Edgar Filing: OPEN JOINT STOCK CO VIMPEL COMMUNICATIONS

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of August 2009

Commission File Number 1-14522

Open Joint Stock Company “Vimpel-Communications”

(Translation of registrant’s name into English)

10 Ulitsa 8-Marta, Building 14, Moscow, Russian Federation 127083

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F [X] Form 40-F [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): .

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): .

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [ ] No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	OPEN JOINT STOCK COMPANY “VIMPEL-COMMUNICATIONS”
	(Registrant)

Date: August 27, 2009

	By:	/s/ Alexander Y. Torbakhov
	Name:	Alexander Y. Torbakhov
	Title:	General Director

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VIMPELCOM ANNOUNCES SECOND QUARTER AND AUDITED ANNUAL 2009 FINANCIAL AND OPERATING RESULTS

Moscow and New York (August 27, 2009) - Open Joint Stock Company “Vimpel-Communications” (“VimpelCom” or the “Company”) (NYSE: VIP), the leading provider of telecommunications services in Russia and the Commonwealth of Independent States (CIS), today announced its financial and operating results for the quarter ended June 30, 2009.

Second Quarter 2009 Financial Highlights

•

Net operating revenues reached 69.0 billion Russian rubles, an increase of 3.3% versus 1Q09

•

OIBDA reached 35.0 billion rubles, an increase of 8.7% versus 1Q09

•

Consolidated OIBDA margin improved to 50.6% from 48.1% reported in 1Q09

•

Net income amounted to 22.6 billion rubles compared to a 8.5 billion rubles loss in 1Q09

Second Quarter 2009 Operating Highlights

•

Mobile subscribers increased by 1.0 million versus 1Q09, reaching 63.7 million

•

Launch of operations in Cambodia and Vietnam under Beeline brand

•

Active 3G networks in 51 regions of Russia

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Commenting on the performance of the Company, Boris Nemsic, Chief Executive Officer of VimpelCom, said, “We are pleased with our performance during the second quarter. We continue to demonstrate strong results with revenues of 69.0 billion rubles and OIBDA of 35.0 billion rubles. In spite of the economic crisis we achieved 12% year-on-year growth in revenue and 21% year-on-year growth in OIBDA.

We increased the number of active mobile subscribers to 63.7 million, almost 19% more than we had last year. The residential broadband business grew in line with our expectations and we now serve 1.7 million fixed and mobile broadband subscribers compared to 0.6 million customers a year ago.

I am especially proud to report that revenue growth coupled with successful business integration and ongoing cost control yielded a consolidated fixed and mobile OIBDA margin of 50.6%. The consolidated OIBDA margin is 2.5 percentage points above a strong first quarter figure and represents a 3.8 percentage point increase compared to the results of the second quarter of 2008.

Cash flow from operations for the quarter amounted to 27.6 billion rubles or $858 million dollars^*. We had a modest increase in capital expenditures compared to the first quarter of 2009. In line with our initial expectations we plan to increase CAPEX in the second half of the year to ensure the sustainability of our business and to capture growth opportunities going forward.

Although our operations during the second quarter reflected the underlying robustness of the telecom markets and our successful business execution, macroeconomic uncertainty still remains a significant factor in the current environment. Hence, looking forward we maintain our stance of cautious optimism”.

*	The average exchange rate for the quarter ended June 30, 2009 was 32.2145 RUR/US$

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Key Consolidated Financial and Operating Results


*CONSOLIDATED OPERATIONS (RUR, millions)**	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Net operating revenues	69,035		61,684		11.9	%	66,843		3.3	%
OIBDA	34,958		28,889		21.0	%	32,166		8.7	%
OIBDA margin, %	50.6	%	46.8	%			48.1	%
Operating income	22,250		17,409		27.8	%	19,266		15.5	%
Operating income margin, %	32.2	%	28.2	%			28.8	%
SG&A	18,458		18,278		1.0	%	18,206		1.4	%
including Sales & Marketing Expenses	5,414		5,074		6.7	%	5,302		2.1	%
including General & Administrative Costs	13,044		13,204		-1.2	%	12,904		1.1	%
SG&A percentage	26.7	%	29.6	%			27.2	%
Net income (loss)	22,599		11,109		103.4	%	-8,514		n/a
Net income (loss) per common share, basic (RUR)	446.43		218.69				-168.20
Net income (loss) per ADS equivalent, basic (RUR)	22.32		10.93				-8.41
Capital expenditures	5,027		15,689		-68.0	%	3,925		28.1	%
Mobile subscribers (‘000)	63,676		53,707		18.6	%	62,724		1.5	%
Broadband subscribers^*) (‘000)	1,712		617		177.5	%	1,538		11.3	%

*	See definitions in Attachment A. Y-o-y stands for 2Q’09 vs. 2Q ‘08 comparison while q-o-q stands for 2Q ‘09 vs. 1Q ‘09.


*Net operating revenues 2Q ‘09 (RUR, millions)**	Russia	CIS	Other	Eliminations	Total
Mobile business	49,410	8,859	28	-89	58,208
Fixed business	13,007	2,040	0	-472	14,575
Eliminations	-3,281	-231	0	-236	-3,748
Total net operating revenue	59,136	10,668	28	-797	69,035

*	Due to the increasing integration between different parts of our business, we include inter-company transactions in the reported revenues of geographic and business segments and indicate the amount of inter-company eliminations within and between the segments.

The quarterly net operating revenues increased by 11.9% year-on-year and 3.3% as compared with the previous quarter demonstrating the strength of our core business.

Synergies from business integration and focus on operational efficiency helped us to achieve 8.7% quarter-on-quarter OIBDA growth, and even more remarkably, 21.0% year-on-year OIBDA growth. Solid cash inflow from operations coupled with our prudent approach to working capital resulted in a 21.7% increase of quarterly operational cash flow compared to the same period of 2008.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

During the second quarter we repaid $456 million dollars of debt. Additionally, in July of 2009 we raised 10 billion in Ruble bonds in order to optimize the structure of our debt portfolio through extended duration and a more balanced currency composition.

Our quarterly net income amounted to 22.6 billion rubles, including a 10.6 billion ruble net foreign exchange gain due to the strengthening ruble.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Russia - Financial and Operating Results


RUSSIA (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Net operating revenues	59,136		52,915		11.8	%	56,272		5.1	%
OIBDA	30,279		25,041		20.9	%	27,227		11.2	%
OIBDA margin, %	51.2	%	47.3	%			48.4	%
Operating income	20,574		16,269		26.5	%	17,719		16.1	%
Operating income margin, %	34.8	%	30.7	%			31.5	%
SG&A	15,417		15,521		-0.7	%	14,936		3.2	%
including Sales & Marketing Expenses	4,726		4,273		10.6	%	4,485		5.4	%
including General & Administrative Costs	10,691		11,248		-5.0	%	10,451		2.3	%
SG&A percentage	26.1	%	29.3	%			26.5	%
Net income (loss)	21,835		10,616		105.7	%	-6,722		n/a

Our quarterly net operating revenues in Russia amounted to 59.1 billion rubles, a growth of 5.1% compared to the previous quarter or 11.8% compared to the same period of 2008. The consolidated OIBDA margin in Russia was 51.2%, up from 47.3% reported a year ago.

In the mobile segment our revenues increased by 8.2% quarter-on-quarter. MOU was up by 4.3% compared with the previous quarter, reflecting a combination of the normal seasonal increase and slight downward pressure from the macroeconomic environment. The increase in usage, coupled with stable pricing, led to an increase in ARPU of 5.2%.

Our fixed-line revenues decreased by 2.3% quarter-on-quarter, and now represent 17.2% of the total revenues in Russia. The fixed-line OIBDA margin decreased slightly to 29.6% from 30.1% reported in the first quarter. The quarterly financial dynamics were impacted by the ruble appreciation as some of our corporate and wholesale tariffs are linked to foreign currencies, while the majority of the operating expenses is in Russian rubles.

In the second quarter of 2009 the total number of residential broadband subscribers in Russia including FTTB and mobile broadband reached 1.7 million.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results


RUSSIA REVENUES (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Net operating revenues	59,136		52,915		11.8	%	56,272		5.1	%
Mobile revenues	49,410		44,004		12.3	%	45,653		8.2	%
Fixed revenues	13,007		9,788		32.9	%	13,308		-2.3	%
Eliminations	-3,281		-877				-2,689

*RUSSIA OIBDA DEVELOPMENT (RUR, millions)**	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA Total	30,279		25,041		20.9	%	27,227		11.2	%
Mobile OIBDA	26,427		22,895		15.4	%	23,222		13.8	%
Fixed OIBDA	3,852		2,146		79.5	%	4,005		-3.8	%
Total OIBDA margin, %	51.2	%	47.3	%			48.4	%
Mobile OIBDA margin, %	53.5	%	52.0	%			50.9	%
Fixed OIBDA margin, %	29.6	%	21.9	%			30.1	%

RUSSIA OPERATING DEVELOPMENT	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	49,971		42,485		17.6	%	49,351		1.3	%
Subscriber market share**⁾, %	25.3	%	24.6	%			25.9	%
MOU, min	211.8		220.3		-3.9	%	203.0		4.3	%
ARPU mobile, (RUR)	322.5		347.6		-7.2	%	306.6		5.2	%
Broadband subscribers (‘000)	1,659		604		174.7	%	1,498		10.7	%

*	Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ22009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

Source: AC&M-Consulting. Starting from January 1, 2008 VimpelCom’s market share is calculated on the basis of active subscribers. Published data on the number of subscribers of other wireless service providers may vary significantly because of different accounting methodologies for calculating the active subscriber base.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

CIS - Financial and Operating Results


CIS OPERATIONS (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Net operating revenues	10,668		9,170		16.3	%	11,287		-5.5	%
OIBDA	4,908		3,885		26.3	%	5,079		-3.4	%
OIBDA margin, %	46.0	%	42.4	%			45.0	%
Operating income	1,929		1,177		63.9	%	1,691		14.1	%
Operating income margin, %	18.1	%	12.8	%			15.0	%
SG&A	2,844		2,727		4.3	%	3,140		-9.4	%
including Sales & Marketing Expenses	633		801		-21.0	%	771		-17.9	%
including General & Administrative Costs	2,211		1,926		14.8	%	2,369		-6.7	%
SG&A percentage	26.7	%	29.7	%			27.8	%
Net income (loss)	841		528		59.3	%	-374		n/a
Mobile subscribers (‘000)	13,626		11,222		21.4	%	13,373		1.9	%
Broadband subscribers*) (‘000)	53		13		307.7	%	40		32.5	%

In the CIS we continue to expand our subscriber base, which reached 13.6 million active users, 21.4% more than a year ago. The revenues from our CIS operations increased by 16.3% when compared to the second quarter of 2008, growing to 14.6%^* of the Group consolidated revenues.

However, the reported financial results in the CIS countries were negatively affected by ruble appreciation versus the functional currency. In local currency terms, we see quarterly revenue growth in our major CIS markets. Please see Attachment F for the applicable exchange rates.

We are OIBDA positive in all segments and all markets where we operate. The consolidated fixed and mobile OIBDA margin from our CIS operations increased to 46.0%, a 3.6 percentage point increase during the second quarter of 2008 reflecting ongoing cost optimization efforts throughout the Group.

In the second quarter of 2009, our consolidated CIS fixed and mobile OIBDA amounted to almost 4.9 billion rubles with a net income of 0.8 billion rubles.

*	Calculated on the basis of net operating revenues excluding inter-company transactions.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

CIS Revenues Development


KAZAKHSTAN (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	5,061	4,377	15.6	%	5,223	-3.1	%
Mobile	4,988	4,312	15.7	%	5,145	-3.1	%
Fixed	190	115	65.2	%	166	14.5	%
Elimination	-117	-50			-88
Net operating revenues (KZT)	23,679	22,341	6.0	%	21,373	10.8	%

UKRAINE (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	1,645	1,683	-2.3	%	1,609	2.2	%
Mobile	956	1,079	-11.4	%	894	6.9	%
Fixed	800	670	19.4	%	836	-4.3	%
Elimination	-111	-66			-121
Net operating revenues (UAH)	390	353	10.5	%	365	6.8	%

ARMENIA (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	1,584	1,528	3.7	%	1,787	-11.4	%
Mobile	634	623	1.8	%	721	-12.1	%
Fixed	950	905	5.0	%	1,066	-10.9	%
Elimination	0	0			0
Net operating revenues (AMD)	18,253	19,862	-8.1	%	17,066	7.0	%

UZBEKISTAN (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	1,693	1,229	37.8	%	1,984	-14.7	%
Mobile	1,594	1,168	36.5	%	1,884	-15.4	%
Fixed	100	61	63.9	%	101	-1.0	%
Elimination	-1	0			-1
Net operating revenues (US$)	53	52	1.9	%	58	-8.6	%

TAJIKISTAN (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	461	266	73.3	%	487	-5.3	%
Mobile	461	266	73.3	%	487	-5.3	%
Net operating revenues (US$)	14	11	27.3	%	14	0.0	%

GEORGIA (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	229	92	148.9	%	205	11.7	%
Mobile	229	92	148.9	%	205	11.7	%
Net operating revenues (GEL)	12	6	100.0	%	10	20.0	%

CIS (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Net operating revenues	10,668	9,170	16.3	%	11,287	-5.5	%
Mobile	8,859	7,536	17.6	%	9,331	-5.1	%
Fixed	2,040	1,751	16.5	%	2,169	-5.9	%
Elimination	-231	-117			-213

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

CIS OIBDA Development*


KAZAKHSTAN (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	2,745		2,277		20.6	%	2,672		2.7	%
Mobile	2,643		2,225		18.8	%	2,584		2.3	%
Fixed	102		52		96.2	%	88		15.9	%
OIBDA Margin, %	54.2	%	52.0	%			51.2	%

UKRAINE (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	322		221		45.7	%	215		49.8	%
Mobile	82		59		39.0	%	-2		n/a
Fixed	240		162		48.1	%	217		10.6	%
OIBDA margin, %	19.6	%	13.1	%			13.4	%

ARMENIA (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	799		717		11.4	%	924		-13.5	%
Mobile	298		243		22.6	%	356		-16.3	%
Fixed	501		474		5.7	%	568		-11.8	%
OIBDA Margin, %	50.4	%	46.9	%			51.7	%

UZBEKISTAN (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	865		657		31.7	%	1,122		-22.9	%
Mobile	825		642		28.5	%	1,082		-23.8	%
Fixed	40		15		166.7	%	40		0.0	%
OIBDA Margin, %	51.1	%	53.5	%			56.6	%

TAJIKISTAN (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	173		63		174.6	%	164		5.5	%
Mobile	173		63		174.6	%	164		5.5	%
OIBDA Margin, %	37.5	%	23.7	%			33.7	%

GEORGIA (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	4		-50		n/a		-18		n/a
Mobile	4		-50		n/a		-18		n/a
OIBDA Margin, %	1.7	%	n/a				n/a

CIS (RUR, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
OIBDA total	4,908		3,885		26.3	%	5,079		-3.4	%
Mobile	4,025		3,182		26.5	%	4,166		-3.4	%
Fixed	883		703		25.6	%	913		-3.3	%
OIBDA margin, %	46.0	%	42.4	%			45.0	%

*	Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ22009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

CIS Operating Highlights


KAZAKHSTAN	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	6,635		5,098		30.1	%	6,377		4.0	%
Subscriber market share*), %	43.3	%	39.6	%			42.6	%
MOU, min	90.7		109.7		-17.3	%	81.1		11.8	%
ARPU mobile, (RUR)	253.6		289.9		-12.5	%	268.5		-5.5	%
ARPU mobile, (KZT)	1,187.1		1,479.5		-19.8	%	1,099.0		8.0	%

UKRAINE	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	1,934		2,111		-8.4	%	1,894		2.1	%
Subscriber market share*), %	3.5	%	3.8	%			3.4	%
MOU, min	217.8		231.0		-5.7	%	213.3		2.1	%
ARPU mobile, (RUR)	166.8		177.8		-6.2	%	151.4		10.2	%
ARPU mobile, (UAH)	39.7		37.2		6.7	%	34.6		14.7	%
Broadband subscribers (‘000)	53		13		307.7	%	40		32.5	%
ARPU broadband, (RUR)	261.0		362.7		-28.0	%	299.8		-12.9	%
ARPU broadband, (UAH)	62.0		63.0		-1.6	%	68.5		-9.5	%

ARMENIA	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	486		655		-25.8	%	481		1.0	%
Subscriber market share*), %	19.2	%	30.5	%			19.0	%
MOU, min	238.4		164.9		44.6	%	174.7		36.5	%
ARPU mobile, (RUR)	436.9		362.5		20.5	%	478.7		-8.7	%
ARPU mobile, (AMD)	5,034.7		4,710.8		6.9	%	4,573.7		10.1	%

UZBEKISTAN	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	3,605		2,754		30.9	%	3,653		-1.3	%
Subscriber market share*), %	25.0	%	31.2	%			27.9	%
MOU, min	225.6		294.6		-23.4	%	238.6		-5.4	%
ARPU mobile, (RUR)	150.6		155.8		-3.3	%	177.1		-15.0	%
ARPU mobile, (US$)	4.7		6.6		-28.8	%	5.2		-9.6	%

TAJIKISTAN	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	677		435		55.6	%	722		-6.2	%
Subscriber market share*), %	18.2	%	17.4	%			19.8	%
MOU, min	173.1		241.1		-28.2	%	171.7		0.8	%
ARPU mobile, (RUR)	221.6		221.1		0.2	%	239.7		-7.6	%
ARPU mobile, (US$)	6.9		9.4		-26.6	%	7.0		-1.4	%

GEORGIA	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Mobile subscribers (‘000)	289		169		71.0	%	246		17.5	%
Subscriber market share*), %	7.5	%	4.9	%			6.5	%
MOU, min	123.1		89.3		37.8	%	121.2		1.6	%
ARPU mobile, (RUR)	283.6		194.1		46.1	%	285.5		-0.7	%
ARPU mobile, (GEL)	14.5		11.9		21.8	%	14.0		3.6	%

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Other Operations

In May 2009, we launched commercial operations in Cambodia, offering services under the Beeline brand. Initial sales have been strong and generated 28 million rubles in revenues since its launch. Presently, our services are available in the 11 largest provinces reaching 42% of the country’s population. By the end of 2009, we plan to expand coverage reaching more than two thirds of the country’s population.

In Vietnam, we launched commercial operations on July 20th. At the initial stage Beeline services will be available in the largest provinces of Vietnam with more than 15 million people. By the end of 2009, we plan to cover more than 40 provinces of Vietnam with a population of about 41 million.


*OTHER (RUR, millions)**	2Q ‘09	2Q ‘08	y-o-y	1Q ‘09	q-o-q
Net operating revenues	28	0	n/a	0	n/a
OIBDA total	-229	-36	n/a	-140	n/a

*⁾	See definitions in Attachment A.

* * *

For more information on financial and operating data for specific countries, please refer to the supplementary file FinancialOperatingQ22009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

The Company’s management will discuss its second quarter 2009 results during a conference call and slide presentation on August 27, 2009 at 6:30 pm Moscow time (10:30 am US ET). The call and slide presentation may be accessed via webcast at the following URL address http://www.vimpelcom.com. The conference call replay will be available through September 3, 2009. The slide presentation webcast will also be available for download on VimpelCom’s website http://www.vimpelcom.com.

The VimpelCom Group consists of telecommunications operators providing voice and data services through a range of mobile, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, Armenia, as well as Vietnam and Cambodia, in territories with a total population of about 340 million. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange (“NYSE”). VimpelCom’s ADSs are listed on the NYSE under the symbol “VIP”.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

This press release contains “forward-looking statements”, as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements relate to the Company’s development plans in Cambodia and Vietnam. These and other forward-looking statements are based on management’s best assessment of the Company’s strategic and financial position and of future market conditions and trends. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of continued volatility in the economies in the markets in which the Company operates, unforeseen developments from competition, governmental regulation of the telecommunications industries, general political uncertainties in the markets in which the Company operates and/or litigation with third parties. The actual outcome may also differ materially if the Company is unable to obtain all necessary corporate approvals relating to its business, if the Company is unable to successfully integrate newly-acquired businesses, including Golden Telecom, and other factors. There can be no assurance that such risks and uncertainties will not have a material adverse effect on the VimpelCom Group. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2008 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

For more information, please contact:


Alexey Subbotin		Mateo Millett
VimpelCom		FD
Tel: 7(495) 910-5977		Tel: 1-617 897-1533
Investor_Relations@vimpelcom.com		mateo.millett@fdashtonpartners.com

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

- Definitions and tables are attached –

Attachment A: Definitions

Mobile subscribers are those subscribers in the registered subscriber base who were a party to a revenue generating activity in the past three months and remain in the base at the end of the reported period, except for the subscriber base in Cambodia which is calculated on a one month basis. Such activities include all incoming and outgoing calls, subscriber fee accruals, debits related to service, outgoing SMS, MMS, data transmission and receipt sessions, but do not include incoming SMS and MMS sent by our Company or abandoned calls.

Each ADS represents 0.05 of one share of common stock. This ratio was established effective August 21, 2007.

ARPU (Monthly Average Revenue per User), a non-U.S. GAAP financial measure, is calculated by dividing the Company’s service revenue during the relevant period, including roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of the Company’s subscribers during the period and dividing by the number of months in that period. The Company believes that ARPU provides useful information to investors because it is an indicator of the performance of the Company’s business operations and assists management in budgeting. The Company also believes that ARPU provides management with useful information concerning usage and acceptance of the Company’s services. ARPU should not be viewed in isolation or an alternative to other figures reported under U.S. GAAP.

Broadband subscribers are those subscribers in the registered subscriber base who were a party to a revenue generating activity in the past three months. Such activities include monthly internet access using FTTB, xDSL and WiFi technologies as well as mobile home internet service via USB modems.

CIS Geographic Segment for the purpose of VimpelCom reporting includes our operations in the following countries: Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Armenia and Georgia.

Fixed-line subscriber is an authorized user of fixed-line communications services.

General and administrative costs (G&A) include salaries and outsourcing costs, including related social contributions required by Russian law; stock price-based compensation expenses; repair and maintenance expenses; rent, including lease payments for base station sites; utilities; other miscellaneous expenses, such as insurance, operating taxes, license fees, and accounting, audit and legal fees.

Households passed are households located within buildings, in which indoor installation of all the FTTB equipment necessary to install terminal residential equipment has been completed.

Market share of subscribers for each relevant area is calculated by dividing the estimated number of our mobile subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, respectively, by the total estimated number of mobile subscribers in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, respectively, and is provided by AC&M-Consulting.

Mobile services are wireless voice and data transmission services excluding WiFi.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

MOU (Monthly Average Minutes of Use per User) is calculated by dividing the total number of minutes of usage for incoming and outgoing calls during the relevant period (excluding guest roamers) by the average number of mobile subscribers during the period and dividing by the number of months in that period.

OIBDA is a non-U.S. GAAP financial measure. OIBDA, previously referred to as EBITDA by the Company, is defined as operating income before depreciation, amortization and impairment loss. The Company believes that OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation, amortization and impairment loss are considered operating costs under U.S. GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our OIBDA calculations are commonly used as bases for some investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry. OIBDA should not be considered in isolation as an alternative to net income, operating income or any other measure of performance under U.S. GAAP. OIBDA does not include our need to replace our capital equipment over time. Reconciliation of OIBDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

OIBDA margin is OIBDA expressed as a percentage of net operating revenues. Reconciliation of OIBDA margin to operating income as a percentage of net operating revenues, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

Prepaid subscribers are those subscribers who pay for their services in advance.

Roaming revenues include both revenues from VimpelCom customers who roam outside of home country network and revenues from other wireless carriers for roaming by their customers on VimpelCom’s network.

Sales and marketing costs (S&M) include marketing, advertising and dealer commissions expenses.

Take-up rate for the FTTB network is calculated by dividing the number of FTTB subscribers by the total number of households passed.

VAS (value added services) includes short messages (“SMS”), multimedia messages (“MMS”), caller number identification, call waiting, data transmission, mobile Internet, downloadable content and other services.

Capital expenditures (Capex) - purchases of new equipment, new construction, upgrades, software, other long lived assets and related reasonable costs incurred prior to intended use of the non current asset, accounted at the earliest event of advance payment or delivery. Long-lived assets acquired in business combinations are not included in capital expenditures.

“Other” category includes information about other business activities and operating segments that are not reportable elsewhere due to the non-materiality of such business activities and operating segments, and were therefore combined and disclosed in the “Other” category separately from other reconciling items. This “Other” category includes VimpelCom’s operations in Cambodia, DVB-T/DVB-H activities and VimpelCom’s respective equity in net results of operations of the Company’s associates GTEL-Mobile JSC (“GTEL-Mobile”) and Morefront Holdings Ltd.

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Attachment B: VimpelCom financial statements

Open Joint Stock Company “Vimpel-Communications”

Unaudited Condensed Consolidated Statements of Income


	Three months ended June 30,				Six months ended June 30,
	2009		2008		2009		2008
	*(In millions of Russian rubles, except per share (ADS) amounts)*
Operating revenues:
Service revenues	67,880		61,529		133,688		112,603
Sales of equipment and accessories	1,041		64		2,022		105
Other revenues	171		135		302		194

Total operating revenues	69,092		61,728		136,012		112,902
Revenue based taxes	(57	)	(44	)	(134	)	(80	)

Net operating revenues	69,035		61,684		135,878		112,822

Operating expenses:
Service costs	14,251		14,090		29,154		24,546
Cost of equipment and accessories	974		56		1,955		95
Selling, general and administrative expenses	18,458		18,278		36,664		31,098
Depreciation	10,451		9,097		20,903		17,758
Amortization	2,257		2,383		4,705		4,018
Provision for doubtful accounts	394		371		981		879

Total operating expenses	46,785		44,275		94,362		78,394


Operating income	22,250		17,409		41,516		34,428
Other income and expenses:
Interest income	600		583		1,100		940
Net foreign exchange gain/(loss)	10,612		608		(12,997	)	5,096
Interest expense	(4,514	)	(2,860	)	(9,160	)	(4,780	)
Equity in net gain/(loss) of associates	184		—		(1,014	)	—
Other income/(expenses), net	6		(60	)	(185	)	(258	)

Total other income and expenses	6,888		(1,729	)	(22,256	)	998

Income before income taxes and noncontrolling interest	29,138		15,680		19,260		35,426
Income tax expense	6,303		4,221		5,318		8,967

Net income	22,835		11,459		13,942		26,459
Net income/(loss) attributable to the noncontrolling interest	236		350		(143	)	763

Net income attributable to VimpelCom	22,599		11,109		14,085		25,696

Basic earnings per share:
Net income attributable to VimpelCom per common share	446.43		218.69		278.25		505.96

Weighted average common shares outstanding (thousand)	50,622		50,797		50,620		50,787
Net income attributable to VimpelCom per ADS equivalent	22.32		10.93		13.91		25.30

Diluted earnings per share:
Net income attributable to VimpelCom per common share	446.18		218.69		278.22		505.96

Weighted average diluted shares (thousand)	50,650		50,797		50,625		50,787
Net income attributable to VimpelCom per ADS equivalent	22.31		10.93		13.91		25.30

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Open Joint Stock Company “Vimpel-Communications”

Unaudited Condensed Consolidated Balance Sheets


	June 30, 2009		December 31, 2008
	*(In millions of Russian rubles)*
Assets
Current assets:
Cash and cash equivalents	51,605		26,873
Trade accounts receivable, net of allowance for doubtful debt	13,550		13,974
Inventory	2,773		4,191
Deferred income taxes	2,170		2,432
Input value added tax	3,697		5,349
Due from related parties	8,930		4,942
Other current assets	5,899		12,941

Total current assets	88,624		70,702
Property and equipment, net	177,321		188,778
Telecommunication licenses, net	19,624		22,470
Goodwill	99,974		102,148
Other intangible assets, net	23,423		25,935
Software, net	13,859		16,134
Investments in associates	14,042		14,501
Other assets	24,012		21,314

Total assets	460,879		461,982


Liabilities and equity
Current liabilities:
Accounts payable	15,216		26,409
Due to employees	3,584		3,108
Due to related parties	324		142
Accrued liabilities	9,693		8,484
Taxes payable	9,104		4,471
Customer advances, net of VAT	9,030		12,492
Customer deposits	827		868
Short-term debt	70,157		56,093

Total current liabilities	117,935		112,067

Deferred income taxes	16,567		18,934
Long-term debt	179,368		191,963
Other non-current liabilities	5,012		3,608
Commitments, contingencies and uncertainties	—		—
Equity
Convertible voting preferred stock (.005 rubles nominal value per share), 10,000,000 shares authorized; 6,426,600 shares issued and outstanding	—		—
Common stock (.005 rubles nominal value per share), 90,000,000 shares authorized; 51,281,022 shares issued (December 31, 2008: 51,281,022); 50,629,908 shares outstanding (December 31, 2008: 50,617,408)	3		3
Additional paid-in capital	42,719		42,624
Retained earnings	101,684		87,599
Accumulated other comprehensive (loss)/income	(1,813	)	4,498
Treasury stock, at cost, 651,114 shares of common stock (December 31, 2008: 663,614)	(5,966	)	(5,983	)

Total VimpelCom shareholder’s equity	136,627		128,741
Noncontrolling interest	5,370		6,669


Total equity	141,997		135,410

Total liabilities and equity	460,879		461,982

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Open Joint Stock Company “Vimpel-Communications”

Unaudited Condensed Consolidated Statements of Cash Flows


	Six months ended June 30,
	2009		2008
	*(In millions of Russian rubles)*
Net cash provided by operating activities	55,648		43,575
Investing activities

Purchases of property and equipment	(12,203	)	(21,131	)
Purchases of intangible assets	(399	)	(900	)
Acquisition of subsidiaries, net of cash acquired	—		(99,600	)
Loan granted	—		(8,491	)
Short-term deposits	—		(2,368	)
Exercise of escrow cash deposit	—		4,856
Purchases of software and other assets, net	(4,192	)	(4,062	)
Purchase of noncontrolling interest in consolidated subsidiaries	(14	)	(23,322	)

Net cash used in investing activities	(16,808	)	(155,018	)

Financing activities
Proceeds from bank and other loans	18,437		119,444
Proceeds from sale of treasury stock	—		413
Purchase of treasury stock	—		(988	)
Repayments of bank and other loans	(33,173	)	(7,615	)
Payments of fees in respect of debt issues	(1,554	)	(1,267	)
Net proceeds from employee stock options	60		—
Payment of dividends to non controlling interest	(23	)	—

Net cash (used in)/provided by financing activities	(16,253	)	109,987

Effect of exchange rate changes on cash and cash equivalents	2,145		(221	)


Net increase/(decrease) in cash and cash equivalents	24,732		(1,677	)
Cash and cash equivalents at beginning of period	26,873		24,637

Cash and cash equivalents at end of period	51,605		22,960


Supplemental cash flow information
Cash paid during the period:
Income tax	5,792		7,932
Interest	9,335		3,038
Non-cash activities:
Equipment acquired under financing agreements	6		1,320
Accounts payable for equipment and other long-lived assets	5,172		6,452
Acquisitions:
Fair value of assets acquired	—		61,746
Fair value of noncontrolling interest acquired	—		1,152
Difference between the amount paid and the fair value of net assets acquired	—		76,224
Consideration for the acquisition of subsidiaries	—		(114,926	)

Change in fair value of liabilities assumed	—		24,196

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Attachment C: Reconciliation Tables (Unaudited)

Reconciliation of Consolidated OIBDA

(In millions of Russian rubles)


OIBDA Consolidated Total	2Q ‘09		2Q ‘08		1Q ‘09
OIBDA	34,958		28,889		32,166
Depreciation	(10,451	)	(9,097	)	(10,452	)
Amortization	(2,257	)	(2,383	)	(2,448	)
Operating income	22,250		17,409		19,266

Reconciliation of OIBDA Margin


OIBDA Margin Consolidated Total	2Q ‘09		2Q ‘08		1Q ‘09
OIBDA margin	50.6	%	46.8	%	48.1	%
Less: Depreciation as a percentage of net operating revenues	(15.1	%)	(14.7	%)	(15.6	%)
Less: Amortization as a percentage of net operating revenues	(3.3	%)	(3.9	%)	(3.7	%)
Operating income as a percentage of net operating revenues	32.2	%	28.2	%	28.8	%

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Attachment D: Capex Development


CAPEX (RUR, millions)	2Q ‘09	2Q ‘08	y-o-y		1Q ‘09	q-o-q
Total capex	5,027	15,689	-68.0	%	3,925	28.1	%
Russia	3,440	10,010	-65.6	%	3,070	12.1	%
CIS	817	5,645	-85.5	%	416	96.4	%
Kazakhstan	376	1,311	-71.3	%	191	96.9	%
Ukraine	95	1,279	-92.6	%	96	-1.0	%
Armenia	12	494	-97.6	%	9	33.3	%
Uzbekistan	241	1,955	-87.7	%	50	382.0	%
Tajikistan	24	319	-92.5	%	15	60.0	%
Georgia	69	287	-76.0	%	55	25.5	%
Other	770	34	2164.7	%	439	75.4	%

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Attachment E: Key Financial Results in US Dollars (Convenience Translation)


CONSOLIDATED OPERATIONS (US$, millions)	2Q ‘09		2Q ‘08		y-o-y		1Q ‘09		q-o-q
Net operating revenues	2,143		2,611		-17.9	%	1,970		8.8	%
OIBDA	1,085		1,223		-11.3	%	948		14.5	%
OIBDA margin, %	50.6	%	46.8	%			48.1	%
Operating income	691		737		-6.2	%	568		21.7	%
Operating income margin, %	32.2	%	28.2	%			28.8	%
SG&A	573		774		-26.0	%	537		6.7	%
including Sales & Marketing Expenses	168		215		-21.9	%	156		7.7	%
including General & Administrative Costs	405		559		-27.5	%	380		6.6	%
SG&A percentage	26.7	%	29.6	%			27.3	%
Net income (loss)	702		470		49.4	%	-251		n/a
Net income (loss) per common share, basic (US$)	13.86		9.26				-4.96
Net income (loss) per ADS equivalent, basic (US$)	0.69		0.46				-0.25
Capital expenditures	156.0		664.0		-76.5	%	115.7		34.9	%

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VimpelCom Announces Second Quarter 2009 Financial and Operating Results

Attachment F: Average Rates of Functional Currencies to Ruble*


Functional Currency/ 1 RUR		1Q ‘08	2Q ‘08	3Q ‘08	4Q ‘08	1Q ‘09	2Q ‘09
Kazakhstan	KZT	4.9690	5.1038	4.9540	4.4077	4.0948	4.6771
Ukraine	UAH	0.2081	0.2101	0.2003	0.2274	0.2281	0.2376
Tajikistan	USD	0.0412	0.0423	0.0412	0.0367	0.0295	0.0311
Uzbekistan	USD	0.0412	0.0423	0.0412	0.0367	0.0295	0.0311
Armenia	AMD	12.6926	13.0012	12.4664	11.2309	9.6090	11.5227
Georgia	GEL	0.0641	0.0612	0.0582	0.0568	0.0495	0.0515
Cambodia	USD						0.0311

*	Functional currencies in Tajikistan, Uzbekistan and Cambodia are US dollars.

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VimpelCom

2Q09 Financial and Operating Results

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Disclaimer

This presentation contains “forward-looking statements”, as the phrase is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate, in part, to the Company’s strategy, development plans and anticipated performance. The forward-looking statements are based on management’s best assessment of the Company’s strategic and financial position, and future market conditions and trends. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of continued volatility in the economies in the markets in which the Company operates, unforeseen developments from competition, governmental regulation of the telecommunications industries and general political uncertainties in the markets in which the Company operates and/or litigation with third parties. The actual outcome may also differ materially if the Company is unable to obtain all necessary corporate approvals relating to its business, if the Company is unable to successfully integrate newly-acquired businesses, including Golden Telecom, and other factors. There can be no assurance that these risks and uncertainties will not have a material adverse effect on the Company, that the Company will be able to grow or that it will be successful in executing its strategy and development plans. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2008 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

2009

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Participants

Presentation

Alexander Torbakhov, General Director Boris Nemsic, Chief Executive Officer Elena Shmatova, CFO

Q&A Session

will be joined by:

Kent McNeley,

VP, Chief Marketing Officer

Dmitry Pleskonos,

Executive VP, Business Development CIS

Andrey Patoka,

VP, Head of B2B Russia

2009

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2Q09 in Brief

Ruble revenue growth of 11.9% year-on-year and 3.3% quarter-on-quarter confirming robustness of our core business

Management focus on operational excellence resulting in 21.0% OIBDA increase year-on-year with consolidated fixed and mobile OIBDA margin of 50.6%

Solid cash flow enhanced by prudent approach to working capital resulting in $858 million of operating cash flow

Launch of operations in Cambodia and Vietnam substantially expanding our geographic footprint

2009

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Quarterly Financial Dynamics

Revenue*, RUR bn

+11.9%

51.1

61.7

68.9

69.7

66.8

69.0

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

OIBDA, RUR bn

+21.0%

27.3

28.9

33.6

30.6

32.2

35.0

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

Net Income (Loss), RUR bn

+103.4%

14.6

11.1

6.5

22.6

-22.2

-8.5

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

OIBDA Margin, %

53.4%

46.8%

48.8%

44.0%

48.1%

50.6%

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

2009

Here and thereafter refers to net operating revenues.

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Financial Position

Liquidity position, $ mln

3,956

4,282

4,654

4,860

4,683

4,545

1.7

1.8

1.7

1.6

1.8

2,176

2,426

3,532

3,565

3,750

2,413

1Q 08

2Q 08

3Q08

4Q08

1Q09

2Q09

OIBDA LTM

CAPEX LTM+Short-term Debt Net of Cash

Total Debt/OIBDA

** LTM OIBDA constitutes the sum of the lines: LTM Operating Income and LTM Depreciation, Amortization and Impairment Loss. LTM stands for “last twelve months” to reporting date.

Key Ratios and Indicators*

June 30, Dec 31, Dec 31, 2009 2008 2007

Cash and Cash Equivalents (RUR mln) 51,605 26,873 24,637

Total Assets (RUR mln) 460,879 461,982 259,426

Total Debt (RUR mln) 249,525 248,056 67,910

-Short-term (RUR mln) 70,157 56,093 12,924

-Long-term (RUR mln) 179,368 191,963 54,986

Equity (RUR mln) 141,997 135,410 139,918

Net Debt (RUR mln) 197,920 221,183 43,273

LTM OIBDA* * 4,545 4,860 3,597

—LTM Depreciation, amortization and impairment loss 2,189 2,324 1,391

—LTM Operating Income 2,356 2,536 2,206

LTM Interest 572 496 195

Debt/Equity 1.8 1.8 0.5

Debt/OIBDA LTM 1.8 1.7 0.8

OIBDA/Interest 7.9 9.8 18.4

Debt/Assets 0.54 0.54 0.26

Total Debt 7,974 8,443 2,767

Net Debt 6,325 7,528 1,763

2009

See page 21 for applicable exchange rates

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Debt Profile as of June 30, 2009*

Debt Maturity Schedule, USD mln

526

456

684

249

435**

289

1,955 538

417

1,947

1,745

574

1,102

600

1,000

1Q09 2Q09 3Q09 4Q09 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Debt Composition

EUR, 10%

RUR, 17%

USD, 73%

Floating, 40%

Fixed, 60%

Vendors, 4%

Bonds,

44%

Banks, 52%

2009

2Q09 figures at actual rate. All other figures at the rate as of June 30, 2009

** $435 mln paid as of August 27, 2009

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Russia: Consolidated Operations

Revenue*, RUR bn

43.6

3.2

40.6

52.9

9.8

44.0

58.8

10.8

49.4

58.8

12.0

49.0

56.3

13.3

45.7

59.1

13.0

49.4

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA (RUR bn) and OIBDA Margin

24.1

23.3 55.2%

25.0 22.9 47.3%

29.5 26.8 50.1%

25.8 22.9 44.0%

27.2 23.2 48.4%

30.3 26.4 51.2%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile Fixed OIBDA Margin

CAPEX, RUR bn

5.0 10.0 12.2 17.5 3.1 3.4

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

CAPEX / Revenue LTM

17%

18%

20%

21%

19%

16%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

Total revenue adjusted for eliminations between fixed and mobile segments in Russia

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Russia: Mobile Highlights

Subscribers, mln

+17.6%

45.1 49.4 50.0 42.5 47.7 42.1

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile ARPU & MOU

321

348

368

341

307

323

199

220

229

228

203

212

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

ARPU (RUR) MOU (min)

Revenue, RUR bn

+12.3%

49.4 49.0 49.4 44.0 45.7 40.6

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA (RUR bn) & OIBDA Margin

23.3

22.9

26.8

22.9

23.2

26.4

57.2%

52.0%

54.2%

46.8%

50.9%

53.5%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

OIBDA OIBDA Margin

2009

LOGO

Russia: Fixed-line Segment

Revenue, RUR bn

+32.9%

9.1

3.2

5.9

9.8

10.8

12.0

13.3

13.0

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

GT revenue VIP revenue

Business Segment, RUR bn

4.7

1.7

3.0

5.2 5.5 5.8 5.3 4.9

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Wholesale Segment, RUR bn

3.5

1.2 2.3

6.1 6.3

4.5 5.2

3.8

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Residential Segment, RUR bn

0.9

0.3 0.6

1.3 1.4 1.4 1.1 1.1

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

LOGO

Russia: Residential Broadband Development*

Broadband Subscribers, ‘000

530

604

764 91

673

1,182

412

770

1,498

650

848

1,659

763

896

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Broadband Revenue, RUR mln

578

680

723

231

860

477

1,031

535 **

1,036

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

FTTB Households Passed (mln)

& Take-up Rate

4.1 10.3%

5.5

8.6%

5.9

9.2%

7.2

8.8%

7.5

9.6%

7.9

9.9%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Broadband ARPU, RUR

427 400 396 421

376 392 310 298 273 252

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Fixed Residential BB Mobile Internet (USB modems)

2009

Broadband business of Golden Telecom was consolidated beginning from March 2008

** These revenues are not included in the fixed-line residential segment

LOGO

Balanced approach to distribution

Monobrand points of sales

Over 30,000 points of sales across Russia

Agreements with national dealers

Strategic partnerships with regional dealers

2009

LOGO

Kazakhstan: Operating & Financial Highlights

Mobile Subscribers, mln

+30.1%

4.8 5.1 5.6 6.3 6.4 6.6

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile ARPU & MOU

280

110

290

108

294

101

295

269

254

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

ARPU (RUR) MOU (min)

Revenue (RUR bn) & OIBDA Margin

50.3%

4.0

52.0%

4.4

53.4%

4.8

49.6%

5.4

51.2%

5.2

54.2%

5.1

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Revenue OIBDA Margin

Capex / Revenue LTM

34%

38%

34%

28%

23%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

LOGO

Ukraine: Operating & Financial Highlights

Mobile Subscribers, mln

-8.4%

2.1 2.4 2.1

2.0 1.9 1.9

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile ARPU & MOU

210

147

231

178

262

235

230

190

213

151

218

167

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

ARPU (RUR) MOU (min)

Revenue* (RUR bn) & OIBDA Margin

1.1

0.2 0.9 7.3%

1.7

0.7

1.1 13.1%

2.3 0.8 1.7 -1.8%

1.9

0.7

1.3

16.4%

1.6

0.8

0.9 13.4%

1.7

0.8

1.0 19.6%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile Fixed OIBDA Margin

Capex / Revenue LTM

110%

86%

75%

67%

55%

39%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

Total revenue adjusted for eliminations between fixed and mobile segments in Ukraine

LOGO

Armenia: Operating & Financial Highlights

Mobile Subscribers, ‘000

-25.8%

784 655

520 544 486 481

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile ARPU & MOU

159

392

165

363

140

337

150

372

175

479

238

437

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile ARPU (RUR) Mobile MOU (min)

Revenue* (RUR bn) & OIBDA Margin

1.4

0.9

49.1%

0.6

1.5

0.9 46.9%

0.6

1.7

0.9

48.8%

0.8

1.7

1.0

49.9%

0.7

1.8

1.1 51.7%

0.7

1.6

1.0 50.4%

0.6

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile Fixed OIBDA Margin

Capex / Revenue LTM

41% 41%

39%

31%

24%

17%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

Total revenue adjusted for eliminations between fixed and mobile segments in Armenia

LOGO

Uzbekistan: Operating & Financial Highlights

Mobile Subscribers, mln

+30.9%

3.6 3.7 3.6

3.1

2.4 2.8

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Mobile ARPU & MOU

265

141

295

156

299

158

289

179

239

177

226

151

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

ARPU(RUR) MOU (min)

Revenue (RUR bn) & OIBDA Margin

53.1%

0.96

53.5%

1.23

56.4%

1.42

51.4%

1.81

56.6%

1.98

51.1%

1.69

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Revenue OIBDA Margin

Capex / Revenue LTM

133%

150%

130%

79%

49%

21%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

LOGO

South-East Asian Operations

Vietnam

Network

845 base stations built by commercial launch

Coverage area is 16% of the total population

Distribution

7,000 points of SIM and scratch cards sales

Traditional retail, new channels of retail distribution via Branded Trade Counters (BTCs)

Cambodia

160 base stations built by commercial launch

Coverage area is 42% of the total population

Distribution network provides 95% availability in the coverage area

Nationwide traditional distributors, innovative and exclusive BTCs in Phnom Penh

2009

LOGO

Summary

Our telecom business showing resilience

Focus on operational efficiency and cash generation Sound financial position Strategically positioned for future growth

2009

LOGO

APPENDICES

2009

LOGO

Map of Operations

Russia

Population: 142.0 mln. Penetration: 136% GDP*: 15,800

Ukraine

Population: 45.7 mln.

Acquired: Nov. 2005

Penetration: 118% GDP* 6,900

Georgia

Population: 4.6 mln.

Acquired: Jul. 2006

Penetration: 85% GDP* 4,700

Armenia

Population: 2.9 mln.

Acquired: Nov. 2006

Penetration: 79% GDP* 6,400

Kazakhstan

Population: 15.4 mln.

Acquired: Sept. 2004

Penetration: 100% GDP* 11,500

Uzbekistan

Population: 27.6 mln.

Acquired: Jan. 2006

Penetration: 54% GDP* 2,600

Tajikistan

Population: 7.3 mln.

Acquired: Jan. 2006

Penetration: 53% GDP* 2,100

Vietnam

Population: 86.1 mln.

JVA signed: Jul. 2008

Penetration: ~55% GDP* 2,900

Cambodia

Population: 14.5 mln.

Acquired : Jul. 2008

Penetration: ~25% GDP* 2,000

Source: CIA World Factbook; AC&M-Consulting; Global Mobile, Company estimates

2009

*GDP(PPP), $ per capita

LOGO

FOREX Development

3Q08 4Q08 1Q09 2Q09

Opening Average Closing Average Closing Average Currency Closing Average Closing rate Rate Rate Rate Rate Rate Rate Rate Rate

KZT 5.14 4.95 4.73 4.41 4.11 4.09 4.44 4.68 4.82

UAH 0.21 0.20 0.19 0.23 0.26 0.23 0.23 0.24 0.25

USD 0.043 0.041 0.040 0.037 0.034 0.029 0.029 0.031 0.032

AMD 12.9 12.5 11.9 11.2 10.5 9.6 10.9 11.5 11.6

GEL 0.06 0.06 0.06 0.06 0.06 0.05 0.05 0.05 0.05

USD n/a n/a n/a n/a n/a n/a n/a 0.031 0.032

* Balance sheet data in this presentation were translated at the closing exchange rate of RUR/US$ 31.2904 at the end of 2Q 2009, P&L LTM data were calculated as the sum of quarterly results in US$ reported in 3Q 2008 and 4Q 2008, the result of 1Q 2009 translated at the 1Q 2009 average exchange rate of RUR/US$ 33.9308 and the result of 2Q 2009 translated at the 2Q 2009 average exchange rate of RUR/US$ 32.2145.

2009

Source: Prime TASS, National Banks of the CIS countries

LOGO

Composition of the CIS Business 2Q 2009

Revenues, RUR mln

461 229 1,584 1,693

1,645 10,668 5,061

Kazakhstan Ukraine Uzbekistan Armenia Tajikistan Georgia CIS Total

OIBDA, RUR mln

2,745

322

865

799

173

4,908

Kazakhstan Ukraine Uzbekistan Armenia Tajikistan Georgia CIS Total

CAPEX, RUR mln

376

241

817

Kazakhstan Ukraine Uzbekistan Armenia Tajikistan Georgia CIS Total

2009

LOGO

CIS Mobile: Financial Highlights

Kazakhstan

3.93

2.0

4.31

2.2

4.75

2.5

5.28

2.6

5.15

2.6

4.99

2.6

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Ukraine

0.88

0.0

1.08

0.1

1.65

-0.2

1.30

0.2

0.89

0.0

0.96

0.1

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Uzbekistan

0.94

0.5

1.17

0.6

1.35

0.8

1.73

0.9

1.88

1.1

1.59

0.8

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Armenia

0.56

0.25

0.62

0.24

0.77

0.34

0.74

0.34

0.72

0.36

0.63

0.30

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Tajikistan

0.20 0.03

0.27 0.06

0.36

0.12

0.45

0.14

0.49

0.16

0.46

0.17

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

0.06 -0.05

0.09

-0.05

0.13 -0.03

0.16 -0.03

0.21 -0.02

0.23 0.00

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Revenue, RUR bn OIBDA, RUR bn

2009

LOGO

CIS Mobile: Subscribers, mln

Kazakhstan

6.3 6.4 6.6 5.1 5.6 4.8

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Ukraine

2.0 2.1 2.4 2.1 1.9 1.9

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Uzbekistan

3.6 3.7 3.6 2.8 3.1 2.4

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Armenia

0.65 0.78

0.52 0.54 0.48 0.49

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Tajikistan

0.72 0.68 0.62 0.53 0.38 0.44

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Georgia

0.23 0.25 0.29

0.15 0.17 0.19

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

2009

LOGO

CIS Mobile: ARPU & MOU Development

Kazakhstan

280

290

110

294

108

295

101

269

254

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Ukraine

210

147

231 178

262 235

230 190

213 151

218 167

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Uzbekistan

265

141

295

156

299

158

289

179

239 177

226

151

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Armenia

159

392

165

363

140

337

150

372

175

479

238

437

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Tajikistan

241 256 243 206

172 173

195 221 251 263 240 222

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

Georgia

130 121 123 110

87 89

239 266 286 284 179 194

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

ARPU (RUR) MOU (min)

2009

LOGO

CIS Mobile: Subscriber Market Shares*

Kazakhstan

54% 53%

51% 49% 47%

43% 46% 40% 41% 43% 43% 40%

7% 8% 8% 10% 11% 6%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

VIP K’Cell Other

Ukraine

43% 42% 42% 42% 42%

41% 32% 32% 32% 35% 35% 33% 21% 18% 19% 20% 21% 17%

4% 4% 4% 4% 3% 4%

1% 1% 2% 2% 2% 2%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

VIP Kievstar UMC Astelit Other

Uzbekistan

49% 48%

49% 46% 46% 45% 34% 31% 30% 30% 28% 27% 21% 25% 17% 19% 14% 24%

3% 3% 3% 2% 2% 3%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

VIP Uzdunrobita Coscom Other

Armenia

81% 81% 79% 73% 70% 69%

30% 31% 27%

21% 19% 19%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

VIP Viv?cell

Tajikistan

78% 77%

75% 75% 74% 76%

16% 17% 18% 18% 20% 18%

6% 7% 6%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

VIP TT Mobile Others

Georgia

53% 54% 52%

50% 51% 52% 45% 42% 41% 42% 42% 40%

5% 5% 6% 7% 8% 5%

1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

VIP Geocell Magticom

2009

Source: AC&M Consulting.

LOGO

Reconciliation of Consolidated OIBDA and OIBDA Margin (Unaudited)

Three months ended

June 30, March 31, Dec 31, Sept 30, June 30, March 31, (RUR millions) 2009 2009 2008 2008 2008 2008

Reconciliation of OIBDA to operating income

OIBDA 34,958 32,166 30,648 33,636 28,889 27,315

Depreciation (10,451) (10,452) (10,325) (9,687) (9,097) (8,661)

Amortization (2,257) (2,448) (2,577) (2,381) (2,383) (1,635)

Impairment loss 0 0 (12,072) 0 0 0

Operating Income 22,250 19,266 5,674 21,568 17,409 17,019

Reconciliation of OIBDA margin to operating income as percentage of net operating revenue

OIBDA margin 50.6% 48.1% 44.0% 48.8% 46.8% 53.4%

Less: Depreciation as % of net operating revenues (15.1%) (15.6%) (14.9%) (14.0%) (14.7%) (16.9%)

Less: Amortization as % of net operating revenues (3.3%) (3.7%) (3.7%) (3.5%) (3.9%) (3.2%)

Less: Impairment loss as % of net operating revenues 0.0% 0.0% (17.3%) 0.0% 0.0% 0.0%

Operating Income 32.2% 28.8% 8.1% 31.3% 28.2% 33.3%

2009

VIP-Group

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	39,145		44,409		49,901		49,538		51,138		61,684		68,933		69,677		66,843		69,035
Gross margin	32,120		36,275		40,555		40,487		40,643		47,538		52,096		52,276		50,959		53,810
Gross margin, %	82.1	%	81.7	%	81.3	%	81.7	%	79.5	%	77.1	%	75.6	%	75.0	%	76.2	%	77.9	%
OIBDA	20,162		23,192		25,899		22,636		27,315		28,889		33,636		30,648		32,166		34,958
OIBDA, %	51.5	%	52.2	%	51.9	%	45.7	%	53.4	%	46.8	%	48.8	%	44.0	%	48.1	%	50.6	%
SG&A	11,561		12,787		14,198		17,644		12,820		18,278		18,167		21,465		18,206		18,458
including Sales & Marketing Expenses	3,581		4,315		4,738		5,408		4,525		5,074		5,867		7,784		5,302		5,414
including advertising	1,355		1,726		1,689		2,277		1,682		2,109		2,083		2,766		882		1,195
including General & Administrative Costs	7,980		8,472		9,460		12,236		8,295		13,204		12,300		13,681		12,904		13,044
SG&A, %	29.5	%	28.8	%	28.5	%	35.6	%	25.1	%	29.6	%	26.4	%	30.8	%	27.2	%	26.7	%
Net income (loss)	7,294		9,291		11,686		9,073		14,587		11,109		6,513		-22,243		-8,514		22,599
Capital Expenditures	7,984		8,658		8,643		19,613		8,696		15,689		16,799		23,328		3,925		5,027

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	38,244		43,498		48,943		48,642		47,153		51,457		58,245		58,558		54,917		58,208
including Mobile Interconnect	5,238		6,235		6,878		7,477		7,269		7,638		8,606		8,902		8,168		8,554
Mobile OIBDA	19,737		22,713		25,401		22,074		26,004		26,077		30,252		26,968		27,388		30,278
Mobile OIBDA, %	51.6	%	52.2	%	51.9	%	45.4	%	55.1	%	50.7	%	51.9	%	46.1	%	49.9	%	52.0	%

Subscribers (‘000)	45,784		47,702		50,686		51,740		52,293		53,707		57,758		61,029		62,724		63,676
															0
															0

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	901		911		958		896		4,248		11,260		12,367		13,595		15,018		14,575
including business segment	0		0		0		0		1,804		5,366		5,698		5,950		6,265		5,708
including wholesale segment	0		0		0		0		1,228		3,916		4,710		5,388		6,359		6,577
including residential segment	901		911		958		896		1,216		1,978		1,959		2,257		2,394		2,290
Fixed OIBDA	425		479		498		562		1,336		2,848		3,438		3,770		4,918		4,735
Fixed OIBDA, %	47.2	%	52.6	%	52.0	%	62.7	%	31.5	%	25.3	%	27.8	%	27.7	%	32.7	%	32.5	%

Broadband subscribers (‘000)	0		0		0		0		542		617		780		1,206		1,538		1,712
Broadband services ARPU, blended, RUR	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

OTHER	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Other revenues	n/a		n/a		n/a		n/a		0		0		0		0		0		0
Other OIBDA	n/a		n/a		n/a		n/a		-25		-36		-54		-90		-140		-55
Other OIBDA, %	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	20,162		23,192		25,899		22,636		27,315		28,889		33,636		30,648		32,166		34,958
Depreciation	(7,081	)	(7,380	)	(7,286	)	(8,176	)	(8,661	)	(9,097	)	(9,687	)	(10,325	)	(10,452	)	(10,451	)
Amortization	(1,402	)	(1,392	)	(1,418	)	(1,381	)	(1,635	)	(2,383	)	(2,381	)	(2,577	)	(2,448	)	(2,257	)
Impairment loss	0		0		0		0		0		0		0		(12,072	)	0		0
Operating income	11,679		14,420		17,195		13,079		17,019		17,409		21,568		5,674		19,266		22,250

OIBDA margin total	51.5	%	52.2	%	51.9	%	45.7	%	53.4	%	46.8	%	48.8	%	44.0	%	48.1	%	50.6	%
Less: Depreciation as a percentage of net operating revenues	(18.1	%)	(16.6	%)	(14.6	%)	(16.5	%)	(16.9	%)	(14.7	%)	(14.0	%)	(14.9	%)	(15.6	%)	(15.1	%)
Less: Amortization as a percentage of net operating revenues	(3.6	%)	(3.1	%)	(2.8	%)	(2.8	%)	(3.2	%)	(3.9	%)	(3.5	%)	(3.7	%)	(3.7	%)	(3.3	%)
Less: Impairment loss as a percentage of net operating revenues	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%	(17.3	%)	0.0	%	0.0	%
Operating income as a percentage of net operating revenues	29.8	%	32.5	%	34.5	%	26.4	%	33.3	%	28.2	%	31.3	%	8.1	%	28.8	%	32.2	%

Russia

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	33,648		37,759		42,171		41,938		43,597		52,915		58,816		58,809		56,272		59,136
Gross margin	28,004		31,257		34,784		34,762		35,049		40,881		44,892		44,157		42,663		46,000
Gross margin, %	83.2	%	82.8	%	82.5	%	82.9	%	80.4	%	77.3	%	76.3	%	75.1	%	75.8	%	77.8	%
OIBDA	17,796		20,167		22,226		19,060		24,081		25,041		29,457		25,849		27,227		30,279
OIBDA, %	52.9	%	53.4	%	52.7	%	45.4	%	55.2	%	47.3	%	50.1	%	44.0	%	48.4	%	51.2	%
SG&A	9,858		10,829		12,177		15,592		10,514		15,521		15,191		18,198		14,936		15,417
including Sales & Marketing Expenses	2,998		3,645		4,044		4,594		3,823		4,273		4,918		6,706		4,485		4,726
including advertising	1,112		1,448		1,423		1,955		1,357		1,748		1,747		2,351		659		991
including General & Administrative Costs	6,860		7,184		8,133		10,998		6,691		11,248		10,273		11,492		10,451		10,691
SG&A, %	29.3	%	28.7	%	28.9	%	37.2	%	24.1	%	29.3	%	25.8	%	30.9	%	26.5	%	26.1	%
Net income (loss)	7,375		9,198		10,781		8,962		14,954		10,616		6,274		-12,132		-6,722		21,835
Capital Expenditures	5,249		4,886		5,531		11,516		5,022		10,010		12,224		17,495		3,070		3,440

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	33,648		37,759		42,171		41,938		40,644		44,004		49,401		48,987		45,653		49,410
including Mobile Interconnect	4,491		5,259		5,725		6,232		6,128		6,378		7,006		7,173		6,604		7,015
Mobile OIBDA	17,796		20,167		22,226		19,060		23,265		22,895		26,772		22,902		23,222		26,427
Mobile OIBDA, %	52.9	%	53.4	%	52.7	%	45.4	%	57.2	%	52.0	%	54.2	%	46.8	%	50.9	%	53.5	%

Subscribers (‘000)	38,631		40,140		41,802		42,221		42,079		42,485		45,093		47,677		49,351		49,971
ARPU, RUR	286.7		319.1		342.6		332.6		320.7		347.6		368.2		340.6		306.6		322.5
MOU, min	160.9		192.6		208.9		204.1		198.7		220.3		228.5		227.8		203.0		211.8
Churn 3 months active base (quarterly), %	n/a		7.5	%	8.1	%	9.1	%	9.2	%	8.7	%	7.7	%	9.0	%	8.4	%	10.5	%
Subscriber market share, %	31.2	%	30.9	%	30.4	%	29.9	%	25.0	%	24.6	%	25.1	%	25.4	%	25.9	%	25.3	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	0		0		0		0		3,191		9,788		10,789		11,962		13,308		13,007
including business segment	0		0		0		0		1,648		4,891		5,160		5,463		5,789		5,278
including wholesale segment	0		0		0		0		1,200		3,788		4,523		5,188		6,134		6,316
including residential segment	0		0		0		0		343		1,109		1,106		1,311		1,385		1,413
Fixed OIBDA	0		0		0		0		816		2,146		2,685		2,947		4,005		3,852
Fixed OIBDA, %	0		0		0		0		25.6	%	21.9	%	24.9	%	24.6	%	30.1	%	29.6	%

Broadband subscribers (‘000)	0		0		0		0		530		604		764		1,182		1,498		1,659
Broadband services ARPU, blended, RUR	0		0		0		0		427.1		399.5		374.2		374.2		372.2		329.7

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	17,796		20,167		22,226		19,060		24,081		25,041		29,457		25,849		27,227		30,279
Depreciation	(6,121	)	(6,217	)	(6,373	)	(6,631	)	(6,969	)	(7,318	)	(8,047	)	(7,999	)	(8,195	)	(8,452	)
Amortization	(751	)	(736	)	(752	)	(754	)	(852	)	(1,454	)	(1,298	)	(1,412	)	(1,313	)	(1,253	)
Impairment loss	0		0		0		0		0		0		0		(8,591	)	0		0
Operating income	10,924		13,214		15,101		11,675		16,260		16,269		20,112		7,847		17,719		20,574

OIBDA margin total	52.9	%	53.4	%	52.7	%	45.4	%	55.2	%	47.3	%	50.1	%	44.0	%	48.4	%	51.2	%
Less: Depreciation as a percentage of net operating revenues	(18.2	%)	(16.5	%)	(15.1	%)	(15.8	%)	(15.9	%)	(13.9	%)	(13.7	%)	(28.3	%)	(14.6	%)	(14.3	%)
Less: Amortization as a percentage of net operating revenues	(2.2	%)	(1.9	%)	(1.8	%)	(1.8	%)	(2.0	%)	(2.7	%)	(2.2	%)	(2.4	%)	(2.3	%)	(2.1	%)
Less: Impairment loss as a percentage of net operating revenues	0		0		0		0		0		0		0		(33.2	%)	0.0	%	0.0	%
Operating income as a percentage of net operating revenues	32.5	%	35.0	%	35.8	%	27.8	%	37.3	%	30.7	%	34.2	%	13.3	%	31.5	%	34.8	%

CIS

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	5,549		6,727		7,797		7,753		7,687		9,170		10,663		11,441		11,287		10,668
Gross margin	4,125		5,034		5,771		5,741		5,599		6,664		7,226		8,129		8,305		7,843
Gross margin, %	74.3	%	74.8	%	74.0	%	74.0	%	72.8	%	72.7	%	67.8	%	71.1	%	73.6	%	73.5	%
OIBDA	2,366		3,024		3,673		3,575		3,259		3,885		4,232		4,889		5,079		4,908
OIBDA, %	42.6	%	45.0	%	47.1	%	46.1	%	42.4	%	42.4	%	39.7	%	42.7	%	45.0	%	46.0	%
SG&A	1,712		1,974		2,022		2,068		2,287		2,727		2,945		3,186		3,140		2,844
including Sales & Marketing Expenses	583		671		694		814		703		801		949		1,078		771		633
including advertising	243		293		267		322		325		363		351		416		223		167
including General & Administrative Costs	1,129		1,303		1,328		1,254		1,584		1,926		1,996		2,108		2,369		2,211
SG&A, %	30.9	%	29.3	%	25.9	%	26.7	%	29.8	%	29.7	%	27.6	%	27.8	%	27.8	%	26.7	%
Net income (loss)	-81		93		905		111		-346		528		323		-7,593		-374		841
Capital Expenditures	2,735		3,771		3,112		8,097		3,543		5,645		4,527		5,547		416		817

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	4,648		5,816		6,839		6,857		6,570		7,536		8,999		9,655		9,331		8,859
including Mobile Interconnect	747		976		1,153		1,245		1,141		1,260		1,605		1,736		1,570		1,545
Mobile OIBDA	1,941		2,545		3,175		3,013		2,739		3,182		3,479		4,065		4,166		4,025
Mobile OIBDA, %	41.8	%	43.8	%	46.4	%	43.9	%	41.7	%	42.2	%	38.7	%	42.1	%	44.6	%	45.4	%

Subscribers (‘000)	7,153		7,562		8,884		9,519		10,214		11,222		12,665		13,352		13,373		13,626
															0
															0
															0
															0

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	901		911		958		895		1,140		1,751		1,907		1,991		2,169		2,040
including business segment	0		0		0		0		158		476		536		490		476		431
including wholesale segment	0		0		0		0		92		334		423		446		557		584
including residential segment	901		911		958		895		890		941		948		1,055		1,136		1,025
Fixed OIBDA	425		479		498		562		520		703		753		824		913		883
Fixed OIBDA, %	47.2	%	52.6	%	52.0	%	62.8	%	45.6	%	40.1	%	39.5	%	41.4	%	42.1	%	43.3	%

Broadband subscribers (‘000)	0		0		0		0		12		13		16		24		40		53
Broadband services ARPU, blended, US$	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	2,366		3,024		3,673		3,575		3,259		3,885		4,232		4,889		5,079		4,908
Depreciation	(960	)	(1,163	)	(913	)	(1,545	)	(1,692	)	(1,779	)	(1,640	)	(2,323	)	(2,253	)	(1,982	)
Amortization	(651	)	(655	)	(666	)	(627	)	(783	)	(929	)	(1,083	)	(1,165	)	(1,135	)	(997	)
Impairment loss	0		0		0		0		0		0		0		(2,456	)	0		0
Operating income	755		1,206		2,094		1,403		784		1,177		1,509		(1,055	)	1,691		1,929

OIBDA margin total	42.6	%	45.0	%	47.1	%	46.1	%	42.4	%	42.4	%	39.7	%	42.7	%	45.0	%	46.0	%
Less: Depreciation as a percentage of net operating revenues	(17.3	%)	(17.4	%)	(11.7	%)	(19.9	%)	(22.0	%)	(19.5	%)	(15.3	%)	(20.2	%)	(19.9	%)	(18.6	%)
Less: Amortization as a percentage of net operating revenues	(11.7	%)	(9.7	%)	(8.5	%)	(8.1	%)	(10.2	%)	(10.1	%)	(10.2	%)	(10.2	%)	(10.1	%)	(9.3	%)
Less: Impairment loss as a percentage of net operating revenues	0		0		0		0		0		0		0		(21.5	%)	0.0	%	0.0	%
Operating income as a percentage of net operating revenues	13.6	%	17.9	%	26.9	%	18.1	%	10.2	%	12.8	%	14.2	%	(9.2	%)	15.0	%	18.1	%

Kazakhstan

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	3,141		3,862		4,264		4,304		3,951		4,377		4,815		5,369		5,223		5,061
Gross margin	2,320		2,895		3,115		3,164		2,884		3,328		3,701		4,057		3,958		3,876
Gross margin, %	73.9	%	75.0	%	73.1	%	73.5	%	73.0	%	76.0	%	76.9	%	75.6	%	75.8	%	76.6	%
OIBDA	1,631		2,078		2,248		2,272		1,988		2,277		2,573		2,663		2,672		2,745
OIBDA, %	51.9	%	53.8	%	52.7	%	52.8	%	50.3	%	52.0	%	53.4	%	49.6	%	51.2	%	54.2	%
SG&A	669		820		833		833		844		1,028		1,112		1,374		1,268		1,110
including Sales & Marketing Expenses	289		368		353		422		313		357		425		618		402		283
including advertising	98		116		128		137		114		137		133		241		101		39
including General & Administrative Costs	380		452		480		411		531		671		687		756		866		827
SG&A, %	21.3	%	21.2	%	19.5	%	19.4	%	21.4	%	23.5	%	23.1	%	25.6	%	24.3	%	21.9	%
Net income (loss)	346		424		552		488		341		461		726		2,083		-426		967
Capital Expenditures	822		1,184		1,033		2,376		1,034		1,311		1,868		2,172		191		376

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	3,141		3,862		4,264		4,304		3,932		4,312		4,750		5,282		5,145		4,988
including Mobile Interconnect	540		685		727		814		689		729		780		857		794		752
Mobile OIBDA	1,631		2,078		2,248		2,272		1,979		2,225		2,495		2,558		2,584		2,643
Mobile OIBDA, %	51.9	%	53.8	%	52.7	%	52.8	%	50.3	%	51.6	%	52.5	%	48.4	%	50.2	%	53.0	%

Subscribers (‘000)	3,501		3,858		4,343		4,604		4,777		5,098		5,614		6,270		6,377		6,635
ARPU, RUR	320.1		352.2		346.1		321.1		280.3		289.9		294.1		294.6		268.5		253.6
MOU, min	72.3		88.8		112.7		98.9		99.1		109.7		108.1		100.5		81.1		90.7
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		9.8	%	9.5	%	7.6	%	7.4	%	7.3	%	9.2	%	5.7	%
Subscriber market share, %	50.2	%	49.3	%	47.3	%	46.5	%	39.5	%	39.6	%	41.2	%	43.4	%	42.6	%	43.3	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	0		0		0		0		27		115		146		194		166		190
including business segment	0		0		0		0		7		23		20		28		23		25
including wholesale segment	0		0		0		0		20		92		126		165		141		163
including residential segment	0		0		0		0		0		0		0		1		2		2
Fixed OIBDA	0		0		0		0		9		52		78		105		88		102
Fixed OIBDA, %	0		0		0		0		33.3	%	45.2	%	53.4	%	54.1	%	53.0	%	53.7	%

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0		0		0
Broadband services ARPU, blended, RUR	0		0		0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	1,631		2,078		2,248		2,272		1,988		2,277		2,573		2,663		2,672		2,745
Depreciation	(416	)	(454	)	(382	)	(497	)	(520	)	(607	)	(583	)	(783	)	(812	)	(696	)
Amortization	(241	)	(244	)	(232	)	(238	)	(236	)	(262	)	(385	)	(435	)	(478	)	(412	)
Operating income	974		1,380		1,634		1,537		1,232		1,408		1,605		1,445		1,382		1,637

OIBDA margin total	51.9	%	53.8	%	52.7	%	52.8	%	50.4	%	52.0	%	53.4	%	49.6	%	51.2	%	54.2	%
Less: Depreciation as a percentage of net operating revenues	(13.3	%)	(11.7	%)	(8.9	%)	(11.5	%)	(13.3	%)	(13.8	%)	(12.1	%)	(14.6	%)	(15.5	%)	(13.8	%)
Less: Amortization as a percentage of net operating revenues	(7.7	%)	(6.4	%)	(5.4	%)	(5.6	%)	(6.0	%)	(6.0	%)	(8.0	%)	(8.1	%)	(9.2	%)	(8.1	%)
Operating income as a percentage of net operating revenues	30.9	%	35.7	%	38.4	%	35.7	%	31.1	%	32.2	%	33.3	%	26.9	%	26.5	%	32.3	%

Ukraine

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	429		615		943		851		1,086		1,683		2,283		1,922		1,609		1,645
Gross margin	249		349		595		514		649		933		766		925		903		968
Gross margin, %	58.0	%	56.7	%	63.1	%	60.4	%	59.8	%	55.4	%	33.6	%	48.1	%	56.1	%	58.8	%
OIBDA	-172		-80		165		90		79		221		-40		316		215		322
OIBDA, %	n/a		n/a		17.5	%	10.6	%	7.3	%	13.1	%	n/a		16.4	%	13.4	%	19.6	%
SG&A	420		427		420		432		568		709		794		590		663		629
including Sales & Marketing Expenses	152		141		134		129		163		187		212		128		120		123
including advertising	102		95		70		85		114		120		110		51		57		51
including General & Administrative Costs	268		286		286		303		405		522		582		462		543		506
SG&A, %	97.9	%	69.4	%	44.5	%	50.8	%	52.3	%	42.1	%	34.8	%	30.7	%	41.2	%	38.2	%
Net income (loss)	-484		-446		-164		-433		-478		-136		-890		-8,810		-488		-339
Capital Expenditures	772		1,190		664		1,359		644		1,279		1,137		1,578		96		95

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	429		615		943		851		883		1,079		1,653		1,296		894		956
including Mobile Interconnect	141		197		277		269		280		316		485		405		299		295
Mobile OIBDA	-172		-80		165		90		28		59		-215		155		-2		82
Mobile OIBDA, %	n/a		n/a		17.5	%	10.6	%	3.2	%	5.5	%	n/a		12.0	%	n/a		8.6	%

Subscribers (‘000)	1,953		1,822		2,212		1,941		1,971		2,111		2,403		2,052		1,894		1,934
ARPU, RUR	79.5		109.4		149.3		137.5		147.3		177.8		234.9		189.9		151.4		166.8
MOU, min	138.0		159.9		168.2		183.2		210.2		231.0		261.5		230.0		213.3		217.8
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		35.8	%	20.1	%	16.9	%	15.9	%	32.2	%	21.9	%	15.1	%
Subscriber market share, %	4.5	%	5.2	%	5.1	%	4.8	%	3.5	%	3.8	%	4.3	%	3.6	%	3.4	%	3.5	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	0		0		0		0		216		670		787		719		836		800
including business segment	0		0		0		0		133		398		458		402		376		330
including wholesale segment	0		0		0		0		72		241		295		279		416		419
including residential segment	0		0		0		0		11		31		34		38		44		51
Fixed OIBDA	0		0		0		0		51		162		175		161		217		240
Fixed OIBDA, %	0		0		0		0		23.6	%	24.2	%	22.2	%	22.4	%	26.0	%	30.0	%

Broadband subscribers (‘000)	0		0		0		0		12		13		16		24		40		53
Broadband services ARPU, blended, RUR	0		0		0		0		363.8		362.7		381.5		369.0		299.8		261.0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	(172	)	(80	)	165		90		79		221		(40	)	316		215		322
Depreciation	(84	)	(112	)	(113	)	(322	)	(274	)	(352	)	(436	)	(406	)	(363	)	(382	)
Amortization	(137	)	(135	)	(133	)	(76	)	(174	)	(294	)	(310	)	(280	)	(231	)	(220	)
Impairment loss	0		0		0		0		0		0		0		(2,456	)	0		0
Operating income	(393	)	(327	)	(81	)	(308	)	(369	)	(425	)	(786	)	(2,826	)	(379	)	(280	)

OIBDA margin total	n/a		n/a		17.5	%	10.6	%	7.3	%	13.1	%	n/a		16.4	%	13.4	%	19.6	%
Less: Depreciation as a percentage of net operating revenues	n/a		n/a		(12.0	%)	(37.9	%)	(25.3	%)	(20.9	%)	n/a		(21.0	%)	(22.6	%)	(23.2	%)
Less: Amortization as a percentage of net operating revenues	n/a		n/a		(14.1	%)	(8.9	%)	(16.0	%)	(17.5	%)	n/a		(14.6	%)	(14.4	%)	(13.4	%)
Less: Impairment loss as a percentage of net operating revenues	n/a		n/a		0.0	%	0.0	%	0.0	%	0.0	%	n/a		(127.8	%)	0.0	%	0.0	%
Operating income as a percentage of net operating revenues	n/a		n/a		(8.6	%)	(36.2	%)	(34.0	%)	(25.3	%)	n/a		(147.0	%)	(23.6	%)	(17.0	%)

Uzbekistan

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	478		601		769		901		958		1,229		1,416		1,813		1,984		1,693
Gross margin	399		516		658		765		809		1,016		1,179		1,439		1,597		1,326
Gross margin, %	83.5	%	85.9	%	85.6	%	84.9	%	84.4	%	82.7	%	83.3	%	79.4	%	80.5	%	78.3	%
OIBDA	227		295		432		438		509		657		798		932		1,122		865
OIBDA, %	47.5	%	49.1	%	56.2	%	48.6	%	53.1	%	53.5	%	56.4	%	51.4	%	56.6	%	51.1	%
SG&A	169		216		221		322		298		353		374		499		462		446
including Sales & Marketing Expenses	74		64		98		129		119		120		160		192		129		120
including advertising	18		22		27		35		49		45		55		63		31		45
including General & Administrative Costs	95		152		123		193		179		233		214		307		333		326
SG&A, %	35.4	%	35.9	%	28.7	%	35.7	%	31.1	%	28.7	%	26.4	%	27.5	%	23.3	%	26.3	%
Net income (loss)	65		110		175		147		183		340		533		320		332		171
Capital Expenditures	208		479		608		2,061		1,162		1,955		688		471		50		241

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	478		601		769		901		939		1,168		1,345		1,731		1,884		1,594
including Mobile Interconnect	0.0		0.1		0.1		0.1		0.2		0.2		0.3		93		103		124
Mobile OIBDA	227		295		432		438		502		642		774		900		1,082		825
Mobile OIBDA, %	47.5	%	49.1	%	56.2	%	48.6	%	53.5	%	55.0	%	57.5	%	52.0	%	57.4	%	51.8	%

Subscribers (‘000)	1,106.3		1,192.4		1,586.9		2,119.6		2,422.2		2,754.2		3,148.0		3,636.2		3,653.1		3,604.6
ARPU, RUR	177.1		186.7		193.1		168.0		141.4		155.8		157.5		178.5		177.1		150.6
MOU, min	242.2		265.6		289.8		283.4		265.3		294.6		298.5		288.6		238.6		225.6
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		11.2	%	12.8	%	13.1	%	14.2	%	14.9	%	15.1	%	11.2	%
Subscriber market share, %	33.1	%	32.7	%	35.6	%	37.3	%	33.6	%	31.2	%	29.8	%	29.6	%	27.9	%	25.0	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	0		0		0		0		19		61		71		82		101		100
including business segment	0		0		0		0		17		54		57		60		77		76
including wholesale segment	0		0		0		0		1		2		2		3		0		2
including residential segment	0		0		0		0		1		5		12		19		24		22
Fixed OIBDA	0		0		0		0		7		15		24		32		40		40
Fixed OIBDA, %	0		0		0		0		37.5	%	24.6	%	33.8	%	39.0	%	39.6	%	40.0	%

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0		0		0
Broadband services ARPU, blended, RUR	0		0		0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	227		295		432		438		509		657		798		932		1,122		865
Depreciation	(81	)	(86	)	(102	)	(126	)	(165	)	(158	)	(173	)	(243	)	(387	)	(360	)
Amortization	(89	)	(88	)	(88	)	(86	)	(92	)	(89	)	(91	)	(125	)	(138	)	(115	)
Operating income	57		121		242		226		252		410		534		564		597		390

OIBDA margin total	47.5	%	49.1	%	56.2	%	48.6	%	53.1	%	53.5	%	56.4	%	51.4	%	56.6	%	51.1	%
Less: Depreciation as a percentage of net operating revenues	(17.0	%)	(14.4	%)	(13.3	%)	(14.0	%)	(17.2	%)	(12.9	%)	(12.3	%)	(13.4	%)	(19.5	%)	(21.3	%)
Less: Amortization as a percentage of net operating revenues	(18.6	%)	(14.6	%)	(11.4	%)	(9.5	%)	(9.6	%)	(7.2	%)	(6.4	%)	(6.9	%)	(7.0	%)	(6.8	%)
Operating income as a percentage of net operating revenues	11.9	%	20.1	%	31.5	%	25.1	%	26.3	%	33.4	%	37.7	%	31.1	%	30.1	%	23.0	%

Armenia

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	1,425		1,511		1,617		1,474		1,433		1,528		1,667		1,738		1,787		1,584
Gross margin	1,116		1,190		1,272		1,166		1,111		1,181		1,274		1,327		1,401		1,218
Gross margin, %	78.3	%	78.8	%	78.7	%	79.1	%	77.5	%	77.3	%	76.4	%	76.4	%	78.4	%	76.9	%
OIBDA	718		777		838		801		704		717		813		867		924		799
OIBDA, %	50.4	%	51.4	%	51.8	%	54.3	%	49.1	%	46.9	%	48.8	%	49.9	%	51.7	%	50.4	%
SG&A	373		382		405		330		406		442		447		454		449		381
including Sales & Marketing Expenses	44		57		62		85		65		89		90		68		57		51
including advertising	16		21		20		42		28		39		27		32		19		19
including General & Administrative Costs	329		325		343		245		341		353		357		386		392		330
SG&A, %	26.2	%	25.3	%	25.0	%	22.4	%	28.3	%	28.9	%	26.8	%	26.1	%	25.1	%	24.1	%
Net income (loss)	67		102		407		6		-365		-31		90		-328		339		136
Capital Expenditures	142		527		528		1,091		356		494		462		646		9		12

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	524		600		659		578		555		623		764		742		721		634
including Mobile Interconnect	60		83		105		105		109		124		194		194		177		165
Mobile OIBDA	293		298		340		239		251		243		337		341		356		298
Mobile OIBDA, %	55.9	%	49.7	%	51.6	%	41.3	%	45.2	%	39.0	%	44.1	%	46.0	%	49.4	%	47.0	%

Subscribers (‘000)	439.9		471.0		447.0		442.4		520.4		654.5		783.6		544.3		480.8		486.3
ARPU, RUR	383.0		447.4		450.0		429.4		391.7		362.5		336.9		371.6		478.7		436.9
MOU, min	141.3		185.1		181.0		171.8		158.9		164.9		139.9		150.0		174.7		238.4
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		12.3	%	28.8	%	13.1	%	18.5	%	45.7	%	24.5	%	12.2	%
Subscriber market share, %	37.3	%	33.5	%	33.6	%	26.1	%	26.9	%	30.5	%	30.5	%	21.2	%	19.0	%	19.2	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	901		911		958		896		878		905		903		996		1,066		950
including business segment	0		0		0		0		0		0		0		0		0		0
including wholesale segment	0		0		0		0		0		0		0		0		0		0
including residential segment	901		911		958		896		878		905		903		996		1,066		950
Fixed OIBDA	425		479		498		562		453		474		476		526		568		501
Fixed OIBDA, %	47.2	%	52.6	%	52.0	%	62.7	%	51.6	%	52.4	%	52.7	%	52.8	%	53.3	%	52.7	%

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0		0		0
Broadband services ARPU, blended, RUR	0		0		0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	718		777		838		801		704		717		813		867		924		799
Depreciation	(367	)	(484	)	(272	)	(539	)	(654	)	(540	)	(321	)	(723	)	(479	)	(338	)
Amortization	(154	)	(152	)	(177	)	(191	)	(245	)	(232	)	(243	)	(270	)	(223	)	(188	)
Operating income	197		141		389		71		(195	)	(55	)	249		(126	)	222		273

OIBDA margin total	50.4	%	51.4	%	51.8	%	54.3	%	49.1	%	46.9	%	48.8	%	49.9	%	51.7	%	50.4	%
Less: Depreciation as a percentage of net operating revenues	(25.8	%)	(32.0	%)	(16.8	%)	(36.5	%)	(45.6	%)	(35.3	%)	(19.3	%)	(41.6	%)	(26.8	%)	(21.3	%)
Less: Amortization as a percentage of net operating revenues	(10.8	%)	(10.1	%)	(10.9	%)	(13.0	%)	(17.1	%)	(15.2	%)	(14.6	%)	(15.5	%)	(12.5	%)	(11.9	%)
Operating income as a percentage of net operating revenues	13.8	%	9.3	%	24.1	%	4.8	%	(13.6	%)	(3.6	%)	14.9	%	(7.2	%)	12.4	%	17.2	%

Tajikistan

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	75		134		195		199		203		266		358		448		487		461
Gross margin	41		84		131		125		126		170		243		312		348		338
Gross margin, %	54.7	%	62.7	%	67.2	%	62.8	%	62.1	%	63.9	%	67.9	%	69.6	%	71.5	%	73.3	%
OIBDA	-9		2		42		33		32		63		115		144		164		173
OIBDA, %	-12.0	%	1.5	%	21.5	%	16.6	%	15.8	%	23.7	%	32.1	%	32.1	%	33.7	%	37.5	%
SG&A	50		81		90		87		98		107		126		168		184		165
including Sales & Marketing Expenses	21		33		37		34		30		33		42		48		43		35
including advertising	8		17		13		12		13		13		13		13		10		6
including General & Administrative Costs	29		48		53		53		68		74		84		120		141		130
SG&A, %	66.7	%	60.4	%	46.2	%	43.7	%	48.3	%	40.2	%	35.2	%	37.5	%	37.8	%	35.8	%
Net income (loss)	-26		-46		-7		-62		-30		-71		-7		-20		-8		0
Capital Expenditures	354		148		156		498		176		319		156		488		15		24

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	75		134		195		199		203		266		358		448		487		461
including Mobile Interconnect	6		11		42		51		48		68		114		148		147		153
Mobile OIBDA	-9		2		42		33		32		63		115		144		164		173
Mobile OIBDA, %	n/a		1.5	%	21.5	%	16.6	%	15.8	%	23.7	%	32.1	%	32.1	%	33.7	%	37.5	%

Subscribers (‘000)	145.3		204.9		268.4		339.4		377.9		435.3		526.6		624.6		722.3		677.1
ARPU, RUR	228.2		261.6		276.8		221.9		194.7		221.1		250.7		262.5		239.7		221.6
MOU, min	205.8		224.2		230.3		216.3		205.8		241.1		255.9		243.4		171.7		173.1
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		5.3	%	8.6	%	9.7	%	10.6	%	12.7	%	2.7	%	20.6	%
Subscriber market share, %	11.2	%	15.2	%	16.7	%	18.1	%	16.5	%	17.4	%	18.3	%	18.3	%	19.8	%	18.2	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	0		0		0		0		0		0		0		0		0		0
including business segment	0		0		0		0		0		0		0		0		0		0
including wholesale segment	0		0		0		0		0		0		0		0		0		0
including residential segment	0		0		0		0		0		0		0		0		0		0
Fixed OIBDA	0		0		0		0		0		0		0		0		0		0
Fixed OIBDA, %	0		0		0		0		0		0		0		0		0		0

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0		0		0
Broadband services ARPU, blended, RUR	0		0		0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	-9		2		42		33		32		63		115		144		164		173
Depreciation	(9	)	(15	)	(24	)	(36	)	(42	)	(75	)	(74	)	(94	)	(115	)	(114	)
Amortization	(4	)	(4	)	(4	)	(4	)	(4	)	(8	)	(6	)	(7	)	(8	)	(8	)
Operating income	(22	)	(17	)	14		(7	)	(14	)	(20	)	35		43		41		51

OIBDA margin total	n/a		1.5	%	21.5	%	16.6	%	15.8	%	23.7	%	32.1	%	32.1	%	33.7	%	37.5	%
Less: Depreciation as a percentage of net operating revenues	n/a		(11.2	%)	(12.2	%)	(18.1	%)	(20.7	%)	(28.2	%)	(20.6	%)	(20.9	%)	(23.7	%)	(24.7	%)
Less: Amortization as a percentage of net operating revenues	n/a		(3.0	%)	(2.1	%)	(2.0	%)	(2.0	%)	(3.0	%)	(1.7	%)	(1.6	%)	(1.6	%)	(1.7	%)
Operating income as a percentage of net operating revenues	n/a		(12.7	%)	7.2	%	(3.5	%)	(6.9	%)	(7.5	%)	9.8	%	9.6	%	8.4	%	11.1	%

Georgia

(in RUR millions, unless stated otherwise) (unaudited)


CONSOLIDATED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	1		4		9		23		59		92		131		162		205		229
Gross margin	0		0		1		6		20		37		63		71		99		117
Gross margin, %	-10.0	%	-7.5	%	11.1	%	26.1	%	33.9	%	40.2	%	48.1	%	43.8	%	48.3	%	51.1	%
OIBDA	-31		-49		-53		-59		-53		-50		-27		-33		-18		4
OIBDA, %	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		1.7	%
SG&A	31		48		53		64		73		87		90		102		117		112
including Sales & Marketing Expenses	4		8		10		14		13		15		20		24		20		22
including advertising	1		22		8		10		7		9		14		16		6		6
including General & Administrative Costs	27		40		43		50		60		72		70		78		97		90
SG&A, %	n/a		n/a		588.9	%	278.3	%	123.7	%	94.6	%	68.7	%	63.0	%	57.1	%	48.9	%
Net income (loss)	-49		-51		-59		-36		3		-35		-129		-838		-123		-94
Capital Expenditures	437		243		123		712		171		287		216		192		55		69

MOBILE	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	1		4		9		23		59		92		131		162		205		229
including Mobile Interconnect	0		0		1		6		15		22		31		40		51		58
Mobile OIBDA	-31		-49		-53		-59		-53		-50		-27		-33		-18		4
Mobile OIBDA, %	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		1.7	%

Subscribers (‘000)	7.3		14.0		26.6		72.7		146.2		168.6		189.0		225.1		246.4		289.2
ARPU, RUR	82.5		124.2		176.5		219.0		178.8		194.1		238.9		265.7		285.5		283.6
MOU, min	47.9		82.5		85.1		121.5		87.1		89.3		109.8		129.8		121.2		123.1
Churn 3 months active base (quarterly), %	n/a		n/a		n/a		17.6	%	1.4	%	16.8	%	13.8	%	11.7	%	7.8	%	10.8	%
Subscriber market share, %	0.4	%	0.8	%	1.6	%	3.5	%	4.7	%	4.9	%	5.3	%	6.0	%	6.5	%	7.5	%

FIXED	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
Net operating revenues	0		0		0		0		0		0		0		0		0		0
including business segment	0		0		0		0		0		0		0		0		0		0
including wholesale segment	0		0		0		0		0		0		0		0		0		0
including residential segment	0		0		0		0		0		0		0		0		0		0
Fixed OIBDA	0		0		0		0		0		0		0		0		0		0
Fixed OIBDA, %	0		0		0		0		0		0		0		0		0		0

Broadband subscribers (‘000)	0		0		0		0		0		0		0		0		0		0
Broadband services ARPU, blended, RUR	0		0		0		0		0		0		0		0		0		0

Reconciliation of OIBDA total	Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009
OIBDA	(31.0	)	(49.0	)	(53.0	)	(59.0	)	(53.0	)	(50.0	)	(27.0	)	(33.0	)	(18.0	)	4.0
Depreciation	(2.0	)	(12.0	)	(19.0	)	(27.0	)	(37.0	)	(45.0	)	(52.0	)	(73.0	)	(96.0	)	(93.0	)
Amortization	(26.0	)	(32.0	)	(32.0	)	(31.0	)	(32.0	)	(46.0	)	(48.0	)	(49.0	)	(57.0	)	(55.0	)
Operating income	(59.0	)	(93.0	)	(104.0	)	(117.0	)	(122.0	)	(141.0	)	(127.0	)	(155.0	)	(171.0	)	(144.0	)

OIBDA margin total	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		1.7	%
Less: Depreciation as a percentage of net operating revenues	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		(40.6	%)
Less: Amortization as a percentage of net operating revenues	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		(24.0	%)
Operating income as a percentage of net operating revenues	n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		(62.9	%)