Metalloinvest and Zagorsk Pipe Plant exploring partnership for development of Ural Steel

Moscow, Russia - 31 January 2020 - Metalloinvest and Zagorsk Pipe Plant (ZTZ) announced that they are holding discussions regarding a strategic partnership between the two companies for the development of Ural Steel, as well as regarding ZTZ becoming a shareholder in Ural Steel.

The conclusion of a deal depends on the successful completion of negotiations, on the procedure for auditing the financial and economic activities of Ural Steel, the signing of legally-binding documentation and obtaining the necessary regulatory approvals.

Andrey Varichev, CEO of Management Company Metalloinvest, commented: "We're aiming to develop Ural Steel together with our partner ZTZ. This will create synergies and additional value for all parties. Ural Steel will have a new motivation for development and increasing production efficiency."

Denis Safin, CEO of Zagorsk Pipe Plant, said: "We see synergies in developing a partnership with Metalloinvest, which for us has always been a reliable sheet supplier. Moreover, collaboration on Ural Steel will enable us to become more competitive and allow us to diversify our operations."

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For more information, please contact:

Artem Lavrischev
Investor Relations and Corporate Ratings Department

E: ir@metalloinvest.com
T: +7 (495) 981-55-55, ext. 7243

Anton Troshin
External Corporate Communications Department

E: pr@metalloinvest.com

T: +7 (495) 981-55-55, ext. 7629

Metalloinvest (www.metalloinvest.com) is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers.

Metalloinvest is wholly owned by Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%).

Zagorsk Pipe Plant (http://z-t-z.ru/ru) became operational in 2016 and is one of the most modern plants for the production of large-diameter pipes in Russia. ZTZ has the production capacity to manufacture longitudinally welded pipes with a diameter of 530 to 1,420 millimetres and a length of up to 12.2 meters using steel of strength class X100. The Company primarily caters for the oil and gas sector.

In December 2017, the Company received the right to supply products for investment projects of PJSC Gazprom, and in April 2018, it received an API 5L certificate.

ZTZ has over 1,400 employees and is one of the largest taxpayers in the Moscow region.