Moscow, Russia – November 2, 2012– Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that the coupon for the Series 17 bonds has been set at 8.55% per annum, with a period of 182 days. The bonds, totalling a nominal value of RUB 10 billion, have a three-year put option from placement and a maturity of 5 years.

The issue was fully placed and oversubscribed with total demand of RUB 13.6 billion. Rostelecom’s Series 17 bonds will be placed on the MICEX and settled on November 8, 2012.

The timing of the issuance of Series 15 bonds, worth a total nominal value of RUB 5 billion, will depend on market conditions.

VTB Capital CJSC, Gazprombank OJSC and CJSC “Sberbank CIB” acted as organisers of the deal. UniCredit Bank CJSC acted as the underwriter.