Moscow, Russia – October 31, 2011 – Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that its Board of Directors has authorised a buyback of Rostelecom’s ordinary and preferred shares up to a total value of US$ 500 million.

Rostelecom’s Management Board was instructed to consider the possibility of purchasing the ordinary and preferred shares through one of Rostelcom’s subsidiaries, as well as to inform the Board of Directors on the progress and results of the buyback process.