The Board recommends Dividend payment for 6 months to 30 June 2012

Moscow, Russia. August 28 2012 - The Board of Directors of OAO Severstal ('the Company') (LSE: SVST; MICEX-RTS: CHMF), one of the world's leading vertically integrated steel and steel-related mining companies, is recommending a dividend of 1.52 rubles (approximately $0.05) per share for the six months to 30 June 2012.

Approval of the dividend is expected at the Company's EGM that, as announced on 27 July 2012, will take place on 27 September 2012. The record date for both participation in the EGM and for dividend payments for the 6 months ended 30 June 2012 was 10 August 2012.