Alexei Mordashov will take part in the commission’s meeting, which pursues an objective to compare and judge projects which ask for state financing. The commission is composed of scientists, businessmen and state authorities.

“Adopting an innovation approach to the Russian economy can today be accomplished only by joint efforts of the Government and businesses,” said Alexei Mordashov.

In his opinion, today’s economic growth is caused mainly by favorable upward market trends. However, this must be supported by inner resources, of which innovative approach is the top one.

“Technology allows Western companies to create high value added products. Russia can never change its export structure without making a change in its export portfolio. It must switch from exporting raw materials to exporting high value added products. This will make it a competitive and powerful country,” he said.

Severstal has been working in that direction since 1960. In 2001, it first came out with its intellectual property in international markets.

In December 2002, Severstal has signed a licensing agreement with Korad Science and Research company to use a steel Dot Marking Device, which received award at Archimed 2002 - Fifth International Fair of Industrial Property and the Third International Fair of Innovations and Investments.

Severstal is currently finishing negotiations about a licensing agreement with KUG - Romanian machine-building plant. This agreement will give Severstal a right to use patent for spindels intended drives of rolls of high frequency work stands of hot and cold strip mills.

Presently Severstal is leading Russian ferrous steelmakers in terms of the number of patents. Severstal has 47 % (380 patents) of 800 patents given to steel-makers in Russia in the last ten years. About 50 patents are given out at Severstal each year.

In the competitive environment intellectual assets will assure firm market standing and stable revenues.

18 Febrary 2003