OREANDA-NEWS. October 27, 2011. The Board of Directors of Svyazinvest (hereafter, the Company) hereby announces the results of its meeting which was held on October 5, 2011 by absentee balloting.

In accordance with an order issued by the President and the Government of Russia, the Board of Directors examined the issue of reducing expenses for the acquisition of goods and services by 10% on a per-unit basis in real terms during the next three years.

The Board of Directors instructed the executive bodies of the Company to prepare proposals on implementing a system of efficiency indicators for the Company’s activities factoring in the lower cost-side dynamics for acquisition of goods and services. The board also tasked by the General Director of the Company with working out a methodology for calculating the decrease in procurement of goods and services, devoting attention to the fact that it is not permissible to lower the quality or safety of products. The Company’s executive bodies will be reporting to the Board of Directors on a quarterly basis on lowering cost-side dynamics of goods and services subject to procurement.

Cost-side reduction dynamics will be monitored by the Audit Committee, which is accountable to the Company’s Board of Directors.