Update on cancellation of treasury shares

Update on transfer and cancellation of treasury shares

 Moscow, Russia July 19, 2012 - The Board of Directors of OAO Severstal ("Severstal", the "Company") (LSE: SVST; MICEX-RTS: CHMF), one of the world's leading vertically integrated steel and steel-related mining companies, has approved the finalization of the programme for the transfer and cancellation of treasury shares as previously announced on February 29, 2012. The programme resulted in the repurchase of 169 982 695 Severstal shares.

The Board also approved an amendment to the Company's charter to reduce its share capital through the cancellation of the aforementioned 169 982 695 shares. As a result, the total number of Severstal shares outstanding will be 837 718 660.

Following the share capital reduction, the indirect holding of Alexey Mordashov, CEO of Severstal, in the Company's total outstanding shares will be 79.2% (including Treasury shares in total shares outstanding) and 81.8% (excluding Treasury shares from total shares outstanding).

Enquiries: 

Severstal Investor Relations

Vladimir Zaluzhsky

T: +7 495 926 7766

Severstal Public Relations

Elena Kovaleva

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

Hudson Sandler (Financial Communications Adviser)

Andrew Hayes / Andrew Leach / Maria Ignatova / Alex Brennan

T: +44 (0) 20 7796 4133

ОАО Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, the USA, the Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $15,812 million and EBITDA of $3,584 million in 2011. Severstal's crude steel production in 2011 reached 15.3 million tonnes. www.severstal.com