Dividends Paid by the Company

• $332 mln paid in dividends for 2006
• $588 mln paid in dividends for 2007
• $323 mln paid in dividends for 2009
• $1.1 bln paid in dividends for 2010
• $733 mln paid in interim dividends for 2011
• final dividend of USD 0.35 per American depositary share (“ADS”) declared in relation to 2011 results. Each ADS represents one common share. The total final dividend payment will be approximately USD 570 million. This brings the total dividend in relation to the 2011 results to USD 0.80 per ADS, equivalent to USD 1.3 billion.
  The record date for the Company’s shareholders entitled to receive the final dividend has been set for June 1, 2012. The ex-dividend date is May 30, 2012. The Company will make appropriate tax withholdings of up to 15% when the dividend is paid to the Company’s ADS depositary, The Bank of New York Mellon. The dividend will be paid by the Company before June 30, 2012.
  

Dividend Guidelines for 2011-2013

The goal of the Dividend Guidelines is to optimize returns to investors of VimpelCom Ltd. (the “Company”) both in terms of company value increase (capital gain) and cash return.

It is the Company’s intention to pay a dividend which develops substantially in line with the development of its operational performance. The Company aims to pay interim and final dividends annually in cash.

The Company’s Dividend Guidelines will be annually reviewed to ascertain that the Company will continue to maintain an efficient capital structure, capable of securing its growth ambitions whilst honoring its financial commitments on a sustainable basis.Barring unforeseen circumstances, the Company aims to pay out a significant part of its annual operating free cash flow to its shareholders in the form of dividends. Operating Free cash flow is defined as “Net Cash from Operating Activities minus CapEx”, and can be derived from the consolidated group financial statements. The group aims to pay out at least USD 0.80 per share per year for the period 2011-2013 assuming not more than 1,628 mln common shares are issued and outstanding. The company will plan to pay the annual dividend in two tranches. The first tranche will be an interim dividend paid during the second half of the year. The second tranche will be the final dividend that will be paid out following the annual results announcement.

The precise amount and timing of dividends for a particular year will be approved by the Supervisory Board, subject to the following constraints and guidelines:

A. The Supervisory Board may consider various factors in determining the amount of dividends such as investment opportunities, capital market expectations , debt repayments schedules, desired level of leverage, share repurchase programs and any other factors at the discretion of the Supervisory Board.
B. All dividend decisions shall be taken assuring that the covenants or other restrictions in agreements to which the Company or any subsidiary is a party shall be satisfied and that the Company’s operating subsidiaries shall be in compliance with any law restricting the distribution of dividends.
C. The exact amount and timing of any dividend declarations and payments will require, subject to the requirements of applicable law, the affirmative vote of at least five (5) members of the Supervisory Board.

The financial terms referred to above are derived from and computed on the basis of measurements that appear in the Company’s audited annual consolidated US GAAP financial statements. Unless otherwise specified, all financial measurements in this policy shall be calculated based on the financial statements for the year ended prior to the decision being taken. For interim dividends, these financial measurements shall be calculated based on the financial statements for the quarters in the year ended prior to the decision being taken (whether such financial statements are audited or unaudited).

(*) Free Cash Flow means net income plus (depreciation and amortization) minus capital expenditures for the reported year based US GAAP financial statements.