Operations update

By way of reaction to recent publications by third parties in relation to potential investments by PAO Severstal in projects in Khanty-Mansiysk region of the Russian Federation, PAO Severstal would like to inform that while investments in projects in that region are indeed under consideration by PAO Severstal the exact amount, scope and other commercial parameters of such investments are still under discussion and have not been determined yet.

For further information please contact:

Investor Relations

Evgeny Belov

T: +7 (495) 926-77-66

evgenii.belov@severstal.com

Public Relations

Anastasia Mishanina

T: +7 (495) 926-77-66

anastasia.mishanina@severstal.com

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PАО Severstal is one of the world's leading vertically-integrated steel and steel related mining companies, with assets in Russia, Latvia and Poland. Severstal is listed on RTS and MICEX and the company's GDRs are traded on the LSE. Severstal reported revenue of $7,848 million and EBITDA of $2,577 million in 2017. Severstal's crude steel production in 2017 reached 11.7 million tonnes. www.severstal.com