Share Capital

Shares outstanding

Severstals share capital was created pursuant to Decree No. 66 of the President of the Russian Federation of January 29, 1992 and Decree No. 721 of the President of the Russian Federation of July 1, 1992, and represented the value of Severstals assets as at July 1, 1992. Severstals share capital of RUB5,518,548 was divided initially into 5,518,548 shares of RUB1.00 each.

In May 2004, the Annual General Meeting approved a 1:25 share split, which was performed later, in December 2004. As a result of the registration procedure, trading in Severstal's shares has been halted on the RTS since December 9, 2004 and resumed on January 13, 2005. After the registration the total number of Severstals ordinary shares increased to 551,854,800 with a par value of RUB0.01 each.

One more capital increase occured in the first half of 2006. In February Severstal announced a new share issue to merge mining assets controlled by Shareholder Group into the steel business. Results of allocation of additional share issue were registered by Federal Service on Financial Markets on June 22, 2006. According to the results, Severstal allocated 378,929,863 ordinary shares of which 13,516,489 were aquired by shareholders with preemptive rights and 365,413,374 were swaped with Frontdeal Ltd. in exchange of its stakes in mining companies.

October 17, 2006, the FFMS registered Severstal's additional share issue, including 85 mln ordinary shares of RUB 0.01 par. The state registration number of the issue is 1-02-00143-А-002D. Severstal's shareholders have bought out 90.49% of the Company's additional share issue at RUB 322.81 under the exercise of their preemption right. There have been bought out 76916692 shares; 8083308 securities are left unplaced.

The current number of shares outstanding of OAO Severstal is 1,007,701,355.

Capital structure

As at February 9, 2007, 82.37% of Severstals share capital was controlled directly or indirectly by Alexey Mordashov, the CEO of the company. Institutional investors and Severstals employees hold the remaining 17.63%.