Severstal North America Update

OAO Severstal (LSE: SVST; RTS: CHMF), one of the world’s leading steel and mining companies, with key assets in Russia, the US and Europe, today announces that as part of its North American 2010 operating plan certain facilities will be restarted that had been previously idled as a result of weak market conditions. This follows an improving trading performance, as reported with the Q3 results announced on 19th November 2009.

Severstal Warren, a fully integrated steel plant, is scheduled to return to service its blast furnace, steelmaking and hot strip mill facilities late in the first quarter of 2010. In addition, Severstal North America’s Mountain State Carbon coke making subsidiary in Follansbee will ramp up to full production by the end of January 2010. As previously announced, the Severstal Wheeling coating lines will return to service in late January 2010. Severstal Wheeling cold rolling complex returned to operation in December 2009. The number of employees returning to the Warren facility is currently being discussed with the United Steel Workers with which the Company is seeking a new contract to cover all of Severstal North America’s steelworker-represented facilities.

Sergei A. Kuznetsov, Chief Executive Officer of Severstal North America, said: “Our North American strategy remains to be a long-term market leader, serving domestic and export customers with light flat rolled steel from five plants. Severstal North America anticipates an improving market for its products over 2010, and we are encouraged by the support we are receiving from all constituencies to resume operations at Warren.”

While the market outlook in North America remains fragile, the management is confident that the improving trading environment warrants the restart of these facilitates, and these actions demonstrate the Group’s long-term commitment to this important market.