Polymetal plans to sell Russian assets under sanctions in 6-9 months -CEO

Polymetal International PK

09/08/2023 17:59

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restricts
coverage of Russian military operations in Ukraine
    

  
       MOSCOW, Aug 9 (Reuters) - Gold and silver producer
Polymetal International  POLYP.L , which had planned to separate
its Russian and Kazakh businesses, now intends to sell assets in
Russia under U.S. sanctions within six to nine months, CEO
Vitaly Nesis said on Wednesday. 
    Washington in May 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 actions of Ukraine.
    Polymetal International completed a re-domiciling process to
Kazakhstan from Jersey on Monday. 
    The sanctions have complicated the company's plans, Nesis
said on an investor call, making an asset sale, for which he
said there were a number of interested buyers, the only viable
option. 
    "A spin-off or distribution of the subsidiary to investors
are not possible given the sanctions regime," Nesis said. "As
much as we are keen to preserve the shareholder value, we are
equally keen not to breach any sanctions. 
    "And therefore, the sale of the Russian business remains the
only reasonable option, which we will pursue in the course of
the next several quarters."
    Six to nine months was a realistic timeframe, he said. 
    Funds from any sale could be used for construction projects
in Kazakhstan as well as making dividends to Polymetal
International shareholders. Polymetal International was not
sanctioned, just its Russian subsidiary.

 (Reporting by Anastasia Lyrchikova in Moscow and Alexander
Marrow in London; Editing by Nick Macfie)
 ((alexander.marrow@thomsonreuters.com;))