Moscow, Russia – June 27, 2011 – Rostelecom (the “Company”) (MICEX: RTKM, RTKM-002D - RTKM-017D, RTKMP; RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that the following decisions were approved at the Annual General Meeting of its shareholders (“AGM”) on June 27, 2011.

The AGM approved an annual dividend of RUB 105.5 million for the full year 2010, to be paid to holders of Rostelecom’s preferred shares as at the record date of May 10, 2011. The dividend amounts to a payment of RUB 0.4344 per preferred ‘class A’ share. The AGM also approved that no annual dividends be paid to holders of ordinary shares for the full year 2010.

The shareholders approved the election of the members of the Board of Directors as follows:

-       Vladimir Bondarik - Deputy General Director of Svyazinvest;

-       Anton Zlatopolsky – General Director of “Rossiya” TV channel;

-       Yury Kudimov – General Director of VEB Capital (Investment Company of Vnesheconombank);

-       Anatoly Milyukov – Executive Vice President of Gazprombank;

-       Sergei Kuznetsov – Member of the National Register of Independent Directors of the Russian Union of Industrialists and Entrepreneurs;

-       Alexander Pertsovsky – Chairman of the Management Board of Renaissance Group for Russia;

-       Alexander Provotorov – President of Rostelecom;

-       Ivan Rodionov – Professor of State University ‘Higher School of Economics’, Professor of Russian State University for the Humanities;

-       Vadim Semenov– General Director of Svyazinvest;

-       Anatoly Tikhonov – First Deputy Chairman and Member of the Management Board of Vnesheconombank;

-       Igor Shchegolev – Minister of Communications and Mass Media of the Russian Federation.

In addition, the AGM approved Rostelecom’s Annual Report and the annual financial statements for the financial year ended December 31, 2010, and elected the Company’s Audit Commission. The AGM also approved the related party transactions and Rostelecom’s participation in the ‘Union of operators for LTE’.

Shareholders also approved the new edition of Rostelecom’s Charter, as well as a new edition of the bylaws for the Board of Directors, the Management Board and the President of Rostelecom.

ZAO KPMGwas appointed as Rostelecom’s auditor for 2011.