EVR Evraz Plc

RNS Number:7699N
Evraz Group S.A.
20 June 2005



20 June 2005
Moscow


       EVRAZ GROUP S.A. announces withdrawal from Chiatura privatisation

Evraz Group S.A., one of the leading steel production and mining businesses with
operations mainly in Russia, announces it has withdrawn from the acquisition of
the Chiatura Manganese and the Vartsikhe Hydro Power Plant Cascade.

Following detailed due diligence, Evraz concluded it would be unable to generate
returns in line with its hurdle rate for acquisitions.

The government of the Republic of Georgia has accepted Evraz's decision and at
all times acted in good faith during the negotiations and fulfilled its
obligations relating to the conditions for the realization of the project.

Evraz remains focused on acquiring assets that provide the group with industrial
logic, synergies with existing operations and attractive returns for
shareholders.

For Further Information:
Evraz Group S.A.
Investor and Public Relations
Alexander Karlashov
Irina Osadchaya
Tel: +7 095 933 5876

Merlin
Michael Rummel
Lachlan Johnston
Peter Otero
Maria Suleymanova
Tel: +44 207 653 6620

Notes to Editors

Evraz is one of the largest vertically-integrated steel and mining businesses
with operations mainly in the Russian Federation. In 2004, Evraz produced 13.7
million tonnes of crude steel.

Evraz's principal assets include three of the leading steel plants in Russia:
Nizhny Tagil (NTMK) in the Urals region, and West Siberian (Zapsib) and
Novokuznetsk (NKMK) in Siberia.

Evraz Group's fast-growing mining businesses comprise the Kachkanarsky (KGOK),
Evrazruda (acquired in March 2005) and Vysokogorsky (VGOK) iron ore mining
complexes and NeryungriUgol coal company and an equity interest in the
Raspadskaya coal mine. The mining assets primarily supply Evraz Group's
steelmaking operations, enabling the company to be a vertically-integrated steel
producer, limiting its exposure to fluctuations in the prices of key raw
materials. Evraz obtained over 70% of its iron ore requirements from KGOK, Evraz
Ruda and VGOK in 2004 and also obtains the majority of its coking coal from
Raspadskaya and other affiliated producers.

Evraz also owns and operates the Nakhodka commercial sea port, in the Far East
of Russia, which facilitates access to Asian export markets.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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