<PAGE>   1
                                                                    Exhibit 10.4

A000801                     MINISTRY OF COMMUNICATIONS
                            OF THE RUSSIAN FEDERATION

                                  L I C E N C E
                                   No. 4 2 7 4


            The Ministry of Communications of the Russian Federation
               in accordance with the Law on Communications in the
                        Russian Federation authorises the

                                   "PETERSTAR"
                           PRIVATE JOINT-STOCK COMPANY

                                 Legal address:
                  191065, St. Petersburg, ul. B.Morskaya, d. 24

               to carry out activities relating to communications

                                Type of activity:
                   Provision of local and intercity telephone
                             communications services

          The conditions for carrying out the said type of activity and
          the territory are given in the addendum, which is an integral
                              part of this licence.


<TABLE>
<S>                                                    <C>
Period of licence                                      to 28.11.2004

Commencement of provision
of services (not later than)                              07.06.1996

Date of registration of licence
in Unified Communications
Licence Register                                          07.06.1996

Deputy Federal Minister
of Communications       (signed)                         N.S. Marder
                    [Official Stamp]
</TABLE>


                                                                Licence No. 4274
<PAGE>   2
RF Ministry of Communications                                                  1


                    Conditions for performance of activities
                       in accordance with Licence No. 4274


         1. AOZT "PeterStar" (the Licensee) is authorized by the present licence
to provide public communications system local and intercity telephone
communications services in the territory indicated in clause 36.

                  The total installed capacity of the Licensee's communication
system is to be not less than 106,000 numbers.

                  The distribution of the Licensee's communication system
capacity by regions of the licence territory is to be in accordance with clause
36.

         2. The Licensee is obligated to ensure that not less than 70% of the
capacity indicated in clause 1 of the present licence has been introduced by the
end of the third year of operation.


         3. The Licensee must provide services in the licence territory to any
person who requires these, where there are the appropriate technical
capabilities.

                  Refusal to provide services may be caused by circumstances in
which:

                  - the provision of a service may create a threat to the safety
and defence capability of the estate, or to the health and safety of people;

                  - the provision of a service is impossible in view of any
physical, topographical or other natural hindrances;

                  - the consumer, without any reason, does not agree to the
conditions for provision of a service, does not make payments on time for the
service provided;

                  - the consumer uses or intends to use the communications
apparatus for any illegal purposes, or obtains communications services by
illegal means, operates the equipment provided with infringement of technical
operating regulations, or uses uncertificated equipment.

                  A refusal must be substantiated in each specific case.

         4. The Licensee's communications system is to be connected to the
public communications system of the Russian Federation at the level of local
telephone systems in accordance with the technical specifications of the
operators of the public communications system, in accordance with clause 36.

                  Connection to the public communications system of the Russian
Federation in accordance with the technical specifications of other public
communications system operators who have a licence to provide local telephone
communications services in the said territory is permissible, on condition that
they comply with current norms and regulations on carrying traffic.

                  The connection of other communications systems to the
Licensee's communications system with the object of providing the subscribers of
these systems with an outlet to the public communications system of the Russian
Federation is permissible only in St. Petersburg and the Leningrad Region.


                                                                Licence No. 4274
<PAGE>   3
RF Ministry of Communications                                                  2


                  In St. Petersburg and the Leningrad Region, when the Licensee
is approached by other operators of the public communications system of the
Russian Federation, who have a licence to supply local telephone communications
services in the said territory, he must issue technical specifications for
connection to his system. In this case, current norms and regulations must be
observed, relating to carrying the additional traffic of the system being
connected, and including obligatory clarification of technical specifications
for connection of the Licensee's communications system to the public
communications system of the Russian Federation.

                  The Licenseee must participate in proportional development of
the public communications system of the Russian Federation. The type, amount and
procedure for transfer of a contribution for this purpose shall be determined
and the client shall be informed after they have been established.

                  The Licensee has the right to lease communication channels and
physical circuits of the public communications system at the tariffs current for
the given category of consumer.

         5. Connection of the technical facilities of the Licensee's
communications system to the public communications system of the Russian
Federation, and also their operation, are to be carried out in accordance with
the current normative documents of the Ministry of Communications of the Russian
Federation.

         6. It is permissible to use in the subscriber sector radio extendors
operating solely in the 330 MHz frequency band where there is authorisation from
the State Communications Supervisory Service of the Russian Federation for use
of the operating frequencies.

         7. When switching equipment of foreign design is used, its type must be
authorised for use in the public communications system in the particular region.

         8. Numbering in the Licensee's communications system must correspond to
the numbering plan of the public communications system of the Russian
Federation.

         9. The Licensee is obligated to meet the requirements of the Ministry
of Communications of the Russian Federation on the procedure for carrying
traffic and providing services.

                  In the cases provided for by the legislation of the Russian
Federation, centralised control of the Licensee's communications
systems is exercised directly by the Ministry of Communications of the
Russian Federation.

         10. Subscribers of the Licensee's system are to be provided with
intercity and international telephone communications services solely via the
public communications system.

                  It is permissible to provide intercity telephone
communications services via the Licensee's communications system if both the
calling and the called subscribers are subscribers of the Licensee's system.


                                                                Licence No. 4274
<PAGE>   4
RF Ministry of Communications                                                  3

         11. Payphones must be installed in the Licensee's operating area, in a
volume of not less than 2% of the number capacity, and having the right of
outlet to the public telephone communications system.

         12. Settlements for traffic are to be made by the Licensee in
accordance with the procedure established by the Ministry of Communications of
the Russian Federation for the public communications system of the Russian
Federation.

         13. The Licensee is obligated to provide the communications services
covered by the present licence 24 hours per day every day with the exception of
interruptions for the performance of necessary preventive maintenance and repair
work, which shall be planned for a time when this may cause the least loss to
the user.

         14. The Licensee is obligated to provide users with communications
services, the quality of which complies with standards, technical norms,
certificates and conditions of the contract for the provision of communications
services.

         15. The Licensee is liable to the users in the event of the
non-fulfilment or inappropriate fulfilment by him of his obligations under the
procedure and in the amounts provided for by the current legislation of the
Russian Federation.

         16. Creation of the Licensee's communications system is permitted only
where there is project documentation, prepared in accordance with the
Construction Norms and Regulations and Departmental Technological Design Norms
(SNiP, VNTP) used in the Russian Federation, and agreed under the established
procedure.


         17. Tariffs for communications services are set on a contractual basis.

                  In the cases provided for by the legislation of the Russian
Federation, tariffs may be regulated by the state in respect of individual types
of communications services provided by communications enterprises.

                  Calls to the emergency services (fire brigade, police,
ambulance, emergency gas service, mine rescue service, etc.) are made free by
all individual persons and legal entities.

                  Payment for inter-system connections is set on the basis of
contracts, conditions and regulations agreed between the corresponding
communications enterprises. Disputes relating to these matters are to be
considered in a court or arbitration tribunal.

                  Subscribers are not to be billed for calls if a connection has
not been established.

         18. Costs connected with design and construction of the Licensee's data
transmission system, its connection to the public communications system of the
Russian Federation, and settlements with the operators of the public
communications systems of the Russian Federation are paid by the Licensee.


                                                                Licence No. 4274
<PAGE>   5
RF Ministry of Communications                                                  4


         19. During natural disasters, quarantine and other emergency situations
provided for by the legislation of the Russian Federation, authorised state
bodies have the right to priority use, and also to suspend the activities, of
the Licensee's communications system and facilities.

         20. The Licensee must give absolute priority to all messages concerning
the safety of human life at sea, on land, in the air and in space, the
performance of emergency measures in the sphere of defence, safety and the
safeguarding of law and order in the Russian Federation, and also to messages
concerning major accidents, catastrophes, epidemics, epizootics and natural
catastrophes.

         21. Preferences and privileges in respect of priority, procedure for
use and amount of payment for communications services may be established for
particular categories of officials of state bodies, diplomatic and consular
representatives of foreign states, representatives of international
organisations, and also individual groups of citizens when using electrical
communications.
                  A schedule of preferences, and also of the categories of
officials and citizens who have the right to preferences and privileges, is
determined by the legislation of the Russian Federation and by the normative
legal acts of members of the Russian Federation, and also by international
treaties and agreements of the Russian Federation.

         22. The Licensee is obligated to ensure observance of the secrecy of
communications.

                  Information on messages transmitted via the Licensee's
communications system, and also these messages themselves, may be issued only to
the senders and addressees or their legal representatives.

                  Listening to telephone conversations, examination of
electrical communications messages, obtaining information on these, and also
other limitations on the secrecy of communications are permissible only on the
basis of the current legislation of the Russian Federation.

         23. The Licensee must not prevent the performance of checks on the
technical parameters of the communications system by the State Communications
Supervisory Service of the Russian Federation and, where necessary, is obligated
to ensure that this Service has access to its measuring apparatus with the
object of using it in this work.

         24. In accordance with the legislation of the Russian Federation, when
developing, creating and operating the communications system the Licensee is
obligated to cooperate with bodies carrying out criminal investigation
activities and to give them the opportunity to carry out criminal investigation
measures in the communications system, and to take steps to prevent disclosure
of the organisational and tactical procedures in carrying out the said measures.

                  In the event that communications facilities are used for
criminal purposes, causing damage to the interests of the person, society and
the state, the authorised state bodies have the


                                                                Licence No. 4274
<PAGE>   6
RF Ministry of Communications                                                  5


right, in accordance with the legislation of the Russian Federation, to suspend
the operations of the Licensee's communications systems and facilities.

                  The connection of subscribers must be carried out after
meeting requirements in accordance with the Russian Federation Law 'On criminal
investigation activity in the Russian Federation'.

         25. The Licensee is obligated to take steps to prevent unsanctioned
interference in control of the system being set up, and unsanctioned monitoring
of its operation.

         26. The use of technical communications facilities is permitted when
there is a certificate of the Ministry of Communications of the Russian
Federation.

         27. The provision of communications services may commence only when
there is authorisation for system operation from the State Communications
Supervisory Service of the Russian Federation.

         28. The Licensee is obligated to provide official electrical
communications free of charge under the procedure defined by the Ministry of
Communications of the Russian Federation.

         29. At the request of the Licensor, the Licensee is to submit
information on the technical condition and development prospects of the
technical facilities being created, conditions for provision of communications
services, and current tariffs.

         30. The licence shall be regulated, interpreted and implemented in
accordance with the current legislation of the Russian Federation.

         31. The Licensee is obligated to carry out his activities in accordance
with the current legislation of the Russian Federation and normative acts passed
by the Ministry of Communications of the Russian Federation.

         32. The Licensor retains the right to introduce amendments and addenda
into the present licence in connection with changes in the current legislation
of the Russian Federation.

         33. The Licensee is obligated to submit to local statistical bodies and
the Ministry of Communications of the Russian Federation periodic and annual
state statistical reports on communications in accordance with the procedure
established by the State Statistics Committee of the Russian Federation.

                  Infringement of the procedure for submission of statistical
reports incurs administrative liability in accordance with current legislation.

         34. The licence may not be transferred to another party.


                                                                Licence No. 4274
<PAGE>   7
RF Ministry of Communications                                                  6

         35. The licence must be registered within 30 days of its date of issue
at the territorial office of the State Communications Supervisory Service of the
Russian Federation.

         In the event of a change in postal address, banking details and
telephone number, the Licensee is obligated to communicate this within one week
to the Ministry of Communications of the Russian Federation and to the
territorial office of the State Communications Supervisory Service of the
Russian Federation.

         36.      Effective territory of the licence:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------
Item             Territory        Capacity         Operator issuing TS
No.                                                   for connection
-------------------------------------------------------------------------
<S>        <C>                    <C>          <C>
1          St. Petersburg             90000    AOOT "PTS"
-------------------------------------------------------------------------
2          Moscow (city)                900    AOOT "MGTS"
-------------------------------------------------------------------------
3          Leningrad Region           10000    AOOT "Lensvyaz'"
-------------------------------------------------------------------------
4          Arkhangel'sk Region          700    AOOT "Artelekom"
                                               Arkhangel'sk Region
-------------------------------------------------------------------------
5          Vologda Region               600    AOOT "Elektrosvyaz'"
                                               Volgograd Region
-------------------------------------------------------------------------
6          Novgorod Region             1000    AOOT "Novgorodtelekom"
-------------------------------------------------------------------------
7          Pskov Region                 600    AOOT "Elektrosvyaz'"
                                               Pskov Region
-------------------------------------------------------------------------
8          Murmansk Region              900    AOOT "Murmanelektrosvyaz'"
-------------------------------------------------------------------------
9          Karelian Republic            900    AOOT "Elektrosvyaz'"
                                               Karelian Republic
-------------------------------------------------------------------------
10         Komi Republic                400    AOOT "Svyaz'"
                                               Komi Republic
-------------------------------------------------------------------------
</TABLE>

         37. Licence No. 1696 dated 28.11.94 is terminated from the moment of
registration of the present licence.

Deputy Federal Minister
of Communications                  (signed)             N.S. Marder
                               [Official Stamp]

Head of the Department


                                                                Licence No. 4274
<PAGE>   8
RF Ministry of Communications                                                  7

for Organisation of
Licensing Work                     (signed)              N.M. Popov


THIS DOCUMENT WAS ORIGINALLY DRAFTED IN RUSSIAN. THE COMPANY REPRESENTS THAT
THIS ENGLISH TRANSLATION REPRESENTS A FAIR AND ACCURATE TRANSLATION OF THE
ORIGINAL.

/S/      CONOR CARROLL
-------------------------------------------
         CONOR CARROLL
         VICE PRESIDENT - BUSINESS DEVELOPMENT


                                                                Licence No. 4274