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Moscow City Telephone

March 25, 2003

The leadership of the Public Joint Stock Company Moscow City Telephone Network (MGTS) adopted a decision on financing out of its internal funds the telephone user allowances for veterans and disabled retirees who are not under the federal regular pension scheme but on the register at the individual pension providing offices that are component structures of the "powerhouse" ministries and departments.

The procedure for providing easy-term payments to be charged for the PJSC MGTS telephone services was established by the Moscow Government Ordinance No 784-?? of 24/9/2002. According to this statutory act, all the benefiter categories of Muscovites shall follow a uniform procedure for being provided with subscriber fee allowances, i.e. they make a 100% telephone subscriber fee payment and receive a forestalling 50% pecuniary compensation of their subscriber fees added to their pensions through the social security agencies.

However, departmental pensioners are not ledger-listed at the public social security agencies. Furthermore, the procedure for financing the departmental pensioners allowances from the federal budget has not been determined by the Russian Federation Government up to the present, notwithstanding the issue being raised and re-raised.

The old people being unprotected socially, the Moscow City Telephone Network Public Joint Stock Company has adopted a decision to finance the allowances to provided for the veterans and disabled from amongst the departmental pensioners who are on the books of such individual pension providing offices. The Company will transfer the required amounts to the Moscow Public Social Security Office, and the pecuniary compensation will be effected through the said departmental pension providing agencies.

The leadership of the Company expresses the hope that the issue will be resolved in the tideway of legislation with the support of the government at all levels and situations, and the PJSC MGTS readiness to finance the subscriber fee allowance payees will not serve as a pretext to postpone the resolution of the point in question for an indefinite period.

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