One of the largest gold miners in Russia, Petropavlovsk gold, will temporarily not be able to sell gold.
The company, registered in the UK, until recently sold 100% of the produced gold to Gazprombank. But the day before, on March 24, this bank, along with other Russian companies, was under British sanctions.
In addition to the inability to sell Petropavlovsk gold through Gazprombank, another problem arises. The sale of gold through Gazprombank is one of the conditions for a $200 million loan that the bank provided to Petropavlovsk, and a revolving credit line for another $86.7 million.
Early in March, Shares in Petropavlovsk, the gold miner, crashed by 60 percent to 2p, leaving it valued at £198 million. Before the invasion, it was worth £1 billion.
Now Petropavlovsk is also unable to fulfill its obligations to pay interest on the loan, also due to sanctions.
Leave a Reply