ROSTELECOM BOARD OF DIRECTORS HELD A MEETING

Moscow, Russia - December 29, 2016 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces that on December 28, 2016 its Board of Directors has made the following decisions:

- to approve the Company's budget for 2017;

- to consider interim results of the Company's long-term development programme execution in 2016, to preliminary sustain the Company's long-term development programme for the period 2017-2021, to determine target values of the key performance indicators stipulated by the decrees of the Government of the Russian Federation No.2303p-P13 dated April 16, 2015, No. 4750p-P13 dated July 4, 2016, No. 1471p-P13 dated March 3, 2016 for the purposes of the Company's long-term development programme for the period 2015-2019;

- to approve the amended regulations No. 2 on the key performance indicators of Rostelecom;

- to approve the regulations on the key performance indicators for the purposes of annual bonuses determination of the president of Rostelecom.

This announcement contains inside information in accordance with Article 7 of EU Regulation 596/2014 of November 10, 2014.

Pavel Nezhutin
Director of Corporate Governance Department
+7 (499) 999-82-83