Petropavlovsk owns mining assets in Russia. Credit: Petropavlovsk.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Gold mining company Petropavlovsk has agreed to offload its Russian subsidiaries and most of its other units to UMMC-Invest in a deal worth $600m.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

UMMC Invest is an affiliate of Russian metallurgical company Ural Mining and Metallurgical Company (UMMC).

The agreement follows the months-long crisis resulting from the sanctions imposed on Russia by the Western nations over its invasion of Ukraine.

The assets considered for sale include Petropavlovsk’s facility, which extracts gold and other metals from difficult-to-process ore. This is one of the only two plants of its kind in Russia, reported Reuters.

London-based Petropavlovsk said that the transaction is conditional on multiple matters and is expected to close by 30 September 2022.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last month, Petropavlovsk filed for administration at the London High Court following sanctions imposed on the sole buyer of its gold and main lender, Gazprombank.

Subsequently, the court appointed Trevor Binyon, Allister Manson, and Joanne Rolls of Opus Restructuring as Petropavlovsk’s administrators.

The sanctions crippled Petropavlovsk’s ability to repay loans to Russian lender Gazprombank, subsequently making the gold miner one of the most high-profile corporate casualties affected by the sanctions on Russia.

Petropavlovsk said its administrators expect the proceeds from the sale would be sufficient to fully pay creditors but does not provide returns for shareholders.