Severstal announces share buyback programme

Severstal today announces the start of a share buy-back programme of up to $400 mln, the equivalent of 2.8% of its share capital based on the closing price of $14.04 of the Company’s London listed GDRs on September 15, 2008.

The Shares and GDRs will be repurchased on Severstal’s behalf, and held by one of its subsidiaries.

The timing and extent of any repurchases, which are expected to take place over the course of the next 6 to 10 months, will depend on the on-going trading price of Severstal’s shares and GDRs and prevailing equity market conditions.

Commenting on the proposed share buy-back programme, Sergei Kuznetsov, Severstal’s Chief Financial Officer, said,

”Today’s announcement underlines our confidence in the value of our own business. With our financial strength and robust capital structure we are well positioned to complete this repurchase whilst still being in a position to fund our investment programme and take advantage of other value-enhancing opportunities as they arise."