Board Share Dealing Notification

Member of the Board Share Dealing Notification

Moscow, Russia - December 26, 2016. PAO Severstal ("Severstal"; "the Company"), one of the world's leading steel and steel-related mining companies, announces that Sakari Tamminen, Senior Independent Director of the Board of Directors of Severstal, has purchased 3 500 Global Depositary Receipts of the Company at a price of 14.8 USD per GDR. The transaction was closed on 23 December 2016.

For further information please contact:

Investor Relations:

Evgeny Belov

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

evgenii.belov@severstal.com

Public Relations:

Anastasia Mishanina

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

anastasia.mishanina@severstal.com

Hudson Sandler

Andrew Hayes/ Emily Dillon/ Fern Duncan

T: +44 (0)20 7796 4133

ahayes@hudsonsandler.com / edillon@hudsonsandler.com / fducan@hudsonsandler.com

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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, Poland, Italy and Liberia. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $6,396 million and EBITDA of $2,096 million in 2015. Severstal's crude steel production in 2015 reached 11.5 million tonnes. www.severstal.com