Severstal's strategic update

Severstal's strategic update

Moscow, Russia - May 29, 2018 - PAO Severstal (MICEX-RTS: CHMF; LSE: SVST), one of the world's leading vertically integrated steel and steel-related mining companies, today announces its long-term EBITDA growth strategic update.

In statements made during the recent St. Petersburg International Economic Forum to the Russian media Alexandr Shevelev, CEO of AO Severstal Management, said that PAO Severstal expects to deliver additionally around 10-15% to its annual EBITDA during the next five years as a result of the Company's operational improvements, customer care initiatives and innovational transformation of the business. He also admitted that the Company operates in a cyclical industry and that actual figures can vary.

More information on Severstal's operational enhancements will be disclosed at the Company's annual Capital Markets Day in November 2018.

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, Latvia and Poland. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $7,848 million and EBITDA of $2,577 million in 2017. Severstal's crude steel production in 2017 reached 11.7 million tonnes. www.severstal.com

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This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements speak only as of the date they are made.