Publication of Prospectus

Severstal makes an announcement in connection with the approval of the Bond Prospectus by the Financial Services Authority (FSA)

OAO Severstal ("Severstal") (LSE: SVST; RTS: CHMF) makes a statement that the Financial Services Authority (FSA) has approved the Prospectus for the establishment of the loan participation note programme by Steel Capital S.A. for the purpose of financing loans to OAO Severstal.

The attached document (the "Prospectus"), which relates to the establishment of a US$3,000,000,000 loan participation note programme for the issuance of loan participation notes by, but with limited recourse to, Steel Capital SA, a company incorporated under the laws of Luxembourg as a société anonyme, for the sole purpose of financing loans to OAO Severstal, has been approved by the Financial Services Authority in its capacity as competent authority under the Financial Services and Markets Act 2000 as a prospectus for the purposes of Directive 2003/71/EC. This document has been submitted to the National Storage Mechanism and is available for inspection at: www.Hemscott.com/nsm.do.

To see the attached document please use the link below:

http://www.rns-pdf.londonstockexchange.com/rns/7333U_1-2010-10-20.pdf

Requests for the information should be directed to:

Vladimir Zaluzhsky

Investor Relations

Email: [email protected]

T: +7 (495) 926 77 66

Maria Medvedeva

External communications

Email: [email protected]

T: +7 (495) 926 77 66