Cancellation of 169 982 695 shares

Moscow, Russia July 30 2012 – OAO Severstal ("Severstal", the "Company") (LSE: SVST; MICEX-RTS: CHMF), one of the world's leading vertically integrated steel and steel-related mining companies, announces the cancellation of 169 982 695 shares. This completes the Company’s programme, initially announced on February 29 2012, to transfer and cancel a number of treasury shares.

 As announced on July 19 2012, Severstal’s Board of Directors has approved an amendment to the Company’s charter to reduce its share capital through the cancellation of 169 982 695 shares. This amendment was registered by the Federal Tax Service of Russia on July 26 2012. The cancellation of 169 982 695 shares was reflected in the Company’s register on July 30 2012. As of July 30 2012 the total number of Severstal shares outstanding is 837 718 660.