Polymetal plays down scope of sanctions as London-listed shares tank (updated)

Polymetal International PK

22/05/2023 11:29

(Adds Polyus comment, updates share price)
       May 22 (Reuters) - Gold producer Polymetal International
PLC  POLYP.L  sought to play down the impact of U.S. sanctions
on its Russian operations as its London-listed shares tanked on
Monday, emphasising that the restrictions did not affect its
business outside Russia.
    The U.S. State Department on Friday 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 Moscow for its invasion of Ukraine.
    Polymetal's Russian operations accounted for around
two-thirds of the group's revenue in 2022.
    Shares in the company, which closed 8.4% lower on Friday,
slid even further on Monday, at one point losing almost 40% on
the day. By 1016 GMT they were around 12% lower. 
    The U.S. Treasury Department's Office of Foreign Assets
Control (OFAC) on Friday placed blocking sanctions on
Russia-based JSC Polymetal and any entities in which it holds a
majority stake, but made clear that the sanctions did not target
Jersey-based Polymetal International. 
    "JSC Polymetal is a legal entity registered in the Russian
Federation which acts, amongst other things, as the holding
company for the group's assets located in the Russian
Federation," Polymetal International said in a statement. 
    "(It) does not have any operations outside of the Russian
Federation." 
    "Neither the company, its subsidiaries nor its affiliates
are designated as sanctions targets of the UK or the EU, with
the exception solely of the company's Russian subsidiaries."
    Polyus on Monday said it considered all sanctions imposed on
it and its subsidiaries as unjustified, and would examine the
decisions and whether it should appeal. 
    Polymetal is seeking to re-domicile from Jersey to
Kazakhstan and shift its primary listing from London to Astana
to allow it to advance plans to separate its Russian and Kazakh
businesses next year.
    On Monday Polymetal International said it remained committed
to pursuing its re-domiciliation, which is subject to
shareholder approval. 

 (Reporting by Alexander Marrow; Editing by Jan Harvey)
 ((alexander.marrow@thomsonreuters.com;))