov, member of the Addendum. The Addendum shall come into force once signed. Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS-TELECOM”. 57. Addendum #172 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a working project for “Expansion of the The Board of Directors Frame Contract between 20% of voting shares of JSC “Rostelecom”, whose IP/MPLS data communication network of JSC “Rostelecom” in 2010”, Phase 1, Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, stage 1 of the construction, starting complex 4” as defined by the “Assignment 29, 2010 JSC “GIPROSVYAZ” member of the Board of Directors of JSC “Rostelecom”, on designing the working plan”. The transaction price is specified by the Deputy Chairman of the Board of Directors of JSC Addendum. The Addendum shall come into force once signed by the Parties. “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

58. Addendum #173 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a working project for “Expansion of the The Board of Directors Frame Contract between 20% of voting shares of JSC “Rostelecom”, whose IP/MPLS data communication network of JSC “Rostelecom” in 2010”, Phase 1, Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, stage 5 of the construction, starting complex 1” as defined by the “Assignment 29, 2010 JSC “GIPROSVYAZ” member of the Board of Directors of JSC “Rostelecom”, on designing the working plan”. The transaction price is specified by the Deputy Chairman of the Board of Directors of JSC Addendum. The Addendum shall come into force once signed by the Parties. “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC 18 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

59. Addendum #177 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a working project for “Expansion of the The Board of Directors Frame Contract between 20% of voting shares of JSC “Rostelecom”, whose IP/MPLS data communication network of JSC “Rostelecom” in 2010”, Phase 1, Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, stage 2 of the construction, starting complex 2” (Additional appraisal of the site) 29, 2010 JSC “GIPROSVYAZ” member of the Board of Directors of JSC “Rostelecom”, as defined by the “Assignment on designing the working plan”. The transaction Deputy Chairman of the Board of Directors of JSC price is specified by the Addendum. The Addendum shall come into force once “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of signed by the Parties. Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

60. Addendum #178 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a working project for “Expansion of the The Board of Directors Frame Contract between 20% of voting shares of JSC “Rostelecom”, whose IP/MPLS data communication network of JSC “Rostelecom” in 2010”, Phase 1, Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, stage 2 of the construction, starting complex 2” (Additional appraisal of the 29, 2010 JSC “GIPROSVYAZ” member of the Board of Directors of JSC “Rostelecom”, sites) as defined by the “Assignment on designing the working plan”. The Deputy Chairman of the Board of Directors of JSC transaction price is specified by the Addendum. The Addendum shall come into “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of force once signed by the Parties. Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”.

61. Addendum #179 to the JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: development of a working project for “Expansion of the The Board of Directors Frame Contract between 20% of voting shares of JSC “Rostelecom”, whose IP/MPLS data communication network of JSC “Rostelecom” in 2010”, Phase 1, Minutes #34 dated April JSC “Rostelecom” and affiliate is JSC “GIPROSVYAZ”; M.A. Leschenko, stage 1 of the construction, starting complex 2” (Additional appraisal of the 29, 2010 JSC “GIPROSVYAZ” member of the Board of Directors of JSC “Rostelecom”, sites) as defined by the “Assignment on designing the working plan”. The Deputy Chairman of the Board of Directors of JSC transaction price is specified by the Addendum. The Addendum shall come into “GIPROSVYAZ”; A.A. Lokotkov, member of the Board of force once signed by the Parties. Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the 19 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Board of Directors of JSC “GIPROSVYAZ”.

62. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.12 of Article on “Terms and definitions” in a revised The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose version. Supplement clause #6.6 of Article 6 of the Agreement with subclause Minutes #34 dated April interconnecting the affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, #6.6.3. Explicate Appendix #1 to the Agreement in revised version 4 in 29, 2010 telecommunication Chairman of the Management Board of JSC accordance with Appendix #1 to the Addendum. Explicate the Table #1 of networks between JSC “Rostelecom”, member of the Board of Directors of JSC Appendix #2 of the Agreement in a revised version of Appendix #2 to the “Rostelecom” and JSC “ZEBRA TELECOM”; V.V. Volkov, member of the Addendum. Explicate Appendix #4 to the Agreement in revised version 2 in “ZEBRA TELECOM” Management Board of JSC “Rostelecom”; member of the accordance with Appendix #3 to the Addendum. The Addendum shall come Board of Directors of JSC “ZEBRA TELECOM”; A.A. into force once signed by the Parties. Khozyainov, Member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”. 63. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: in accordance with the connection terms, stipulated in Not approved by the “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose the Agreement, the Parties shall provide each other with connection services Board of Directors “MTS” affiliate, namely, S.A. Drozdov, member of the Board of and services for traffic transmission (hereinafter, the Services) and pay for the Directors of JSC “Svyazinvest”, is a member of the Board services provided by another Party. of Directors of JSC “MTS”. The transaction price: the Parties pay for the services in the manner specified in Appendix #1 to the Agreement. Term of services’ provision: commencing date of rendering of services is the date stated by the Act of commencement of services. Validity: The Agreement shall come into force once signed and shall be valid for one year. The Agreement is considered to be automatically extended for each subsequent year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement. The Agreement may be extended an unlimited number of times. 64. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The Parties agreed that Appendix #1 to the Agreement should be explicated in The Board of Directors Agreement on rendering of 20% of voting shares of JSC “Rostelecom”, whose revised version 2 in accordance with Appendix #1 to the Addendum. The Minutes #34 dated April services for affiliate is JSC “GlobalTel”; A.Yu. Kolpakov, Chairman of Addendum shall come into force once signed. 29, 2010 interconnection of the the Management Board of JSC “Rostelecom”, member of clock synchronization the Board of Directors of JSC “GlobalTel”; A.A. network of JSC Khozyainov, member of the Management Board of JSC “Rostelecom” between “Rostelecom”, member of the Board of Directors of JSC JSC “Rostelecom” and “GlobalTel”; V.V. Semenov, member of the Management JSC “GlobalTel” Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”. 65. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendices #2/1, #2/2, #2/3, and #3 to the Agreement in respective The Board of Directors Agreement on securing 20% of voting shares of JSC “Rostelecom”, whose revised versions of Appendices #1, #2, #3, and #4 to the Addendum. Explicate Minutes #38 dated May the functioning of affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of clause #4.4 of the Agreement in a revised version. The service price is 24, 2010 equipment between JSC the Board of Directors of JSC “Rostelecom”, member of specified by the Addendum. The Addendum shall come into force once signed. “Rostelecom” and “JSC the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, The commencing date of the Parties’ fulfillment of obligations shall be the date 20 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Dalsvyaz” member of the Board of Directors of JSC “Rostelecom”, of the Addendum being signed. member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”. 66. Addendum #9 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #3 to the Agreement in revised version 10, which shall be The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose validated in accordance with the Addendum. Should the ports speed of the Minutes #38 dated May “Rostelecom” and “JSC affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of interconnection links change once the network of JSC “Dalsvyaz” is 24, 2010 “Dalsvyaz” the Board of Directors of JSC “Rostelecom”, member of interconnected with the network of JSC “Rosletecom”, Appendix #1 to the the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, “Technical requirements” will be explicated in a revised version. The member of the Board of Directors of JSC “Rostelecom”, Addendum shall come into force once signed. member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

67. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than Supplement clause #3.2 named “Rostelecom is entitled to” of Article 3 on The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose “Rights and obligations of the Parties” of the Agreement with subclause #3.2.3. Minutes #38 dated May “Rostelecom” and JSC affiliate is JSC “SakhalTelecom”. Supplement Article 4 on “Settling between the Parties” with clause #4.10. The 24, 2010 “SakhalTelecom” Addendum shall come into force once signed.

The Board of Directors 68. Addendum #4 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.6 of Article #1 on “Terms and definitions” of the Agreement Minutes #38 dated May Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose in a revised version. Explicate clause #1.13 of Article #1 on “Terms and “Rostelecom” and JSC affiliate is JSC “SakhalTelecom”. 24, 2010 definitions” of the Agreement in a revised version. Supplement Article 1 on “SakhalTelecom” “Terms and definitions” of the Agreement with clauses #1.14-1.20. Supplement Article #3 of the Agreement with clauses #3.1.7, #3.1.8, #3.1.9 in the revised

version of the Addendum. Explicate subclause #3.3.3 of clause #3.3 of Article #3 of the Agreement in the revised version of the Addendum. Supplement clause #3.3 of Article #3 of the Agreement with subclause #3.3.16 in the revised version of the Addendum. Supplement Article 5 of the Agreement with clause #5.7 in the revised version of the Addendum. Supplement Article 6 of the Agreement with clause #6 in the revised version of the Addendum. Supplement the Agreement with Appendix #11 (tariffs for the intelligent communication network service provided by JSC “Rostelecom” called “Service for extra pay”) in the revised version of Appendix #1 to the Addendum. Supplement the “Notes to devising standard forms 1.1-1.6” of Appendix #3 of the Agreement with clause #8 in the revised version of the Addendum. Supplement Appendix #3 of the Agreement with Form 4 on “Cosolidated report on providing referential and informational services on the basis of the 809 200 (100) code” in the revised version of Appendix #2 to the Addendum. Explicate Appendix #9 of the Agreement in revised version 2 in accordance with Appendix #3 to the Addendum. The Addendum shall come into force once signed.

21 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

69. Addendum #5 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #2 of the Table on “Services price and agent remuneration to The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose the Operator (JSC “SakhalTelecom”) in the revised version of Appendix #2 to Minutes #38 dated May “Rostelecom” and JSC affiliate is JSC “SakhalTelecom”. the Agreement. The Addendum shall come into force once signed by both 24, 2010 “SakhalTelecom” Parties.

70. Agreement on JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) obliges to provide the Operator (JSC The Board of Directors interconnecting the 20% of voting shares of JSC “Rostelecom”, whose “Eniseytelecom”) with the services on network interconnection on the DLD Minutes #38 dated May telecommunication affiliate is JSC “EniseyTelecom” . communication level as defined by the Agreement (Article 5), and the Operator 24, 2010 networks between JSC obliges to pay for the services. The Operator obliges to provide Rostelecom the “Rostelecom” and JSC traffic transfer and interconnection services, and Rostelecom obliges to pay for “Eniseytelecom” the services. The transaction price is specified in the Agreement. The Agreement shall come into force once signed and shall be valid for one year once signed. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about its wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

71. Addendum #1 on JSC “Svyazinvest” – the shareholder holding more than Enforce Appendix #1/6, Appendix #2/6 and Appendix #3/6 to the Agreement The Board of Directors amendments to the 20% of voting shares of JSC “Rostelecom”, whose from the moment the Addendum has been signed. From the moment of Minutes #38 dated May Agreement on “Provision affiliate is JSC “EniseyTelecom” . enforcement of Appendix #1/6, Appendix no #2/6 and Appendix #3/6 to the 24, 2010 of services for securing the Agreement, the Appendices #1/5 and #2/5 shall be considered void. Explicate functioning of equipment” and approve clause #4.7 in a revised version. The transaction price is specified between JSC in Appendices #2/6 and #3/6 to the Addendum. The Addendum shall come into “Rostelecom” and JSC force once signed by the Parties. “Eniseytelecom”

72. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) shall provide the Consumer (JSC “UTK”) with The Board of Directors the DLD/ ILD 20% of voting shares of JSC “Rostelecom”, whose services, namely, the DLD/ILD telecommunication services rendered, as Minutes #38 dated May telecommunication affiliate is JSC “UTK”; M.A. Leschenko, member of the defined in the Agreement, to the Consumer by Rostelecom employing 24, 2010 services with preliminary Board of Directors of JSC “Rostelecom”, member of the automated service system, which allows for preliminary selection of the selection of the operator Board of Directors of JSC “UTK”; A.A. Lokotkov, member operator or for addressing a telephonist, and the Consumer shall undertake to between JSC of the Board of Directors of JSC “Rostelecom”, member pay for the communication services upon the terms defined in the Agreement. “Rostelecom” and JSC of the Board of Directors of JSC “UTK”; E.V. Umnova, Rostelecom’s tariffs for DLD communication services are specified in Appendix “UTK” member of the Board of Directors of JSC “Rostelecom”, #3 to the Agreement. Rostelecom’s tariffs for ILD communication servicea are member of the Board of Directors of JSC “UTK”; E.V. specified in Appendix #4 to the Agreement. The Agreement shall come into Yurchenko, Chairman of the Board of Directors of JSC force once signed by Rostelecom and the Consumer and shall be valid until “Rostelecom”, Chairman of the Board of Directors of JSC December 31, 2010. The Agreement is considered to be automatically “UTK”. extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement. The confidentiality requirements, established by the confidentiality Agreement (with further alterations and amendments), are applied to the legal regulations between the Parties. 22 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

73. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Provided that the Consumer (JSC “UTK”) and Rostelecom (JSC “Rostelecom”) The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose concluded the Agreement on provision of DLD/ILD telecommunication Minutes #38 dated May the DLD/ILD affiliate is JSC “UTK”; M.A. Leschenko, member of the services, and since the Consumer selected JSC “Rostelecom” as the operator 24, 2010 telecommunication Board of Directors of JSC “Rostelecom”, member of the of choice for negotiating such an Agreement with, Rostelecom shall undertake services with preliminary Board of Directors of JSC “UTK”; A.A. Lokotkov, member to allow discounted rates on the basis of Rostelecom’s basic tariffs, as selection of the operator of the Board of Directors of JSC “Rostelecom”, member specified in Appendix #1 to the Addendum, to the Consumer upon the terms of between JSC of the Board of Directors of JSC “UTK”; E.V. Umnova, the Addendum. The Addendum shall come into force once signed and shall be “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, valid for the validity period of the Agreement. “UTK” member of the Board of Directors of JSC “UTK”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “UTK”.

74. Addendum #1 to the Explicate Appendix #2 on the “Protocol of scope and cost of services The Board of Directors Agreement on securing JSC “Svyazinvest” – the shareholder holding more than associated with maintenance and technical support of the operating Minutes #38 dated May the functioning of 20% of voting shares of JSC “Rostelecom”, whose equipment” to the Agreement in the revised version of Appendix #1 to the 24, 2010 equipment between JSC affiliate is JSC “VolgaTelecom”; M.A. Leschenko, member Addendum. The Addendum shall come into force once signed by the “Rostelecom” and “JSC of the Board of Directors of JSC “Rostelecom”, member authorized representatives of the Parties. “VolgaTelecom” of the Board of Directors of JSC “VolgaTelecom”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “VolgaTelecom”.

75. Contract on the lease of JSC “Svyazinvest” – the shareholder holding more than The Lessor shall lease non-residential premises to the Lessee of a floor area of The Board of Directors non-presidential premises 20% of voting shares of JSC “Rostelecom”, whose 12 495.51 (twelve thousand four hundred ninety five and fifty one hundredths) Minutes #38 dated May between JSC affiliate is JSC “MMTS-9”; V.V. Terekhov, member of the square meters, legally owned by the Lessor. The transaction price is specified 24, 2010 “Rostelecom” and JSC Management Board of JSC “Rostelecom”, member of the by the Contract. The Contract is concluded for 2 (two) years and shall come “MMTS-9” Board of Directors of JSC “MMTS-9”; A.A. Khozyainov, into force from the moment of its state registration. If the Lessor continues member of the Management Board of JSC “Rostelecom”, using the premises after the expiry of the Contract and in the absence of member of the Board of Directors of JSC “MMTS-9”. objections from the Lessee, the Contract is considered to be automatically extended on the same terms for another 2 (two) years.

76. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.1 of the Agreement in a revised version. Explicate clause The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #1 of the “Minutes on negotiating the Agreement value” (Appendix #2) in a Minutes #38 dated May “Rostelecom” and JSC affiliate is JSC “GlobalTel”; A.Yu. Kolpakov, Chairman of revised version. The Addendum shall come into force once signed by both 24, 2010 “GlobalTel” the Management Board of JSC “Rostelecom”, member of Parties. the Board of Directors of JSC “GlobalTel”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC 23 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “GlobalTel”; V.V. Semenov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”.

77. Addendum #5 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #5.4 in a revised version. Explicate clause #1 of Appendix The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #1.2 to the Agreement in a revised version..The Addendum shall come into Minutes #38 dated May “Rostelecom” and JSC affiliate is JSC “GlobalTel”; A.Yu. Kolpakov, Chairman of force once signed. 24, 2010 “GlobalTel” the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”; V.V. Semenov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”.

78. Act #3 on reassignment of JSC “Svyazinvest” – the shareholder holding more than The Principal yielded and the Agent accepted the rights (claims) to the The Board of Directors rights to the Agreement 20% of voting shares of JSC “Rostelecom”, whose amounts outstanding to JSC “Rostelecom” by its Subscribers as listed in the Minutes #38 dated May between JSC affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, Register of Subscribers’ debts (hereinafter, the Register) for the DLD/ILD 24, 2010 “Rostelecom” and JSC Chairman of the Management Board of JSC communication services provided, as well as the additional services of delaid “ZEBRA TELECOM” “Rostelecom”, member of the Board of Directors of JSC payment schemes, as defined in Appendix #1 to the Act of payment for “ZEBRA TELECOM”; V.V. Volkov. member of the DLD/ILD communication services and additional services of delaid payment Management Board of JSC “Rostelecom”; member of the schemes provided by JSC “Rostelecom” over a period from December 1, 2009, Board of Directors of JSC “ZEBRA TELECOM”; A.A. until April 30, 2010. The transaction price is specified by the Act. Khozyainov, Member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

79. Agreement on The Parties lease optic fibers (OFs) to each other optic fibers. The Party who The Board of Directors amendments to the JSC “Svyazinvest” – the shareholder holding more than provides the OFs shall maintain and undertake technical support of those Minutes #39 dated May Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose particular OFs, as specified in Article 5 of the Agreement. The receiving Party 28, 2010 “Rostelecom” and JSC affiliate is JSC “VolgaTelecom”; M.A. Leschenko, member shall accept the abovementioned OFs and pay for the provided OFs on the “VolgaTelecom” of the Board of Directors of JSC “Rostelecom”, member terms defined in this Agreement. The transaction price is specified in Appendix of the Board of Directors of JSC “VolgaTelecom”; V.D. #1 and Appendix #9 to the Agreement. This Agreement shall come into force Savchenko, member of the Board of Directors of JSC once signed by the Parties. “Rostelecom”, member of the Board of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “VolgaTelecom”.

80. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose “GLOBUS-TELECOM”) with services on maintenance and technical support of Minutes #39 dated May “GLOBUS-TELECOM” affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, the operating equipment, installed and installable at the Contractor’s objects. 28, 2010 member of the Management Board of JSC “Rostelecom”, The transaction price is set by the Agreement. The Agreement shall come into member of the Board of Directors of JSC “GLOBUS- force once signed and shall be valid for one year. The Agreement is

24 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction TELECOM”; A.A. Khozyainov, member of the considered to be automatically extended for the next year, if none of the Management Board of JSC “Rostelecom”, member of the Parties notifies the other Party about their wish to terminate the Agreement at Board of Directors of JSC “GLOBUS-TELECOM”. least 30 calendar days prior to the expiry of the Agreement.

81. Addendum #1 to the Supplement the Agreement with Appendix #1/1 of the “Acceptance Certificate The Board of Directors Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than for equipment” in the revised version of Appendix #1 to the Addendum. Minutes #39 dated May “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose Explicate Appendix #2 to the Agreement in the revised version of Appendix #2 28, 2010 “Dalsvyaz” affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of to the Addendum. Explicate Appendix #3 to the Agreement in the revised the Board of Directors of JSC “Rostelecom”, member of version of Appendix #3 to the Addendum. The service cost is specified in the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, accordance with Appendices #2 and #3 to the Addendum. The Addendum shall member of the Board of Directors of JSC “Rostelecom”, come into force once signed by the Parties. member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

82. Addendum #1 to the Explicate clause #3.3 of the Agreement in a revised version. Explicate The Board of Directors Agreement on allotment of JSC “Svyazinvest” – the shareholder holding more than Appendix #3 to the Agreement inrevised version 2 in accordance with Minutes #39 dated May space in the telephone 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. The Addendum shall come into force once 28, 2010 cable ductworks between affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of signed by the Parties. JSC “Rostelecom” and the Board of Directors of JSC “Rostelecom”, member of JSC “Dalsvyaz” the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”. 83. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: JSC “Rostelecom” shall provide the Ministry of Not approved by the “Rostelecom” and the 20% of voting shares of JSC “Rostelecom”, whose Telecommunications and Mass Communications of the Russian Federation the Board of Directors Ministry of affiliate, namely, I.O. Schyogolev, member of the Board of services for video conferences. The transaction price is set by the Agreement. Telecommunications and Directors of JSC “Svyazinvest”, is the head of the Ministry Term of services’ provision: from October 1, 2010, until December 31, 2010. Mass Communications of of Telecommunications and Mass Communications of the Validity: the Agreement shall come into force on October 1, 2010, and shall be the Russian Federation Russian Federation. valid until December 31, 2010.

84. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Operator (JSC “Rostelecom”) shall provide the Consumer (JSC The Board of Directors virtual private network on 20% of voting shares of JSC “Rostelecom”, whose “Dalsvyaz”) services in accordance with the terms of the Agreement (including Minutes #39 dated May the basis of the data affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of the Regulations on rendering services and the Order form #1 to the 28, 2010 transfer network of JSC the Board of Directors of JSC “Rostelecom”, member of Agreement), and the Consumer shall accept and pay for the provided services. “Rostelecom” and Order the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, The service price is indicated in the Order form #1 to the Agreement. The form #1 as attached to the member of the Board of Directors of JSC “Rostelecom”, Agreement shall come into force once signed by the Parties. The validity of the Agreement between JSC member of the Board of Directors of JSC “Dalsvyaz”; E.V. Agreement is 1 (one) year from the date of being signed by the Parties. The “Rostelecom” and JSC Yurchenko, , Chairman of the Board of Directors of JSC Agreement is considered to be automatically extended for the next year, if “Dalsvyaz” “Rostelecom”, Chairman of the Board of Directors of JSC none of the Parties notifies the other Party about their wish to terminate the “Dalsvyaz”. Agreement at least 30 calendar days prior to the expiry of the Agreement.

25 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 85. Agreement on JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) shall provide the Operator (JSC “ZEBRA The Board of Directors interconnecting the 20% of voting shares of JSC “Rostelecom”, whose TELECOM”) with services on interconnection on the zonal/junction connection Minutes #39 dated May telecommunication affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, level in accordance with the terms of interconnection, as specified in the 28, 2010 networks and VoIP traffic Chairman of the Management Board of JSC Agreement, and the Operator shall undertake to accept and pay for the transmission between JSC “Rostelecom”, member of the Board of Directors of JSC services on the terms of the Agreement. The transaction price is specified in “Rostelecom” and JSC “ZEBRA TELECOM”; V.V. Volkov, member of the Appendix #1 to the Agreement. The Agreement shall come into force once “ZEBRA TELECOM” Management Board of JSC “Rostelecom”; member of the signed by both Parties upon condition of preliminary approval by competent Board of Directors of JSC “ZEBRA TELECOM”; A.A. management bodies of the Parties, and shall be valid until December 31, 2010. Khozyainov, Member of the Management Board of JSC The Agreement is considered to be automatically extended for the next year, if “Rostelecom”, member of the Board of Directors of JSC none of the Parties notifies the other Party about their wish to terminate the “ZEBRA TELECOM”. Agreement at least 30 calendar days prior to the expiry of the Agreement.

86. Agency contract between JSC “Svyazinvest” – the shareholder holding more than The Principal (JSC “Rostelecom”) comissions the Agent (JSC “MC NTT”), and The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose the Agent undertakes to perform for, on behalf of and at the expense of the Minutes #39 dated May JSC “MC NTT” affiliate is JSC “MC NTT”; V.V. Volkov, member of the Principal, legal acts and other actions, such is: search for potential subscribers 28, 2010 Management Board of JSC “Rostelecom”, member of the in order to negotiate Agreements on provision of the IFS service to the Board of Directors of JSC “MC NTT”; A.A. Khozyainov, subscribers on behalf of the Principal; provide timely information about planned member of the Management Board of JSC “Rostelecom”, and emergency interruptions in the IFS service: process and execute claims. member of the Board of Directors of JSC “MC NTT”. The transaction price is specified by the Contract. The Contract shall come into force once signed by the Parties and shall be valid for 1 (one) year. The Agreement is considered to be automatically extended for the next year and on the same terms, if none of the Parties notifies the other Party in written form about their wish to terminate the Agreement. As long as the terms of this section are observed, the extension of the Contract is possible an unlimited number of times.

87. Addendum #12 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor by the order of the Customer shall provide a digital The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose telecommunication channel to the Customer, specified in the Service order Minutes #39 dated May allocated digital channels affiliate is JSC “MC NTT”; V.V. Volkov, member of the #2/12 – Appendix #2/12 to the Agreement. The transaction price is specified by 28, 2010 and routes between JSC Management Board of JSC “Rostelecom”, member of the the Addendum. The Addendum shall come into force once signed. “Rostelecom” and JSC Board of Directors of JSC “MC NTT”; A.A. Khozyainov, “Moskovsky Tsentr Novyh member of the Management Board of JSC “Rostelecom”, Tehnologii member of the Board of Directors of JSC “MC NTT”. Telekommunikatsii” /“Moscow center of new telecommunication technologies”/

88. Agreement on JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) shall provide the Operator (JSC The Board of Directors interconnecting the 20% of voting shares of JSC “Rostelecom”, whose “RTKomm.RU”) with the services on network interconnection on the DLD Minutes #39 dated May telecommunication affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of communication level in accordance with the connection terms stipulated in the 28, 2010 networks between JSC the Management Board of JSC “Rostelecom”, member of Agreement (Article 5), and the Operator shall pay for the services and observe “Rostelecom” and JSC the Board of Directors of JSC “RTKomm.RU”; A.Yu. all the conditions of the interconnection service. The Operator shall render the “RTKomm.RU” Kolpakov, member of the Management Board of JSC traffic throughput and the transfer of and updates to the information on the “Rostelecom”, member of the Board of Directors of JSC Subscribers to Rostelecom, and Rostelecom shall undertake to pay for the 26 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “RTKomm.RU”; V.D. Savchenko, member of the Board of services. The transaction price is specified in Appendix #1 to the Agreement. Directors of JSC “Rostelecom”, member of the Board of The Agreement shall come into force once signed and shall be valid until Directors of JSC “RTKomm.RU”; A.A. Khozyainov, December 31, 2010. The Agreement is considered to be automatically member of the Management Board of JSC “Rostelecom”, extended for the next year, if none of the Parties notifies the other Party about member of the Board of Directors of JSC “RTKomm.RU”. their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

89. Agency Contract between JSC “Svyazinvest” – the shareholder holding more than The Agent (JSC “RTKomm.RU) shall represent, for a specified remuneration, The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose the Principal (JSC “Rostelecom”) as the potential contractor for the orders Minutes #39 dated May JSC “RTKomm.RU” affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of placed by the state authorities (as well as state governing bodies), non-state- 28, 2010 the Management Board of JSC “Rostelecom”, member of financed funds, local state-financed authorities and other federal budget the Board of Directors of JSC “RTKomm.RU”; A.Yu. beneficiaries, beneficiaries of budgets of subjects of the Russian Federation Kolpakov, member of the Management Board of JSC and of local budgets (hereinafter, the Customers),on provision of “Rostelecom”, member of the Board of Directors of JSC telecommunication services and other services and/or work associated with “RTKomm.RU”; V.D. Savchenko, member of the Board of rendering telecommunication services (hereinafter, the Services); negotiate Directors of JSC “Rostelecom”, member of the Board of and settle state (or municipal) Contracts and Agreements (hereinafter, the Directors of JSC “RTKomm.RU”; A.A. Khozyainov, Contracts) on rendering the Services on behalf of the Principal should the member of the Management Board of JSC “Rostelecom”, Principal be selected as a contractor by a Customer; and perform other acts member of the Board of Directors of JSC “RTKomm.RU”. behalf of and at the expense of the Principal within the terms of the Contract in the Russian Federation. The transaction price is specified in the Contract. The Contract shall come into force once signed by the Parties and shall be valid until February 1, 2011. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

90. Agreement on rendering JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “RTKomm.RU”) provides the Customer (JSC The Board of Directors the services on installing 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) with services comprising organization and management of the Minutes #39 dated May and maintaining the affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of protected data communication network (hereinafter, the Services) linking 28, 2010 protected data the Management Board of JSC “Rostelecom”, member of territorial authorities, subdepartmental companies of the Federal Agency of the transmission network the Board of Directors of JSC “RTKomm.RU”; A.Yu. State registration, cadastre and cartography and their subdivisions on the linking territorial Kolpakov, member of the Management Board of JSC regional and local levels (hereinafter, the Customers), in accordance with the authorities, “Rostelecom”, member of the Board of Directors of JSC “Technical requirements” (Appendix #1 to the Agreement), and the Customer subdepartmental “RTKomm.RU”; V.D. Savchenko, member of the Board of accepts and pays for the services in accordance with the provisions of the companies of the Federal Directors of JSC “Rostelecom”, member of the Board of Contract. The transaction price is specified by the Contract. The Contract shall Agency of State Directors of JSC “RTKomm.RU”; A.A. Khozyainov, come into force once signed by the Parties and shall be valid until July 1, 2010 registration, cadastre and member of the Management Board of JSC “Rostelecom”, or, as to regaring the Parties’ obligations, until each Party has properly and cartography and their member of the Board of Directors of JSC “RTKomm.RU”. completely fulfilled theirs. subdivisions on regional and local levels between JSC “Rostelecom” and JSC “RTKomm.RU”

27 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 91. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than In the order of and on the terms of the Agreement, the Contractor shall render The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose services of maintenance and technical support of the corporate multiservice Minutes #39 dated May “RTKomm.RU” affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of data transfer network of the integrated information system of the Federal 28, 2010 the Management Board of JSC “Rostelecom”, member of Service for Supervision of Communications and Mass Media in accordance the Board of Directors of JSC “RTKomm.RU”; A.Yu. with the Technical specifications. The transaction price is specified by the Kolpakov, member of the Management Board of JSC Agreement. The Agreement shall come into force once signed and shall be “Rostelecom”, member of the Board of Directors of JSC valid until December 31, 2010. “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

92. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #1/2 in the revised version of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. Supplement the Agreement with Appendix #2/2 Minutes #39 dated May “Rostelecom” and affiliate is “RTKomm-Volga-Ural” LLC. in the revised version of Appendix #2 to the Addendum. The Addendum shall 28, 2010 “RTKomm-Volga-Ural” come into force once signed and shall be valid until the expiry of the LLC Agreement.

93. Agreement on the JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rosskiyskaya telekommunikatsionnaya set”) provides The Board of Directors provision of channels and 20% of voting shares of JSC “Rostelecom”, whose the Customer (JSC “Rostelecom”) with services of allocating and installing Minutes #39 dated May routes between JSC affiliate is JSC “Rosskiyskaya telekommunikatsionnaya leased digital communication channels (hereinafter, the Services) in 28, 2010 “Rostelecom” and JSC set” /“Russian telecommunication network”/. accordance with the terms of the current licenses. The Customer shall pay for “Rosskiyskaya the provided services in the amount and in the manner specified by the telekommunikatsionnaya Agreement. The transaction price is specified in the Agreement. The set” /“Russian Agreement shall come into force once signed and shall be valid until December telecommunication 31, 2010. The Agreement is considered to be automatically extended for the network”/ next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

94. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Exclude Appendix #1/2 from the Agreement. Alter the numeration of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Appendices #1/3, #1/4, #1/5, #1/6, #1/7, #1/8, #1/9, #1/10, #1/11 to the Minutes #39 dated May “Rostelecom” and JSC affiliate is JSC “SakhalTelecom”. Agreement to 1/2, 1/3, 1/4, 1/5, 1/6, 1/7, 1/8, 1/9, 1/10 correspondingly. 28, 2010 “SakhalTelecom” Exclude Appendix #2/2 from the Agreement. Explicate clause #4.4 of the Agreement in a revised version. Alter the numeration of Appendices #2/3, #2/4, #2/5, #2/6, #2/7, #2/8, #2/9, #2/10, #2/11 to the Agreement for #2/2, #2/3, #2/4, #2/5, #2/6, #2/7, #2/8, #2/9, 2/10 correspondingly. Explicate Appendices #2/1, #2/2, #2/3, #2/4, #2/5, #2/6, #2/7, #2/8, #2/9, #2/10 to the Agreement in the revised version of Appendices #1–10 to the Addendum. The Addendum shall come into force once signed.

28 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 95. Addendum #4 to the JSC “Svyazinvest” – the shareholder holding more than Appendix #1 to the Agreement in revised version 4 in accordance with The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. Supplement the Agreement with Appendix #10 Minutes #39 dated May interconnecting the affiliate is JSC “SakhalTelecom”. on “JSC “Rostelecom”’s report on traffic transmission” in the revised version of 28, 2010 telecommunication Appendix #3 to this Agreement. Supplement the Agreement with Appendices networks between JSC #11, #12. The Addendum shall come into force once signed by both Parties. “Rostelecom” and JSC “SakhalTelecom”

96. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Since the expenses incurred by JSC “Severo-Zapadniy Telecom” /“North- The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Western Telecom”/ and associated with granted rights to install the equipment Minutes #39 dated May “Rostelecom” and JSC affiliate is JSC JSC “Severo-Zapadniy Telecom” /“North- owned by JSC “Rostelecom”, as well as with the reduction of the total 28, 2010 “Severo-Zapadniy Western Telecom”/; M.A. Leschenko, member of the equipment installed, have changed, in accordance with clause #3.5 of the Telecom” /“North-Western Board of Directors of JSC “Rostelecom”, member of the Agreement the Parties negotiated to make the following alterations to the Telecom”/ Board of Directors of JSC “Severo-Zapadniy Telecom”; Agreement: explicate the first sentence of clause #1.1 of the Agreement in a Yu.A. Provotorov, member of the Board of Directors of revised version; supplement clause #2.2 of the Agreement with subclause JSC “Rostelecom”, member of the Board of Directors of #2.2.10; explicate the first sentence of clause #3.1 of the Agreement in a JSC “Severo-Zapadniy Telecom”; I.V. Rodionov, member revised version; explicate the Minutes on the contract value negotiation of the Board of Directors of JSC “Rostelecom”, member (Appendix #2 to the Agreement) in the revised version of Appendix #2 to the of the Board of Directors of JSC “Severo-Zapadniy Addendum; explicate the floor plan of the JSC “Rostelecom”’s equipent Telecom”; E.V. Umnova, member of the Board of installed in the line-and-equipment room of the Central telecom hub (Appendix Directors of JSC “Rostelecom”, Deputy Chairman of the #3 to the Agreement) in the revised version of Appendix #3 to the Addendum; Board of Directors of JSC “Severo-Zapadniy Telecom”; supplement the Agreement with Appendix #4 (Standard Report Form for E.V. Yurchenko, Chairman of the Board of Directors of routine inspections of the equipment placed on the premises of JSC “Severo- JSC “Rostelecom”, Chairman of the Board of Directors of Zapadniy Telecom” under the Agreement), which is also Appendix #4 to the JSC “Severo-Zapadniy Telecom”. Addendum. The Addendum shall come into force once signed.

97. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Since the expenses incurred by JSC “Severo-Zapadniy Telecom” /“North- The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Western Telecom”/ and associated with granted rights to install the equipment Minutes #39 dated May “Rostelecom” and JSC affiliate is JSC JSC “Severo-Zapadniy Telecom” /“North- owned by JSC “Rostelecom”, as well as with the reduction of the total 28, 2010 “Severo-Zapadniy Western Telecom”/; M.A. Leschenko, member of the equipment installed, have changed, in accordance with clause #3.5 of the Telecom” /“North-Western Board of Directors of JSC “Rostelecom”, member of the Agreement the Parties negotiated to make the following alterations to the Telecom”/ Board of Directors of JSC “Severo-Zapadniy Telecom”; Agreement: explicate the first sentence of clause #1.1 of the Agreement in a Yu.A. Provotorov, member of the Board of Directors of revised version; supplement clause #2.2 of the Agreement with subclause JSC “Rostelecom”, member of the Board of Directors of #2.2.10; explicate the first sentence of clause #3.1 of the Agreement in a JSC “Severo-Zapadniy Telecom”; I.V. Rodionov, member revised version; explicate the Minutes on the contract value negotiation of the Board of Directors of JSC “Rostelecom”, member (Appendix #2 to the Agreement) in the revised version of Appendix #2 to the of the Board of Directors of JSC “Severo-Zapadniy Addendum; explicate the floor plan of the JSC “Rostelecom”’s equipent Telecom”; E.V. Umnova, member of the Board of installed in the line-and-equipment room of the Central telecom hub (Appendix Directors of JSC “Rostelecom”, Deputy Chairman of the #3 to the Agreement) in the revised version of Appendix #3 to the Addendum; Board of Directors of JSC “Severo-Zapadniy Telecom”; supplement the Agreement with Appendix #4 (Standard Report Form for E.V. Yurchenko, Chairman of the Board of Directors of routine inspections of the equipment placed on the premises of JSC “Severo- JSC “Rostelecom”, Chairman of the Board of Directors of Zapadniy Telecom” under the Agreement), which is also Appendix #4 to the JSC “Severo-Zapadniy Telecom”. Addendum. The Addendum shall come into force once signed.

29 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 98. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than Supplement Appendix #6 to the Agreement with clauses #11, #12, #13 in the The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose revised version. Supplement the Agreement with Appendices #6.11, #6.12, Minutes #39 dated May interconnecting the affiliate is JSC JSC “Severo-Zapadniy Telecom” /“North- #6.13 in the revised versions of Appendices #1, #2, #3 to the Addendum. The 28, 2010 telecommunication Western Telecom”/; M.A. Leschenko, member of the Addendum shall come into force once signed and shall be valid for the whole networks between JSC Board of Directors of JSC “Rostelecom”, member of the period of the Agreement validity, if it is not terminated by mutual agreement of “Rostelecom” and JSC Board of Directors of JSC “Severo-Zapadniy Telecom”; the Parties. “Severo-Zapadniy Yu.A. Provotorov, member of the Board of Directors of Telecom” /“North-Western JSC “Rostelecom”, member of the Board of Directors of . Telecom”/ JSC “Severo-Zapadniy Telecom”; I.V. Rodionov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-Zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-Zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-Zapadniy Telecom”.

99. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than The Parties agreed to supplement clause #3.4 “Operator is entitled to” of the The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Agreement with clause #3.4.5 and in the revised version). The Addendum shall Minutes #39 dated May “Rostelecom” and JSC affiliate is JSC JSC “Severo-Zapadniy Telecom” /“North- come into force from the moment of conclusion. 28, 2010 “Severo-Zapadniy Western Telecom”/; M.A. Leschenko, member of the Telecom” /“North-Western Board of Directors of JSC “Rostelecom”, member of the Telecom”/ Board of Directors of JSC “Severo-Zapadniy Telecom”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-Zapadniy Telecom”; I.V. Rodionov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-Zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-Zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-Zapadniy Telecom”.

100. Dissolution of the JSC “Svyazinvest” – the shareholder holding more than Dissolution of the Agreement. The Agreement shall be terminated from the The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose very moment the Addendum is signed. Minutes #39 dated May “Rostelecom” and JSC affiliate is JSC JSC “Severo-Zapadniy Telecom” /“North- . 28, 2010 “Severo-Zapadniy Western Telecom”/; M.A. Leschenko, member of the Telecom” /“North-Western Board of Directors of JSC “Rostelecom”, member of the Telecom”/ Board of Directors of JSC “Severo-Zapadniy Telecom”; Yu.A. Provotorov, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-Zapadniy Telecom”; I.V. Rodionov, member

30 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-Zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-Zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-Zapadniy Telecom”.

101. Agreement on the Explicate clause #4.2 of the Agreement in a revised version. Explicate The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Appendix #2/1 to the Agreement in the revised version of Appendix #1 to the Minutes #39 dated May Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Amendment Agreement. Explicate Appendix #3/1 to the Agreement in the 28, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member revised version of Appendix #2 to the Amendment Agreement. The transaction “Sibirtelecom” of the Board of Directors of JSC “Rostelecom”, member price is specified by the Amendment Agreement. The Amendment Agreement of the Board of Directors of JSC “Sibirtelecom”; A.A. shall come into force once signed by the authorized representatives of the Lokotkov, member of the Board of Directors of JSC Parties, following the approval of the Boards of Directors of the Parties and “Rostelecom”, Deputy Chairman of the Board of Directors shall be valid until the expiry of the Agreement. of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

102. Agreement on the The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Explicate the first paragraph of clauses #3.1.1 and #3.1.2 of the Agreement in Minutes #39 dated May Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose a revised version. Explicate clause #4.2 of the Agreement in a revised version. 28, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member Explicate Appendix #2/1 to the Agreement in the revised version of Appendix “Sibirtelecom” of the Board of Directors of JSC “Rostelecom”, member #2 to the Amendment Agreement. Explicate Appendix #2/4 to the Agreement in of the Board of Directors of JSC “Sibirtelecom”; A.A. th revised version of Appendix #3 to the Amendment Agreement. Explicate Lokotkov, member of the Board of Directors of JSC Appendix #3/1 to the Agreement in the revised version of Appendix #4 to the “Rostelecom”, Deputy Chairman of the Board of Directors Amendment Agreement. Exclude Appendices #2/2, dated December 1, 2008, of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the #2/3, dated December 1, 2008, #3/2, dated December 1, 2008, #8, dated Board of Directors of JSC “Rostelecom”, Chairman of the December 1, 2008, #9, dated December 1, 2008, from the Agreement. The Board of Directors of JSC “Sibirtelecom”. service price is specified by the Amendment Agreement. The Amendment Agreement shall come into force once signed by the authorized representatives of the Parties, following the approval of the Boards of Directors of the Parties and shall be valid until the expiry of the Agreement. 103. Agreement on the Explicate the first paragraph of clauses #3.1.1 and #3.1.2 of the Agreement in The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than a revised version. Explicate clause #4.2 of the Agreement in a revised version. Minutes #39 dated May Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Explicate Appendix #2/1 to the Agreement in the revised version of Appendix 28, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member #2 to the Amendment Agreement. Explicate Appendix #2/2 to the Agreement in “Sibirtelecom” of the Board of Directors of JSC “Rostelecom”, member the revised version of Appendix #3 to the Amendment Agreement. Explicate of the Board of Directors of JSC “Sibirtelecom”; A.A. Appendix #3 to the Agreement in the revised version of Appendix #4 to the Lokotkov, member of the Board of Directors of JSC Amendment Agreement. Exclude Appendices #3/1 and #8 from the “Rostelecom”, Deputy Chairman of the Board of Directors Agreement. Supplement the Agreement with Appendix #2/3 in the revised of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the version of Appendix #5 to the Amendment Agreement. The service price is Board of Directors of JSC “Sibirtelecom”. specified by the Amendment Agreement. The Amendment Agreement shall 31 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction come into force once signed by the authorized representatives of the Parties, following the approval of the Boards of Directors of the Parties and shall be valid until the expiry of the Agreement.

104. Agreement on In accordance with the Agreement, the Parties shall provide the The Board of Directors interconnecting the JSC “Svyazinvest” – the shareholder holding more than interconnection service to each other at the interconnection level, as indicated Minutes #39 dated May telecommunication 20% of voting shares of JSC “Rostelecom”, whose in Appendix #5 to the Agreement (attached), as well as services of traffic 28, 2010 networks between JSC affiliate is JSC “Sibirtelecom”; M.A. Leschenko, member transmission, and shall pay one another for the services provided. The Parties “Rostelecom” and JSC of the Board of Directors of JSC “Rostelecom”, member shall pay for interconnection services and services of traffic transmission as per “Sibirtelecom” of the Board of Directors of JSC “Sibirtelecom”; A.A. tariffs defined in Appendix #1 to the Agreement. The Agreement shall be Lokotkov, member of the Board of Directors of JSC concluded for one year and will come into force once signed by the Parties. “Rostelecom”, Deputy Chairman of the Board of Directors The Agreement is considered to be automatically extended for the next year, if of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the none of the Parties notifies the other Party about their wish to terminate the Board of Directors of JSC “Rostelecom”, Chairman of the Agreement at least 30 calendar days prior to the expiry of the Agreement. Board of Directors of JSC “Sibirtelecom”.

105. Agreement on securing The Contractor (JSC “Rostelecom”) provides the Customer (JSC “Central The Board of Directors the functioning of JSC “Svyazinvest” – the shareholder holding more than telegraph”) with the service of maintenance and technical support of operating Minutes #39 dated May equipment between JSC 20% of voting shares of JSC “Rostelecom”, whose equipment installed and installable on the premises of the Contractor’s objects. 28, 2010 “Rostelecom” and JSC affiliate is JSC “Tsentralniy telegraf” /“Central telegraph”/; Network organization layout and equipment allocation layout on the Customer’s “Tsentralniy telegraf” M.A. Leschenko, member of the Board of Directors of premises are both provided in the “Technical requirements”. The commencing /“Central telegraph”/ JSC “Rostelecom”, member of the Board of Directors of date of the services provision under the Agreement is the date of receiving a JSC “Tsentralniy telegraf”; A.Yu. Provotorov, member of Requirements specification request from the Customer. The termination date of the Board of Directors of JSC “Rostelecom”, member of rendering of services under the Agreement is the date of signing the Act of the Board of Directors of JSC “Tsentralniy telegraf”; E.V. conveyance of the dismantled equipment, drawn up in accordance with the Yurchenko, Chairman of the Board of Directors of JSC Form as specified by Appendix #7. The terms of the Agreement on operating “Rostelecom”, Chairman of the Board of Directors of JSC equipment maintenance are specified in Appendix #2/1 to the Agreement. The “Tsentralniy telegraf”. service price is indicated in Appendices #2/1 and #3 to the Agreement. The Agreement shall come into force once signed by both Parties and shall be valid for one year. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

106. Agency Contract between JSC “Svyazinvest” – the shareholder holding more than The Principal (JSC “UTK”) commisions the Agent (JSC “Rostelecom”), The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose proposing remuneration, and the Agent undertakes to perform, on behalf and Minutes #39 dated May JSC “UTK” delegating affiliate is JSC “UTK”; M.A. Leschenko, member of the at the expense of the Principal, legal acts and other actions, stipulated by 28, 2010 agreements- and Board of Directors of JSC “Rostelecom”, member of the clauses #1-3 of Appendix #1 to the Contract. The Agent shall provide the payment-related decisions Board of Directors of JSC “UTK”; A.A. Lokotkov, member services as listed in clauses #4-6 of Appendix #1 to the Contract to the associated with of the Board of Directors of JSC “Rostelecom”, member Principal, expecting monetary value in return.The transaction price is specified telecommunication of the Board of Directors of JSC “UTK”; E.V. Umnova, by the Contract. The Contract shall come into force once signed by the Parties services to SC member of the Board of Directors of JSC “Rostelecom”, and shall be valid for 1 (one) year. If none of the Parties notifies the other Party “Olympstroy” member of the Board of Directors of JSC “UTK”; E.V. in written form about their wish to terminate the Contract, it is considered Yurchenko, Chairman of the Board of Directors of JSC automatically extended for the same period and on the same terms. As long as

32 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom”, Chairman of the Board of Directors of JSC the terms of this section are observed, the extension of the Contract is possible “UTK”. an unlimited number of times.

107. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) provides the Customer (JSC The Board of Directors allocated digital channels 20% of voting shares of JSC “Rostelecom” and one of the “Svyazinvest”) with the service of rendering allocated digital channels Minutes #02 dated June between JSC parties in the transaction; V.N. Bondarik, member of the (hereinafter, the Services) to the Customer upon terms as indicated in 30, 2010 “Rostelecom” and JSC Board of Directors of JSC “Rostelecom”, member of the Appendices #2/1-2/6 to the Agreement, and the Customer shall accept this “Svyazinvest” Management Board of JSC “Svyazinvest”; K.V. Malofeev, service and pay for it in accordance with the terms of the Agreement. The member of the Board of Directors of JSC “Rostelecom”, service description is given in Appendix #1 to the Agreement. The transaction member of the Board of Directors of JSC “Svyazinvest”; price is specified by Appendices #2/1, #2/2, #2/3, #2/4, #2/5, and #2/6. The A.Yu. Provotorov, member of the Board of Directors of Agreement shall come into force once signed by the Parties. The Agreement is JSC “Rostelecom”, member of the Management Board of valid for 12 (twelve) calendar months from the moment of its effective date. JSC “Svyazinvest”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Management Board of JSC “Svyazinvest”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Management Board of JSC “Svyazinvest”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, the President and Chairman of the Management Board of JSC “Svyazinvest”.

108. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement on rendering 20% of voting shares of JSC “Rostelecom”, whose Explicate the specification #1 to Appendix #2 of the Agreement in the revised Minutes #02 dated June telecommunication affiliate is JSC “Severo-Zapadniy Telecom” /“North- version of Appendix #1 to the Addendum. Explicate clause #1.1 of Appendix #3 30, 2010 services between JSC Western Telecom”/; Yu.A. Provotorov, member of the to the Agreement in a revised version. Supplement Appendix #3 of the “Rostelecom” and JSC Board of Directors of JSC “Rostelecom”, member of the Agreement with the Specifications #3, #4, and #5 in the revised version of “Severo-Zapadniy Board of Directors of JSC “Severo-Zapadniy Telecom”; Appendix #2 to the Addendum. Explicate clause #1.4 of Appendix #4 in a Telecom” /“North-Western E.V. Umnova, member of the Board of Directors of JSC revised version. Supplement Appendix #4 of the Agreement with the Telecom”/ “Rostelecom”, Deputy Chairman of the Board of Directors Specification #2 in the revised version of Appendix #3 to the Addendum. of JSC “Severo-Zapadniy Telecom”; E.V. Yurchenko, Explicate Appendix #5 of the Agreement in the revised version of Appendix #4 Chairman of the Board of Directors of JSC “Rostelecom”, to the Addendum. The Addendum shall come into force once signed. Chairman of the Board of Directors of JSC “Severo- Zapadniy Telecom”. 109. Agreement on the Explicate clause #3.1.3 of the Agreement in a revised version. Explicate The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Appendix #2 in the revised version of Appendix #1 to this Amendment Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Agreement. Explicate Appendix #9 in the revised version of Appendix #2 to this 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of Amendment Agreement. The service price is specified in Appendix #1 to this “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of Amendment Agreement. The Amendment Agreement shall come into force the Board of Directors of JSC “Sibirtelecom”; E.V. once signed by the authorized representatives of the Parties. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

33 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 110. Agreement on the Supplement Article 4 on “Settlement of accounts between e Parties” of the The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Agreement with clause #4.12. Explicate Appendix #2 to the Agreement in the Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose revised version of Appendix #2 to this Amendment Agreement. Explicate 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of Appendix #9 to the Agreement in the revised version of Appendix #3. Exclude “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of Appendices #10, #11, and #12 from the Agreement. The service price is the Board of Directors of JSC “Sibirtelecom”; E.V. specified in Appendix #2 to the Amendment Agreement. The Amendment Yurchenko, Chairman of the Board of Directors of JSC Agreement shall come into force once signed. “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”. 111. Agreement on the Explicate clause #3.1.3 of the Agreement in a revised version. Explicate The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Appendix #2 in the revised version of Appendix #1 to this Amendment Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Agreement. Explicate Appendix #9 in the revised version of Appendix #2 to this 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of Amendment Agreement. Explicate Appendix #11 in the revised version of “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of Appendix #3 to this Amendment Agreement. Exclude Appendix #10 from the the Board of Directors of JSC “Sibirtelecom”; E.V. Agreement. The service price is specified in Appendix #1 to this Amendment Yurchenko, Chairman of the Board of Directors of JSC Agreement. The Amendment Agreement shall come into force once signed by “Rostelecom”, Chairman of the Board of Directors of JSC the authorized representatives of the Parties. “Sibirtelecom”. 112. Agreement on the Explicate Appendix #2 on the “Protocol of scope and cost of services The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than associated with maintenance and technical support of the operating equipment Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose of the Customer” to the Agreement in the revised version of Appendix #1 to this 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of Amendment Agreement. Explicate Appendix #9 in the revised version of “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of Appendix #2 to this Amendment Agreement. Explicate clause 3.1.3 of the the Board of Directors of JSC “Sibirtelecom”; E.V. Agreement in a revised version. The service price is specified in Appendix #1 Yurchenko, Chairman of the Board of Directors of JSC to this Amendment Agreement. The Amendment Agreements shall come into “Rostelecom”, Chairman of the Board of Directors of JSC force once signed. “Sibirtelecom”. 113. Addendum #1 to the Explicate clauses #1.1., #1.2., #2.1.1, #2.1.2, #2.1.3., #2.1.4., #3.1, #3.2, #3.3, The Board of Directors Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than and #8.8 of the Agreement in a revised version. Explicate Appendix #1 in the Minutes #02 dated June a leased allotted space in 20% of voting shares of JSC “Rostelecom”, whose revised version of Appendix #1 to this Addendum. Supplement the Agreement 30, 2010 the telephone cable affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of with Appendix #2/1 in the revised version of Appendix #2 to this Addendum. ductworks between JSC the Board of Directors of JSC “Rostelecom”, member of Supplement the Agreement with Appendix #5 in the revised version of “Rostelecom” and JSC the Board of Directors of JSC “Sibirtelecom”; E.V. Appendix #3 to this Addendum. The service price is specified in Appendix #1 to “Sibirtelecom” Yurchenko, Chairman of the Board of Directors of JSC this Addendum. The Addendum shall come into force once signed. “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”. 114. Addendum #1 to the Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 The Board of Directors Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than to the Addendum. The transaction price is specified in Appendix #1 to the Minutes #02 dated June a leased allotted space in 20% of voting shares of JSC “Rostelecom”, whose Addendum. The Addendum shall come into force once signed by both Parties. 30, 2010 the telephone cable affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of ductworks between JSC the Board of Directors of JSC “Rostelecom”, member of “Rostelecom” and JSC the Board of Directors of JSC “Sibirtelecom”; E.V. “Sibirtelecom” Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

34 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 115. Addendum #8 to the Explicate Appendices #5, #6, #9, #12, and #7 in revised versions. The The Board of Directors Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than Addendum shall come into force once signed by the Parties and shall be valid Minutes #02 dated June the DLD/ILD 20% of voting shares of JSC “Rostelecom”, whose until the expiry of the Agreement. 30, 2010 telecommunication affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of services with the option of the Board of Directors of JSC “Rostelecom”, member of preliminary selection of the Board of Directors of JSC “Sibirtelecom”; E.V. operator between JSC Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom” and JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom” “Sibirtelecom”.

116. Agreement on the Exclude the second paragraph of clause #3.1.3 of the Agreement. Supplement The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Article 4 with new clause. Supplement the Agreement with Appendix #11. Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Explicate Appendix #2 to the Agreement in the revised version of Appendix #2 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of to this Amendment Agreement. The Amendment Agreement shall come into “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of force once signed. the Board of Directors of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

117. Agreement on the Explicate Appendix #2 to the Agreement in the revised version of Appendix #1 The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than to this Amendment Agreement. Explicate Appendix #9 to the Agreement in the Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose revised version of Appendix #2 to this Amendment Agreement. Explicate 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of clauses #3.1.3, #2, and #1 of the Agreement in revised versions. The “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of Amendment Agreement shall come into force once signed and shall be valid the Board of Directors of JSC “Sibirtelecom”; E.V. until the expiry of the Agreement. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”. 118. Agreement on the Explicate Appendices #2, #9, and #10 to the Agreement in revised versions. The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Exclude the second paragraph of clause #3.1.3 of the Agreement. The Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Amendment Agreement shall come into force once signed and shall be valid 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of until the expiry of the Agreement. “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

119. Agreement on the Explicate Appendices #2 and #9 to the Agreement in the revised version of The Board of Directors Amendments to the JSC “Svyazinvest” – the shareholder holding more than Appendices #1 and #2 to the Agreement. Explicate clause #3.1.3 to the Minutes #02 dated June Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Agreement in a revised version. The Amendment Agreement shall come into 30, 2010 “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; E.V. Umnova, member of force once signed and shall be valid until the expiry of the Agreement. “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Sibirtelecom”; E.V. 35 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

120. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “CenterTelecom”; Yu.A. Provotorov, to the Addendum. Explicate clauses #3.2 and #3.5 of the Agreement in revised 30, 2010 “CenterTelecom” member of the Board of Directors of JSC “Rostelecom”, versions. The Addendum shall come into force once signed by the Parties. member of the Board of Directors of JSC “CenterTelecom”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “CenterTelecom”.

121. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Operator (JSC “GLOBUS-TELECOM”) provides the Customer (JSC The Board of Directors telecommunication 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) with the services for local and intrazonal telecommunication. Minutes #02 dated June services between JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, The rendering of telephone network access is made through the digital 30, 2010 “GLOBUS-TELECOM” and member of the Management Board of JSC “Rostelecom”, communication channel E1, property of the Operator. The transaction price is JSC “Rostelecom” member of the Board of Directors of JSC “GLOBUS- specified in accordance with Appendix #1 to the Agreement. The Agreement TELECOM”. shall come into force once signed and is concluded for 1 (one) year. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

122. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #3.1 to the Agreement in the revised version of Appendix The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. The transaction price is specified in accordance with Minutes #02 dated June communication services of affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, Appendix #3.1 to the Agreement in the revised version of Appendix #1 to the 30, 2010 a private virtual network member of the Management Board of JSC “Rostelecom”, Addendum. The Addendum shall come into force once signed by both Parties. based on the multiprotocol member of the Board of Directors of JSC “GLOBUS- label switching (MPLS) TELECOM”. technology and the data transfer networks of JSC “Rostelecom” between JSC “Rostelecom” and JSC “GLOBUS- TELECOM” 123. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #3.3 in the revised version of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. The transaction price is specified in Appendix Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, #1 to the Addendum. The Addendum shall come into force once signed by both 30, 2010 “GLOBUS-TELECOM” member of the Management Board of JSC “Rostelecom”, Parties. member of the Board of Directors of JSC “GLOBUS- 36 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS-TELECOM”.

124. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate the table of clauses #2.1 and #3.1 of Appendix #3.1 to the Agreement The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose in a revised version. The Addendum shall come into force once signed. Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, 30, 2010 “ZEBRA-TELECOM” Chairman of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; V.V. Volkov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

125. Addendum #4 to the JSC “Svyazinvest” – the shareholder holding more than Alter clause #1.1 of Appendix #1 to the Agreement. The transaction price is The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose specified by the Addendum. The Addendum shall come into force once signed Minutes #02 dated June interconnecting the affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, by both Parties. 30, 2010 telecommunication Chairman of the Management Board of JSC networks between JSC “Rostelecom”, member of the Board of Directors of JSC “Rostelecom” and JSC “ZEBRA TELECOM”; V.V. Volkov, member of the “ZEBRA-TELECOM” Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; A.A. Khozyainov, Member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”. 126. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #2/1 to the Agreement in the revised version of Appendix The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. Explicate Appendix #3 to the Agreement in the revised Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, version of Appendix #2 to the Addendum. The transaction price is specified in 30, 2010 “ZEBRA-TELECOM” Chairman of the Management Board of JSC Appendices #1 and #2 to the Addendum. The Addendum shall come into force “Rostelecom”, member of the Board of Directors of JSC once signed by both Parties. “ZEBRA TELECOM”; V.V. Volkov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

127. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #2 to the Agreement in the revised version of Appendix #1 The Board of Directors Agency Contract between 20% of voting shares of JSC “Rostelecom”, whose to the Addendum. The transaction price is specified by Appendix #2 to the Minutes #02 dated June JSC “Rostelecom” and affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, Agreement in the revised version of Appendix #1 to the Addendum. The 30, 2010 JSC “ZEBRA-TELECOM” Chairman of the Management Board of JSC Addendum shall come into force once signed by the Parties. “Rostelecom”, member of the Board of Directors of JSC 37 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “ZEBRA TELECOM”; V.V. Volkov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; A.A. Khozyainov, Member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

128. Addendum #4 to the JSC “Svyazinvest” – the shareholder holding more than Supplement Appendix #2 to the Contract with the Regulation 5 (“Regulation on The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose rendering of services to “AToM ETHERNET”) in the revised version of Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of Appendix #1 to the Addendum. Introduce the Order forms #09/3736, #09/3804, 30, 2010 “RTKomm.RU” the Management Board of JSC “Rostelecom”, member of and #09/3829 into use.The transaction price is specified in the Order forms the Board of Directors of JSC “RTKomm.RU”; A.Yu. #09/3736, #09/3804, and #09/3829. The Addendum shall come into force once Kolpakov, member of the Management Board of JSC signed by the Parties and shall be valid until the expiry of the Contract. “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

129. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “RTKomm.RU) shall undertake to provide the Customer The Board of Directors communication services 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”) with the interconnection of the Customer’s equipment to Minutes #02 dated June between JSC affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of the IP/VPN virtual private network and Internet access (hereinafter, the 30, 2010 “Rostelecom” and JSC the Management Board of JSC “Rostelecom”, member of Communication Services) in accordance with the terms of this Agreement, “RTKomm.RU” the Board of Directors of JSC “RTKomm.RU”; A.Yu. concluded in the interest of the General Customer – the federal state unitary Kolpakov, member of the Management Board of JSC enterprise “Russian Post”, and the Customer shall undertake to accept and pay “Rostelecom”, member of the Board of Directors of JSC for the provided communication services. The transaction price is set by the “RTKomm.RU”; V.D. Savchenko, member of the Board of Agreement. The Agreement shall come into force once signed by the Parties, Directors of JSC “Rostelecom”, member of the Board of following the approval of the authorized bodies of the Parties and shall be valid Directors of JSC “RTKomm.RU”; A.A. Khozyainov, until March 26, 2011. The Agreement is considered to be automatically member of the Management Board of JSC “Rostelecom”, extended for the next year, if none of the Parties notifies the other Party about member of the Board of Directors of JSC “RTKomm.RU”. their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement. 130. Addendum #6 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clauses #1.1 and #3.2 of the Agreement in revised versions. The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Supplement the Agreement with Appendix #1.39 in the revised version of Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of Appendix #1 to the Addendum. From the moment of the Addendum shall come 30, 2010 “RTKomm.RU” the Management Board of JSC “Rostelecom”, member of into force, Appendix #1.37 to the Agreement shall cease to be void. The the Board of Directors of JSC “RTKomm.RU”; A.Yu. transaction price is specified by Appendix #1 to the Addendum. The Addendum Kolpakov, member of the Management Board of JSC shall come into force once signed by the Parties. “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”. 38 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

131. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The subject of this Agreement is the provision of communication services The Board of Directors communication services 20% of voting shares of JSC “Rostelecom”, whose within a single integrated information and telecommunication infrastructure of Minutes #02 dated June within the integrated affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of the state system that engages in issuing and control of the new generation 30, 2010 information and the Management Board of JSC “Rostelecom”, member of passport and visa documents. The transaction price is specified by the telecommunication the Board of Directors of JSC “RTKomm.RU”; A.Yu. Agreement. The Agreement shall come into force from the moment of being infrastructure of the state Kolpakov, member of the Management Board of JSC signed by the Parties and shall be valid until December 31, 2010. The system of production, “Rostelecom”, member of the Board of Directors of JSC Agreement covers any additional legal relations between the Parties that issuing and control of the “RTKomm.RU”; V.D. Savchenko, member of the Board of occurred after the actual beginning of rendering the services (from April 1, new generation passport Directors of JSC “Rostelecom”, member of the Board of 2010). and visa documents Directors of JSC “RTKomm.RU”; A.A. Khozyainov, between JSC member of the Management Board of JSC “Rostelecom”, “Rostelecom” and JSC member of the Board of Directors of JSC “RTKomm.RU”. “RTKomm.RU”

132. Agency Contract between JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) commissions the Operator (JSC “RTKomm- The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose Sibir”), and the Operator undertakes to perform, on the basis of remuneration Minutes #02 dated June JSC “RTKomm-Sibir” affiliate is JSC “RTKomm-Sibir”. and on behalf and at the expense of Rostelecom, legal acts and other actions, 30, 2010 stipulated in clauses #1-3 of Appendix #2 to the Contract. The Operator shall undertake to provide Rostelecom with services listed in clauses #4-6 of Appendix #2 to the Contract. The transaction price is specified by Appendix #2 to the Contract. The Contract shall come into force once signed by the Parties and shall be valid for 1 (one) year from the moment of being signed. The Contract is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Contract at least 30 calendar days prior to the expiry of the Contract.

133. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #2.1, Appendix #2.2 of the Agreement titled “Order form for The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose interconnection and Internet traffic transmission via the data transfer network of Minutes #02 dated June “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- Rostelecom” in the revised version of Appendix #1 to the Addendum. The 30, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the transaction price is specified in the Order Forms #3 and #4. The Addendum Telecom” /“North-Western Board of Directors of JSC “Rostelecom”, member of the shall come into force once signed by the Parties. Telecom”/ Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo- zapadniy Telecom”.

39 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 134. Addendum #2 to the Explicate Appendix #1 to the Agreement in the revised version 3 in accordance The Board of Directors Agreement on cable JSC “Svyazinvest” – the shareholder holding more than with Appendix #1 to the Addendum. The transaction price is specified in Minutes #04 dated allocation in the cable 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. The Addendum shall come into force once August 2, 2010 ductworks between JSC affiliate is JSC “Dalsvyaz”; M.A. Leschenko, member of signed. “Rostelecom and JSC the Board of Directors of JSC “Rostelecom”, member of “Dalsvyaz” the Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “Dalsvyaz”.

135. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) undertakes to lease optic fibers (hereinafter, The Board of Directors optic fibers between JSC 20% of voting shares of JSC “Rostelecom”, whose the Physical Chains) to the JSC “UTK” Interregional Telecommunication Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “UTK”; A.A. Lokotkov, member of the Company at a given charge. The quantity and the total length of optic fibers are August 2, 2010 “UTK” Board of Directors of JSC “Rostelecom”, member of the agreed on by the Parties as outlined in Appendix #1a to the Agreement. JSC Board of Directors of JSC “UTK”; E.V. Umnova, member “UTK” shall undertake to lease the Physical Chains to Rostelecom at a given of the Board of Directors of JSC “Rostelecom”, member charge. The quantity and the total length of optic fibers are agreed on by the of the Board of Directors of JSC “UTK”; E.V. Yurchenko, Parties as outlined in Appendix #1b to the Agreement. The transaction price is Chairman of the Board of Directors of JSC “Rostelecom”, specified by Appendices #1a and #1b to the Agreement. The Agreement shall Chairman of the Board of Directors of JSC “UTK”. come into force once signed by the Parties and shall be valid for 1 (one) year from the moment of coming into force. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

136. Contract of sublease of JSC “Svyazinvest” – the shareholder holding more than The Lessor shall lease the non-residential premises to the Sublessee with total The Board of Directors non-residential premises 20% of voting shares of JSC “Rostelecom”, whose room space comprising 756 square meters at a given charge. The transaction Minutes #04 dated between JSC affiliate is JSC “GlobalTel”; V.V. Semenov, member of the price is specified by the Contract. The Contract shall come into force once August 2, 2010 “Rostelecom” and JSC Management Board of JSC “Rostelecom”, member of the signed by both Parties and shall be valid for 11 months. If none of the Parties “GlobalTel” Board of Directors of JSC “GlobalTel”; A.A. Khozyainov, notifies the other Party about their wish to terminate the Contract, it is member of the Management Board of JSC “Rostelecom”, automatically considered extended under the same terms for the same period. member of the Board of Directors of JSC “GlobalTel”.

137. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Alter Appendix #2 to the Agreement and introduce the alterations in the revised The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose version of Appendix #1 to the Addendum according to the changes in the costs Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, of services provided. The transaction price is specified in Appendix #1 to the August 2, 2010 “GLOBUS-TELECOM” member of the Management Board of JSC “Rostelecom”, Addendum. The Addendum shall come into force once signed by both Parties. member of the Board of Directors of JSC “GLOBUS- TELECOM”; V.K. Mironov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS-TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS TELECOM”.

40 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 138. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: JSC “MTS” shall provide JSC “Rostelecom” with the Not approved by the “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose services for cellular radiotelephony communication and/or other linked Board of Directors “MTS” affiliate, namely, S.A. Drozdov, member of the Board of services, provided by the JSC “MTS” solely or with involvement of any third Directors of JSC “Svyazinvest”, is a member of the Board party (service, information support, telematic, data transfer, DLD of Directors of JSC “MTS”. communication with provision of the additional number), and JSC “Rostelecom” accepts and pays for the services. The services are rendered in the territory of the signal coverage of MTS network within the appropriate license territory upon actual tariffs plan and list of services. The transaction price: is specified in accordance with the tariffs plan, set by the Addendum #1 to the Agreement. Term of services’ provision: from May 5, 2010, until December 21, 2010, with possibility of extension for the next year. Validity: the Agreement shall come into force once signed by the Parties and shall be valid for one year. The Agreement extends every time for the next period, equal to the initial term, if JSC “Rostelecom” does not announce the contrary at least 2 weeks prior to the expiry of the Agreement.

139. Addendum #13 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “GLOBUS-TELECOM”), by the order of the Customer The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”), leases to the Customer one digital communication Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, channel of 10 Mbit/s, one digital communication channel of 512 Kbit/s and one August 2, 2010 “GLOBUS-TELECOM” member of the Management Board of JSC “Rostelecom”, digital communication channel of 128 Kbit/s (hereinafter, the Communication member of the Board of Directors of JSC “GLOBUS- Channel(s)), and the Customer shall pay for the services in accordance with TELECOM”; V.K. Mironov, member of the Management the terms of the Agreement. The transaction price is specified by the Board of JSC “Rostelecom”, member of the Board of Addendum. The Addendum shall come into force once signed by the Parties. Directors of JSC “GLOBUS-TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS TELECOM”.

140. Addendum #14 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “GLOBUS-TELECOM”), by the order of the Customer The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”), leases to the Customer 12 (twelve) digital communication Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, channels, and more specifically – 2 (two) digital communication channels at August 2, 2010 “GLOBUS-TELECOM” member of the Management Board of JSC “Rostelecom”, 100 Mbit/s; 1 (one) digital communication channel at 1024 Kbit/s; 3 (three) member of the Board of Directors of JSC “GLOBUS- digital communication channels at 512 Kbit/s; 6 (six) digital communication TELECOM”; V.K. Mironov, member of the Management channels at 128 Kbit/s (hereinafter, the Communication Channels), and the Board of JSC “Rostelecom”, member of the Board of Customer shall pay for the services in accordance with Appendices #2/14-1-1; Directors of JSC “GLOBUS-TELECOM”; A.A. #2/14-1-2; #2/14-2; #2/14-3-1; #2/14-3-2; #2/14-3-3; #2/14-4-1; #2/14-4-2; Khozyainov, member of the Management Board of JSC #2/14-4-3; #2/14-4-4; #2/14-4-5; #2/14-4-6 to the Addendum.The Addendum “Rostelecom”, member of the Board of Directors of JSC shall come into force once signed by the Parties. “GLOBUS TELECOM”. 141. Amendment Agreement #2 JSC “Svyazinvest” – the shareholder holding more than Introduce the Orders #10, #11, and #12 to the Agreement into circulation from The Board of Directors to the Agreement on 20% of voting shares of JSC “Rostelecom”, whose the moment the Amendment Agreement is signed. Once the Orders #10, #11, Minutes #04 dated provision of affiliate is JSC “Eniseytelecom”; V.D. Savchenko, and #12 to the Agreement are introduced, one shall consider the Orders #9, August 2, 2010 communication services member of the Board of Directors of JSC “Rostelecom”, #6, and #7 as void. The Amendment Agreement shall come into force once between JSC Chairman of the Board of Directors of JSC signed by the Parties. 41 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom” and JSC “Eniseytelecom”. “Eniseytelecom” 142. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #3.4 of the Agreement in a revised version. The transaction The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose price is specified by the Addendum. The Addendum shall come into force once Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “ZEBRA TELECOM”; V.V. Volkov, signed by both Parties. August 2, 2010 “ZEBRA TELECOM” member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; V.V. Strelkov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

143. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #3.7 of the Agreement in a revised version. Exclude Appendix The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #3.1 from the Agreement. The Addendum shall come into force once signed by Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “ZEBRA TELECOM”; V.V. Volkov, both Parties. August 2, 2010 “ZEBRA TELECOM” member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”; V.V. Strelkov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

144. Appendix #3.4 to the JSC “Svyazinvest” – the shareholder holding more than The price of services provided by JSC “Rostelecom” (Rostelecom) for the The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose interconnection of JSC “ZEBRA TELECOM” (the Operator) to the Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “ZEBRA TELECOM”; V.V. Volkov, communication network on the basis of Rostelecom’s package technologies August 2, 2010 “ZEBRA TELECOM” member of the Management Board of JSC “Rostelecom”, and Internet-traffic transmission to Nizhniy Novgorod is being negotiated. member of the Board of Directors of JSC “ZEBRA TELECOM”; V.V. Strelkov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

145. Contract of sublease of JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Rostelecom”) shall render commercial leasing of the non- The Board of Directors non-residential premises 20% of voting shares of JSC “Rostelecom”, whose residential premises to the Sublessee (JSC “MC NTT”) totaling 1 494,1 square Minutes #04 dated between JSC affiliate is JSC “MC NTT”; V.V. Volkov, member of the meters in room space, as of the address: 7 Butlerova street, Moscow. The August 2, 2010 “Rostelecom” and JSC Management Board of JSC “Rostelecom”, member of the transaction price is specified by the Contract. The Contract shall come into “MC NTT” Board of Directors of JSC “MC NTT”; A.A. Khozyainov, force once signed by both Parties and shall be valid for 11 months. If none of member of the Management Board of JSC “Rostelecom”, the Parties notifies the other Party about their wish to terminate the Contract, it member of the Board of Directors of JSC “MC NTT”. is automatically considered extended under the same terms for the same period.

146. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) provides the Customer (JSC The Board of Directors the allocated digital DLD 20% of voting shares of JSC “Rostelecom”, whose “RTKomm.RU) with the service of leasing digital allocated channels under the Minutes #04 dated communication channels affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of terms stipulated in Appendices #2/1 and #2/2 to the Agreement, and the August 2, 2010 between JSC the Management Board of JSC “Rostelecom”, member of Customer shall accept and pay for the service according to the terms of the “Rostelecom” and JSC the Board of Directors of JSC “RTKomm.RU”; V.D. Agreement. The transaction price is specified in Appendices #2/1 and #2/2 to “RTKomm.RU” Savchenko, member of the Board of Directors of JSC the Agreement. The Agreement shall come into force once signed by the “Rostelecom”, member of the Board of Directors of JSC Parties and shall be valid until December 31, 2010. The Agreement is 42 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “RTKomm.RU”; A.A. Khozyainov, member of the considered to be automatically extended for the next year, if none of the Management Board of JSC “Rostelecom”, member of the Parties notifies the other Party about their wish to terminate the Agreement at Board of Directors of JSC “RTKomm.RU”. least 30 calendar days prior to the expiry of the Agreement.

147. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #1/1/4 titled “Acceptance certificate The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose for equipment” in the revised version of Appendix #7 to the Addendum. Alter Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of clause #2.1 of the Agreement. Supplement the Agreement with clause #2.2. August 2, 2010 “RTKomm.RU” the Management Board of JSC “Rostelecom”, member of Alter clauses #3.1.1, #4.1-4.6. The transaction price is specified in accordance the Board of Directors of JSC “RTKomm.RU”; V.D. with Appendices #1, #2, #3, #4, #5, #6, #8, and #9 to the Addendum. The Savchenko, member of the Board of Directors of JSC Addendum shall come into force once signed by the Parties. “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

148. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “RTKomm.RU) shall provide the Customer (JSC The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) with services of data transfer on the basis of the virtual private Minutes #04 dated “RTKomm.RU” affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of network, installed with employment of the Contractor’s network resources, in August 2, 2010 the Management Board of JSC “Rostelecom”, member of accordance with the terms of the Agreement, and the Customer shall accept the Board of Directors of JSC “RTKomm.RU”; V.D. and pay for the services provided. The transaction price is set in the Order Savchenko, member of the Board of Directors of JSC forms #1, #2, #3, #4, #5, #6, #7. The Agreement shall come into force once “Rostelecom”, member of the Board of Directors of JSC signed by the Parties and shall be valid for 1 (one) year from being signed. The “RTKomm.RU”; A.A. Khozyainov, member of the Agreement is considered to be automatically extended for the next year, if Management Board of JSC “Rostelecom”, member of the none of the Parties notifies the other Party about their wish to terminate the Board of Directors of JSC “RTKomm.RU”. Agreement at least 30 calendar days prior to the expiry of the Agreement.

149. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Due to the changes in the costs of equipment installation services as well as in Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “RTKomm. RU”; V.V. Volkov, member of the composition of equipment, a number of amendments need to be August 2, 2010 “RTKomm.RU” the Management Board of JSC “Rostelecom”, member of introduced. Explicate Appendix #2/1/1 to the Agreement in the revised version the Board of Directors of JSC “RTKomm.RU”; V.D. #3, specified in Appendix #1 to the Addendum; explicate Appendix #2/2/1 to Savchenko, member of the Board of Directors of JSC the Agreement in the revised version #3, specified in Appendix #2 to the “Rostelecom”, member of the Board of Directors of JSC Addendum; explicate Appendix #2/1/2 to the Agreement in the revised version “RTKomm.RU”; A.A. Khozyainov, member of the #3, specified in Appendix #3 to the Addendum; explicate Appendix #2/2/2 to Management Board of JSC “Rostelecom”, member of the the Agreement in the revised version #3, specified in Appendix #4 to the Board of Directors of JSC “RTKomm.RU”. Addendum; explicate Appendix #2/3/2 to the Agreement in the revised version #3, specified in Appendix #5 to the Addendum; supplement the Agreement with Appendix #6 to the Addendum; explicate Appendix #2/1/3 to the Agreement in the revised version #3, specified in Appendix #7 to the Addendum; explicate Appendix #2/1/4 to the Agreement in the revised version #3, specified in Appendix #8 to the Addendum; explicate Appendix #7 to the Agreement in the revised version #2, specified in Appendix #9 to the Addendum. The transaction price is specified in Appendices #1-5, #7-9 to the Addendum. The Addendum shall come into force once signed by both Parties.

43 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

150. Addendum #5 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #4/3 in the revised version of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. The Order forms #10/1027, #10/1028, and Minutes #04 dated “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.V. Volkov, member of #10/1029 are introduced into circulation by the Addendum. The Addendum August 2, 2010 “RTKomm.RU” the Management Board of JSC “Rostelecom”, member of shall come into force once signed by both Parties. the Board of Directors of JSC “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

151. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC “RTS”) The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose with the services of maintenance and technical support of the operating Minutes #04 dated “RTS” affiliate is JSC “RTS”. equipment installed at the Contractor’s objects. The transaction price is August 2, 2010 specified in accordance with Appendices #2/1 and #3 to the Agreement. The Agreement shall come into force once signed and shall be valid for one year. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

152. Donation Agreement JSC “Svyazinvest” – the shareholder holding more than The Company (JSC “Rostelecom”) transfers special-purpose funds in the form The Board of Directors between JSC 20% of voting shares of JSC “Rostelecom”, whose of donation to the Fund on a gratis basis, with these funds intended for Minutes #04 dated “Rostelecom” and the affiliates (namely, E.V. Yurchenko, the President and implementation of the Programs designed by the Fund and approved in the August 2, 2010 “Russian Fund of Chairman of the Management Board of JSC Management Board meeting dated December 9, 2009 (Minutes #25), as well communication history” “Svyazinvest”, A.A. Lokotkov, member of the as listed in Appendix #1. The amount of donation is specified in the Agreement. Management Board of JSC “Svyazinvest”) are members The Agreement shall come into force once signed by the Parties and shall be of the Management Board of the “Russian Fund of valid until full and proper fulfillment of the obligations by the Parties under the communication history”; E.V. Yurchenko, member of the Agreement takes place. Board of Directors of JSC “Rostelecom”, member of the Management Board of the “Russian Fund of communication history”; A.A. Lokotkov, member of the Board of Directors of JSC “Rostelecom”, member of the Management Board of the “Russian Fund of communication history”.

153. Addendum #10 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.1 of Appendix #1 to the Agreement in the revised version The Board of Directors Agreement on network 20% of voting shares of JSC “Rostelecom”, whose of Appendix #1 to the Addendum. Explicate clause #1 of Appendix #1 to the Minutes #04 dated interaction between JSC affiliate is JSC “Uralsvyazinform”; Yu.A. Provotorov, Agreement in a revised version. The transaction price is specified in Appendix August 2, 2010 “Rostelecom” and JSC member of the Board of Directors, President and #1 to the Addendum. The Addendum shall come into force once signed by the “Uralsvyazinform” Chairman of the Management Board of JSC authorized representatives of the Parties and shall cover legal relations and 44 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom”, member of the Board of Directors of JSC regulations between the Parties, arisen later than July 1, 2010. The Addendum “Uralsvyazinform”; E.V. Umnova, member of the Board of is valid until September 30, 2010. The Addendum is considered to be Directors of JSC “Rostelecom”, member of the Board of automatically extended until December, 2010, if none of the Parties notifies the Directors of JSC “Uralsvyazinform”; E.V. Yurchenko, other Party about their wish to terminate the Addendum at least 10 (ten) Chairman of the Board of Directors of JSC “Rostelecom”, calendar days prior to the expiry of the Addendum. Chairman of the Board of Directors of JSC “Uralsvyazinform”.

154. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Guarantor (JSC “CenterTelecom” ) shall undertake to report jointly and The Board of Directors financial support between 20% of voting shares of JSC “Rostelecom”, whose severally to the Beneficiary (Interregional Inspection of the Federal Tax Service Minutes #04 dated JSC “Rostelecom” and affiliate is JSC “CenterTelecom”; A.A. Lokotkov, member for large taxpayers #7) at request of the Debtor (JSC “Rostelecom”), under the August 2, 2010 JSC “CenterTelecom” of the Board of Directors of JSC “Rostelecom”, member Agreement on financial support provision, and the Debtor shall remunerate the of the Board of Directors of JSC “CenterTelecom”; Yu.A. Guarantor with a monetary reward. The amount, within which the Guarantor Provotorov, member of the Board of Directors, President, undertakes to report, is specified by the Agreement. The Agreement is valid for Chairman of the Management Board of JSC one year from the moment of coming into force. “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “CenterTelecom”.

155. Contract of the lease of JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Dalsvyaz”) shall provide commercial lease of the non- The Board of Directors non-residential premises 20% of voting shares of JSC “Rostelecom”, whose residential premises on the ground floor of the MTS building to the Lessee Minutes #04 dated between JSC affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the (JSC “Rostelecom”), in particular – the offices #8, #9, #10, #11, #12, #13, #14, August 2, 2010 “Rostelecom” and JSC Board of Directors of JSC “Rostelecom”, member of the #15, #16, #17, #18, #29, #31, #32, and #33 with total floor area of 229,0 “Dalsvyaz” Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, square meters. The monthly rent charges are specified by the Agreement. The member of the Board of Directors of JSC “Rostelecom”, Agreement shall come into force once signed by both Parties and shall be valid member of the Board of Directors of JSC “Dalsvyaz”; E.V. until May 26, 2011. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

156. Addendum #6 to the JSC “Svyazinvest” – the shareholder holding more than Explicate the Table 2 on “Services of traffic transmission” of Appendix #1 to the The Board of Directors Agreement on data 20% of voting shares of JSC “Rostelecom”, whose Agreement in the revised version. The transaction price is specified in Minutes #07 dated transfer network affiliate is JSC “SakhalTelecom”. accordance with the Table 2 of Appendix #1 to the Agreement. The Agreement August 31, 2010 interconnection between shall come into force once signed by both Parties. JSC “Rostelecom” and JSC “SakhalTelecom” 157. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “SakhalTelecom”) provides the Customer (JSC The Board of Directors pole-support for the 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) with the pillar support system for housing the communication Minutes #07 dated 45 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction communication lines affiliate is JSC “SakhalTelecom”. cables of the Customer, and the Customer shall pay for the mentioned service August 31, 2010 between JSC in the amount and at the term specified in clauses #3.1 and #3.3 of the “Rostelecom” and JSC Agreement. The transaction price is specified in Appendix #2 to the “SakhalTelecom” Agreement. The Agreement shall come into force once signed and shall be valid until December 31, 2010. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

158. Agreement on JSC “Svyazinvest” – the shareholder holding more than The Parties shall undertake to render communication services in accordance The Board of Directors interconnecting the data 20% of voting shares of JSC “Rostelecom”, whose with the Terms of interconnection, stipulated in this Agreement, and pay Minutes #07 dated transfer networks and affiliate is JSC “Sibirtelecom”; A.A. Lokotkov, member of according tariffs, as specified in Appendix #2 to this Agreement. The Parties August 31, 2010 VoIP traffic transmission the Board of Directors of JSC “Rostelecom”, member of shall undertake to render services for traffic transmission in accordance with between JSC the Board of Directors of JSC “Sibirtelecom”; E.V. Appendix #6 to this Agreement, and shall pay for them according to the tariff “Rostelecom” and JSC Umnova, member of the Board of Directors of JSC options, as specified in Appendix #2 to this Agreement. The transaction price is “Sibirtelecom” “Rostelecom”, member of the Board of Directors of JSC specified in Appendix #2 to the Agreement. The Agreement shall come into “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of force once signed by both Parties and shall be valid for 1 (one) year. The Directors of JSC “Rostelecom”, Chairman of the Board of Agreement is considered to be automatically extended for the next year, if Directors of JSC “Sibirtelecom”. none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

159. Agreement on the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 The Board of Directors Amendments #3 to the 20% of voting shares of JSC “Rostelecom”, whose to the Amendment Agreement. The transaction price is specified in Appendix Minutes #07 dated Agreement between JSC affiliate is JSC “Sibirtelecom”; A.A. Lokotkov, member of #1 to the Amendment Agreement. The Amendment Agreement shall come into August 31, 2010 “Rostelecom” and JSC the Board of Directors of JSC “Rostelecom”, member of force once signed by both Parties and shall be valid until the expiry of the “Sibirtelecom” the Board of Directors of JSC “Sibirtelecom”; E.V. Agreement. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

160. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Sibirtelecom”) shall provide commercial lease of the non- The Board of Directors non-residential premises 20% of voting shares of JSC “Rostelecom”, whose residential premises (the offices #20 and #23) with total floor area of 110,8 Minutes #07 dated between JSC affiliate is JSC “Sibirtelecom”; A.A. Lokotkov, member of square meters to the Lessee (JSC “Rostelecom”). The monthly rent charges August 31, 2010 “Rostelecom” and JSC the Board of Directors of JSC “Rostelecom”, member of are specified by the Agreement. The Agreement shall come into force once “Sibirtelecom” the Board of Directors of JSC “Sibirtelecom”; E.V. signed by both Parties and shall be valid for 11 months. The Agreement is Umnova, member of the Board of Directors of JSC considered to be automatically extended for the next 11 months upon the same “Rostelecom”, member of the Board of Directors of JSC terms, if none of the Parties notifies the other Party about their wish to “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of terminate the Agreement at least 20 (twenty) working days prior to the expiry of Directors of JSC “Rostelecom”, Chairman of the Board of the Agreement. As long as the terms of this section are observed, the Directors of JSC “Sibirtelecom”. extension of the Agreement is possible for an unlimited number of times.

46 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 161. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement in the revised version #1 to the The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Addendum. Supplement the Agreement with Appendix #5. The transaction Minutes #07 dated “Rostelecom” and JSC affiliate is JSC “Sibirtelecom”; A.A. Lokotkov, member of price is specified by the Addendum. The Addendum shall come into force once August 31, 2010 “Sibirtelecom” the Board of Directors of JSC “Rostelecom”, member of signed and shall be valid until the expiry of the Agreement. the Board of Directors of JSC “Sibirtelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

162. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #4.3 of the Agreement in a revised version. Supplement the The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Agreement with Appendix #6/1 in the revised version of Appendix #1 to the Minutes #07 dated “Rostelecom” and JSC affiliate is JSC “GlobalTel”; A.Yu. Kolpakov, member of Addendum. The Addendum #2 to the Agreement shall be revised in the revised August 31, 2010 “GlobalTel” the Management Board of JSC “Rostelecom”, Chairman version 2 of Appendix #2 to the Addendum. Explicate Appendix #1/1 in the of the Board of Directors of JSC “GlobalTel”; A.A. revised version 2 of Appendix #3 to the Addendum. The Addendum shall come Khozyainov, member of the Management Board of JSC into force once signed by the Parties. “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”; V.V. Semenov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GlobalTel”.

163. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than MC NTT (JSC “MC NTT”) leases the optics fibers (the OFs) to Rostelecom The Board of Directors optic fibers between JSC 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”) in accordance with Appendix #1/1 to the Agreement, Minutes #07 dated “Rostelecom” and CJCS affiliate is JSC “MC NTT”; A.A. Khozyainov, member of including technical maintenance of the leased OFs, and Rostelecom shall August 31, 2010 “MC NTT” the Management Board of JSC “Rostelecom”, member of accept the OFs and pay for them in accordance with the Agreement. The the Board of Directors of JSC “MC NTT”. transaction price is specified in Appendix #1/1 to the Agreement. The Agreement shall come into force once signed by the Parties and shall be valid until December 31, 2011. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party in written form about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement. The Agreement may be extended an unlimited number of times.

164. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than Alter Appendix #2 to the Contract. Alter clause #4.3 of the Contract. Alter The Board of Directors Agency Contract between 20% of voting shares of JSC “Rostelecom”, whose Appendix #5 to the Contract and explicate the alterations in the revised version Minutes #07 dated JSC “Rostelecom” and affiliate is JSC “MC NTT”; A.A. Khozyainov, member of of Appendix #1 to the Addendum. The transaction price is specified by the August 31, 2010 JCS “MC NTT” the Management Board of JSC “Rostelecom”, member of Addendum. The Addendum shall come into force once signed by the Parties. the Board of Directors of JSC “MC NTT”.

165. Agreement on JSC “Svyazinvest” – the shareholder holding more than The Customer (JSC “Rostelecom”) commissions, and the Contractor (JSC The Board of Directors independent contracting of 20% of voting shares of JSC “Rostelecom”, whose “Svyazintek”) accepts the work on engineering the Protection of personnel Minutes #07 dated engineering of the affiliate is JSC “Svyazintek”; V.N. Bondarik, member of information system (which is concerned with the data stored in the information August 31, 2010 Protection system of the Board of Directors of JSC “Rostelecom”, member of systems of JSC “Rostelecom”) in accordance with the scope of work and timed personal information the Board of Directors of JSC “Svyazintek”; A.A. calendar schedule defining the execution of work specified, in turn, in the 47 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction between JSC Lokotkov, member of the Board of Directors of JSC Working specification. The transaction price is specified in the Contract. The “Rostelecom” and JSC “Rostelecom”, member of the Board of Directors of JSC Contract shall come into force once signed and shall be valid until the proper “Svyazintek” “Svyazintek”; E.V. Umnova, member of the Board of and complete fulfillment of the Parties’ obligations. Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Svyazintek”. 166. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Exclude clauses #1.2 and #4.2 and Appendix #2-10 from the Agreement. The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Explicate clauses #2.1, #2.2, #3.2.1, and #4.1 of the Agreement in revised Minutes #09 dated “Rostelecom” and JSC affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the versions. The transaction price is specified by the Addendum. The Addendum September 30, 2010 “Dalsvyaz” Board of Directors of JSC “Rostelecom”, member of the shall come into force once signed. Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

167. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement in the revised version 3 of Appendix The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. The transaction price is specified in accordance with Minutes #09 dated “Rostelecom” and JSC affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the Appendix #1 to the Addendum. The Addendum shall come into force once September 30, 2010 “Dalsvyaz” Board of Directors of JSC “Rostelecom”, member of the signed by both Parties. Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

168. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose Explicate clause #8.3 of the Agreement in a revised version. Explicate Minutes #09 dated interconnecting data affiliate is JSC “Uralsvyazinform”; Yu.A. Provotorov, Appendix #8.1 to the Agreement in the revised version of Appendix #1 to the September 30, 2010 transfer networks between member of the Board of Directors of JSC “Rostelecom”, Addendum. Explicate Appendix #8.2 to the Agreement in the revised version of JSC “Rostelecom” and member of the Board of Directors of JSC Appendix #2 to the Addendum. Explicate Appendix #8.3 to the Agreement in JSC “Uralsvyazinform” “Uralsvyazinform”; E.V. Umnova, member of the Board of the revised version of Appendix #3 to the Addendum. Supplement the Directors of JSC “Rostelecom”, member of the Board of Agreement with Appendix #8.4 in the revised version of Appendix #4 to the Directors of JSC “Uralsvyazinform”; E.V. Yurchenko, Addendum. Supplement the Agreement with Appendix #8.5 in the revised Chairman of the Board of Directors of JSC “Rostelecom”, version of Appendix #5 to the Addendum. Explicate clause #5.3 of Appendix #1 Chairman of the Board of Directors of JSC to the Agreement in the revised version of the Addendum. Supplement “Uralsvyazinform”. Appendix #1 to the Agreement with clause #6.6 in the revised version of the Addendum. Explicate clause #4 of Appendix #5 to the Agreement in the revised version of the Addendum. Supplement Appendix #11 to the Agreement with clause# 5 in the revised version of the Addendum. The transaction price is specified in accordance with Appendix #11 to the Agreement in the revised version of the Addendum.

48 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 169. Addendum to the JSC “Svyazinvest” – the shareholder holding more than Explicate Article 1, clause #1 of Article 2, clause #5 of Article 2, clause# 6 of The Board of Directors Confidentiality Agreement 20% of voting shares of JSC “Rostelecom”, whose Article 2, clauses #3.1.2, #3.1.5, #3.1.6, #3.2.1, #3.2.2, #3.2.3, #3.3.3, #3.4.1, Minutes #09 dated between JSC affiliate is JSC “UTK”; A.A. Lokotkov, member of the #6.3, and #6.4 in the respective revised versions. The Addendum shall come September 30, 2010 “Rostelecom” and JSC Board of Directors of JSC “Rostelecom”, member of the into force once signed by the Parties. “UTK” Board of Directors of JSC “UTK”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “UTK”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “UTK”.

170. Agreement on the lease of The Operator (JSC “VolgaTelecom”) shall provide the Customer (JSC The Board of Directors communication channels JSC “Svyazinvest” – the shareholder holding more than “Rostelecom”) with the services of arranging and round-the-clock lease of the Minutes #09 dated between JSC 20% of voting shares of JSC “Rostelecom”, whose communication channels (hereinafter, the Channels) for transmitting the September 30, 2010 “Rostelecom” and JSC affiliate is JSC “VolgaTelecom”; Yu.A. Provotorov, telecommunication signal onto the territory in the Operator’s charge as defined “VolgaTelecom” member of the Board of Directors, President and by the Operator’s license, and the Customer shall undertake to pay for the Chairman of the Management Board of JSC services. The list and characteristics of the Channels are specified in Appendix “Rostelecom”, member of the Board of Directors of JSC #1 to the Agreement. The transaction price is set by the Agreement. The “VolgaTelecom”; V.D. Savchenko, member of the Board Agreement shall come into force once signed and shall cover the legal of Directors of JSC “Rostelecom”, member of the Board relations and regulations between the Parties arisen after February 24, 2010. of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, The Agreement is valid for 12 (twelve) calendar months. The Agreement is Chairman of the Board of Directors of JSC “Rostelecom”, considered to be automatically extended (given the validity of the Operator’s Chairman of the Board of Directors of JSC license) for the same period and under the same terms, if none of the Parties “VolgaTelecom”. notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement. The Agreement may be extended an unlimited number of times.

171. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “SZT”) shall provide the Customer (JSC “Rostelecom”) The Board of Directors technical maintenance and 20% of voting shares of JSC “Rostelecom”, whose with the services of maintenance and technical support of the operating Minutes #09 dated servicing of the equipment affiliate is JSC “Severo-zapadniy Telecom”; Yu.A. equipment of the Customer, installed at the non-residential premises September 30, 2010 owned by external Provotorov, member of the Board of Directors, President proprietary to the Contractor. The transaction price if specified in Appendix #3 agencies at the objects of and Chairman of the Management Board of JSC to the Agreement. The Agreement shall come into force once signed by the non-residential premises “Rostelecom”, member of the Board of Directors of JSC authorized representatives of the Parties. The Agreement is considered to be owned by the JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of automatically extended for the same period and under the same terms, if none “Severo-zapadniy the Board of Directors of JSC “Rostelecom”, Deputy of the Parties notifies the other Party about their wish to terminate the Telecom” /“North-Western Chairman of the Board of Directors of JSC “Severo- Agreement at least 30 calendar days prior to the expiry of the Agreement. The Telecom”/ between JSC zapadniy Telecom”; E.V. Yurchenko, Chairman of the Agreement may be extended an unlimited number of times. “Rostelecom” and JSC Board of Directors of JSC “Rostelecom”, Chairman of the “Severo-zapadniy Board of Directors of JSC “Severo-zapadniy Telecom”. Telecom” /“North-Western Telecom”/

49 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 172. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clauses #1.1, #1.2, and #3.1 of the Agreement in the respective The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose revised versions. Supplement the Agreement with clause #4 in the revised Minutes #09 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- version of Appendix #4 to the Addendum. Alter Appendices #1/1, #2, and #3 September 30, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the and introduce the alterations in the revised versions of Appendices #1, #2, and Telecom” /“North-Western Board of Directors, President and Chairman of the #3 to the Addendum. Exclude Appendix #1/2 (“Layout of the equipment Telecom”/ Management Board of JSC “Rostelecom”, member of the installation at the site as of the address: 29 Pervomayskaya street, Board of Directors of JSC “Severo-zapadniy Telecom”; Kandalaksha, Murmansk region”) from the Agreement. Supplement the E.V. Umnova, member of the Board of Directors of JSC Agreement with Appendix #4 in the revised version of Appendix #4 to the “Rostelecom”, Deputy Chairman of the Board of Directors Addendum. Supplement Article #2 of the Agreement with clause #2.3.12. of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Explicate Article #8 of the Agreement in a revised version. The transaction Chairman of the Board of Directors of JSC “Rostelecom”, price is specified by the Agreement. The Addendum shall come into force once Chairman of the Board of Directors of JSC “Severo- signed. zapadniy Telecom”. 173. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #2.1 and Appendix #2.2 (“Order form for the services of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose interconnection and Internet-traffic transmission via the JSC “Rostelecom”’s Minutes #09 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom”; Yu.A. data transfer network”) of the Agreement in the revised version of Appendix #1 September 30, 2010 “Severo-zapadniy Provotorov, member of the Board of Directors, President to the Addendum. The transaction price is specified in the amount as stated in Telecom” /“North-Western and Chairman of the Management Board of JSC the Order forms #3 and #4. The Addendum shall come into force once signed Telecom”/ “Rostelecom”, member of the Board of Directors of JSC by the Parties and shall cover the legal relations and regulations between the “Severo-zapadniy Telecom”; E.V. Umnova, member of Parties arisen after August 1, 2010. the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo- zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”.

174. Agency Contract between JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) commissions, and the Operator (JSC The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose “Kostromskaya gorodskaya telefonnaya set”) undertakes to perform, on behalf Minutes #09 dated JSC “Kostromskaya affiliate is JSC “Kostromskaya gorodskaya telefonnaya and at the expense of the Rostelecom and for a remuneration, legal acts and September 30, 2010 gorodskaya telefonnaya set” /“Telephone urban network of Kostroma”/. other actions, stipulated in Article #3.3.1 of the Contract and Appendix #2 to set” /“Telephone urban the Contract, which are associated with negotiating Agreements on behalf of network of Kostroma”/ the Rostelecom and settling with the Subscribers for the services provided. The transaction price, which includes remuneration, service costs and the amount of reimbursable expenses of the Operator, is calculated in accordance with Appendix #2 to the Contract. The Contract shall be valid for 1 (one) year from the moment of coming into force. If none of the Parties notifies the other Party in written form about their wish to terminate the Contract, it is considered automatically extended for the next year. The Contract may be extended an unlimited number of times.

175. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #3.3 of the Agreement in the revised version on the basis of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose the changes in the tariffs for the “Control of the quality characteristics of Minutes #09 dated “Rostelecom” and JSC affiliate is JSC “ZEBRA TELECOM”; A.Yu. Kolpakov, backbone network clock-signal of the clock network synchronization” service, September 30, 2010 “ZEBRA TELECOM” Chairman of the Management Board of JSC provided under the Agreement. The transaction price if specified by the “Rostelecom”, member of the Board of Directors of JSC Addendum. The Addendum shall come into force once signed. 50 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “ZEBRA TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “ZEBRA TELECOM”.

176. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendices #1 and #2 to the Agreement in the revised respective The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose versions of Appendices #1 and #2 to the Addendum. The transaction price is Minutes #09 dated “Rostelecom” and JSC affiliate is JSC “MC NTT”; A.A. Khozyainov, member of specified by Appendix #2 to the Addendum. The Addendum shall come into September 30, 2010 “MC NTT” the Management Board of JSC “Rostelecom”, member of force once signed. the Board of Directors of JSC “MC NTT”. 177. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 The Board of Directors Agreement on the lease of 20% of voting shares of JSC “Rostelecom”, whose to the Addendum. The transaction price is specified by Appendix #1 to the Minutes #09 dated optic fibers between JSC affiliate is JSC “MC NTT”; A.A. Khozyainov, member of Addendum. The Addendum shall come into force once signed. September 30, 2010 “Rostelecom” and JSC the Management Board of JSC “Rostelecom”, member of “MC NTT” the Board of Directors of JSC “MC NTT”.

178. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #1 to the Agreement in the revised version of Appendix #1 The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose to the Addendum. The transaction price is specified by Appendix #1 to the Minutes #09 dated interconnecting the affiliate is JSC “MC NTT”; A.A. Khozyainov, member of Addendum. The Addendum shall come into force once signed. September 30, 2010 communication networks the Management Board of JSC “Rostelecom”, member of between JSC the Board of Directors of JSC “MC NTT”. “Rostelecom” and JSC “MC NTT” 179. Agreement on servicing JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC The Board of Directors and securing the 20% of voting shares of JSC “Rostelecom”, whose “RTKomm.RU”) with the service of maintenance and technical support of the Minutes #09 dated functioning of equipment affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of operating equipment installed and installable at the Contractor’s premises. The September 30, 2010 between JSC the Board of Directors of JSC “Rostelecom”, member of network organization diagram layout and the equipment layout as expected at “Rostelecom” and JSC the Board of Directors of JSC “RTKomm.RU”; V.D. the Customer’s premises are indicated in the Technical requirements. The “RTKomm.RU” Savchenko, member of the Board of Directors of JSC Agreement shall come into force once signed by both Parties and shall be valid “Rostelecom”, member of the Board of Directors of JSC until December 31, 2010, upon approval of the Board of Directors of the “RTKomm.RU”; A.Yu. Kolpakov, member of the Company. The Agreement is considered to be automatically extended for the Management Board of JSC “Rostelecom”, member of the next year, if none of the Parties notifies the other Party about their wish to Board of Directors of “RTKomm.RU”; A.A. Khozyainov, terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of member of the Management Board of JSC “Rostelecom”, the Agreement. As long as the terms of this section are observed, the member of the Board of Directors of JSC “RTKomm.RU”. extension of the Agreement is possible for an unlimited number of times.

180. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC The Board of Directors the “Providing allocated 20% of voting shares of JSC “Rostelecom”, whose “RTKomm.RU) with the services in accordance with the terms of the Minutes #09 dated Internet access on the affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of Agreement, and the Customer shall accept and pay for the services, according September 30, 2010 basis of the data transfer the Board of Directors of JSC “Rostelecom”, member of to the terms of the Agreement. The transaction price is specified in accordance network of JSC the Board of Directors of JSC “RTKomm.RU”; V.D. with Appendix #2.1 to the Agreement. The Agreement shall come into force “Rostelecom”” service Savchenko, member of the Board of Directors of JSC once signed by both Parties and shall be valid until December 31, 2010, upon between JSC “Rostelecom”, member of the Board of Directors of JSC approval of the Board of Directors of the Company. The Agreement is “Rostelecom” and JSC “RTKomm.RU”; A.Yu. Kolpakov, member of the considered to be automatically extended for the next year, if none of the “RTKomm.RU” Management Board of JSC “Rostelecom”, member of the Parties notifies the other Party about their wish to terminate the Agreement at 51 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Board of Directors of “RTKomm.RU”; A.A. Khozyainov, least 30 (thirty) calendar days prior to the expiry of the Agreement. member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

181. Agreement on servicing JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC The Board of Directors and securing the 20% of voting shares of JSC “Rostelecom”, whose “RTKomm.RU”) with the service of maintenance and technical support of the Minutes #09 dated functioning of equipment affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of operating equipment installed and installable at the Contractor’s premises. The September 30, 2010 between JSC the Board of Directors of JSC “Rostelecom”, member of network organization diagram layout and the equipment layout as expected at “Rostelecom” and JSC the Board of Directors of JSC “RTKomm.RU”; V.D. the Customer’s premises are indicated in the Technical requirements. The “RTKomm.RU” Savchenko, member of the Board of Directors of JSC service costs are specified in Appendices #2/1 and #3 to the Agreement. The “Rostelecom”, member of the Board of Directors of JSC Agreement shall come into force once signed by both Parties and shall be valid “RTKomm.RU”; A.Yu. Kolpakov, member of the for one year. The Agreement is considered to be automatically extended for the Management Board of JSC “Rostelecom”, member of the next year, if none of the Parties notifies the other Party about their wish to Board of Directors of “RTKomm.RU”; A.A. Khozyainov, terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of member of the Management Board of JSC “Rostelecom”, the Agreement. As long as the terms of this section are observed, the member of the Board of Directors of JSC “RTKomm.RU”. extension of the Agreement is possible for an unlimited number of times.

182. Government contract JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall undertake to execute the research The Board of Directors regarding the design of the 20% of voting shares of JSC “Rostelecom”, since the and development work as well as other work, as listed in Appendix #2 to the Minutes #12 dated Electronic Government affiliate of JSC “Svyazinvest”, namely, I.O. Schyogolev, Agreement, on time, and supply and launch the software and hardware tools October 22, 2010 infrastructure as part of the member of the Board of Directors of JSC “Svyazinvest”, is (hereinafter, the SHTs), as listed in Appendices #2 and #3 to the Agreement. implementation of the also the Head of the Ministry of Telecommunications and The transaction price is specified by the Agreement. The execution period for sections of the “Electronic Mass Communications of the Russian Federation the work to be completed and the SHTs to be supplied under the Agreement is Russia (2002-2010)” specified in Appendices #1 and #2 to the Agreement. Federal Special Program in 2010, which are not associated with issuing and servicing universal electronic cards between JSC “Rostelecom” and the Ministry of Telecommunications and Mass Communications of the Russian Federation 183. Contract of the lease of JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Rostelecom”) shall lease and the Lessee (JSC “Dalsvyaz”) The Board of Directors real property between JSC 20% of voting shares of JSC “Rostelecom”, whose shall accept the non-residential premises of total floor area of 31,2 square Minutes #14 dated “Rostelecom” and JSC affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the meters, and a metal tower of 44 square meters in total floor area. The November 12, 2010 “Dalsvyaz” Board of Directors of JSC “Rostelecom”, member of the transaction price is specified by the Contract. The Contract shall come into Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, force once signed by both Parties under the approval of the Board of Directors member of the Board of Directors of JSC “Rostelecom”, of both Parties, and shall be valid for 11 months. The Contract is considered to member of the Board of Directors of JSC “Dalsvyaz”; E.V. be automatically extended for the same period and on the same terms, if none Yurchenko, Chairman of the Board of Directors of JSC of the Parties notifies the other Party about their wish to terminate the Contract “Rostelecom”, Chairman of the Board of Directors of JSC at least 30 (thirty) calendar days prior to the expiry of the Contract. “Dalsvyaz”. 52 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 184. Addendum #10 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #3 to the Agreement in the revised version 11 in The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose accordance with Appendix #1 to the Addendum. The transaction price is Minutes #14 dated interconnecting the affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the specified according to Appendix #1 to this Addendum. The Addendum shall November 12, 2010 communication networks Board of Directors of JSC “Rostelecom”, member of the come into force once signed. between JSC Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, “Dalsvyaz” member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

185. Addendum #11 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #4. Supplement the Agreement with The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose Appendix #5. The transaction price is specified in Appendix #1 to the Minutes #14 dated interconnecting the affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the Addendum. The Addendum shall come into force once signed. November 12, 2010 communication networks Board of Directors of JSC “Rostelecom”, member of the between JSC Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, “Rostelecom” and JSC member of the Board of Directors of JSC “Rostelecom”, “Dalsvyaz” member of the Board of Directors of JSC “Dalsvyaz”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”.

186. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than Alter clause #1.1 of Appendix #1 to the Agreement. The transaction price is The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose specified in Appendix #1 to the Agreement in the revised version of the Minutes #14 dated interconnecting the affiliate is JSC “UTK”; A.A. Lokotkov, member of the Addendum #3 to the Agreement. The Addendum shall come into force once November 12, 2010 communication networks Board of Directors of JSC “Rostelecom”, member of the signed. between JSC Board of Directors of JSC “UTK”; E.V. Umnova, member “Rostelecom” and JSC of the Board of Directors of JSC “Rostelecom”, member “UTK” in the Addendum of the Board of Directors of JSC “UTK”; E.V. Yurchenko, version dated January 1, Chairman of the Board of Directors of JSC “Rostelecom”, 2006 Chairman of the Board of Directors of JSC “UTK”.

187. Agreement on the lease of Rostelecom (JSC “Rostelecom”) shall provide, and VolgaTelecom (JSC The Board of Directors communication channels JSC “Svyazinvest” – the shareholder holding more than ”VolgaTelecom”) shall accept and pay for the services of arranging and Minutes #14 dated between JSC 20% of voting shares of JSC “Rostelecom”, whose interconnecting digital communication channels, leasing of the communication November 12, 2010 “Rostelecom” and JSC affiliate is JSC “VolgaTelecom”; Yu.A. Provotorov, channels fully completed as of the date of signing the Agreement on the “VolgaTelecom” member of the Board of Directors of JSC “Rostelecom”, Communication Channels, leasing of the digital communication linkages member of the Board of Directors of JSC between the communication hubs, as provided to VolgaTelecom. “VolgaTelecom”; V.D. Savchenko, member of the Board VolgaTelecom shall provide, and Rostelecom shall accept and pay for the of Directors of JSC “Rostelecom”, member of the Board services of arranging and interconnecting digital communication channels, of of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, leasing the communication channels fully completed as of the date of signing Chairman of the Board of Directors of JSC “Rostelecom”, the Agreement on the Communication Channels. The transaction price is Chairman of the Board of Directors of JSC specified in Appendix #9 to the Agreement. The Agreement shall come into “VolgaTelecom”. force once signed and shall be valid until December 31, 2010. The Agreement is considered to be automatically extended for the next year, if none of the 53 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement. As long as the terms of this section are observed, the extension of the Agreement is possible for an unlimited number of times.

188. Addendum #3 to the Supplement Appendix #9 to the Agreement with Article 8. Add Article 4 to the The Board of Directors Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Agreement. Add Article 7 to the Agreement. Supplement Appendix #9 to the Minutes #14 dated “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose Agreement with the Forms #10, #11, #12, #13, and #14 in the revised November 12, 2010 “VolgaTelecom” affiliate is JSC “VolgaTelecom”; Yu.A. Provotorov, respective versions of Appendices #1, #2, #3, #4, and #5 to the Addendum. member of the Board of Directors of JSC “Rostelecom”, The transaction price is specified in accordance with Appendix #6 to the member of the Board of Directors of JSC Addendum. The Addendum shall come into force once signed by both Parties. “VolgaTelecom”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “VolgaTelecom”.

189. Agreement on the lease of The Operator (JSC “VolgaTelecom”) shall provide the Customer (JSC The Board of Directors communication channels JSC “Svyazinvest” – the shareholder holding more than “Rostelecom”) with the services of installing, round-the-clock leasing of Minutes #14 dated between JSC 20% of voting shares of JSC “Rostelecom”, whose communication channels and/or reservation of the communication channels to November 12, 2010 “Rostelecom” and JSC affiliate is JSC “VolgaTelecom”; Yu.A. Provotorov, transmit telecommunication signals onto the territory in charge of the Operator, “VolgaTelecom” member of the Board of Directors of JSC “Rostelecom”, in accordance with the Operator’s license, and the Customer shall undertake to member of the Board of Directors of JSC pay for the services. The transaction price is specified in Appendix #3 to the “VolgaTelecom”; V.D. Savchenko, member of the Board Agreement. The Agreement shall come into force once signed and shall cover of Directors of JSC “Rostelecom”, member of the Board the legal relations and regulations between the Parties arisen after March 19, of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, 2010. The Agreement is valid until December 31, 2010. The Agreement is Chairman of the Board of Directors of JSC “Rostelecom”, considered to be automatically extended (within the validity period of the Chairman of the Board of Directors of JSC Operator’s license) for the same period and on the same terms, if none of the “VolgaTelecom”. Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement. The Agreement may be extended an unlimited number of times. 190. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than The cost of the services provided by the Customer (JSC “Severo-zapadniy The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Telecom”) to the Contractor (JSC “Rostelecom”) under the Agreement in the Minutes #14 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- revised version of the Addendum is reviewed. The Addendum shall come into November 12, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the force once signed by both Parties. Telecom” /“North-Western Board of Directors, President and Chairman of the Telecom”/ Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo- zapadniy Telecom”.

54 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

191. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Alter clauses of Appendices #2, #2/1, #2/4, #2/5, #2/6, #2/7, #2/8, #2/9, and The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #2/10 to the Agreement associated with the changes of scope and costs of the Minutes #14 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- services provided. The transaction price is specified in Appendices #2, #2/1, November 12, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the #2/4, #2/5, #2/6, #2/7, #2/8, #2/9, #2/10, and #3 to the Agreement in the Telecom” /“North-Western Board of Directors, President and Chairman of the revised version of the Addendum #1 to the Agreement. The Addendum shall Telecom”/ Management Board of JSC “Rostelecom”, member of come into force once signed by both Parties. the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”.

192. Agency Contract between JSC “Svyazinvest” – the shareholder holding more than Operator (JSC “ZEBRA TELECOM”) commissions the Agent (JSC The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”), and the Agent undertakes to perform, on behalf and at the Minutes #14 dated JSC “ZEBRA TELECOM” affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, expense of the Operator, legal acts and other actions. The transaction price is November 12, 2010 member of the Management Board of JSC “Rostelecom”, specified by the Contract. The Contract shall come into force once signed by member of the Board of Directors of JSC “ZEBRA both Parties given the preliminary approval by the Agent’s Board of Directors TELECOM”. and shall be valid for one year. The Contract is considered to be automatically extended for the next period, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement. As long as the terms of this section are observed, the extension of the Contract is possible for an unlimited number of times. 193. Act on the re-assignment JSC “Svyazinvest” – the shareholder holding more than The Principal (JSC “Rostelecom”) re-assigns, and the Agent (JSC “ZEBRA The Board of Directors of rights #4 to the Agency 20% of voting shares of JSC “Rostelecom”, whose TELECOM”) accepts the rights (claims) to leveraging the Subscribers as listed Minutes #14 dated Contract between JSC affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, in the Register of Debtor Subscribers for recovering their outstanding debts to November 12, 2010 “Rostelecom” and JSC Member of the Management Board of JSC “Rostelecom”, JSC “Rostelecom” accrued for provision of DLD/ILD communication services “ZEBRA TELECOM member of the Board of Directors of JSC “ZEBRA as well as additional services for the delaid payment schemes. The transaction TELECOM”. price is specified by the Act.

194. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Alter Appendix #1 to the Agreement. The transaction price is specified in The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. The Addendum shall come into force once Minutes #14 dated “Rostelecom” and JSC affiliate is JSC “Novgorod Deitacom”. signed and shall be valid until the expiry of the Agreement. November 12, 2010 “Novgorod Deitacom”

195. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide to the Customer (JSC “NSS”) The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose with the services of maintenance and technical support of the operating Minutes #14 dated “Nizhegorodskaya affiliate is JSC “Nizhegorodskaya sotovaya svyaz” equipment, installed and installable at the Contractor’s premises. The November 12, 2010 55 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction sotovaya svyaz” /“Nizhny /“Nizhny Novgorod cellular communications”/; A.Yu. transaction price is specified in Appendix #2/1 to the Agreement. The Novgorod cellular Provotorov, member of the Board of Directors of JSC Agreement shall come into force once signed and shall be valid for one year. communications”/ “Rostelecom”, member of the Board of Directors of JSC The Agreement is considered to be automatically extended for next period, if “Nizhegorodskaya sotovaya svyaz”. none of the Parties notifies the other Party about their wish to terminate the . Agreement at least 30 calendar days prior to the expiry of the Agreement. The Agreement may be extended an unlimited number of times.

196. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clauses of Articles #1, #2, #3, and #5 in a revised version. The The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose transaction price is specified in accordance with clauses #1.1 and #1.2 of Minutes #14 dated “Rostelecom” and JSC affiliate is JSC “Nizhegorodskaya sotovaya svyaz” Appendix #1 to the Addendum #2 to the Agreement. The Addendum shall November 12, 2010 “Nizhegorodskaya /“Nizhny Novgorod cellular communications”/; A.Yu. come into force once signed. sotovaya svyaz” /“Nizhny Provotorov, member of the Board of Directors of JSC Novgorod cellular “Rostelecom”, member of the Board of Directors of JSC communications”/ “Nizhegorodskaya sotovaya svyaz”.

197. Contract of the lease of JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Rostelecom”) shall provide commercial lease of the non- The Board of Directors non-residential premises 20% of voting shares of JSC “Rostelecom”, whose residential premises totaling 102,8 square meters in room floor to the Lessee Minutes #14 dated between JSC affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of (JSC “RTKomm.RU”). The monthly rental rate is specified by the Contract. The November 12, 2010 “Rostelecom” and JSC the Board of Directors of JSC “Rostelecom”, member of Contract shall come into force once signed by both Parties and lasts for 6 “RTKomm.RU” the Board of Directors of JSC “RTKomm.RU”; V.D. months. If none of the Parties notifies the other Party about the wish to Savchenko, member of the Board of Directors of JSC terminate the Contract prior to the expiry of the Contract, it is considered to be “Rostelecom”, member of the Board of Directors of JSC automatically extended under the same terms for an uncertain period. “RTKomm.RU”; A.Yu. Kolpakov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

198. Addendum #7 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.1 of the Agreement in a revised version. Explicate clause The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #3.2 of the Agreement in a revised version. Supplement the Agreement with Minutes #14 dated “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of Appendix #1.40 in the revised version of Appendix #1 to the Addendum. Once November 12, 2010 “RTKomm.RU” the Board of Directors of JSC “Rostelecom”, member of the Addendum is in force, Appendix #1.39 to the Agreement become void. The the Board of Directors of JSC “RTKomm.RU”; V.D. transaction price is specified in Appendix #1 to the Addendum. The Addendum Savchenko, member of the Board of Directors of JSC shall come into force once signed. “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.Yu. Kolpakov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”.

199. Contract of lease of non- JSC “Svyazinvest” – the shareholder holding more than The Lessor (JSC “Dalsvyaz”) shall provide commercial lease of the Lessor’s The Board of Directors residential premises 20% of voting shares of JSC “Rostelecom”, whose proprietary equipment, in accordance with Appendix #1 to the Contract, and Minutes #15 dated between JSC affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the the Lessee shall accept the equipment and pay for it accordingly. The November 30, 2010 56 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom” and JSC Board of Directors of JSC “Rostelecom”, member of the transaction price is specified by the Contract. The Contract shall come into “Dalsvyaz” Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, force once signed and shall be valid until December 31, 2010. The Contract is member of the Board of Directors of JSC “Rostelecom”, considered to be automatically extended for one year, if none of the Parties member of the Board of Directors of JSC “Dalsvyaz”; E.V. notifies the other Party about their wish to terminate the Contract. The Contract Yurchenko, Chairman of the Board of Directors of JSC may be extended an unlimited number of times. “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”. 200. Agreement on the lease of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC “AKOS”) The Board of Directors allocated digital ILD 20% of voting shares of JSC “Rostelecom”, whose with the service, and the Customer shall accept this service and pay for it Minutes #15 dated communication channels affiliate is JSC “AKOS”. according to the terms of the Agreement. The channels leased under this November 30, 2010 between JSC Agreement will be employed in an operational communication network that will “Rostelecom” and JSC allow further rendering of the communication services. The transaction price is “AKOS” specified in accordance with the Order form #1 – see Appendix #2/1 to the Agreement. The Agreement shall come into force once signed and shall be valid until December 31, 2010.

201. Addendum #4 to the JSC “Svyazinvest” – the shareholder holding more than Supplement Appendix #9 to the Agreement with Article 9c in the revised The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose version of clause #1.1 of the Addendum. Supplement Appendix #9 to the Minutes #15 dated “Rostelecom” and JSC affiliate is JSC “Dagsvyazinform”; V.V. Iudin, member of Agreement with an Information disclosure form in the revised version of November 30, 2010 “Dagsvyazinform” the Management Board of JSC “Rostelecom”; member of clauses #1.2-1.4 of the Addendum. the Board of Directors of JSC “Dagsvyazinform”; G.B. Gamzatov, President of JSC “Dagsvyazinform”, individual in the group of JSC “Svyazinvest”.

202. Agreement on technical JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Severo-zapadniy Telecom”) shall provide the Customer The Board of Directors support and serviding of 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”) with the services of maintenance and technical support of Minutes #15 dated equipment between JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- the operating equipment, installed and installable at the Contractor’s non- November 30, 2010 “Rostelecom” and JSC Western Telecom”/; Yu.A. Provotorov, member of the residential premises. The service costs are specified in Appendix #2 to the “Severo-zapadniy Board of Directors, President and Chairman of the Agreement. The validity of the Agreement is 11 months once signed. The Telecom” /“North-Western Management Board of JSC “Rostelecom”, member of Agreement is considered to be automatically extended for the next period on Telecom”/ the Board of Directors of JSC “Severo-zapadniy the same terms, if none of the Parties notifies the other Party about their wish Telecom”; E.V. Umnova, member of the Board of to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry Directors of JSC “Rostelecom”, Deputy Chairman of the of the Agreement. As long as the terms of this section are observed, the Board of Directors of JSC “Severo-zapadniy Telecom”; extension of the Agreement is possible for an unlimited number of times. E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”. 203. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Alter Appendix #1 to the Agreement in the revised version, attached to the The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Addendum #2. Alter clause #4.3 of the Agreement. The transaction price is Minutes #15 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- specified by the amount stipulated by Appendix #1 to the Addendum. The November 30, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the Addendum shall come into force once signed by both Parties. Telecom” /“North-Western Board of Directors, President and Chairman of the Telecom”/ Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of the Board of 57 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”. 204. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Alter Appendices #2, #2/1, and #3 of the Agreement. The transaction price is The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose specified by the amount stipulated by Appendices #1, #2, and #3 to the Minutes #15 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- Addendum. The Addendum shall come into force once signed by both Parties. November 30, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the Telecom” /“North-Western Board of Directors, President and Chairman of the Telecom”/ Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”.

205. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Customer (JSC “Rostelecom”) commissions, and the Contractor (JSC The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose “GIPROSVYAZ”) accepts to execute the design and survey work for a given Minutes #15 dated “GIPROSVYAZ” affiliate is JSC “GIPROSVYAZ”; A.A. Lokotkov, member Object. The work under the Agreement is executed in one stage in accordance November 30, 2010 of the Board of Directors of JSC “Rostelecom”, member with the Technical requirements. The transaction price is specified in Appendix of the Board of Directors of JSC “GIPROSVYAZ”; E.V. #3 to the Agreement. The Agreement shall come into force once signed and Umnova, member of the Board of Directors of JSC shall be valid until full and proper fulfillment of the obligations by the Parties “Rostelecom”, member of the Board of Directors of JSC under the Agreement takes place. “GIPROSVYAZ”.

206. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #3/1 to the Agreement in the revised version of Appendix The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. The transaction price is specified by Appendix #3 to the Minutes #15 dated communication services of affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, Agreement in the revised version of Appendix #1 to the Addendum. The November 30, 2010 a private virtual network on member of the Management Board of JSC “Rostelecom”, Addendum shall come into force once signed. the basis of multiprotocol member of the Board of Directors of JSC “GLOBUS- label switching (MPLS) TELECOM”; V.K. Mironov, member of the Management technology employing the Board of JSC “Rostelecom”, member of the Board of data transfer network of Directors of JSC “GLOBUS-TELECOM”; A.A. JSC “Rostelecom” Khozyainov, member of the Management Board of JSC between JSC “Rostelecom”, member of the Board of Directors of JSC “Rostelecom” and JSC “GLOBUS TELECOM”. “GLOBUS TELECOM” 207. Addendum #9 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #12 to the Agreement in the revised version of Appendix #1 The Board of Directors Agreement on provision of 20% of voting shares of JSC “Rostelecom”, whose to the Addendum. Explicate Appendix #4 in the revised version of Appendix #2 Minutes #15 dated the DLD/ILD affiliate is JSC “Sibirtelecom”; A.A. Lokotkov, member of to the Addendum. The Addendum shall come into force once signed and shall November 30, 2010 communications with the the Board of Directors of JSC “Rostelecom”, member of be valid until the expiry of the Agreement. option of preliminary the Board of Directors of JSC “Sibirtelecom”; E.V. 58 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction selection of the operator Umnova, member of the Board of Directors of JSC between JSC “Rostelecom”, member of the Board of Directors of JSC “Rostelecom” and JSC “Sibirtelecom”; E.V. Yurchenko, Chairman of the Board of “Sibirtelecom” Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Sibirtelecom”.

208. Agency Contract between JSC “Svyazinvest” – the shareholder holding more than The Operator (JSC “ZEBRA TELECOM”) commissions the Agent (JSC The Board of Directors JSC “Rostelecom” and 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”), and the Agent undertakes to perform, on behalf and at the Minutes #15 dated JSC “ZEBRA TELECOM” affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, expense of the Operator, legal acts and other actions. The transaction price is November 30, 2010 member of the Management Board of JSC “Rostelecom”, specified by the Contract. The Contract shall come into force once signed by member of the Board of Directors of JSC “ZEBRA both Parties and shall be valid for one year. The Contract is considered to be TELECOM”. automatically extended for next period, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement. As long as the terms of this section are observed, the extension of the Contract is possible for an unlimited number of times.

209. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “ZEBRA TELECOM”) shall provide the Customer (JSC The Board of Directors technological services 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) with the service, and the Customer shall accept and pay for the Minutes #15 dated between JSC affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, service on the terms specified in the Agreement. The service costs are November 30, 2010 “Rostelecom” and JSC member of the Management Board of JSC “Rostelecom”, specified in Appendices #1/1, #1/2, and #1/3 to the Agreement. The Agreement “ZEBRA TELECOM” member of the Board of Directors of JSC “ZEBRA shall come into force once signed and shall be valid for one year. The TELECOM”. Agreement is considered to be automatically extended for the next period, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement.

210. Agreement on technical JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC “ZEBRA The Board of Directors support and servicing of 20% of voting shares of JSC “Rostelecom”, whose TELECOM”) with the services of maintenance and technical support of the Minutes #15 dated equipment between JSC affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, operating equipment, installed and installable at the Contractor’s non- November 30, 2010 “Rostelecom” and JSC member of the Management Board of JSC “Rostelecom”, residential premises. The service costs are specified in Appendices #2/1 and “ZEBRA TELECOM” member of the Board of Directors of JSC “ZEBRA #3/1 to the Agreement. The Agreement shall come into force once signed and TELECOM”. shall be valid for one year. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement.

211. Agreement on JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) shall provide the services of interconnection The Board of Directors interconnecting the 20% of voting shares of JSC “Rostelecom”, whose on the DLD communication level in accordance with the connection terms to Minutes #15 dated communication networks affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, the Operator (JSC “ZEBRA TELECOM”), as stipulated in the Agreement November 30, 2010 between JSC member of the Management Board of JSC “Rostelecom”, (Article 5), and the Operator shall pay for the services. The Operator shall “Rostelecom” and JSC member of the Board of Directors of JSC “ZEBRA provide Rostelecom with the traffic transfer and shall share and transfer “ZEBRA TELECOM” TELECOM”. updated information on the Subscribers, and Rostelecom shall undertake to pay for the services. The transaction price is specified in Appendix #1 to the Agreement. The Agreement shall come into force once signed and shall be 59 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction valid for one year from the moment of being signed. The Agreement is considered to be automatically extended for the next year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement.

212. Agreement of the lease of JSC “Svyazinvest” – the shareholder holding more than The Owner (JSC “MC NTT”) shall provide commercial lease of the cable fiber- The Board of Directors fiber-optic links between 20% of voting shares of JSC “Rostelecom”, whose optic physical chains located in line-cable constructions of the Owner to Minutes #15 dated JSC “Rostelecom” and affiliate is JSC “MC NTT”; A.A. Khozyainov, member of Rostelecom (JSC “Rostelecom”). The transaction price is specified in November 30, 2010 JSC “MC NTT” the Management Board of JSC “Rostelecom”, member of Appendices #3/1 and #3/2 to the Agreement. The Agreement shall come into the Board of Directors of JSC “MC NTT”. force once signed and shall be valid until December 31, 2010. The Agreement is considered to be automatically extended for each upcoming calendar year on the same terms, excluding the settlements under clause #3.2 of the Agreement, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least one month prior to the expiry of the Agreement.

213. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than As part of a Governmental Contract, the Subcontractor (JSC The Board of Directors the interaction of 20% of voting shares of JSC “Rostelecom”, whose “CenterTelecomService”) is enlisted to provide the facilitation of establishing Minutes #15 dated information systems and affiliate is JSC “CenterTelecomService”. the interaction between common information systems and the resources of the November 30, 2010 state authorities’ resources governmental authorities, when main purpose of which is to render various for the purpose of public services in electronic form and handling the issues related to public rendering traditional administration with the help of interauthority electronic interaction system, as services in electronic stated in the Technical requirements. The transaction price is specified by the format and handling public Agreement. The Agreement shall come into force once signed and shall be administration by valid until full and proper fulfillment of the obligations by the Parties takes employing place. The Agreement shall cover the legal relations and regulations between interdepartamental the Parties arisen after October 28, 2010, as part of the specific environment of electronic interaction field the Agreement. between JSC “Rostelecom” and JSC “CenterTelecomService” 214. Agency Contract #02-AG JSC “Svyazinvest” – the shareholder holding more than The Principal (JSC “Rostelecom”) commissions the Agent (JSC “Dalsvyaz”), The Board of Directors on delegating the 20% of voting shares of JSC “Rostelecom”, whose and the Agent undertakes to conclude the contracts on rendering Intelligent Minutes #17 dated processing and settling the affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the networking services to the Subscribers on behalf of the Principal, for December 22, 2010 agreements on rendering Board of Directors of JSC “Rostelecom”, member of the remuneration. The transaction price is specified by the Contract. The Contract the intelligent network Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, shall come into force once signed and shall be valid for one year. The Contract services “Free call with an member of the Board of Directors of JSC “Rostelecom”, is considered to be automatically extended for the next year, if none of the intelligent number of the member of the Board of Directors of JSC “Dalsvyaz”; E.V. Parties notifies the other Party about their wish to terminate the Agreement at “8-800” code format Yurchenko, Chairman of the Board of Directors of JSC least 30 (thirty) calendar days prior to the expiry of the Contract. provided” between JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Rostelecom” and JSC “Dalsvyaz”. “Dalsvyaz”

60 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 215. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #2 to the Agreement in the revised version 3 of Appendix The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. Explicate Appendix #3 to the Agreement in the revised Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “Dalsvyaz”; A.A. Lokotkov, member of the version 3 of Appendix #2 to the Addendum. Explicate Appendix #7 to the December 22, 2010 “Dalsvyaz” Board of Directors of JSC “Rostelecom”, member of the Agreement in the revised version 2 of Appendix #3 to the Addendum. Board of Directors of JSC “Dalsvyaz”; E.V. Umnova, Supplement the Agreement with Appendix #9 in the revised version of member of the Board of Directors of JSC “Rostelecom”, Appendix #4 to the Addendum. The service costs are specified in accordance member of the Board of Directors of JSC “Dalsvyaz”; E.V. with Appendices #1, 2, and #3 to the Addendum. The Addendum shall come Yurchenko, Chairman of the Board of Directors of JSC into force once signed. “Rostelecom”, Chairman of the Board of Directors of JSC “Dalsvyaz”. 216. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: JSC “Rostelecom” shall provide JSC “MDM Bank” with Not approved by the “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose communication services for data transfer on the basis of virtual private network, Board of Directors “MDM Bank” affiliate, namely, N.D. Ryauzov, member of the Board of installed with employment of the network resources of JSC “Rostelecom” (as Directors of JSC “Svyazinvest”, is a member of the well as other communication operators) and protected from any unauthorized Management Board of JSC “MDM Bank”. access from third-party networks, and with services of leasing of the routing equipment. Transaction price: is specified in accordance with the Order forms. The term of rendering of service: - commencing date is the date stated in the Act of commencement of services; - commencing date of leasing of the routing equipment is the first working date after the Acceptance certificate for the equipment is signed by both Parties; - termination date is the date stated in the Act of termination of services. Validity: the Agreement shall come into force once signed by the Parties and shall be valid for one year. The Agreement, including appropriate Order forms, is considered to be automatically extended for one more year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 calendar days prior to the expiry of the Agreement. The same procedure shall be applied in the future. 217. Agreement on utilization of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “AKOS”) shall provide commercial services of installing The Board of Directors the working areas between 20% of voting shares of JSC “Rostelecom”, whose the communication equipment proprietary to the Customer (JSC Minutes #17 dated JSC “Rostelecom” and affiliate is JSC “AKOS”. “Rostelecom”). The transaction price is specified in accordance with Appendix December 22, 2010 JSC “AKOS” #2 to the Agreement. The Agreement shall come into force once signed and shall be valid until December 31, 2010. The Agreement is considered to be automatically extended for each calendar year, if none of the Parties notifies the other Party about their wish to terminate the Agreement at least 30 (thirty) calendar days prior to the expiry of the Agreement.

218. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.6 of the Agreement in a revised version. Explicate clause The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #2.2 of the Agreement in a revised version. Exclude clause #6.10 from the Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “BVK”. Agreement. Explicate Appendix #1 to the Agreement in the revised version of December 22, 2010 “BVK” Appendix #1 to the Addendum. The transaction price is specified in Appendix #1 to the Addendum. The Addendum shall come into force once signed. 61 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction

219. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) shall provide the Operator (JSC The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose “Uralsvyazinform”), and the Operator shall pay for the service of installation of Minutes #17 dated interconnecting affiliate is JSC “Uralsvyazinform”; P.A. Zaytsev, member the interconnection hubs to be employed for transmittion of the signal traffic in December 22, 2010 telecommunication of the Management Board of JSC “Rostelecom”, member accordance with the terms of the Agreement. The transaction price is specified channels between JSC of the Management Board of JSC “Uralsvyazinform”; S.A. in Appendix #1 to the Addendum. The Addendum shall come into force once “Rostelecom” and JSC Lukash, member of the Management Board of JSC signed and shall be concluded for duration of the Agreement, unless it ceases “Uralsvyazinform” “Rostelecom”, member of the Board of Directors of JSC earlier under a separate Addendum. “Uralsvyazinform”; Yu.A. Provotorov, member of the Board of Directors, President and Chairman of the Management Board of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”, E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”.

220. Addendum #6 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendix #8.1 to the Agreement in the revised version of Appendix The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose #1 to the Addendum. Explicate Appendix #8.2 to the Agreement in the revised Minutes #17 dated interconnecting the data affiliate is JSC “Uralsvyazinform”; P.A. Zaytsev, member version of Appendix #2 to the Addendum. The transaction price is specified in December 22, 2010 transfer network between of the Management Board of JSC “Rostelecom”, member accordance with Appendix #11 to the Agreement in the revised version of JSC “Rostelecom” and of the Management Board of JSC “Uralsvyazinform”; S.A. Appendix #7 to the Addendum. The Addendum shall come into force once JSC “Uralsvyazinform” Lukash, member of the Management Board of JSC signed by authorized representatives of the Parties. “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”; Yu.A. Provotorov, member of the Board of Directors, President and Chairman of the Management Board of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”, E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”.

221. Addendum #11 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #1.1 of Appendix #1 to the Agreement in the revised version The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose of Appendix #1 to the Addendum. The transaction price is specified in Minutes #17 dated internetwork interaction affiliate is JSC “Uralsvyazinform”; P.A. Zaytsev, member Appendix #1 to the Addendum. The Addendum shall come into force on December 22, 2010 between JSC of the Management Board of JSC “Rostelecom”, member February 1, 2011, and shall become void after March 31, 2011. “Rostelecom” and JSC of the Management Board of JSC “Uralsvyazinform”; S.A. “Uralsvyazinform” Lukash, member of the Management Board of JSC 62 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”; Yu.A. Provotorov, member of the Board of Directors, President and Chairman of the Management Board of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”, E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”.

222. Agreement on data JSC “Svyazinvest” – the shareholder holding more than The Board of Directors transfer network 20% of voting shares of JSC “Rostelecom”, whose In accordance with the terms of interconnection as specified in the Agreement, Minutes #17 dated connection and VoIP- affiliate is JSC “Uralsvyazinform”; P.A. Zaytsev, member Rostelecom (JSC “Rostelecom”) shall provide the Operator (JSC December 22, 2010 traffic transmission of the Management Board of JSC “Rostelecom”, member “Uralsvyazinform”) with the service of interconnection at the zonal connection between JSC of the Management Board of JSC “Uralsvyazinform”; S.A. level and VoIP- traffic transmission on the basis of the Order form as outlined “Rostelecom” and JSC Lukash, member of the Management Board of JSC by Appendix #2 to the Agreement, and the Operator shall undertake to accept “Uralsvyazinform” “Rostelecom”, member of the Board of Directors of JSC and pay for the services under the Agreement. The Operator shall pay for the “Uralsvyazinform”; Yu.A. Provotorov, member of the interconnection service and the traffic transmission service to Rostelecom at Board of Directors, President and Chairman of the prices set out by Appendix #1 to the Agreement. The Agreement shall come Management Board of JSC “Rostelecom”, Chairman of into force once signed and shall be valid for one year. The Agreement is the Board of Directors of JSC “Uralsvyazinform”; E.V. considered to be automatically extended for the next year, if none of the Umnova, member of the Board of Directors of JSC Parties notifies the other Party about their wish to terminate or review the “Rostelecom”, member of the Board of Directors of JSC Agreement at least 30 calendar days prior to the expiry of the Agreement. “Uralsvyazinform”, E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”. 223. Addendum #2 to the JSC “Svyazinvest” – the shareholder holding more than Rostelecom (JSC “Rostelecom”) commissions the Agent (JSC The Board of Directors Agency Contract between 20% of voting shares of JSC “Rostelecom”, whose “Uralsvyazinform”), and the Agent, for remuneration, undertakes to perform, on Minutes #17 dated JSC “Rostelecom” and affiliate is JSC “Uralsvyazinform”; P.A. Zaytsev, member behalf and at the expense of Rostelecom, legal acts and other actions, as December 22, 2010 JSC “Uralsvyazinform” of the Management Board of JSC “Rostelecom”, member stipulated by clauses #3.3.1, #3.3.3, #3.3.6, #3.3.7, #3.3.9, and #3.3.10 of the of the Management Board of JSC “Uralsvyazinform”; S.A. Contract. The Agent shal receive remuneration for render the services listed in Lukash, member of the Management Board of JSC clauses #3.3.2, #3.3.4, #3.3.5, #3.3.8, #3.3.11, #3.3.15, and #3.3.16 of the “Rostelecom”, member of the Board of Directors of JSC Contract. The transaction price is specified in Appendix #1 to the Contract. The “Uralsvyazinform”; Yu.A. Provotorov, member of the Addendum shall come into force once signed. Board of Directors, President and Chairman of the Management Board of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “Uralsvyazinform”, E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Uralsvyazinform”.

63 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 224. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Exclude Appendices #2/2, #2/4, #2/5, #2/6, #2/7, and #2/9 from the Agreement The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose due to dismantling of the equipment. Alter Appendices #2/1, #2/3, #2/8, and #3 Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- to the Agreement due to the changes of scope and costs of the services. December 22, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the Explicate Appendices #2/1, #2/3, #2/8, and #3 in the revised respective Telecom” /“North-Western Board of Directors, President and Chairman of the versions of Appendices #1, #2, ##3, and 5 to the Addendum. Supplement the Telecom”/ Management Board of JSC “Rostelecom”, member of Agreement with Appendix #2/10 in the revised version of Appendix #4 to the the Board of Directors of JSC “Severo-zapadniy Addendum due to the changes of the scope of the services provided. The Telecom”; E.V. Umnova, member of the Board of transaction price is specified by the amount as indicated in Appendices #2/1, Directors of JSC “Rostelecom”, Deputy Chairman of the #2/3, #2/8, #3, and 2/10 to the Agreement in the revised version of the Board of Directors of JSC “Severo-zapadniy Telecom”; Addendum. The Addendum shall come into force once signed. E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”. 225. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate Appendices #2, #2/1, and #3 of the Agreement #03-03-17610, dated The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose December 16, 2009, in the revised respective versions of Appendices #1, #2, Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “Severo-zapadniy Telecom” /“North- and #3 to the Addendum due to the changes of the service costs. The service December 22, 2010 “Severo-zapadniy Western Telecom”/; Yu.A. Provotorov, member of the cost is specified in accordance with Appendices #1, #2, and #3 to the Telecom” /“North-Western Board of Directors, President and Chairman of the Addendum. The Addendum shall come into force once signed and shall be Telecom”/ Management Board of JSC “Rostelecom”, member of valid until the expiry of the Agreement. the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, Deputy Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”; E.V. Yurchenko, Chairman of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “Severo-zapadniy Telecom”.

226. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”), under the terms of the Agreement, shall The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose render services of providing the clock signals from the backbone network of the Minutes #17 dated “Severo-zapadniy affiliate is JSC “Severo-zapadniy Telecom” /“North- Contractor’s clock network synchronization, of controling the quality of the December 22, 2010 Telecom” /“North-Western Western Telecom”/; Yu.A. Provotorov, member of the backbone network clock signal of the clock network synchronization during the Telecom”/ Board of Directors, President and Chairman of the III-class interconnection, and of issuance of the Technical requirements for Management Board of JSC “Rostelecom”, member of arranging interconnection to necessary ports and hubs of the network of clock the Board of Directors of JSC “Severo-zapadniy network synchronization, given the appropriate request from the Customer Telecom”; E.V. Umnova, member of the Board of (JSC “Severo-zapadniy Telecom”) and of interconnection to the Directors of JSC “Rostelecom”, Deputy Chairman of the synchronization source in Veliky Novgorod. The transaction price is specified Board of Directors of JSC “Severo-zapadniy Telecom”; by the Agreement. The Agreement shall come into force once signed by both E.V. Yurchenko, Chairman of the Board of Directors of Parties and shall be valid for one year. The Agreement is considered to be JSC “Rostelecom”, Chairman of the Board of Directors of automatically extended for the next period, if none of the Parties notifies the JSC “Severo-zapadniy Telecom”. other Party about their wish to terminate or review the Agreement at least 30 calendar days prior to the expiry of the Agreement.

64 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 227. Addendum #3 to the Explicate clause #2.1.3., #2.1.6., #3.2., and #4.5 of the Agreement in the The Board of Directors Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than revised respective versions of clauses #1, #2, #4, and #5 of the Addendum #3. Minutes #17 dated “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose Exclude clauses #2.1.8., #2.1.9., and #2.1.10. of the Agreement. Explicate December 22, 2010 “VolgaTelecom” affiliate is JSC “VolgaTelecom”; Yu.A. Provotorov, clause #3 of Appendix #1 to the Agreement in the revised version of clause #6 member of the Board of Directors, President and of the Addendum #3. Explicate clauses #12 and #13 of Appendix #2 to the Chairman of the Management Board of JSC Agreement in the revised version of Appendix #1 to the Addendum #3. The “Rostelecom”, member of the Board of Directors of JSC service costs under the Agreement are specified in accordance with Appendix “VolgaTelecom”; V.D. Savchenko, member of the Board #1 to the Agreement, as altered by the Addendum #3. The Addendum #3 shall of Directors of JSC “Rostelecom”, member of the Board come into force once signed and shall cover the legal relations and regulations of Directors of JSC “VolgaTelecom”; E.V. Yurchenko, between the Parties arisen after September 1, 2010. Chairman of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “VolgaTelecom”. 228. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than In accordance with the terms of the Agreement (including the Addendum(s)) The Board of Directors Agreement on connection 20% of voting shares of JSC “Rostelecom”, whose Rostelecom (JSC “Rostelecom”) shall provide the Operator (JSC “NSS”), and Minutes #17 dated and traffic transmission affiliate is JSC “NSS”; A.Yu. Provotorov, member of the the Operator shall pay in accordance with the Agreement for services of signal December 22, 2010 between JSC Board of Directors of JSC “Rostelecom”, member of the traffic transmission. The transaction price is specified in Appendix #1 to the “Rostelecom” and JSC Board of Directors of JSC “NSS”. Addendum. The Addendum shall come into force once signed and shall be “NSS” valid until the expiry of the Agreement, unless it ceases earlier under the separate Addendum.

229. Agreement on JSC “Svyazinvest” – the shareholder holding more than The Operator (JSC “Rostelecom”) shall provide the Customer (JSC The Board of Directors interconnecting the 20% of voting shares of JSC “Rostelecom”, whose “CenterTelecom”) with services of interconnecting the data transfer network to Minutes #17 dated telecommunication affiliate is JSC “CenterTelecom”; A.A. Lokotkov, member the data transfer network of the Operator on the zonal level; services of traffic December 22, 2010 network between JSC of the Board of Directors of JSC “Rostelecom”, member transmission via data transfer networks. The transaction price is specified in “Rostelecom” and JSC of the Board of Directors of JSC “CenterTelecom”; Yu.A. Appendices #2.1., #2.2., and #2.3 to the Agreement. The Agreement shall “CenterTelecom” Provotorov, member of the Board of Directors, President come into force once signed and shall be valid until December 31, 2010. The and Chairman of the Management Board of JSC Agreement shall cover the legal relations and regulations between the Parties “Rostelecom”, member of the Board of Directors of JSC arisen after October 1, 2010. The Agreement is considered to be automatically “CenterTelecom”; V.D. Savchenko, member of the Board extended for the next period, if none of the Parties notifies the other Party in of Directors of JSC “Rostelecom”, member of the Board written form about their wish to terminate or review the Agreementat least 30 of Directors of JSC “CenterTelecom”; E.V. Umnova, calendar days prior to the expiry of the Agreement. The same procedure shall member of the Board of Directors of JSC “Rostelecom”, be applied in the future. member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “CenterTelecom”. 230. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than The total number of the connection points of the network of JSC “Rostelecom” The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose to the network of the Tambov branch of JSC “CenterTelecom” is being Minutes #17 dated interconnecting the affiliate is JSC “CenterTelecom”; A.A. Lokotkov, member increased by 31 connection points. The Addendum shall come into force once December 22, 2010 telecommunication of the Board of Directors of JSC “Rostelecom”, member signed. networks between JSC of the Board of Directors of JSC “CenterTelecom”; Yu.A. “Rostelecom” and JSC Provotorov, member of the Board of Directors, President “CenterTelecom” and Chairman of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC

65 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction “CenterTelecom”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “CenterTelecom”. 231. Addendum #3 to the JSC “Svyazinvest” – the shareholder holding more than Explicate the organization diagram of connecting the mobile communication The Board of Directors Agreement on 20% of voting shares of JSC “Rostelecom”, whose network of JSC “CenterTelecom” to the DLD/ILD communications network of Minutes #17 dated interconnecting the affiliate is JSC “CenterTelecom”; A.A. Lokotkov, member JSC “Rostelecom” in Appendix #6. Explicate the organization diagram of December 22, 2010 telecommunication of the Board of Directors of JSC “Rostelecom”, member connecting the cellular radiotelephony communication network of JSC networks between JSC of the Board of Directors of JSC “CenterTelecom”; Yu.A. “CenterTelecom” in the 450 Mhz range to the DLD/ILD communications “Rostelecom” and JSC Provotorov, member of the Board of Directors, President network of JSC “Rostelecom” in Appendix #6.2. The Addendum shall come into “CenterTelecom” and Chairman of the Management Board of JSC force once signed. “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Umnova, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “CenterTelecom”; E.V. Yurchenko, Chairman of the Board of JSC “Rostelecom”, Chairman of the Board of JSC “CenterTelecom”. 232. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than Subject of transaction: establishing the procedures and terms of transmission, Not approved by the “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose receipt and exploitation by the Parties of the confidential information and the Board of Directors “GIPROSVYAZ” affiliate is JSC “GIPROSVYAZ”; A.A. Lokotkov, member company’s information (hereinafter, the Confidential information) that gets of the Board of Directors of JSC “Rostelecom”, member transmitted from one Party to another during the transaction negotiations. of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Other essentials: in case of the disclosure of information, including the action Umnova, member of the Board of Directors of JSC (non-action) of the employees of the receiving Party, the receiving Party shall “Rostelecom”, member of the Board of Directors of JSC compensate the transmitting Party for the loss in full. The information disclosed “GIPROSVYAZ”; M.A. Leschenko, member of the Board by JSC “Rostelecom” shall be considered confidential within 3 years from the of Directors of JSC “Rostelecom”, member of the Board date of the termination of the Agreement. Validity: the Agreement shall come of Directors of JSC “GIPROSVYAZ”; into force once signed by both Parties and shall be valid for 3 years. A.Yu. Provotorov, member of the Board of Directors of JSC “Rostelecom”, Chairman of the Board of Directors of JSC “GIPROSVYAZ”. 233. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Customer (JSC “Rostelecom”) commissions, and the Contractor (JSC The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose “GIPROSVYAZ”) undertakes the execution of design and survey works for the Minutes #17 dated “GIPROSVYAZ” affiliate is JSC “GIPROSVYAZ”; A.A. Lokotkov, member “Trial zone for the network of mobile broadband access of JSC “Rostelecom” December 22, 2010 of the Board of Directors of JSC “Rostelecom”, member over the 2300-2400 MHz range based on the LTE TDD technology in Tver” of the Board of Directors of JSC “GIPROSVYAZ”; E.V. project. The work under the Agreement shall be executed in one stage in the Umnova, member of the Board of Directors of JSC accordance with the Technical requirements. The transaction price is specified “Rostelecom”, member of the Board of Directors of JSC by Appendix #3 to the Agreement. The Agreement shall come into force once “GIPROSVYAZ”. signed. 66 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 234. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Customer (JSC “Rostelecom”) commissions, and the Contractor (JSC The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose “GIPROSVYAZ”) undertakes the execution of design and survey works for the Minutes #17 dated “GIPROSVYAZ” affiliate is JSC “GIPROSVYAZ”; A.A. Lokotkov, member “Trial zone for the network of mobile broadband access of JSC “Rostelecom” December 22, 2010 of the Board of Directors of JSC “Rostelecom”, member over the 2300-2400 MHz range based on the LTE TDD technology in Tambov” of the Board of Directors of JSC “GIPROSVYAZ”; E.V. project. The work under the Agreement shall be executed in one stage in the Umnova, member of the Board of Directors of JSC accordance with the Technical requirements. The transaction price is specified “Rostelecom”, member of the Board of Directors of JSC by Appendix #3 to the Agreement. The Agreement shall come into force once “GIPROSVYAZ”. signed. 235. Agreement on JSC “Svyazinvest” – the shareholder holding more than The development of the rationale behind the investment into the “Construction The Board of Directors development of the 20% of voting shares of JSC “Rostelecom”, whose and organization of linkages from substations to the regional communication Minutes #17 dated Justification of investment affiliate is JSC “GIPROSVYAZ”; A.A. Lokotkov, member centers of JSC “FSC UES” based on employing the resources of JSC December 22, 2010 between JSC of the Board of Directors of JSC “Rostelecom”, member “Rostelecom”, of the ITCs of JSC “Svyazinvest” and JSC “FSC UES”. The “Rostelecom” and JSC of the Board of Directors of JSC “GIPROSVYAZ”; E.V. transaction price is specified by the Agreement. The Agreement shall come “GIPROSVYAZ” Umnova, member of the Board of Directors of JSC into force once signed. “Rostelecom”, member of the Board of Directors of JSC “GIPROSVYAZ”. 236. Addendum #6 to the JSC “Svyazinvest” – the shareholder holding more than The Parties agreed that from January 1, 2011, the Customer (JSC “GlobalTel”) The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose shall have pay a discounted monthly rate for the digital channels (paths) leased Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “GlobalTel”; A.A. Khozyainov, member of by the Customer for a long period of time (more than 10 years) in the amount December 22, 2010 “GlobalTel” the Management Board of JSC “Rostelecom”, member of of 30% of the monthly payment, made by JSC “GlobalTel” under the the Board of Directors of JSC “GlobalTel”; V.V. Semenov, Agreement on the exploitation of digital channels. The Addendum shall come member of the Management Board of JSC “Rostelecom”, into force once signed. member of the Board of Directors of JSC “GlobalTel”. 237. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Supplement the Agreement with Appendix #2.2 in the revised version of The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose Appendix #1 to the Addendum. Consider Appendix #2.1 to the Agreement void. Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, The transaction price is specified in Appendix #1 to the Addendum. The December 22, 2010 “GLOBUS TELECOM” member of the Management Board of JSC “Rostelecom”, Addendum shall come into force once signed and shall be valid until the expiry member of the Board of Directors of JSC “GLOBUS- of the Agreement. TELECOM”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “GLOBUS TELECOM”. 238. Addendum #15 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “GLOBUS TELECOM”), by the request of the Customer The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”), provides the Customer with three digital communication Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, channels. The Customer pays for the provided service in accordance with the December 22, 2010 “GLOBUS TELECOM” member of the Management Board of JSC “Rostelecom”, terms of payment, as defined by Article 5 of the Agreement. The transaction member of the Board of Directors of JSC “GLOBUS- price is specified in accordance with Appendices #2/15-1 and #2/15-2 to the TELECOM”; A.A. Khozyainov, member of the Addendum #15 to the Agreement. The Addendum shall come into force once Management Board of JSC “Rostelecom”, member of the signed. Board of Directors of JSC “GLOBUS TELECOM”. 239. Addendum #16 to the JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “GLOBUS TELECOM”), by the request of the Customer The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose (JSC “Rostelecom”), provides the Customer with 69 (sixty nine) digital Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “GLOBUS-TELECOM”; V.V. Iudin, communication channels. The Customer pays for the provided service in December 22, 2010 “GLOBUS TELECOM” member of the Management Board of JSC “Rostelecom”, accordance with the terms of payment, as defined by Article 5 of the member of the Board of Directors of JSC “GLOBUS- Agreement. The transaction price is specified in accordance with Appendices TELECOM”; A.A. Khozyainov, member of the #2/16-1, 2/16-2, 2/16-3, 2/16-4-1, 2/16-4-2, 2/16-4-3, 2/16-5-1, 2/16-5-2, 2/16- 67 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction Management Board of JSC “Rostelecom”, member of the 5-3, 2/16-5-4, 2/16-5-5, 2/16-5-6, 2/16-5-7, 2/16-5-8, 2/16-5-9, 2/16-5-10, 2/16- Board of Directors of JSC “GLOBUS TELECOM”. 5-11, 2/16-5-12, 2/16-5-13, 2/16-5-14, 2/16-5-15, 2/16-5-16, 2/16-5-17, 2/16-5- 18, 2/16-5-19, 2/16-5-20, 2/16-5-21, 2/16-5-22, 2/16-5-23, 2/16-5-24, 2/16-5- 25, 2/16-5-26, 2/16-5-27, 2/16-5-28, 2/16-5-29, 2/16-5-30, 2/16-6-1, 2/16-6-2, 2/16-6-3, 2/16-6-4, 2/16-6-5, 2/16-6-6, 2/16-6-7, 2/16-6-8, 2/16-6-9, 2/16-6-10, 2/16-6-11, 2/16-6-12, 2/16-6-13, 2/16-6-14, 2/16-6-15, 2/16-6-16, 2/16-6-17, 2/16-6-18, 2/16-6-19, 2/16-6-20, 2/16-6-21, 2/16-6-22, 2/16-6-23, 2/16-6-24, 2/16-6-25, 2/16-6-26, 2/16-6-27, 2/16-6-28, 2/16-6-29, 2/16-6-30, 2/16-6-31, 2/16-6-32, and 2/16-6-33 to the Addendum. The Addendum shall come into force once signed. 240. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than In accordance with the terms of the Agreement, the Contractor (JSC “ZEBRA The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose TELECOM”) shall provide the Customer (JSC “Rostelecom”) with the services Minutes #17 dated “ZEBRA TELECOM” affiliate is JSC “ZEBRA TELECOM”; V.V. Strelkov, of maintenance and engineering support to the Customer’s system. The December 22, 2010 Member of the Management Board of JSC “Rostelecom”, transaction price is specified by the Agreement. The Agreement shall come member of the Board of Directors of JSC “ZEBRA into force once signed by the authorized representatives of both Parties and TELECOM”. shall be valid until December 31, 2010. The Agreement is considered to be automatically extended for the next period, if none of the Parties notifies the other Party about their wish to terminate or review the Agreement at least 30 calendar days prior to the expiry of the Agreement. 241. Agreement on servicing JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC “MC The Board of Directors and technical support 20% of voting shares of JSC “Rostelecom”, whose NTT”) with the services necessary for the organization and execution of the Minutes #17 dated provided to a business affiliate is JSC “MC NTT”; A.A. Khozyainov, member of corporate event held by the Customer. The transaction price is specified in the December 22, 2010 event between JSC the Management Board of JSC “Rostelecom”, member of Agreement. The Agreement shall come into force once signed by both Parties “Rostelecom” and JSC the Board of Directors of JSC “MC NTT”. and shall be valid till full and proper fulfillment of the obligations by the Parties “MC NTT” under the Agreement takes place. 242. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Supplement clause 1 of the Agreement. Explicate clauses #2.1, #2.2. #3.1.2, The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose #3.1.7, #5.1, #5.2, #5.4, #6.9, and #7.5 of the Agreement in a number of Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “MC NTT”; A.A. Khozyainov, member of revised versions. The transaction price is specified in Appendix #1 to the December 22, 2010 “MC NTT” the Management Board of JSC “Rostelecom”, member of Agreement in the revised version of the Addendum #1 to the Agreement. The the Board of Directors of JSC “MC NTT”. Addendum shall come into force once signed by the Parties.

243. Agreement on provision of JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “Rostelecom”) shall provide the Customer (JSC The Board of Directors the “Providing allocated 20% of voting shares of JSC “Rostelecom”, whose “RTKomm.RU) with the services in accordance with the terms of the Minutes #17 dated Internet access on the affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of Agreement and the standard conditions, and the Customer accepts these December 22, 2010 basis of the data transfer the Board of Directors of JSC “Rostelecom”, member of services and shall pay for them according to the terms of the Agreement and network of JSC the Board of Directors of JSC “RTKomm.RU”; V.D. the standard conditions. The transaction price is specified in the Order forms “Rostelecom” service Savchenko, member of the Board of Directors of JSC #1 and #2 to the Agreement. The Agreement shall come into force once signed between JSC “Rostelecom”, member of the Board of Directors of JSC by the Parties and shall be valid for one year. The Agreement is considered to “Rostelecom” and JSC “RTKomm.RU”; A.A. Khozyainov, member of the be automatically extended for the next year, if none of the Parties notifies the “RTKomm.RU” Management Board of JSC “Rostelecom”, member of the other Party about their wish to terminate or review the Agreement at least 30 Board of Directors of JSC “RTKomm.RU”. calendar days prior to the expiry of the Agreement.

68 TRANSACTIONS WITH AFFILIATES

# Transaction Affiliates The essentials The Company’s management body that approved the transaction 244. Addendum #1 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #4.1 of the Agreement in a revised version. Explicate The Board of Directors Agreement between 20% of voting shares of JSC “Rostelecom”, whose Appendix #2 to the Agreement – “Price calculation of the Agreement” in the Minutes #17 dated between JSC affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of revised version of Appendix #1 to the Addendum. The transaction price is December 22, 2010 “Rostelecom” and JSC the Board of Directors of JSC “Rostelecom”, member of specified by the Addendum. The Addendum shall come into force once signed “RTKomm.RU” the Board of Directors of JSC “RTKomm.RU”; V.D. and shall cover the legal relations and regulations between the Parties arisen Savchenko, member of the Board of Directors of JSC after May 1, 2010. “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”. 245. Addendum #12 to the JSC “Svyazinvest” – the shareholder holding more than Explicate clause #3.1.1 of the Agreement in a revised version. Explicate The Board of Directors Agreement between JSC 20% of voting shares of JSC “Rostelecom”, whose clauses #4.2-4.5 of the Agreement in revised versions. The transaction price is Minutes #17 dated “Rostelecom” and JSC affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of specified in Appendix #2/1/8 to the Agreement. The Addendum shall come into December 22, 2010 “RTKomm.RU” the Board of Directors of JSC “Rostelecom”, member of force once signed and shall be valid for the period of validity of the Agreement. the Board of Directors of JSC “RTKomm.RU”; V.D. Savchenko, member of the Board of Directors of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”; A.A. Khozyainov, member of the Management Board of JSC “Rostelecom”, member of the Board of Directors of JSC “RTKomm.RU”. 246. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “RTKomm.RU”) shall provide the Customer (JSC The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose “Rostelecom”) with the services of installing and maintaining the protected Minutes #17 dated “RTKomm.RU” affiliate is JSC “RTKomm.RU”; V.N. Bondarik, member of network of data transfer that links the central office, the territorial entities, December 22, 2010 the Board of Directors of JSC “Rostelecom”, member of institutions within jurisdiction of the Russian Federation Federal Service for the Board of Directors of JSC “RTKomm.RU”; V.D. State registration, cadastre, and cartography and their subdivisions at regional Savchenko, member of the Board of Directors of JSC and local levels, as set out by the Technical requirements, and the Customer “Rostelecom”, member of the Board of Directors of JSC accepts and pays for the services in accordance with the terms of the “RTKomm.RU”; A.A. Khozyainov, member of the Agreement. The transaction price is specified by the Agreement. The Management Board of JSC “Rostelecom”, member of the Agreement shall come into force once signed, following the approval of the Board of Directors of JSC “RTKomm.RU”. Board of Directors of the Parties, and shall be valid till full and proper fulfillment of the obligations under the Agreement by both Parties take place. The Agreement shall cover the legal relations and regulations between the Parties arisen after July 1, 2010. 247. Agreement between JSC JSC “Svyazinvest” – the shareholder holding more than The Contractor (JSC “GIPROSVYAZ”), in accordance with and on the basis of The Board of Directors “Rostelecom” and JSC 20% of voting shares of JSC “Rostelecom”, whose the Customer’s request (JSC “Rostelecom”), shall undertake to execute design Minutes #17 dated “GIPROSVYAZ” affiliate is JSC “GIPROSVYAZ”; A.A. Lokotkov, member works on development of the project on “Construction of the Integrated December 22, 2010 of the Board of Directors of JSC “Rostelecom”, member information and telecommunication infrastructure of the site of the XXII Winter of the Board of Directors of JSC “GIPROSVYAZ”; E.V. Olympic Games and XI Winter Paralympic Games 2014 in Sochi”. The Umnova, member of the Board of Directors of JSC transaction price is specified by the Agreement. The Agreement shall come “Rostelecom”, member of the Board of Directors of JSC into force once signed by both Parties and shall be valid till full and proper “GIPROSVYAZ”. fulfillment of the obligations under the Agreement by both Parties takes place.

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