(Alliance News) - Polymetal International PLC shares fell on Monday after the company's Russian operation was added to a new batch of US economic sanctions.
Shares in the company fell 13% to 200.00 pence each in London on Monday morning.
The US Department of State added JSC Polymetal to its specially designated nationals & blocked persons list on Friday, the gold miner explained.
The unit is the holding company for Polymetal's Russian assets. The firm added that JSC Polymetal does not have any operations outside of Russia.
"The company and the board continue to work with external legal advisers to assess the impact of the designation of JSC Polymetal on the company and the group, and to ensure that the group's operations in Kazakhstan remain unaffected by these sanctions. The company and the board intends to continue seeking legal advice and will fully cooperate with the relevant authorities throughout this process," Polymetal said.
"The company and the board take sanctions compliance very seriously and are fully committed to ensure rigorous compliance with all applicable laws and regulations, including US sanctions."
Polymetal said it is working with its legal advisers to assess the impact of the sanctions and to ensure its operations in Kazakhstan remain unaffected.
Russia's invasion of Ukraine 15 months ago has prompted waves of sanctions that have helped plunge the country into recession and drained the Kremlin's war chest.
Polymetal is looking to re-domicile to the Astana International Financial Centre from Jersey. Shareholders will get a vote on the measure next week Tuesday.
The move is a "necessary and critical first step to preserve the group's existence in its current form and to unblock the ability to execute further corporate actions to restore shareholder value". A change of domicile will "remove the burden" of Russian counter-sanctions, Polymetal said.
Polymetal will then apply for a suspension of its London listing. It previously said it "cannot be assured" that it will delist from the London Stock Exchange, and its stock may stay suspended for a "prolonged period".
By Eric Cunha, Alliance News news editor
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