Severstal awarded most improved company for corporate governance by The Investors Protection Association

Severstal was named the company that had made the best progress in corporate governance at a “Russian Corporate Governance Leaders 2007” event on December 7, 2007.

The Investors Protection Association’s annual event celebrates the companies that make the best progress in corporate governance. The association has among its members some 30 leading Russian and foreign investment institutions with aggregate investments in Russia exceeding $30 bln.

Severstal’s Corporate Secretary Oleg Tsvetkov who received the award said, “We are happy that the investment community awards such high marks to our work to improve corporate governance. We pay a lot of attention to the process and will continue to develop and maintain the best corporate practices at Severstal. We believe that such practices protect all of our stakeholders’ interests and help to increase the company’s value.”

When preparing for IPO on the London Stock Exchange in 2006, Severstal introduced a new corporate governance system in line with the highest world standards. The company's Board of Directors includes five independent members who have international management experience. The company publishes its quarterly audited financial reports and Annual Reports. Severstal’s Management holds regular meetings with investors, the market research community and leading media outlets around the world. This allows the company to make efficient and full disclosure of corporate information to the financial community and protect the interests of all its shareholders.