Agreement for sale of facilities

OAO Severstal

("Severstal" or "the Company")

Agreement for sale of Warren, Wheeling and Sparrows Point facilities

2 March 2011. Severstal (LSE: SVST; RTS: CHMF), one of the world's leading steel and mining companies, has entered into a definitive agreement to sell the subsidiary of Severstal North America ("SNA") which owns facilities at Warren, OH, Wheeling, WV, and Sparrows Point, MD to The Renco Group, Inc, a private holding company.

The transaction is expected to complete in March 2011, subject to customary completion conditions, including expiration or early termination of the Hart-Scott-Rodino waiting period.

As transaction consideration, Severstal will receive $125 million in cash, a $100 million secured note, and the repayment of $317 million of third-party debt at closing. Renco will also assume various Severstal financial liabilities including employee-related and environmental liabilities totaling $650 million.

The sale will leave SNA focused on its Dearborn and Columbus facilities which are some of the most modern and efficient in North America.

Severstal's financial adviser on this transaction is Evercore Partners and its legal adviser is Skadden, Arps, Slate, Meagher & Flom LLP.

For further information please contact:

Severstal, Investor Relations

Vladimir Zaluzhsky

T: +7 (495) 926-77-66

[email protected]

Severstal, Public Relations

Elena Kovaleva+7 (495) 926 7766/67 ext.6447[email protected]

Hudson Sandler

Andrew Hayes/Andrew Leach/Maria Ignatova

+44 (0)20 7796 4133