Rostelecom Board of Directors convenes its AGM and refines FCF calculation

for its dividend policy

Moscow, Russia - April 26, 2019 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest digital service provider in Russia, today announces that its Board of Directors has convened the Company's 2018 Annual General Meeting (the "AGM"). The AGM will be held on June 14, 2019 at the World Trade Center, 12 Krasnopresnenskaya Embankment, Moscow (the World Trade Center is located on the 2nd floor of the 4th entrance).

The record date to participate in the AGM has been set at May 20, 2019.

The Board of Directors has also approved a revised dividend policy to amend free cash flow ("FCF") methodology for dividends calculation. The amended FCF has been increased by subsidy from government for investment projects, which provides a fairer reflection of the Company's actual free cash flow. Subsidy from government had not been taken into account for FCF calculation in the previous methodology. This decision has been made in light of the increasing number of state-funded investment projects, which make part of the Company's overall investment programme, but are sponsored by the government through subsidies. The new methodology will be applied for the dividend calculation based on the Company's results in 2019 and onwards.

The revised dividend policy defines free cash flow as net cash from operating activities, (1) net of cash paid for purchase of property, plant and equipment and intangible assets, (2) plus proceeds from sale of property, plant and equipment and intangible assets, (3) plus interest received (4) and plus subsidy from government. The FCF shall be determined according to the Cash Flow Statement of the Company's consolidated financial statements pursuant to requirements of the International Financial Reporting Standards.

The full text of the revised dividend policy is available of Rostelecom's website at: https://www.company.rt.ru/en/ir/dividends/.

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PJSC Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.

Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to 12 million families and pay-TV services to 10.1 million families, over 5.2 million of which are subscribed to Rostelecom's IPTV services on a national level. Rostelecom's MVNO base is over 1.2 million users. The Company develops digital solutions for smart homes, online education, telemedicine and other services.

The Group is also the leading provider of telecommunications services to government bodies and corporates of all levels with more than 1.0 million legal entities currently using Rostelecom's high-speed Internet services and VPN.

In the twelve months of 2018, the Group generated RUB 320.2 billion of revenues, RUB 100.9 billion of OIBDA (31.5% of revenue) and RUB 15.0 billion of net income.

Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data centers and cloud computing, biometry, healthcare, education and housing & utility services.

The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been 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.