September

2

0

0

9

Project Spring –

overview of proposed transaction

STRICTLY PRIVATE & CONFIDENTIAL

Exhibit 99.16

Agenda

Page

1

Overview of proposed transaction

1

Proposed transaction process

8

Appendix

–

selected financial information

11

STRICTLY PRIVATE & CONFIDENTIAL

Transaction overview

The proposed transaction will combine JSC Violet and Carnation under a NYSE-listed NewCo (“Violet Ltd”)

Violet

Ltd

will

launch

a

tender

offer

for

all

outstanding

shares

of

JSC Violet, subject to a minimum tender

acceptance threshold of 95%:

1 Violet DR for 1 JSC Violet ADR

20 Violet Ltd common shares for 1 JSC Violet common share; and

20 Violet Ltd preferred shares for 1 JSC Violet preferred share

Assuming the 95% threshold is met:

Azalea and Tulip will immediately contribute their stakes in Carnation in exchange for additional Violet Ltd

shares where Violet Ltd will issue […] common shares for […] Carnation share¹

JSC Violet will be delisted from NYSE and RTS

Violet Ltd will commence a “squeeze-out”

process of any remaining JSC Violet shareholders

Other conditions precedent

Receipt of all required regulatory approvals

Receipt of required waivers from creditors

Cessation of all legal proceedings involving the two major shareholders

1

This implies that Carnation shareholders will receive [  ]% of the total share capital of Violet Ltd for their 100% contribution of Carnation, which reflects a 1:[  ] ratio of

economic equity values of JSC Violet to Carnation and a 1:[  ] ratio of enterprise values

2

STRICTLY PRIVATE & CONFIDENTIAL

Proposed Violet Ltd structure

Proposed Violet Ltd structure

Violet Ltd

Free

Float

100%

100%

Violet Ltd features

Name: Violet Ltd

Bermuda incorporated

Listed on the NYSE

Headquartered and tax domiciled in the

Netherlands

Key executives and head office functions

based in the Netherlands

HoldCo

B.V.²

Tulip

Azalea

[  ]% Economic

[  ]% Voting¹

[  ]% Economic

[  ]% Voting¹

[  ]% Economic

[  ]% Voting¹

Carnation

JSC Violet

¹

JSC Violet preference shares to be exchanged for Violet Ltd preference shares convertible into common at any time between year 2.5 and year 5 after closing

²

There may be need for a second Dutch HoldCo if fiscal unity between Violet Ltd and HoldCo is not granted

Storm

43.5%

56.5%

3

STRICTLY PRIVATE & CONFIDENTIAL

Proposed governance structure

9 directors of the Board

Each

of

Azalea

and

Tulip

will

nominate

3

candidates;

3

directors

will

be

independent

Cumulative voting for directors, with all shareholders voting

No vetoes on the Board for any matters for either Azalea or Tulip

Quorum: At least 6 members of the Board for all matters

Chairman of the Board will be independent and elected by simple majority of the Board

CEO will be independent and elected with 6 out of 9 votes

Violet Ltd

corporate

governance

JSC Violet

and

Carnation

corporate

governance

Shareholder

agreement

Board of 5 directors in each company

Azalea and Tulip to each appoint 1 director

Remaining directors to be proposed by Violet Ltd CEO and approved by the Violet Ltd Board

Removal of all clauses that require supermajority voting

General Managers for each of Carnation and JSC Violet to be proposed by Violet Ltd CEO and

approved by the Board of Violet Ltd

General Director of JSC Violet to be Russian national

General Manager of Carnation to be Ukrainian national

Specifically designed to avoid deadlock amongst parties

Governed by New York law

Any disputes will be resolved by arbitration in London under UNCITRAL Arbitration Rules

4

STRICTLY PRIVATE & CONFIDENTIAL

Compelling value proposition for JSC Violet shareholders

Creates

the

largest

EMEA

emerging

markets

mobile

operator

Significant value creation potential

The leading operators of Ukraine and Russia brought together under the same entity

Potential for in-country consolidation in Ukraine subject to regulatory approval

Scale related synergy potential with more than 22 million additional subscribers

Financial strength improved

Improved credit profile with Carnation’s low leverage

Prospect of near-term dividends for the Violet Ltd shareholders

Attractive exchange ratio for minority shareholders

Alignment of interests and end of conflicts between the major shareholders

Creates a stable ownership structure going forward

Smooth independent driven decision making process on Violet Ltd Board

5

STRICTLY PRIVATE & CONFIDENTIAL

Violet Ltd will be the largest mobile operator in EMEA

emerging markets

Revenues 2008A (US$mm)

EBITDA 2008A (US$mm)

FCF 2008A (US$mm)¹

Source: Company information

¹

Defined as EBITDA-Capex

Total subscribers 2008A (mm)

6

STRICTLY PRIVATE & CONFIDENTIAL

96

91

85

78

61

37

32

24

20

3 349

2 913

2 289

1 806

1 772

1 060

490

381

37

6 282

5 231

5 140

4 860

2 580

2 384

1 468

1 422

872

12 582

12 424

10 245

10 117

6 970

5 327

3 412

2 465

1 838

Financial strength improved

Violet Ltd’s EBITDA margin and cash flow generation improve significantly

Credit profile of Violet Ltd significantly improves compared to JSC Violet stand-alone

Diversification of operations provides lower risk

EBITDA margin 2008A

Free

Cash

Flow

conversion

2008A

Net

debt/EBITDA

2Q

2009A

LTM

²

Violet shareholders benefit from improving financial profile

(0.25x)

Source: Company information

1

Free

Cash

Flow

defined

as

(EBITDA

–

Capex) / EBITDA

²

LTM EBITDA (2H 2008A + 1H 2009A), converted at average period exchange rate if not disclosed in US$. Carnation Q2 2009A net debt adjusted for expected Q3

dividend payment of UAH 1,900mm

JSC Violet

Carnation

Violet Ltd

7

STRICTLY PRIVATE & CONFIDENTIAL

1,39x

0,12x

1,14x

48,0%

57,7%

49,9%

JSC Violet

Carnation

Violet Ltd

47,1%

74,6%

53,3%

JSC Violet

Carnation

Violet Ltd

1

Agenda

Page

8

Proposed transaction process

8

Overview of proposed transaction

1

Appendix

–

selected financial information

11

STRICTLY PRIVATE & CONFIDENTIAL

Indicative transaction milestones

9

1)  Assumes no extension of offer period

2)  Assumes 15 days settlement period [to be confirmed] 

Timeline

Launch tender offer

Tender offer

period

1

Closing of tender offer²

Delisting of JSC Violet on NYSE

Announcement of transaction

Carnation contribution

Squeeze-out period

Prepare tender offer filing + reg. filings

Violet Ltd listed on NYSE

Road-show period

JSC Violet Board meeting

JSC Violet fairness opinion ready

JSC Violet management briefing

STRICTLY PRIVATE & CONFIDENTIAL

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

Proposed immediate timeline

Immediate timeline

23 Sept

Tulip and Azalea meet with Management

Management executes NDA

Tulip and Azalea present Proposed Transaction

Limited DD of JSC Violet and Carnation commences

25 Sept    

JSC Violet Board Meeting (subject to a unanimous waiver of the notice  

period by the Board members)

Review of Proposed Transaction

Board appoints legal and financial advisors

3/4 Oct      

JSC Violet Board meeting

Financial advisors provide fairness opinion to JSC Violet

JSC Violet Board recommends Proposed Transaction

Tulip and Azalea execute Definitive Agreements

5 Oct          

Announcement of Transaction

10

STRICTLY PRIVATE & CONFIDENTIAL

Agenda

Page

11

Appendix

–

selected financial information

11

Overview of proposed transaction

1

Proposed transaction process

8

STRICTLY PRIVATE & CONFIDENTIAL

JSC Violet and Carnation trading performance update —

US$

JSC Violet financials (US$mm)

Carnation financials (US$mm)

Commentary

Dec 2008 net debt is adjusted for Carnation dividends paid-out in Q1 2009, Q2 2009 (Q1: UAH 2,906mm and Q2: UAH

4,600mm) and Q3 dividends of UAH 1,900mm

March 2009 net debt adjusted for Carnation dividend in Q2 2009 (UAH 4,600mm) and Q3 2009 (UAH 1,900mm)

June 2009 net debt adjusted for Carnation dividend in Q3 2009 (UAH 1,900mm)

Source: Company information

¹

Income

statement

converted

at

average

USD/RUB

rate

of

34.03

for

Q1 2009

²

Income

statement

converted

at

average

USD/RUB

rate

of

32.18

for

Q2 2009

Capex implied from capex

to sales ratio in UAH (reporting currency for Q2 2009A)

4

Income statement converted at average USD/UAH rate of 7.91 for Q2 2009 except capex; balance sheet converted at end of period USD/UAH rate of 7.72 for Q2 2009; Dividend of

UAH1,900mm converted at current USD/UAH rate of 8.50 as of September 20, 2009

12

STRICTLY PRIVATE & CONFIDENTIAL

US$mm

2007A

2008A

1Q2009A

2Q2009A

4

Revenue

2,148

2,465

360

373

% growth

y-o-y

14.7%

(38.1%)

(41.5%)

EBITDA

1,251

1,422

210

222

% margin

58.2%

57.7%

58.4%

59.5%

% growth y-o-y

13.6%

(40.0%)

(41.4%)

Capex

(437)

(361)

(37.9)

(38.8)

3

as % of sales

20.4%

14.7%

10.5%

10.4%

Free cash flow

814

1,060

173

183

% conversion

65.1%

74.6%

82.0%

82.5%

% growth y-o-y

30.3%

(57.8%)

(59.5%)

Net debt

YE 2007A

YE 2008A

March

2009A

June

2009A

4

Cash

(1,059)

(1,056)

(730)

(138)

Debt

434

124

90

57

Net debt as reported

(625)

(932)

(640)

(81)

Dividend

Q109

354

-

-

Dividend Q209

581

581

-

Dividend Q309

224

224

224

Adjusted net debt/(cash)

227

165

142

US$mm

2007A

2008A

1Q2009A¹

2Q2009A²

Revenue

7,171

10,117

1,964

2,145

% growth y-o-y

41.1%

(6.8%)

(17.8%)

EBITDA

3,597

4,860

945

1,086

% margin

50.2%

48.0%

48.1%

50.6%

% growth y-o-y

35.1%

(16.1%)

(11.2%)

Capex

(1,773)

(2,571)

(115)

(156)

as % of sales

24.7%

25.4%

5.9%

7.3%

Free cash flow

1,824

2,289

830

930

% conversion

50.7%

47.1%

87.8%

85.6%

% growth y-o-y

25.5%

(56.2%)

(47.8%)

Net debt

YE 2007A

YE 2008A

March

2009A

June

2009A

Cash

(1,004)

(915)

(966)

(1,649)

Debt

2,767

8,443

7,696

7,974

Net debt

1,763

7,528

6,730

6,325

3

JSC Violet and Carnation trading performance update —

local currency

JSC Violet financials (RUBmm)

Source: Company information

¹

Income

statement

converted

at

average

USD/RUB

rate

of

25.57

for

2007; balance sheet converted at end of period USD/RUB rate of 24.54 for 2007

²

Income

statement

converted

at

average

USD/RUB

rate

of

24.89

for

2008

³

Capex implied from capex to sales ratio in US$ (reporting currency for Q1 2009A)

4

Balance sheet converted at end of period USD/UAH rate of 8.05 for Q1 2009

Carnation financials (UAHmm)

Commentary

Dec 2008 net debt is adjusted for Carnation dividends paid-out in Q1 2009, Q2 2009 (Q1: UAH 2,906mm and Q2: UAH

4,600mm) and Q3 dividends of UAH 1,900mm

March 2009 net debt adjusted for Carnation dividend in Q2 2009 (UAH 4,600mm) and Q3 2009 (UAH 1,900mm)

June 2009 net debt adjusted for Carnation dividend in Q3 2009 (UAH 1,900mm)

13

STRICTLY PRIVATE & CONFIDENTIAL

UAHmm

2007A

2008A

1Q2009A

2Q2009A

Revenue

10,924

12,711

2,773

2,909

% growth

y-o-y

16.4%

(5.6%)

(7.8%)

EBITDA

6,295

7,438

1,618

1,730

% margin

57.6%

58.5%

58.4%

59.5%

% growth y-o-y

18.2%

(3.9%)

(6.3%)

Capex

(2,059)

(1,926)

(292)

3

(303)

as % of sales

18.9%

15.1%

10.5%

10.4%

Free cash flow

4,235

5,512

1,326

1,427

% conversion

67.3%

74.1%

82.0%

82.5%

% growth y-o-y

30.1%

(4.6%)

(4.7%)

Net debt

YE 2007A

YE 2008A

March

2009A

4

June

2009A

Cash

(4,612)

(5,068)

(5,879)

(1,067)

Debt

2,280

985

725

440

Net debt as reported

(2,331)

(4,083)

(5,154)

(627)

Dividend

Q109

2,906

0

0

Dividend Q209

4,600

4,600

0

Dividend Q309

1,900

1,900

1,900

Adjusted net debt/(cash)

5,323

1,346

1,273

RUBmm

2007A¹

2008A²

1Q2009A

2Q2009A

Revenue

183,380

251,782

66,843

69,035

% growth y-o-y

37.3%

30.7%

11.9%

EBITDA

91,976

120,948

32,166

34,958

% margin

50.2%

48.0%

48.1%

50.6%

% growth y-o-y

31.5%

17.8%

21.0%

Capex

(45,339)

(63,985)

(3,925)

(5,027)

as % of sales

24.7%

25.4%

5.9%

7.3%

Free cash flow

46,637

56,963

28,241

29,931

% conversion

50.7%

47.1%

87.8%

85.6%

% growth y-o-y

22.1%

(21.6%)

(32.9%)

Net debt

YE 2007A¹

YE 2008A

March

2009A

June

2009A

Cash

(24,630)

(26,873)

(32,861)

(51,605)

Debt

67,889

248,056

261,759

249,525

Net debt

92,519

221,183

228,898

197,920