OREANDA-NEWS. June 20, 2012. Rostelecom OJSC (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russias national telecommunications operator, today announces that the following resolutions were passed at the Companys Annual General Meeting of shareholders (the AGM) on June 14, 2012.

The AGM approved Rostelecoms Annual Report and its financial statements for the fiscal year ended December 31, 2011.

Based on Rostelecoms full year 2011 results, the AGM approved that the Companys profit should be distributed as follows:

1. The Companys equity capital is to be increased by RUB 17,599.481 million, or 54.05% of 2011 net profit according to Russian Accounting Standards (RAS)

2. A dividend amounting to RUB 14,961.559 million or 45.95% of 2011 net profit in accordance with RAS is to be paid, which equates to 32.48% of 2011 net profit as determined in accordance with International Financial Reporting Standards (IFRS), including:

a 2011 cash dividend of RUB 4.6959 per share on the Companys Class A preferred shares, which represents 3.5% of 2011 net profit under RAS or 2.48% of 2011 net profit under IFRS on all Class A preferred shares

a 2011 cash dividend of RUB 4.6959 per share on the Companys ordinary shares, which is equivalent to 42.45% of 2011 net profit under RAS or 30% of 2011 net profit under IFRS on all ordinary shares.

The shareholders have elected the following members of Rostelecoms Board of Directors:

1. Sergei Azatyan Managing Director of the Moscow Representative Office of MarCap Advisors Limited LLC;

2. Vladimir Bondarik General Director of Giprosvyaz;

3. Anton Zlatopolsky General Director of Rossiya TV channel;

4. Anton Inshutin Managing Partner of InVenture Partners;

5. Yury Kudimov General Director of VEB Capital;

6. Sergey Kuznetsov Member of the National Register of Independent Directors of the Russian Union of Industrialists and Entrepreneurs;

7. Mikhail Leschenko Deputy General Director of Svyazinvest;

8. Anatoly Milyukov Executive Vice President of Gazprombank;

9. Alexander Provotorov President of Rostelecom;

10. Ivan Rodionov Professor of State University Higher School of Economics, Professor of Russian State University for the Humanities;

11. Vadim Semenov General Director of Svyazinvest.

At the first Board of Directors meeting, which also took place on June 14th, Ivan Rodionov was appointed Chairman of the Board of Directors.

The shareholders also approved remuneration for the Board members not employed by the Government.

In addition, new editions of Rostelecoms Charter, the bylaws for the Board of Directors and the Provisions for the Companys Audit Commission were approved at the AGM.

ZAO KPMG was appointed as Rostelecoms auditor for 2012.