December 9, 2019

PAO Severstal and Italian company Valvitalia have signed a distribution
agreement for Severstal to supply Valvitalia products and solutions to its
customers in the energy industry. Partnering with the global leader in TPA
production will enable Severstal to provide its customers with a comprehensive
offer based on the experience, competencies and expertise of both

Valvitalia products are certified in accordance with all necessary
international standarts (API, ISO). Valves and other products have already been
supplied to major energy projects, including Yamal LNG, Sakhalin-2 and South
Stream, amongst others.

Severstal has been a reliable partner for Russian energy companies for over
10 years, supplying high value-added (HVA) products for both domestic and
export projects.

Valvitalia is a group of companies engaged in the design, production and
supply of TPA and parts for the energy industry, as well as naval and civil
fleets. The Company’s main products, installed in 109 Countries, are valves,
actuators, fittings, flanges, insulating joints, measurement systems, and
systems for the filtration and regulation of liquids and gas.

Alexander Shevelev, CEO of Severstal, commented:

“More than a year ago, we set ourselves a goal to lead the steel industry of
the future. However, in order to achieve this, it is necessary to provide our
current and future customers with unique, targeted solutions, designed based on
a full understanding of their needs. Valvitalia’s slogan (“One Stop Shop”)
completely fits our vision for providing customers with a full range of
services. That is why our agreement with Valvitalia for the supply of high-tech
and high-quality products is another step towards providing an excellent
customer experience. I am convinced that our cooperation will form a solid
basis for future development.”

Salvatore Ruggeri, Founder & CEO of Valvitalia, said:

“I am pleased to be associated with a very successful and respectful Company
such as Severstal. Their vision and strategy perfectly fit with ours and I am
sure that our customers will benefit of our joint efforts”.