KYIVSTAR G.S.M. JSC

Condensed Consolidated Statements of Comprehensive Income

for the three months ended March 31, 2009 and 2008 IFRS

(thousands of US Dollars)

Three months ended March 31, 2009

Three months ended March 31, 2008

(unaudited) (unaudited)

Net revenues 360,157 581,545Cost of services and products (80,601) (136,692)

Gross profit 279,556 444,853

Operating expenses (69,064) (94,315)Depreciation and amortisation (58,508) (80,058)

(127,572) (174,373)

Operating profit 151,984 270,480

Financial and other income (expenses), net 25,089 25,616

Income before income taxes 177,073 296,096

Income tax expense (47,367) (78,867)

Net income 129,706 217,229

Other comprehensive (loss)/income, net of tax - -

Comprehensive income 129,706 217,229

Income tax paid (1) 99,443 35,268

EBITDA(2) 210,492 350,538

EBITDA margin (3) 58% 60%

EBIT (4) 151,984 270,480

(1) The amount of income tax paid differs from the income tax expense by the change in the income tax liabilities at the beginning and at the end of the period and translation difference. Income tax expense represents the charge for the period, whereas the repayment of income tax results in the decrease of the accrued income tax. (2) EBITDA is defined as income before financial and other income/(expenses), provisions for income taxes and depreciation and amortisation expenses. (3) EBITDA margin represents EBITDA as a percentage of net revenues. (4) EBIT is defined as income before financial and other income/(expenses) and provisions for income tax, which is equal to operating profit.

KYIVSTAR G.S.M. JSC

Condensed Consolidated Statement of financial position as at March 31, 2009 and 2008

IFRS (thousands of US Dollars)

March 31, 2009

March 31, 2008

(unaudited) (unaudited) Intangible assets, net 149,630 260,746Tangible assets, net 888,091 1,339,502Financial assets - 4,177Other non-current assets 11,165 20,165Total non-current assets 1,048,886 1,624,590 Deferred tax asset 11,543 70,751Other current assets 122,669 151,071Cash and cash equivalents 730,314 1,268,583Financial assets 2,991 2,096Total current assets 867,517 1,492,501 Total assets 1,916,403 3,117,091 Shareholders equity 1,644,388 2,239,743 Long-term interest bearing debt - 434,636Deferred tax liability - 36,238Other non-current liabilities - 36,628Total non-current liabilities - 507,502 Short-term non-interest bearing liabilities 182,009 369,846Short-term interest bearing debt 90,006 -Total short-term liabilities 272,015 369,846 Total liabilities and shareholders’ equity 1,916,403 3,117,091

KYIVSTAR G.S.M. JSC

Consolidated Statements of Changes in equity for the three months ended March 31, 2009

IFRS (thousands of US Dollars)

Share Capital

Retained earnings

Accumulated other comprehensive

income

Total

December 31, 2008 (unaudited) 123,201 2,367,774 (976,293) 1,514,682Net income - 129,706 - 129,706March 31, 2009 (unaudited) 123,201 2,497,480 (976,293) 1,644,388

KYIVSTAR G.S.M. JSC

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2009 and 2008

IFRS (thousands of US Dollars)

Three months ended

March 31, 2009 Three months ended

March 31, 2008

(unaudited) (unaudited) Net cash provided by operating activities 144,527 267,748Net cash used in investing activities (37,910) (58,223)Net cash (used in)/ provided by financing activities

(413,499) -

Net increase in cash and cash equivalents (306,882) 209,525

Effect of foreign exchange rate changes on cash and cash equivalents

(5,201) -

Cash and cash equivalents at the beginning of the period

1,042,397 1,059,057

Cash and cash equivalents at the end of the period 730,314 1,268,582

Three months ended March 31, 2009

Three months ended March 31, 2008

(unaudited) (unaudited) Supplemental disclosure of cash flow informationCash paid during the period for: Interest 5,479 14,799Income taxes 99,443 35,268

KYIVSTAR G.S.M. JSC

Analytical information for 2007, 2008 and the three months period of 2009 (amounts in thousands of US Dollars if not otherwise indicated)

2007 2008 2009

1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter

Net revenues 456,417 519,822 590,694 581,458 581,545 636,470 696,753 550,154 360,157

EBITDA(1) 271,525 314,914 341,569 323,189 350,538 378,192 424,280 263,266 210,491

Operating profit 202,977 245,514 261,984 242,227 270,480 299,082 344,711 186,568 151,984

Income before income taxes 198,371 242,493 266,349 250,145 296,096 333,817 388,586 267,480 177,073

Equity RATIO(2) 62.55% 65.98% 68.95% 67.69% 71.85% 74.77% 76.47% 67.94% 85.81%

Interest bearing debt(3) 436,139 434,416 436,352 433,988 434,636 429,381 410,073 124,186 90,006

Net debt/ EBITDA(4) -0.12 -0.27 -0.41 -0.5 -0.63 -0.79 -0.95 -0.66 -0.50

(1) EBITDA is defined as income before financial and other income/(expenses), provisions for income taxes and depreciation and amortisation expense. (2) Equity RATIO is determined by dividing the amount of shareholder’s equity at the end of the period by the amount of total assets at the end of the period. (3) At period end and including fair value adjustment of hedged item. (4) Net debt/ EBITDA is determined by dividing the total amount of net debt at the end of the period by the amount of EBITDA for the four most recent quarters. Net debt is defined as interest bearing debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end.

KYIVSTAR G.S.M. JSC

Analytical information for 2007, 2008 and the three months period of 2009 (continued)

2007 2008 2009

1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter 2-nd quarter

3-rd quarter 4-th quarter 1-st quarter

EBITDA/Net interest expenses(1)22.0 30.6 33.6 29.6 32.2 35.1 41.5 46.9 68.1

EBITDA/Interest expenses(2) 22.6 24.4 28.4 33.2 36.5 43.7 44.6 41.9 43.0

Funds from operations/Net debt(3)-163% -80% -57% -41% -36% -29% -26% -29% -29%

Free operating cash flow/Net debt(4)-97% -57% -37% -23% -25% -19% -24% 6% -17%

Net debt/Shareholders equity(5)-0.10 -0.19 -0.26 -0.31 -0.40 -0.42 -0.49 -0.62 -0.39

Subscriber acquisition cost(6)$ 21,5 $ 28,6 $ 25,4 $ 26,8 $ 23,0 $30,4 $33,2 $27,9 $27,7

(1) EBITDA/Net interest expenses is determined by dividing EBITDA by the amount of interest expenses, net of capitalised interest and excluding interest income/expense from derivative financial instrument, for the quarter. (2) EBITDA/Interest expenses is determined by dividing EBITDA for the four most recent quarters by the amount of interest expenses, including capitalised interest and interest income/expense from derivative financial instrument, for the four most recent quarters. (3) Funds from operations/Net debt is determined by dividing the amount of net income adjusted for depreciation and amortisation expenses for the period by the amount of net debt. Net debt is defined as interest bearing debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end. (4) Free operating cash flow/ Net debt is determined by dividing the amount of the operating cash flow for the period adjusted for cash used in investing activities and dividends payments by the amount of net debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end. (5) Net debt/Shareholders equity is determined by dividing the amount of net debt by the amount of shareholders equity at the end of the period. Net debt is defined as interest bearing debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end. (6) Subscriber acquisition cost is determined by dividing the amount of advertising and marketing expenses, dealers’ discounts and fees on start packages and scratch cards, and dealers’ fees for contract subscribers connection incurred during the period by the number of new subscribers connected to the network during that period.

KYIVSTAR G.S.M. JSC

Analytical information for 2007, 2008 and the three months period of 2009 (continued)

2007 2008 2009

1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter

No. of mobile subscriptions(1): 21,959,275 22,058,889 23,058,802 23,603,986 23,686,503 23,306,966 23,456,437 23,530,545 23,052,328

- of which Pre-paid(1): 20,712,625 20,836,818 21,840,560 22,362,587 22,413,303 22,027,751 22,158,015 22,192,474 21,642,322

Annualized churn rate(2): 35,8% 32,2% 23,1% 31,8% 29,4% 31,2% 25,6% 26,06% 26,64%

Average monthly minutes of usage per subscriber (AMPU) (3):

125 137 145 148 147 159 168 169 152

Average monthly service revenue per subscriber (ARPU) (4):

-Total $6.8 $7.7 $8.5 $8.3 $8.0 $8.8 $9.7 $7.7 $5.0

-Contract $29.5 $32.7 $36.4 $36.4 $35.2 $37.6 $40.0 $30.4 $20.7

-Pre-Paid $5.4 $6.2 $6.9 $6.7 $6.5 $7.2 $7.9 $6.4 $4.0

No. of SMS (in mln.): 1258 1133 1182 1349 1577 1428 1408 1638 1421

Average monthly No. of SMS sent per subscriber : 21 19 19 21 22 20 20 23 20

(1) End of period. (2) Churn rate represents a percentage of the total number of churned subscribers to the average number of subscribers during a certain period. Contract subscribers with negative account balance and prepaid subscribers are considered to have churned after three months of inactivity, contract subscribers with positive account balance - after four months of inactivity. (3) Average monthly minutes of usage per subscriber (AMPU) is calculated by dividing the total number of charged minutes of usage during a given period by the average number of subscribers during that period and dividing by the number of months in that period. (4) The average monthly service revenue per subscriber (ARPU) is determined by dividing the service revenues for a given period, including revenues from roaming by the Company’s subscribers and excluding roaming revenues from visiting users and non-core revenue, by the average number of subscribers during that period and dividing by the number of months in that period.