Rostelecom to receive financing from VTB for the ‘Digital Backbone of Russia’ project

Moscow, Russia – July 6, 2015 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that it will receive RUB 15.6 billion in financing over a seven year period from OJSC VTB for the first stage of the ‘Digital Backbone of Russia’ project. This was approved at a meeting of the inter-departmental commission of the Ministry of Economic Development, which was held on June 29, 2015. In accordance with a government decree^[1], Rostelecom will, therefore, receive project financing at an attractive rate, which is calculated based on the Central Bank of Russia’s special rate of 9%, plus 2.5%.

The project, which will be carried out by Rostelecom, is to expand the IP MPLS network, with the overall aim being to improve the capacity and bandwidth of the long-distance and regional IP MPLS networks. As part of this project, the telecommunications infrastructure in Siberia and the Far East will be significantly upgraded, which is strategically important for enhancing the investment attractiveness of these regions.

The ‘Digital Backbone of Russia’ project is part of a wider programme that supports Russian investment projects, which are realised through project financing. This programme provides long-term financing on attractive terms for projects that are of strategic significance for Russia’s economy.