OREANDA-NEWS. December 28, 2009. Rostelecom (NYSE: ROS; RTS, MICEX: RTKM, RTKMP), Russia’s national telecommunications operator, announced that its Board of Directors has decided to voluntarily delist its American Depositary Receipt ("ADR") program from the New York Stock Exchange (the "NYSE"), and deregister and terminate its reporting obligations under the Securities Exchange Act of 1934 (the "Exchange Act").

After a thorough review of its Level 2 ADR program, Rostelecom’s Board of Directors has determined that continued compliance with the reporting requirements under the Exchange Act is associated with substantial expenses, while trading of Rostelecom's securities on Russian markets has accounted for more than 99% of its worldwide trading volume in the past twelve months.

Rostelecom’s intention to delist from the NYSE does not impact the Company’s commitment to maintaining high standards of transparency and corporate governance. Rostelecom will continue to publish its Annual Report and present results according to IFRS (International Financial Reporting Standards). The Company remains committed to transparent, timely communications with its Russian and international investors.

Rostelecom intends to maintain a Level 1 ADR program with JPMorgan Chase Bank, N.A. This will enable US and other investors to retain and trade their ADRs over-the-counter in the United States. Rostelecom’s securities will remain quoted on the major Russian stock exchanges – the RTS and MICEX, and on European stock markets, including London and Frankfurt, among others.

Yevgeny Yurchenko, the Chairman of Rostelecom’s Board of Directors, commented: “The decision to delist from the NYSE will free up a significant amount of capital and administrative resources necessary for the Company’s strategic development.”

Rostelecom has today provided written notice to the NYSE of its intention to delist and plans to file a Form 25 with the Securities and Exchange Commission (SEC) during December 2009 to effect the delisting. The delisting is expected to be effective 10 days after filing Form 25. The Company also intends to file a Form 15F with the SEC to deregister and terminate its reporting obligations under the Exchange Act as soon as practicable. Deregistration will be effective 90 days after the filing, or within a shorter period as the SEC may determine, barring any objection by the SEC.