Evraz completes acquisition of Vanady-Tula

Evraz Group (LSE: EVR) announces that its wholly-owned subsidiary, the Nizhny Tagil Iron and Steel Plant (NTMK), acquired 82.9% of voting shares of OAO Vanady Tula. This deal was financed from the deposit of approximately US$100 million at a current exchange rate provided by Evraz Group in December 2007 to secure a call option, and therefore does not require any cash outflow.

All necessary regulatory approvals have been duly received.

OAO Vanady-Tula is the largest Russian producer and one of the leading world producers of ferrovanadium, which is widely used in the steel industry as an alloying agent to make high quality steel. The acquisition of Vanady-Tula will allow Evraz Group to expand its vanadium processing capacities and strengthen its position on Russian and world vanadium markets.

Based on Evraz Group press-service