Update on transfer and cancellation of treasury shares

Moscow, Russia July 19, 2012 – The Board of Directors of OAO Severstal ("Severstal", the "Company") (LSE: SVST; MICEX-RTS: CHMF), one of the world's leading vertically integrated steel and steel-related mining companies, has approved the finalization of the programme for the transfer and cancellation of treasury shares as previously announced on February 29, 2012. The programme resulted in the repurchase of 169 982 695 Severstal shares.

The Board also approved an amendment to the Company’s charter to reduce its share capital through the cancellation of the aforementioned 169 982 695 shares. As a result, the total number of Severstal shares outstanding will be 837 718 660.

Following the share capital reduction, the indirect holding of Alexey Mordashov, CEO of Severstal, in the Company’s total outstanding shares will be 79.2% (including Treasury shares in total shares outstanding)  and  81.8% (excluding Treasury shares from total shares outstanding).