Polymetal considers divestment of Russian business (updated)

Polymetal International PK

05/06/2023 08:11

(Recasts, adds detail and quotes)
       June 5 (Reuters) - Gold and silver producer Polymetal
International  POLYP.L  is considering divesting its Russian
operations and senior managers have resigned from Russia-related
duties after the imposition of U.S. sanctions, the company said
on Monday.
    Washington last month included Polymetal's Russian business
and Polyus  PLZL.MM  - 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. 
    
        
  

 (Reporting by Alexander Marrow and Caleb Davis
Editing by David Goodman
)
 ((alexander.marrow@thomsonreuters.com))