OREANDA-NEWS. On 17 April 2009 Southern Telecommunications Company (“UTK”) (RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA), the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reported that according to the decision of UTK’s Board of Directors (Minutes No.16 of 28 January 2009) the Company signed an agreement on liability insurance services for its management with OJSC SOGAZ. Insurance coverage amounts to a total of USD  30 million.

The Agreement provides liability insurance of the Company’s management in respect of its undeliberate faults of administration as well as recovery of legal and other costs incurred under claims for damages. The liability insurance also covers financial risks of the Company ensuring recovery of damage to the Company and its directors and officers.

Liability insurance tender was held in December of 2008. Five financial institutions took part in the tender.