PAO Severstal provided capital investment guidance for 2016. Severstal plans to invest approximately RUB 43 billion across the business in 2016. This investment will primarily focus on developing key areas of the company's strategy including cost control, increased production of high-value added products and enhancement of customer care.

Planned investment across the Severstal Russian Steel division in 2016 is approximately RUB 25.6 billion. RUB 15.2 billion of this will be invested in development projects including the construction of a new coating line and ladle furnace #2, and revamping of the four-stand continuous tandem cold rolling mill 1,700, all at the Cherepovets Steel Mill. RUB 10.4 billion will be invested in maintenance and environmental improvement projects.

Planned investment across the Severstal Resources division in 2016 is approximately RUB 17 billion. RUB 7 billion of this will be invested in development of the assets. The majority of this will be spent on improvements to the stripping works.

In 2016, RUB 10 billion will be invested in the maintenance of Severstal's coal and iron ore operations as well as health and safety improvement projects. The planned investments are preliminary estimates and amounts could be adjusted dependent on FX changes. The majority of the company's expenditure in 2015 will be undertaken in rubles.