Polymetal considers divestment of Russian business

Reuters | June 5, 2023 

Credit: Polymetal International

Gold and silver producer Polymetal International is considering divesting its Russian operations and senior managers have resigned from Russia-related duties after the imposition of US sanctions, the company said on Monday.


Washington last month included Polymetal’s Russian business and Polyus – the largest gold producers in Russia – on its latest list of sanctions targets, aiming to punish Russia for its invasion of Ukraine.


“In light of recent developments, and in the interests of preserving shareholder value, the board and the special committee have decided to consider all possible options available for divestment of JSC Polymetal and its subsidiaries,” Polymetal International said in a statement.

JSC Polymetal is the holding company for the group’s Russian assets, which accounted for about two thirds of group revenue in 2022.

“Vitaly Nesis, chief executive officer, and Maxim Nazimok, chief financial officer, have resigned from all executive positions with, and terminated their employment at, JSC Polymetal and its subsidiaries,” Polymetal said.

Nesis and Nazimok will retain their positions with Polymetal International to continue to focus on its Kazakhstan assets as well as plans to re-domicile from Jersey to Kazakhstan and shift its primary listing from London to Astana.

Polymetal said it was ring-fencing its Russian subsidiaries to ensure sanctions compliance.

“All service agreements between (Polymetal International) and its non-Russian subsidiaries, and JSC Polymetal and its subsidiaries, have been terminated,” the company said.

(By Alexander Marrow and Caleb Davis; Editing by David Goodman)