Severstal paid off Eurobonds of $594 mln

Severstal paid off Eurobonds to the amount of $594 mln

PAO "Severstal" (the "Company") announces full scheduled redemption of the outstanding loan participation notes due 2017 (ISIN: XS0551315384, US858057AC66) in total nominal value of US $594,189,000 on 25 October 2017. As a result, the obligations towards the noteholders of the relevant issue have been fully discharged.

The loan participation notes in the total amount of US $1,000,000,000 with the coupon rate of 6.7% p.a. and maturing in 7 years were issued by Steel Capital S.A in 2010 for financing loans to the Company. Part of the issue has earlier been repurchased by the Company and cancelled ahead of their scheduled maturity. On the date of this announcement, public debt of the Company includes outstanding loan participation notes due in 2018, 2021, 2022, and convertible bonds due 2021, 2022.

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