PAO Severstal: Update on the situation regarding the coupon payment for the Eurobond 2024

Update on the situation regarding the coupon payment for the Eurobond 2024

PAO Severstal (MOEX: CHMF; LSE: SVST) (the 'Company') informs that a test payment which the Company made on 16th of March 2022 in respect of the interest due from it under the loan (the 'Loan') relating to US$800,000,000 3.15% Loan Participation Notes due 2024 (the 'Notes') issued by Steel Capital S.A. (Luxembourg) (the 'Issuer') has not reached the Issuer's account. As confirmed by our account bank, the payment was frozen by their correspondent bank (Citibank N.A., New York) due to regulatory investigations.

Staying committed to fulfill our obligations under the Loan so as to enable the coupon payment by the Issuer under the Notes and to protect the rights of the Noteholders, we have been taking all efforts to effect the payment in line with the Notes documentation. As part of that, we have been in constant liaison with the Principal Paying Agent and the Trustee (Citibank, N.A., London Branch) and are looking to initiate the application for licenses from the relevant competent authorities that may be required for an uninterrupted processing of PAO Severstal's payment instruction. To enhance the efficiency of those actions and promote a faster outcome to the benefit of Noteholders, we would also strongly encourage the Noteholders to contact the Trustee tel. +44 20 7500 5500 and request the Trustee to cooperate with the Company in its efforts to obtain the licenses from the relevant competent authorities required to enable the processing of payments due under the Loan and the Notes as well as to liaise with the relevant authorities to pursue a broader solution in order to minimize unintended effect of the sanctions restrictions on the Noteholders. We will keep the Noteholders regularly informed about the progress of our communications with the Trustee and the relevant regulatory filings and expect that this unprecedented situation can be resolved to the benefit of Noteholders as soon as is practically possible. We would also encourage the Noteholders to engage in the discussion that we have proposed to the Trustee, the Principal Paying Agent and the Issuer in order to coordinate further actions in the most efficient way.

For further information, please contact:

Severstal Investor Relations

Vladimir Zaluzhsky, Nikita Klimantov

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

vladimir.zaluzhsky@severstal.com; na.klimantov@severstal.com

Severstal 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 most efficient metals and mining companies, working with customers and partners to create new products and integrated solutions from steel. The company's assets are located in Russia, Latvia and Poland. Severstal is listed on MOEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $11.6 million and EBITDA of $6 bln in 2021. Severstal's crude steel production in 2021 reached 11.6 million tonnes.