VimpelCom's dividend policy was approved by our Board of Directors in March 2007. The goal of the dividend policy is to optimize return to our company’s investors both in terms of company value increase (capital gain) and cash return. The policy sets forth certain constraints and guidelines, including certain financial ratios and a requirement that the company have positive free cash flow for the prior financial year, that our board of directors will consider when assessing whether to propose a dividend payment on our shares of common stock and the amount of any such proposed dividend. Subject to the constraints and guidelines contained in the dividend policy as well as those under Russian law, the dividend policy contemplates that our Board will recommend the payment of cash dividends annually and the amount of the annual dividend will generally be equal to at least 25% of our consolidated net income, as determined under U.S. GAAP.

Year	Total Payment	% on Net Income	Per ADS
2006	US$ 333.4 mln.	41%	US$ 0.33*
2007	US$ 588 mln.	40%	US$ 0.57

*) Number of ADSs is based on the ratio of 20 ADSs per 1 ordinary share, which came into effect on August 21, 2007. Prior year amounts have been restated to reflect the split