Polymetal shares tank after Russia operations hit by US sanctions
By Frank Prenesti
Date: Monday 22 May 2023
(Sharecast News) - Shares in gold producer Polymetal tanked on Monday after the US placed its Russian operations on a sanctions list in retaliation for Moscow's invasion of Ukraine, although the company stressed the measures did not impact assets outside Russia.
The new sanctions from the Biden administration hit Polymetal's Russian Subsidiary, JSC Polymetal -which is now on the US Specially Designated Nationals and Blocked Persons List. Shares in Polymetal fell 18% in London on the news.
"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. JSC Polymetal does not have any operations outside of the Russian Federation," Polymetal said in a statement on Monday.
It added that the board took "sanctions compliance very seriously and are fully committed to ensure rigorous compliance with all applicable laws and regulations, including US sanctions".
"The special committee of the board, the board and the company intends to provide an update regarding the ongoing assessment of these matters in two weeks, save for any material information or developments which may require a sooner announcement."
Polymetal has plans to re-domicile from Jersey to Kazakhstan and shift its primary listing to Astana to allow so it can split its Russian and Kazakh businesses next year, and on Monday said it was still committed to the scheme, subject to shareholder approval.
Reporting by Frank Prenesti for Sharecast.com
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