May 12, 2020

Severstal’s Audit Committee has launched
consultation process
with investors and stakeholders on its draft Audit and
Assurance Policy. This governance initiative implements a recommendation of Sir
Donald Brydon who issued a report in December 2019 into the quality and
effectiveness of audit.

At the same time the Board of Severstal has published its Risk Report and
its view of Severstal’s Material Matters which are usually published as part of
its Annual Report. This provides investors and stakeholders the opportunity to
be informed about the directors’ current assessment of Severstal’s principal
risks and material matters, before the Audit Committee endorses the audit and
assurance plan.

The introduction to the consultation on the Audit and Assurance Policy by
Alun Bowen, the Chair of Severstal’s Audit Committee, is set out at

Introduction to consultation
and the Risk Report and the report on
Severstal’s material matters are set out at
Material Matters
respectively. Alun Bowen, the Chair of Severstal’s Audit
Committee, commented: “I am pleased to launch the process to issue Severstal’s
first Audit and Assurance Policy, which will be a three-year rolling document.
Severstal’s Audit Committee plans to consult widely with its shareholders,
relevant stakeholders and other interested parties, and to incorporate their
input to produce a relevant, tailored, useful and impactful Audit and Assurance
Policy. This initiative is consistent with Severstal’s goal of being the leader
of the steel industry in the 21st century. I appreciate you making the time to
read the draft Audit and Assurance Policy.” All stakeholders are welcome to
send their feedback and suggestions to