Severstal Announces That Steel Capital S.A. Closes Issue of Loan Participation Notes

Not for release, publication or distribution in whole or in part, directly or indirectly, in or into the United States of America.

OAO Severstal announced today the successful closing and issuance by Steel Capital S.A., an affiliated company of OAO Severstal, of its US$600,000,000 4.45% loan participation notes due 2018 (the "Notes") under its US$4,500,000,000 Loan Participation Note Programme. The Notes have been issued for the sole purpose of financing a loan to OAO Severstal. The Notes are expected to be admitted to trading on the Main Securities Market of the Irish Stock Exchange on 20 March 2013. The Issuer has on-lent the proceeds from the issue of the Notes to Severstal. Severstal intends to apply the borrowed funds primarily for general corporate purposes.

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