5 Jun 2023 10:47

CEO and CFO of Polymetal resign from sanctioned Polymetal

MOSCOW. June 5 (Interfax) - Polymetal CEO Vitaly Nesis and CFO Maxim Nazimok have resigned from all executive positions with, and terminated their employment at, JSC Polymetal and its subsidiaries, the gold miner and silver producer said in a press release posted on its website.

Pavel Danilin, the group's Executive Vice President for Strategic Development, has resigned from the company and JSC Polymetal and its subsidiaries and terminated his employment with the group in order to pursue other opportunities, according to the press release.

"Both Vitaly Nesis and Maxim Nazimok retain their current positions with the Company and will continue to focus on the operations of the Group's assets located in Kazakhstan, as well as the re-domiciliation of the Company to the Astana International Financial Centre (AIFC) in Kazakhstan, as announced on May 10, 2023, and potential separation of the Group's assets by jurisdiction, as soon as practicable following the re-domiciliation and in full compliance with all applicable sanctions," the company said.

Polymetal's board of directors plans to prepare a report by the end of June on the results of considering the available options for terminating the ownership of JSC Polymetal.

Asset management in Russia has been delegated to the executives of Polymetal. The company reported that Sergei Cherkashin, who was previously deputy general director for economics, has been appointed CEO; and Sergei Salmanov, who previously headed the budgeting, analytical oversight and reporting department, has been appointed Cherkashin's deputy finance director. Both executives have been with Polymetal since 2005.

All agreements on providing the services of Polymetal and its subsidiaries outside of Russia to JSC Polymetal and its subsidiaries have been terminated, and all payments to them have been terminated or suspended.

The United States in mid-May imposed blocking sanctions against JSC Polymetal, a Russian-registered legal entity, which, among other matters, acts as the holding company for Polymetal's assets in Russia. However, neither the parent company, Polymetal International plc, which is registered in Jersey, nor its structures outside the Russian Federation were included in the sanctions list. Consequently, neither Polymetal nor its operations outside the Russian Federation are subject to blocking sanctions, and the United States Treasury Department's Office of Foreign Assets Control (OFAC) specifically devoted a separate clarification to the issue.

Polymetal is Russia's largest silver producer and one of the leading gold miners. The holding's enterprises are located in the Magadan and Sverdlovsk regions; the Khabarovsk Territory; the Sakha Republic, or Yakutia; Chukotka; and Kazakhstan. The largest shareholder, at around 24%, is the ICT group belonging to Alexander Nesis and partners.