The repayment of Convertible Bonds due 2017

The repayment of Guaranteed Convertible Bonds due 2017

PAO Severstal announces the repayment of US$475,000,000 1.00 per cent Guaranteed Convertible Bonds due 2017 issued by Holdgrove Limited and guaranteed by PAO Severstal.

Holdgrove Limited (the "Issuer"), a wholly-owned subsidiary of PAO Severstal (LSE: "SVST"; MICEX-RTS: "CHMF") incorporated under the laws of the Republic of Cyprus, has fully repaid the US$475,000,000 1.00 per cent Guaranteed Convertible Bonds due 2017 issued by the Issuer and guaranteed by PAO Severstal.

For further information please contact:

Investor Relations

Evgeny Belov

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

[email protected]

Public Relations

Anastasia Mishanina

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

[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