Strike Decision Announced at MMK Metalurji

July 19, 2013 Press Release

Iskenderun, Turkey

STRIKE DECISION ANNOUNCED AT MMK METALURJI

Joint Stock Company Magnitogorsk Iron and Steel Works (OJSC MMK) informs that a strike decision was announced at MMK's Turkish subsidiary MMK Metalurji San.Tic. ve Liman İsletmeciligi A.S. (with production sites in Iskenderun and Istanbul) by the Turkish trade union organization Celik-Is, which is authorized to initiate Collective Labour Agreement process on behalf of MMK Metalurji's employees.

The parties still continue to negotiate on the Collective Labour Agreement, however as the gap on certain salary and fringe benefit issues could not be resolved within the timeframe specified by the Turkish legislation, Celik-Is Trade Union was obliged to announce the strike to maintain its representation rights.

MMK management states that it is aware of the position supported by Celik-Is Trade Union and its members. The company has been making all efforts to normalize the situation and bring the strikers back to work. As a proof of this intention, MMK Metalurji has not interrupted negotiations with Celik-Is Trade Union in an effort to reach an amicable solution as early as possible protecting the interests of both the workers and the business.

About MMK Metalurji

MMK Metalurji currently operates the cold-rolling mill, galvanizing and color coating lines and two service centers - in Iskenderun and Istanbul. To supply raw and input materials to the Iskenderun plant and ship its products to customers a sea port capable of catering ships of up to 100,000 dwt was built and operates next to the production site. MMK Metalurji reported 900 th tonnes of steel products output in 2012. The company's core products in Turkey are hot-rolled steel, galvanized and color-coated steel.

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2012 the company produced 13 million tonnes of crude steel and 11.9 million tonnes of commercial steel products. MMK Group has sales in 2012 of USD 9,328 million and EBITDA of USD 1,356 million.

MMK Communications Department