Nowadays telecommunication systems are one of the most rapidly growing fields of business in the world. Systematic development of this business requires a number of certain conditions, one of which can be called "favorable economic environment". This is because growth of demand for development of telecommunications depends very much on the growth of business activities in a particular region of a country. In Russia this circumstance resulted in forming a unique situation that will affect state of affairs on the market for a long time.

The fact is that in the beginning of economic reforms in Russia (1992-1997) investments (mostly foreign) in development of telecommunications were growing every year and constituted a considerable share of the whole amount of investments in the Russian economy. It is worth saying that this field ranked third in interest of investors after fuel and energy complex and wood industry. After August 18^th crisis there was a considerable fall in the business activity in all fields of economy, which resulted in respective decline of demand for communication services. Long-term projects, which involved financing from internal courses that is through activation and reinvesting of income earned from the exploitation of the operating equipment were jeopardized. Investments, which had been considered as advantageous even in the circumstances of unfavorable tax and exchange policy before the crisis, have lost its profitability in the result of overall decline.

Obviously, only those projects, whose investors created flexible and progressive financial schemes that guarantee safety of funds on the one hand and conformity of cash flows with economic legislature on the other hand, will be able to survive during the crisis. Among them are projects worked out and managed by the ROSH Group companies. Experience which absorbed legal schemes, tax planning, cash flows management and introduction of financial control procedures turned out to be useful for restructuring existing telecommunication projects in Russia with the purpose of their survival in current situation.

Over six years ROSH primarily interest in Russia was in development of telecommunication infrastructure and high technologies' implementation. The management of ROSH headquarters stresses the importance of telecommunication business development in Russia, which seems to be one of the most promising. The activities of the following companies are targeted at achievement of this goal: "OTT" Joint Stock Closed Company, "ECI TELECOM" Moscow Representative Office, "MMG" Joint Stock Closed Company, "MMG Telecommunication" Limited Liability Company, "Ectel" Limited Liability Company, "Acomtel" Joint Stock Closed Company, "Rosh Telecom Limited" Moscow Representative Office, "Strobos Limited" Moscow Representative Office, "Katrina" Limited Liability Company As of December 31, 1997 the headquarters of ROSH companies invested in the telecommunication business in Russia $80,000,000.