Key Principles

Setting global "best-practice" corporate governance…

Severstal’s corporate governance is currently under transformation.

New principles of Severstal's corporate governance will be considered at a general shareholder meeting on 15th December 2006.

Building blocks of Severstal’s approach to corporate governance

• Full alignment of shareholders’ interests
• Unified, well-shaped business structure with focused corporate strategy
• Disciplined M&A strategy supported by qualified majority
• Reliance on stable, deep and incentivised management team
• Industry-leading disclosure and reporting practices

Platform for delivering superior long-term returns to all shareholders