Stock Groups

Gold miner Petropavlovsk caught in UK sanctions against lender -Breaking

[ad_1]

© Reuters. FILEPHOTO: Workers process 99.99% pure gold ingots at Krastsvetmet (non-ferrous metals) plant in Krasnoyarsk in Siberia, Russia, November 22, 2018. REUTERS//Fi

Pushkala Aripaka

(Reuters) -London’s Petropavlovsk has missed a Friday loan payment after Britain frozen the assets of Gazprombank, its principal lender in response to Russia’s invasion.

Russia-focused Petropavlovsk has arrangements with Gazprombank including loans and bullion sale agreements. This makes it very difficult for Petropavlovsk to sell its gold and repay loans since Britain has already frozen bank assets.

Petropavlovsk stated that the company cannot pay $560,000 interest on Friday’s $200 million loan to Gazprombank.

Although Petropavlovsk is not listed in any Western sanctions yet, it will be removed from indexes in this month’s market after brokers refused trading their shares in Petropavlovsk and other Russian companies.

On Friday, Petropavlovsk stock shares fell more than 30%. This is in addition to the over 15% loss of stock value that has occurred since February 24, when Russia invaded Ukraine. Moscow described its actions in neighboring countries as a “special army operation.”

Petropavlovsk spokeswoman, but she declined to make any further comments beyond what the company stated. She said that the miner has a debt portfolio consisting of Gazprombank facilities, as well as a Eurobond and a Convertible Bond. There are no bank loans currently.

As the second month of Ukraine’s attack entered its second, Western leaders tightened their sanctions against Russia. This has adversely affected investor sentiment and companies that have no direct connections with sanctioned individuals or companies.

Petropavlovsk, which was established in 1990 by Peter Hambro (a British businessman) and Pavel Maslovskiy (a Russian businessman). Russian businessman Sergey Sudarikov is the top investor. He disclosed an ownership of slightly more than 29% of the miner through REGION, according to regulatory filings.

According to Refinitiv Eikon data, REGION also holds a share in the Moscow-sanctioned Credit Bank of Moscow.

Peel Hunt analysts stated in a note, that Petropavlovsk was also affected by the Gazprombank Asset Freeze.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]