Polymetal’s Russia assets attracts interest from Russian miners, Chinese investors
- August 22, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Mining & Metals, Sanctions & Regulation
Gold and silver producer Polymetal International has attracted interest from various parties, including Russian miners and Chinese investors, for the acquisition of its Russian assets. The company had initially considered spinning off its Russian business but decided on a sale due to complications arising from US sanctions imposed on its Russian assets. Polymetal’s CEO, Vitaly Nesis, indicated that a sale is now the most viable option and aims to complete the process within the next six to nine months.
The sale process might face challenges, including regulatory requirements and foreign asset sales restrictions in Russia. The competition regulator and other factors might influence the sale, making the process more complex.
The US sanctions targeting Polymetal’s Russian business, along with other gold producers, were imposed as a response to Russia’s actions in Ukraine. Russian and Chinese companies, particularly from the mining sector, are reportedly among the potential bidders for Polymetal’s Russian unit.
While there have been speculations about interested parties, including Russian gold producer Polyus and entities controlled by various individuals, Polymetal has not confirmed any specific buyer at this time. The company spokesperson refrained from commenting on market rumors.
Despite concerns about potential government interference in business operations, Nesis expressed his belief that the Russian authorities would not seize Polymetal’s assets as they have done with companies like Danone and Carlsberg in recent times.
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