Update on the situation regarding the coupon payment for the Eurobond 2024

PAO Severstal (MOEX: CHMF; LSE: SVST) informs that further to our latest disclosures to the holders of the LPNA dated the 23rd and 29th of March 2022 regarding the pending interest payment on the loan relating to Loan Participation Notes due 2024 (LPN) issued by Steel Capital S.A. (the “Issuer”) in the amount of US$12,6 mln, on 31 March 2022 Severstal also filed license applications with the UK Office of Financial Sanctions Implementation (OFSI) and the competent sanctions authorities in Luxembourg and Ireland. This complements the filings to the United States Office of Foreign Assets Control that Severstal made on the 28th of March 2022.

These applications request that OFSI and other relevant competent authorities in the European Union grant specific licenses authorizing, to the extent such authorization is required under applicable sanctions, the financial institutions and other parties involved in the LPN program to resume normal processing of payments that are or become due under the LPN program. This would include the transfer of the interest due to the Issuer to the latter's bank account with the Paying Agent (Citibank, N.A., London Branch), and the normal onward payment of those funds on behalf of the Issuer towards the holders of the LPN.

Mindful of the urgency of the matter we have requested that the relevant competent authorities consider our application on an expedited basis.

Severstal will keep all interested parties informed of the progress of the submitted license applications.