Gazprombank transferred to UMMC the right to claim on the Petropavlovsk loan

Gazprombank transferred to the Ural Mining and Metallurgical Company (UMMC) the right to claim a $201 million term loan from the gold mining company Petropavlovsk PLC and related financial documents. This is stated on the Petropavlovsk website.

Gazprombank also sent a notice to Petropavlovsk demanding to repay $201 million in debt on a term loan, including accrued interest, as well as repay debt on revolving credit lines in the amount of $87.1 million, including accrued interest.

“For UMMC, the gold market can be very interesting, as its base enterprise Uralelectromed produces gold. True, I can’t call UMMC a major producer, but if it absorbs Petropavlovsk, then it will immediately enter the top gold league, ”Leonid Khazanov, candidate of economic sciences, industrial expert, told RBC Yekaterinburg.

At the end of March, the gold mining company warned that it could not sell gold to Gazprombank and make payments to cover debts, as the bank was sanctioned by the UK, where Petropavlovsk is registered.

On April 12, the S&P rating agency downgraded Petropavlovsk's long-term credit rating to "selective default" due to non-payment of interest on a Gazprombank loan. Petropavlovsk is one of the top 5 Russian gold miners.