The Agreement represents a long-term, mutually beneficial collaboration between the Company and VTB Bank for the purpose of implementing Mechel’s long-term projects and development programs.

The basis for this Agreement was established by a long, positive collaboration history between VTB Bank and Mechel OAO and the parties’ mutual interest in the further development of their relationship.

As part of the work under the agreement, VTB Bank will be engaged as one of the lending institutions in financing Mechel’s current and investment activities and in servicing the Company’s other financial operations. It is expected that VTB Bank will act as a consultant to the Company on projects related to the improvement and development of an international and domestic settlement system and the implementation of modern financial resource management technologies to enhance Mechel’s performance.

The Agreement was signed for VTB Bank by its Chairman and Chief Executive Officer, Andrey Kostin, and for Mechel OAO by its Chief Executive Officer, Igor Zyuzin.

“Signing the Agreement with VTB Bank is a positive step for Mechel that continues a relationship that has existed for a long time. VTB Bank is one of the leaders in its market in Russia, and our collaboration opens new opportunities in financing and crediting to help further the growth of our business. In 2007, VTB Bank gave us invaluable and timely support in our successful efforts to purchase coal assets in Yakutia. Going forward, we are confident that we can continue to count on VTB Bank to add value to our business as we continue to execute our operating strategy. We are pleased that our partners are major financial institutions, such as VTB Bank, as we believe this is evidence of Mechel’s effective financial policy and reputation in the marketplace,” Mechel’s Chief Executive Officer Igor Zyuzin commented.