The shareholders approved the annual report and financial statements, the company auditor and changes in the company Charter. They elected the new Board of Directors and made a decision regarding profits.
   In his report at the meeting Alexey Mordashov, Severstal's general director, noted that 2001 year was difficult for the steel industry. Overcapacity and measures to protect domestic markets taken by a number of foreign governments have lead to a substantial decline in market demand and worsening of the market conditions. Russian steel-makers suffered even more due to price raises on raw materials and products and services of Russia's natural monopolies. This explains why Severstal's financial result in 2001 was worse than in 2000. However, in spite of that the company was able to prevent a substantial drop in output and maintained its rating in the top twenty world's largest steel making companies. Severstal was able to remain a leader in the industry and left behind its competitors by far both in terms of earnings (52.4 billion rubles) and net profit (5.1 billion rubles).
   This was noted in the securities markets. In 2001, the price of Severstal shares grew from US $20 to almost US $43, and in the first half of 2001 it reached US $80 per share.
   In his speech at the meeting Alexey Mordashov drew a picture of Severstal's future. He emphasized that company's long term goals remain the same - Severstal will continue to strive to increase quality, while decreasing expenditures, and will prioritize high value added products in its product portfolio.
   "Severstal's business plan is near completion", said Mordashov. "According to the plan, Severstal will invest US $1,000,000,000 through 2010 in three main projects. By the end of 2002, a number of steps will be made to develop Severgal - joint project with Arcelor for production of hot dip galvanized sheets for the automotive industry. Another project is production of strip for large diameter pipes for gas and oil industry. The third project involves construction of line for continuous casting of billets. By the end of 2002, deairing equipment will start operating in the converter shop, construction of continuous casting of billets will be finished in the arc-furnace shop. Substantial investment is planned into the blast furnace shop and Severstal energy saving program.
   Alexey Mordashov emphasized that steel industry remains the core business of the Severstal group, which compared to other subsidiaries, is able to attain the highest capitalization increase if it enters international markets.
   This year Severstal's Board of Directors will have some changes made in its membership. On one hand, they are caused by new state laws, on the other hand - Severstal restructuring its business.
   The following people are reelected on the Board of Directors: Alexey Mordashov - general director of Severstal, Anatoly Kruchinin - executive director of Severstal, Vadim Shvetsov - first deputy general director of Severstal, Mikhail Noskov - financial director of Severstal, Vadim Makhov - director of strategic planning of Severstal, Konstantin Nikolayev - general director of Severstaltrans, Georgy Shevtsov - social affairs director of Severstal, Alexey Pogodin - director of legal affairs of Severstal, Igor Juravliov - chairman of the Trade Union Council
   For the first time the Board of Directors will include three representatives of the Sevetstal-group. They are Vladimir Kozlov and Dmitry Sanin - deputy directors of Severstal-group, and Pavel Chelnokov - head of the legal affairs department of the Severstal-Group.
   Vyacheslav Pozgalev - the Governor of Vologda region, Mikhail Stavrovsky - the Mayor of Cherepovets and Nikolai Tikhomirov, the Chairman of the Legislative Assembly of Vologda region and former HR director of Severstal are elected members of the Board of Directors.
   The first meeting of the Board of Directors, which followed the annual shareholders meeting, elected Alexey Mordashov - the chairman of the Board of Directors. Anatoly Kruchinin was elected general director of Severstal. He formerly held the position of executive director of Severstal.
   The annual shareholders meeting decided to distribute dividends in form of shares of Severstal subsidiaries. Each shareholder of Severstal will receive a share of Severstal-Avto and Severstal-Resurs per each share of Severstal.
   According to Alexey Mordashov, this decision is in line with restructuring of Severstal business, which began last year. "It is very important to us to observe equal rights of all shareholders in that process and be open about it. As a result we decided to reproduce the share capital structure of Severstal in the share capital of two other business divisions - car-making and raw materials," said Mordashov.
   Severstal-Avto and Severstal-Resurs are the managing companies of car-making and raw materials divisions of the Severstal-group. They were registered in March 2002 with view of restructuring Severstal's assets.
   Severstal-Avto joint stock company has a majority holding in UAZ (Uliyanovsk Car-making Plant) and ZMZ (Zavolzhye Engine-making Plant). The total number of shares of Severstal-Avto is 22, 074,192 at face value 12.5 rubles each.
   Severstal-Resurs has a majority holdings in Olkon (Olenegorsk Mining plant) Karelsky Okatysh (Kostomuksha Iron Pellets Plant), Kuzbassugol (Kuzbass Coal Mines) Severny Nioby (Niobium Extaction Plant) and Stalmag. The share capital of Severstal-Resurs is made of 22,074,192 shares at face value of 19.5 rubles per share.
   The list of shareholders, who have a right to take part in the meeting and receive dividends, was made on May 6, 2002. The total number of Severstal shares is 22,074,192. Severstal's authorized stock capital totals 5,518,548 rubles.