Report on Payments to Govts

Report on Payments to Governments in 2016

PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's leading steel and steel-related mining companies, today publishes its Report on payments to governments in 2016 (the "Report").

 The Report is prepared in accordance with the requirements of the Disclosure and Transparency Rules Instrument 2014 «Report on payments to governments», issued by the Financial Conduct Authority (FCA's Instrument). As FCA's Instrument has multiple references to the Accounting Directive (Directive 2013/34/EU of 26 June 2013 on the annual financial statements) the Report is also prepared in accordance with Chapter 10 of the Accounting Directive.

 The Report provides citizens, authorities and independent users with the information on payments made to governments where Severstal conducts its extractive activities.

 Payments are reported in respect of extractive activities only. For the purposes of this Report under extractive activities it is understood any activity involving the exploration, prospection, discovery, development and extraction of minerals.

The Report is published on the official website of Severstal.

For further information, please contact:

Investor RelationsEvgeny BelovT: +7 (495) [email protected]

Public RelationsAnastasia MishaninaT: +7 (495) [email protected]

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PАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, Ukraine, Latvia, Italy and Poland. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $5,916 million and EBITDA of $1,911 million in 2016. Severstal's crude steel production in 2016 reached 11.6 million tonnes www.severstal.com