Sergei Anokhin appointed as Rostelecom's Senior Vice-President and Chief Financial Officer

Moscow, Russia - March 16, 2018 - Rostelecom PJSC ("the Company") (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces the appointment of Sergei Anokhin as the Company's Senior Vice-President and Chief Financial Officer. In his new position, he will be responsible for the Company's finance, economics, investments and reporting, as well as managing procurement activities and implementing projects to improve Rostelecom's operational efficiency. Sergei will continue be responsible for the issues of strategic planning and implementation of the strategy.

Sergei Anokhin was born in Moscow in 1979. He graduated from Plekhanov Russian University of Economics with a Degree in Finance and Credit. 

His professional path started in 2000 in the high-tech sector in a SAS company. In 2007, he moved to the banking sector as a Vice-President and head of department, and later in 2011, as a Vice President and deputy CFO at VTB24 retail bank. In 2014, Mr. Anokhin joined VTB parent bank as a CFO of the newly established unit.

He also served as the head of economic planning at the Bank of Moscow during the merger of Bank of Moscow and VTB bank in 2015 - 2016. In April 2017, Sergei was appointed Senior Vice-President at Rostelecom, where he was responsible for strategic planning, innovative development, M&A and Investor Relations, as well as for the implementation of projects relating to the transformation of Rostelecom's business and improving its operating efficiency. These responsibilities are now divided across the management team.

Kai-Uwe Mehlhorn, who served as the Company's CFO since 2013, will be leaving Rostelecom to pursue other interests.

Mikhail Oseevsky, CEO of Rostelecom commented: "I would like to thank Kai-Uwe for his contribution to the development of Rostelecom. During his tenure, the Company underwent a complete restructuring, procurement activities became more transparent, the ratio of capital expenditure to revenue was reduced from 28.4% in 2012 to 18.8% last year, and the operational efficiency programme resulted in savings of RUB 17.5 billion. He also helped establish a multifunctional General Service Centre to provide a whole range of standard business operations. I welcome the new appointment of Sergei Anokhin. In his new role, Sergei will have more opportunities and authority to implement the Company's strategy, which was developed with his direct involvement."

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Rostelecom (www.rostelecom.ru) is one of the largest national telecommunications operators in Russia and Europe. The Group operates in all segments of the telecommunications market and covers millions of households in Russia.

Rostelecom is an undisputable leader of the broadband and pay-TV markets in Russia with over 12.7 million fixed-line broadband subscribers and over 9.8 million pay-TV subscribers, over 4.8 million of which are subscribed to Rostelecom's IPTV services.

The Group generated RUB 305.3 billion of consolidated revenues, RUB 96.9 billion of OIBDA (31.7% of revenue) and RUB 14.1 billion of net income in 2017.

The Group is a market leader in providing telecommunications services to government bodies and corporates of all levels.

It is also an important innovator that provides solutions in the field of E-Government, cloud computing, medicine, education, security and housing & utility services.

The Group's stable financial position confirmed by its credit ratings. Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.

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Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby.

Those forward-looking statements include, but are not limited to:

• Assessment of PAO Rostelecom's (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
• The Company's plans to take ownership stakes in other organisations;
• the Company's anticipated capital expenditures and plans to construct and modernize its network;
• the Company's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
• the Company's plans with respect to improving its corporate governance practices;
• the Company's expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Company operates;
• economic outlook and industry trends;
• the Company's expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives on the Company's activity;
• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;
• risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies;
• risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company's services including their promotions, and the ability of the Company to remain competitive in a liberalized telecommunications market;
• technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
• other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company's Annual Report and the Company's other public filings.

Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.