Kazakhstan's ERG suspends payments to sanctioned Russian banks, in discussion with U.S., EU regulators

KHROMTAU. Aug 19 (Interfax) - Kazakhstan's Eurasian Resources Group or ERG had suspended payments on servicing liabilities to Russian banks hit by Western sanctions, Chairman of the ERG Board of Directors Alexander Mashkevich said.

"What are we doing with the sanctioned Russian banks? We are not paying anything yet and will not do anything until we get permission for this. We are contacting the Western regulators, these are American and European ones, and discussing how we could pay them. We can't do anything without permission because we will strictly comply with the sanctions, but I hope we will find a solution," Mashkevich said at a press conference in the Kazakh town of Khromtau.

He said the company was stable. "Net debt/EBITDA is 1.7x, this is considered normal up to 4.5-5x. This is for now. In this sense, I think that this characterizes the situation in the company, 1.7x means this is absolutely stable, an optimistic situation," Mashkevich said.

ERG is one of the world's leading diversified mining and smelting groups with fully integrated mining, processing, energy production, logistical and marketing operations. ERG operates assets in Kazakhstan, Europe, Africa and Brazil. Its major assets in Kazakhstan include Kazchrome, Sokolov-Sarbai Mining Production Association (SSGPO), Aluminum of Kazakhstan, Kazakhstan Aluminum Smelter (KAS), Eurasian Energy Corporation (EEC), Shubarkol Komir and TransCom.