Polymetal says its Kazakhstani assets are fully independent of sanctioned Russian assets

Polymetal, the biggest producer of silver and gold in Russia, is going to register its business in Kazakhstan. The company said that its Kazakhstani subsidiaries are independent of its business in Russia which has been targeted by U.S. sanctions.

«Our assets in Kazakhstan have been fully independent of Russian assets for a long time and operate in parallel. This is a part of the Polymetal redomiciliation project in Kazakhstan. The next step will be possible asset division based on nationality,» Polymetal said in a statement, citing Vitaly Nesis, head of the company.

Bakyrchik Mining Company (Kyzyl Project), Varvarinskoye and Komarovskoye gold deposits continue to operate as usual, Nesis noted.

Polymetal shareholders are expected to discuss redomiciliation in Kazakhstan at a meeting scheduled on May 30. If the decision is positive, Polymetal will be removed from the company register of Jersey and will make a registration at the Astana International Financial Center (AIFC). Once the process of redomiciliation is over, the company’s primary listing will be at Astana International Exchange (AIX).

In March 2022, the Russian government put Jersey on the list of «unfriendly» jurisdictions. The move has made it difficult for Polymetal to operate its businesses in Russia as usual. The redomiciliation in Kazakhstan can protect the company from the negative impact of Russian counter-sanctions, Polymetal executives said.

Polymetal runs businesses both in Russia and Kazakhstan. Its key shareholder is the ICT Group by Alexander Nesis and his partners, who control a 24% stake in the registered capital of the company. The vast majority of Polymetal’s shares (75.2%) are in free circulation in the market. According to the rules of Jersey and AIFC, Polymetal needs 75% of shareholder votes to conduct the redomiciliation.

On May 19, 2023, the U.S. imposed blocking sanctions on Polymetal’s assets in Russia. However, the parent company of these assets, Polymetal International PLC, is registered in Jersey and hasn’t been affected by the restrictions. Moreover, neither Polymetal nor its non-Russian assets have been targeted by the U.K. or European sanctions, the company highlighted.