Russian Gold Miner Sees Shares Tumble On War Fallout

Shares in Petropavlovsk, the London-listed Russian gold miner indirectly hit by sanctions over Moscow's invasion of Ukraine, collapsed Thursday as it fights for survival

London, (APP - UrduPoint / Pakistan Point News - 14th Apr, 2022 ) :Shares in Petropavlovsk, the London-listed Russian gold miner indirectly hit by sanctions over Moscow's invasion of Ukraine, collapsed Thursday as it fights for survival.

Shares tumbled by about 25 percent in mid-afternoon London trade as the company revealed the appointment of restructuring specialists to explore selling assets.

The stock has shed almost 90 percent in value since the start of the year.

Petropavlovsk has been hit hard after Gazprombank, which sells its gold and provides credit facilities, was hit by sanctions over the Ukraine war.

The miner said it would be "very challenging" to repay debt, citing also Moscow's restrictions on transferring cash out of Russia.

The group added in a statement that it was looking at selling assets, including Russian mines.

Western countries including Britain, the United States and the EU have imposed unprecedented sanctions against Russia over its assault on Ukraine.

"Petropavlovsk issued a warning to investors indicating they may be wiped out as it struggles to recover as a result of UK sanctions against a key Russian client," said XTB analyst Walid Koudmani on Thursday.

"This goes to show the instability and uncertainty surrounding any Russian linked assets which may be susceptible to extreme volatility as things change rapidly.

"While we have already seen an exodus from many companies with ties to Russia, this could further exacerbate that as investors begin to consider the real possibility of losing the majority of their investment."