The European Bank of Reconstruction an Development’ crediting committee has conducted an independent expertise of the project by Hatch in June-September 2002. Hatch consulting company specializes in expertise of metallurgical plants.

On October 22, 2002, the Board of directors of the EBRD has endorsed the decision of its Crediting Committee to offer Severgal a line of credit.

According to the contract signed by Norin Doil, vice-president of EBRD, and Ivan Nefedov, general director of Severgal, the credit will go towards construction of the line for the production of hot dip galvanizing product for the automotive industry with an annual capacity 400,000 tonnes a year.

Representatives of both Severstal and Arcelor were present at the official credit giving ceremony. Namely, Alexei Mordashov, chairman of the Board of Directors of Severstal, Vadim Makhov, chairman of the Board of Directors of Severgal, deputy director of the Severstal group on strategy and controlling, Guy Doll, general director of Arcelor, were present.

Severgal joint venture was registered in the Russian Federation. It is 75% owned by Severstal, and 25% owned by Arcelor. Severgal will produce hot dip galvanized sheet with Extragal TM coating for interior and exterior parts of automobiles. The project costs, including construction, staff training and marketing are estimated at US $ 170 million.

12 Febrary 2003