Precious metals mining company Polymetal International has agreed to sell its Russian business in a deal worth around $3.69bn.

The transaction involves the sale of 100% of the share capital of JSC Polymetal to JSC Mangazeya Plus.

The completion of the deal is contingent on several conditions including regulatory approvals and the consent of Polymetal's shareholders.

This deal is poised to concentrate the company's efforts on its operations in Kazakhstan, potentially leading to an enhanced valuation of its assets in the region and a reduction in risk and debt for the group's activities there.

On 16 February 2024, the US Department of the Treasury’s Office of Foreign Asset Control provided assurance to Polymetal, stating that it would not impose sanctions on non-US persons, including Polymetal, for participating in or facilitating the transaction.

The transaction is expected to be finalised by the end of March 2024.

Polymetal International Group CEO Vitaly Nesis said: “The Board, the Special Committee and the management team of the Group are set to deliver on our commitment to restore shareholder value and re-set Polymetal’s strategy by selling the Russian business of the Group.

“A quick, transparent, and sanctions-compliant exit under the terms of the proposed Transaction serves the interests of all stakeholders.

“The completion of the divestment will allow the Group to de-risk the Company’s business, deliver stable cash flows and pursue new investment opportunities. The Board recommends shareholders to vote for the proposed resolution.”

In July last year, Polymetal exercised its option to raise its stake in Kazakhstan’s Baksy property to 75% by buying out one of the project’s shareholders.

The remaining 25% stake is owned by state-run JSC Kazgeology.