The loan with Sberbank bears interest at a rate of 15% per annum and to be repaid in two equal installments in August 2012 and in April 2013.

VimpelCom intends to use the proceeds from the loan for refinancing of its existing indebtedness and development of VimpelCom’s core business, the company said.

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.

In Uzbekistan, VimpelCom owns Unitel LLC, mobile communication operator, and Buzton JV LLC, fixed communication and Internet operator.

Unitel was founded in 1996. The company started commercial activity on 25 September 1997. Currently, it is one of the leaders among GSM-operators in Uzbekistan. At the end of March 2009, the company had over 3.653 million subscribers. On 9 February 2006, Unitel became part of VimpelCom Group, one of the largest mobile communication operator in Russia and CIS. On 12 September 2006, Unitel started to render services under Beeline brand. On 2 December 2008, Unitel announced about commercial 3G network.

Number of subscribers of Unitel made up 3.605 million at the end of the second quarter or decreased by 1.3% quarter-to-quarter. Market share of the company fell from 27.9% in the first quarter of 2009 to 25% in the second quarter of 2009. The net operating revenue decreased from 1.984 billion rubles or US$58 million in the first quarter of 2009 to 1.693 billion soums or US$53 million in the second quarter of 2009.

Buzton joint venture was founded in 1995. Main activity of the company was long-distance and international and local digital calls in the first stage of activity. In 2000, the company expanded its activity in telecommunication market and started to render Internet services. Currently, Buzton is operator of integrated communication services, which presents all complex of modern telecommunication services: telephony, data transfer and Internet access. Buzton became part of VimpelCom Group in 2008.