The accompanying consolidated financial statements are of OJSC Rostelecom (“Rostelecom” or the “Company”), and its subsidiaries (together the “Group”), which are incorporated in the Russian Federation (“Russia”).
Rostelecom was established as an open joint stock company on 23 September 1993 in accordance with the Directive of the State Committee on the Management of State Property of Russia No. 1507-r, dated 27 August 1993. As at 31 December 2014, the Russian Federation, represented by the Federal Property Management Agency together with Vnesheconombank and Russain Direct Investment Fund, controls the Company by holding of 55.7% of the Company’s voting ordinary shares.
The Group provides communication services (including local, intra-zone, long-distance domestic and international fixed-line telephone services, mobile services), data transmission, Internet, Pay TV, VPN and data centers services, rent of communication channels and radio communication services in the territory of Russian Federation. The Group operates the main intercity network and the international telecommunications gateways of the Russian Federation, carrying voice and data traffic that originates in its own network and other national and international operators’ networks to other national and international operators for termination.
The Company operates socially important Government programs, including “E-Government”, “Unified communication service” and other.
On 1 April 2014, the Company completed the first stage of the deal with mobile operator Tele 2 Russia to create a new national mobile operator. At the first stage the Company contributed its standalone mobile subsidiaries and the Company’s mobile fixed assets into the share capital of T2 RTK Holding.
Subsidiaries transferred at the first stage are as follows:
- Akos CJSC
- Apeks OJSC
- Astarta CJSC
- Baikalwestcom CJSC
- BIT CJSC
- Delta telecom CJSC
- Kaliningradskie Mobilnie Seti OJSC
- Moscovskaya sotovaya svyaz OJSC
- MS-Direct CJSC
- NSS CJSC
- LLC Pilar
- Saratovskaya sistema sotovoy svyazy CJSC
- Skay-1800 CJSC
- Sky Link CJSC
- Uralvestcom CJSC
- Volgograd-GSM CJSC
- Yenisey telecom CJSC
At the end of the first stage, the Group received a 26% voting interest in T2 RTK Holding.
On 6 August 2014 Rostelecom OJSC completed the second and final stage of the deal. To complete the final stage of the deal Rostelecom spun off its integrated mobile assets into RT-Mobile and had its licenses reissued to this entity. After that 100% of shares in CJSC RT-Mobile was contributed into T2 RTK Holding. At the end of the second stage the Group increased its interest in T2 RTK Holding up to 45%.
The Company’s headquarters are located in the Russian Federation, Moscow at 1st Tverskaya-Yamskaya Street, 14, 125047.