PJSC Magnitogorsk Iron & Steel Works (MOEX: MAGN; LSE: MMK) notifies of OFAC designation and respective measures in relation to U.S.$500,000,000 4.375% Guaranteed Notes due 2024.

On 2 August 2022, PJSC Magnitogorsk Iron & Steel Works (the “Guarantor”) and its ultimate beneficial owner Viktor Filippovich Rashnikov were designated by Treasury Department’s Office of Foreign Assets Control (“OFAC”) and added to the OFAC’s SDN list pursuant to Executive Order 14024 (the “Event”).

On 3 August 2022, OFAC issued (a) General License No. 47A authorizing the wind down of transactions involving certain entities blocked on August 2, 2022 (including the Guarantor); and (b) General License No. 48A authorizing divestment or transfer of debt or equity of, and wind down of derivative contracts involving, certain entities blocked on August 2, 2022 (including the Guarantor) (the “General Licenses”).

In the Guarantor’s view, the Event might affect the performance of payment obligations by the Guarantor in relation to U.S.$500,000,000 4.375% Notes due 2024 issued by MMK International Capital DAC ISIN: XS1843434959 (Regulation S) / US553142AA88 (Rule 144A); Common Code: 111730628 (Regulation S) / 111730628 (Rule 144A Common code) (the “Notes”).

The Guarantor is currently analyzing the consequences of the Event and the issued General Licenses with its legal and financial counsel and the ways how to mitigate the potential negative consequences of the Event to the holders of the Notes. The Guarantor has already filed applications with the regulatory bodies in relevant jurisdictions seeking to obtain licenses that would, if granted, enable the Guarantor, the Issuer, the Principal Paying Agent and the Clearing Systems to receive and process payments in relation to the Notes.

The Guarantor intends to provide further information to Noteholders as soon as practicable.

Should the Noteholders have any additional questions, please contact with the Guarantor’s Investor Relations department via email at: ir@mmk.ru.