Dividend recommendation

The Board Recommends Dividend Payment

The Board of Directors of Severstal ("Severstal", "the Company") (LSE: SVST; MICEX-RTS: CHMF), one of the world's leading vertically integrated steel and steel-related mining companies, is recommending a dividend of 35.61 roubles per share for the three months ended 30 September 2017.

Approval of the dividend is expected at the Company's EGM which will be held by absentee voting on 24 November 2017. All Severstal shareholders on the register as at 30 October 2017 are eligible to participate.

In the case that the dividend payments for the first nine months ended 30 September 2017 are approved at the EGM, the record date for this dividend payment will be 5 December 2017.

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

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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