Russia seizes and nationalizes largest gold mining company from billionaire estimated to be worth $1.9B

As Russia’s war in Ukraine continues, the state-run news agency, TASS, reported earlier this week that the Kremlin is considering nationalizing one of the country’s largest gold mining companies. The Russian government is reportedly targeting many assets owned by Konstantin Strukov and his family. Among these is PJSC Yuzhuralzoloto, Russia’s fourth-largest gold mining company, valued at approximately $1.9 billion.

Strukov got his start in the industry as a gold miner in 1980, advancing up the corporate ladder, where he spent time as an engineer before becoming an executive, according to Forbes.

What Do We Know About PJSC Yuzhuralzoloto?

PJSC Yuzhuralzoloto, headquartered in the city of Plast in the Chelyabinsk region, was founded in 1976. According to Investing.com, the company employs around 2,700 people and operates 10 gold mines across four Russian regions: Chelyabinsk, the Republic of Khakassiya, Zabaykalsk Territory, and Krasnoyarsk Territory.

The company began trading on the Moscow Exchange in 2023. Following a recent raid, its stock value dropped by approximately 10%.

Why Is the Kremlin Targeting the Company?

The Moscow Times reported that Russian prosecutors are accusing the billionaire of using his government role to acquire control of Yuzhuralzoloto decades ago illegally. However, the same outlet points out that Strukov’s acquisition of Yuzhuralzoloto came before he entered politics. The government accuses him of attempting to obscure ownership, claiming that he “reorganized the asset into a public joint-stock company, the Yuzhuralzoloto Group of Companies (YUGK), and transferred ownership to close associates and his daughter Alexandra Strukova, who holds Swiss citizenship.”

However, the government’s accusations do not end there. Earlier this week, security forces raided Yuzhuralzoloto’s headquarters in Chelyabinsk, located in the Ural Mountains. The Moscow Times also reported that the raids “stemmed from allegations of environmental violations and unsafe industrial practices, particularly at mining sites in the Plastovsky and Etkulsky districts.”

The nationalization effort appears to be part of a broader move by the Kremlin to reclaim strategic assets amid ongoing geopolitical and economic pressures. Following the raid, the stock value had declined by approximately 10 percent. Some critics have highlighted the raids and targeting of Strukov as part of the Kremlin’s greater wartime strategy of seizing private assets.

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