OAO Severstal one of the world leading integrated steel and mining companies announces that as a result of capital market conditions Nord Gold NV a gold producer and a wholly owned indirect subsidiary of Severstal, has postponed an initial public offering and listing of its ordinary shares.

Nordgold has rapidly grown into an established pure play gold producer focused on emerging markets with strong fundamentals and is a growing contributor to Severstal financial results. Nordgold will continue to develop its business and the Company is confident that given its strong fundamentals Nordgold will meet its growth targets.