A meeting of the Board of Directors of OJSC North Western Telecom was held on July 18, 2002.  A number of key issues concerning the company's business activity were discussed at the meeting.  

A separate discussion focused on the formation of special committees under the company's Board of Directors.  As a result of the discussion a resolution was passed to establish the following committees:  

-         the committee for corporate governance - chaired by Irina M. Ragozina;

-         the committee for corporate finance and investments - chaired by Sergey V. Soldatenkov;

-         the committee for the company budget - Anton I. Osipchuk;

-         the committee for reporting, salary and compensation - chaired by Ivan I. Rodionov. 

The committee for reporting, salary and compensation was fully set up on the same day.  Its members include O.A. Lebedinets and Benjamin Wilkening (an appointee from AIG Brunswick Capital Management).  The Board of Directors instructed the Board of Directors of the above committees to draft proposals concerning the members that are to hold positions in these committees and plans for their activities.  

According to Ivan Rodionov, who set up the committee for reporting, salary and compensation, "the formation of this committee is an important step in the company's development, as it points to the fact that we are ready and prepared for a number of positive changes".  

Another independent director, Dmitry Levkovsky, is of the same opinion.  "The creation of these committees should definitely make the activity of the Board of Directors more efficient, as well as the performance of the company as a whole, I might add.  It should enhance efficiency, taking into account the interests of all the parties in North West Telecom and especially its decision-making ability. This is how the vice director general of the corporate governance at OJSC North Western Telecom, Nikolai Bredkov commented on the resolution passed by the Board of Directors: 

"According to international corporate governance practise this kind of committees constitutes a vital link between the Board of Directors and the company's executive bodies.  It is especially important to consider that independent directors have been appointed to the committees by the Board of Directors of OJSC North Western Telecom". 

Part of the activity of these committees will involve preparing draft resolutions to be submitted for voting by the Board of Directors on major issues of the company's business activity.