Cancellation of 169 982 695 shares

Cancellation of 169 982 695 shares

Moscow, Russia July 30 2012 - OAO Severstal ("Severstal", the "Company") (LSE: SVST; MICEX-RTS: CHMF), one of the world's leading vertically integrated steel and steel-related mining companies, announces the cancellation of 169 982 695 shares. This completes the Company's programme, initially announced on February 29 2012, to transfer and cancel a number of treasury shares.

 As announced on July 19 2012, Severstal's Board of Directors has approved an amendment to the Company's charter to reduce its share capital through the cancellation of 169 982 695 shares. This amendment was registered by the Federal Tax Service of Russia on July 26 2012. The cancellation of 169 982 695 shares was reflected in the Company's register on July 30 2012. As of July 30 2012 the total number of Severstal shares outstanding is 837 718 660.

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