On August 30, 2002 Rostelecom completed the filing of Form 20-F for the year ended December 31, 2001 with the US Securities and Exchange Commission (SEC).  Form 20 F/A includes the company's consolidated financial reports for the year ended December 31, 2001, which was audited by Ernst and Young (CIS) Limited. ZAO Arthur Andersen acted as the Company's external auditor in the year 2001. As a result of the situation that arose around the Arthur Andersen Worldwide Group and the subsequent termination of the Group, Rostelecom opted not to have the Annual Report in Form 20-F for the year ended December 31, 2001 include the consolidated financial statements with the audit report issued by ZAO Arthur Andersen. 

Under SEC Release No. 34-45589 dated March 18, 2002, Rostelecom was required to file its audited consolidated financial statements as part of Form 20-F/A no later than August 30, 2002. In connection with the above and in order to promote confidence among shareholders and investors, Rostelecom management requested Ernst & Young (CIS) Limited to re-audit the consolidated financial statements of Rostelecom for the year ended December 31, 2001 (hereinafter referred to as the Financial Statements). Thus, Form 20-F/A filed with the SEC contained the Financial Statements audited by Ernst & Young (CIS) Limited.

The Financial Statements are to be posted both in Russian and English on Rostelecom's corporate web site on September 4, 2002.