Moscow, Russia – January 24, 2012 – Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY) (“the Company”), Russia’s national telecommunications operator, today announces that on January 16, 2012, its Board of Directors approved the signing of a loan guarantee agreement between Rostelecom and VTB Bank JSC (“the Bank”). Under the terms of the agreement, the Company assumes responsibility for the repayment of a RUB 8.3 billion loan taken out by its subsidiary, Mobitel LLC (“Mobitel”).

The RUB 8.3 billion one-year loan has been issued at an interest rate of 3.25% per annum over the three-month MosPrime rate. It is expected that Mobitel will use the loan funds to finance a purchase of Rostelecom ordinary shares.

On October 31, 2011, Rostelecom’s Board of Directors authorised the execution of a share buyback programme up to a total value of US$ 500 million. The Company expected to complete the buyback programme before the listing of Rostelecom’s shares on one of the foreign stock exchanges.

To limit the dilution of the Company’s free float, as well as any stock price fluctuations caused by an open market share buyback, a 3.86% stake in Rostelecom’s ordinary shares has been accumulated on behalf of Rostelecom, of which 1.689% will be purchased using the VTB Bank loan and the remaining stake will be acquired also with the help of bank financing.

Following the buyback of 3.86% of Rostelecom’s additional shares, under the name of Mobitel, Mobitel’s ordinary share stake in Rostelecom’s will amount to 6.55%. This will enhance the Company’s ability to participate in strategic acquisitions and it provides the Company with stock that can be sold during the Company’s SPO, whilst maintaining the State’s stake in the Company above the controlling level.