OREANDA-NEWS. On 04 August 2009 Standard & Poor's Governance Services announced, that it affirmed its corporate governance scores (CGS) of 'CGS-5+' global scale and 'CGS-5.3' Russia national scale on Sibirtelecom OJSC.

The overall CGS on Sibirtelecom is the result of four component scores on the global and Russia national scales of 1 (low) to 10 (high). The global scale score is shown first below, and the Russia national scale score second:

-        Ownership structure and external influences        5/5.0 (unchanged)

-        Shareholder rights and stakeholder relations        7/7.1 (unchanged)

-        Transparency, disclosure, and audit                      6/6.4 (raised from 6/6.3)

-        Board structure and effectiveness                         4+/4.7 (unchanged)

The strengths of corporate governance practices at Sibirtelecom include the following:

·         Shareholder meeting procedures are strong. The company published audited IFRS financial statements in 2009 before the annual shareholder meeting (it published preliminary financials in 2008). Minority shareholders enjoy a wide measure of rights under Russian law and Sibirtelecom’s charter.

·         The level of disclosure is generally high. Sibirtelecom presented an unqualified auditor’s opinion in its annual IFRS accounts for the first time in 2008, and started preparation of quarterly financial statements. Proactive investor relations policies are in place.

·         Minority shareholders are active; there are two external directors on the board who are not exposed to significant conflicts of interests.

·         The board has substantial authority. The board process is supported by four board committees, all of which include independent directors. The effectiveness of the audit committee has increased since our last review, though its independence remains limited.

·         The company employs a top-tier international audit firm chosen via an open tender.

S&P Withdraws Sibirtelecom Corporate Governance Scores at the Company’s Request.