Severstal closes the agreement of disposal of Vorkutaugol to Russkaya Energiya

April, 29, 2022 - PAO Severstal announces that it has completed the sale of its coking coal assests, AO Vorkutaugol ("Vorkutaugol"), to OOO Russkaya Energiya. The deal is valued at RUB 15 billion.

The deal has received the relevant permits from the Federal Antimonopoly Service of the Russian Federation.

As was reported earlier, the sale of Vorkutaugol will allow Severstal to focus on delivering its strategy to develop its steel and iron ore assets in line with Company's vision of the industry's future and to reduce its carbon footprint.

At the same time, Severstal confirms that the company will remain a key consumer of Vorkutaugol coking coals. The terms of the agreement with the buyer include a long-term offtake contract guaranteeing Severstal's supply of raw material. The corresponding agreement has been also signed today.

Notes:

AO Vorkutaugol is one of the largest coal mining companies in Russia. It accounts for about 11% of the country's coking coal production. Vorkutaugol operates in the Pechora coal basin, which is a large raw material base for the metallurgical, coke-chemical and energy industries. The Vorkuta geological-industrial region has the largest coal reserves in Europe (about four billion tonnes). The company consists of five underground mines, one open pit mine and several auxiliary enterprises. Vorkutaugol delivered 8.8 million tons of production in 2021, including 3.9 million tonnes of coal concentrate. Vorkutaugol employs around 5,900 people.

For further information, please contact:

Severstal Investor Relations

Vladimir Zaluzhsky, Nikita Klimantov

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

vladimir.zaluzhsky@severstal.com; na.klimantov@severstal.com

Severstal Public Relations

Anastasia Mishanina

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

anastasia.mishanina@severstal.com