View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 20, 2022updated 22 Apr 2022 8:45am

Gazprombank demands repayment of loan from Petropavlovsk

Gazprombank has demanded the immediate repayment of $201m and a further $87.1m by 26 April.

By Zachary Skidmore

Gazprombank , the third-largest bank in Russia and a target of Western sanctions, has sent a notice demanding immediate repayment of about $201m from Russian gold miner Petropavlovsk .

In addition to the immediate repayment, Gazprombank also provided notice to return about $87.1m due under the group’s Russian units’ revolving credit facilities by 26 April.

The notice sent on Wednesday represents another setback for the miner, one of the biggest gold producers listed on the London Stock Exchange. Since the invasion of Ukraine by Russia, its shares have fallen by nearly half of their value, with the group now worth less than £100m.

For sale

The group’s principal assets are four hard-rock gold mines in the Amur region, in the Russian far east. As a result, the majority of the group’s cash reserves are held in Russia, limiting the groups’ ability to transfer the cash-out.

In addition, Petropavlovsk has substantial commercial and financial relationships with Gazprombank . The bank acts as an off-taker of the group’s entire gold production, but due to sanctions, the miner has been prohibited from any payment to the lender.

Consequently, last week, the company stated that it had begun to consider putting itself up for sale due to the challenges in paying off the $304m loan by November.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Mining Technology