Precious metals mining company Polymetal International has announced plans to relocate from Jersey to the Astana International Financial Centre in Kazakhstan and discard its London Stock Exchange (LSE) listing.

The Anglo-Russian gold and silver producer will move its primary listing to the Astana Stock Exchange (AIX) after it is re-domiciled.

It started trading on the LSE and AIX in 2011 and 2019, respectively.

Before selecting Kazakhstan for the re-domiciliation, the board considered various other alternatives including Hong Kong, the Dubai International Financial Centre and Abu Dhabi Global Market.

Polymetal Group CEO Vitaly Nesis said: “As a consequence of the re-domiciliation, our shares will not be able to meet the basic requirements to maintain trading in London. While the board and the management team have explored all potential options to maintain the listing and trading on the LSE, none of these options proved to be available at present or viable in the long term.”

The plan to redomicile has been triggered by sanctions imposed by Western nations and Russia’s countersanctions in the wake of the Ukraine conflict.

Russia has sanctioned individuals and entities domiciled on the unfriendly countries list, which includes Jersey.

The miner said being domiciled in Jersey has restricted its ability to conduct corporate activity with its Russian operations and its existence in its current form.

Polymetal itself has not been subject to sanctions so far; however, the war and its fallout have led it to defer some mining projects.

According to the company, the move to Kazakhstan is aimed at restoring shareholder value and ensuring continuity of operations. 

The proposal awaits the approval of shareholders, who will vote on 30 May, with the delisting from the LSE expected on 17 July.

Announcing the plan, Polymetal said: “In determining that the re-domiciliation to the AIFC is the preferred alternative, the principal focus of the board has been on the removal of as many Russian counter-sanction restrictions as possible, in a legal forum that offers shareholders as many similarities to the status quo as possible.

“The ability to migrate the Company with continuing assets and liabilities, rather than the need to establish a new corporate structure, was also a determining factor such that any such migration would be in conformity with Russian counter-sanctions measures.”