In order to craft the Sawed-off Shotgun, you need to make sure you have the Izh 43 (double-barrel shotgun) and a hacksaw. Simply drag and drop the hacksaw from your inventory onto the Izh 43 and the Sawed-off Izh 43 Shotgun will appear on the ground.
You'll need to make sure you have 2 rows of 5 slots each (10 in total) available in your backpack.
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