Rostelecom finalises settlements relating to financing provided by the Russian Direct Investment Fund

Moscow, Russia – October 1, 2015 – Rostelecom PJSC (“the Company”) (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that it is finalising settlements relating to the financing the Company has received from the Russian Direct Investment Fund (“RDIF”). Rostelecom will settle the financing provided by the RDIF in two stages. The first stage sees Rostelecom’s subsidiary, LLC MOBITEL, acquire 32,082,543 of the Company’s ordinary shares (the transfer of ownership was completed on September 30, 2015) at the market value as of the date the purchase agreement was signed (RUB 88.93). During the second phase, Rostelecom’s subsidiary, Rostelecom International, will make an additional US dollar payment in line with the option agreement. This payment ensures the RDIF’s investments are protected with a minimal guaranteed return of 1.5% per year.

Rostelecom received US $118.5 million of financing from the RDIF in line with the deal to purchase 1.35% of Rostelecom ordinary shares and the two-year option agreement, signed with the RDIF in October 2013. The option agreement entitled Rostelecom to a portion of an increase in share value if the share price rose, and protected the investor in the event of a share price fall.