At the same time, world gold prices are breaking records of the pandemic period. And this spring, gold production in Russia has increased. Our Version decided to figure out who is catching goldfish in troubled waters.
The exact figures for gold production in Russia are now classified, Rosstat only talks about trends. From his messages it is known that according to the results of the first quarter, the volume of gold production in the Russian Federation exceeded the figures for the same period last year by 9.1%. At the same time, in March the increase was 26.5%. Industry insiders claim that only the largest enterprises have increased production, while small artels continue to reduce production. They are hampered by a shortage of personnel, the lack of distribution channels (the European embargo on Russian gold affects) and problems with the supply of equipment and spare parts. Thus, the same process is taking place as in the grocery retail market: large players use the situation to subjugate small ones and monopolize the market. At the same time, it seems that administrative resources are also being used.
under the wing of a senator
In recent years, the image of the largest gold producer in Russia has been assigned to the Polyus company. Last year it received 2.568 million ounces, and this year it is going to produce 2.8-2.9 million. The company grew out of a small artel, which was founded by Khazret Sovmen back in the 1980s. Having grown rich in the mines, he became the president of Adygea at the beginning of the 2000s. And in 2009, another politician with Caucasian roots, a native of Dagestan, Suleiman Kerimov, became the main beneficiary of the company. Since 2008, he has been a senator, in connection with which he lost the opportunity to directly own the business. The controlling stake in Polyus was for a long time registered with PGIL, a company registered on the island of Jersey.
In 2012, PGIL bought shares from minority shareholders and left the London Stock Exchange. True, five years later she returned there. Another high-profile change in the ownership structure occurred in 2015. Then the business media reported that control of the “Polyus” passed to the son of the senator Said Kerimov. Presumably, it was at that time that PGIL became a “daughter” of the Cypriot Wandle Holdings Ltd, which, according to a number of media sources, was registered with Said Kerimov.
Wandle Holdings once again made headlines last spring. Then it became known that she had issued a “registration permit” in the special economic zone in Vladivostok – on Russky Island. Soon there were other changes: the Polyus press service reported that Wandle Holdings sold 29.99% in the Polyus gold mining company to the Acropolis Group. Thus, the share of Said Kerimov in Polyus decreased from 76.34% to 46.35%. The amount of the deal was not reported.
Soon the senator’s son finally severed ties with the “Pole”. Last March, he donated 100% of Wandle Holdings to the Fund for the Support of Islamic Organizations (FSIO). “For me, charity is a habit, I was brought up that way. And I am very pleased with this opportunity to share the fruits of my family’s activities with those in need,” Said Kerimov explained his act. The cost of this gift offhand can be estimated at several billion dollars. All this happened against the backdrop of the introduction by the West of personal sanctions against the family of Senator Kerimov, which is why evil tongues started a rumor that the two events were connected with each other.
Allah gives
After all these upheavals, more than 22% of the company’s capital is in publicly traded securities. The shares are traded on the Moscow and London Stock Exchanges. Also, Polyus papers continue to be traded in the USA, for which the company received special permission from the Russian and American authorities, despite the conditions of the SVO. What part of this package is consolidated in one hand or affiliated structures, it is difficult to find out.
But more or less in sight are the new owners of the largest stakes. Akropol Group is an LLC with an authorized capital of 10 thousand rubles and an average number of employees of 5 people. It is notable for the fact that Akhmet Palankoev, ex-senator of the Russian Federation from Ingushetia, is among the founders. Acropolis Group, as well as Palankoev himself, has registered a variety of assets throughout the country. For example, LLC “Resorts of Ingushetia”, which manages the largest ski cluster in the republic “Armkhi”. Akhmet Palankoev’s business interests are very broad: there are trading companies, construction companies, and the Sinai clinic network. Also, at various times, the press connected coal companies in Kuzbass and the Rostov region with Palankoev. And the namesake of the ex-senator’s brother, Musa Palankoev, helped the Akhmetovs’ structures to buy back PGIL papers on the London Stock Exchange and owned a few percent stake in Polyus.
It is noteworthy that legal entities associated with Akhmet Palankoev bring very modest profits, therefore it is not clear where he could get the money to buy almost a third of Polyus. But we are talking about more than a solid amount – based on the capitalization of the company, the share he bought could cost about $ 7 billion. To buy back shares from minority shareholders on the London Stock Exchange, the Kerimov structures allegedly borrowed $5.5 billion from VTB, then this loan was refinanced at Sberbank. Did state-owned banks help Akhmet Palankoev buy Polyus shares? Apparently, without the assistance or approval of German Gref, the deal could hardly have taken place. In recent years, Sberbank has been Polyus’ largest creditor. It is known that as of 2017, a 50% plus one share package was pledged in the bank. It is possible that there are other creditors who have agreed on the transfer of the asset to Palankoev (the total debt of Polyus is 3.5 billion rubles).
The largest shareholder of the gold miner is now considered the Fund for the Support of Islamic Organizations. He owns Polyus shares through Wandle Holdings. Information about the founders of the company in public databases is hidden by decision of the Federal Tax Service.
The fund itself was established by the Council of Muftis of Russia, the Spiritual Board of Muslims of Russia and Mufti Sheikh Ravil Gaynutdin (Chairman of the Council of Muftis of Russia). The management of the FPIO trusts the management of Polyus and does not plan to participate in the day-to-day management of the business, a representative of the organization said. According to Russian law, the transfer of property to an NPO, which is FPIO, is not taxed. The Fund will not pay taxes on dividends. According to the calculations of Our Version, for 2022 the FPIO can count on dividends in the amount of about 27.5 billion rubles. For comparison: the annual budget of the Republic of Ingushetia is about the same.
Details
Polyus has successfully adapted to the new realities. Last summer, the company bought the Chulbatkan field in the Khabarovsk Territory for $140 million. Its experts call it one of the most promising in Russia. The seller was Highland Gold Mining, controlled by Vladislav Sviblov.
Traditionally, Russian gold miners sold the precious metal to banks, which were already exporting it. Now many banks under sanctions and large miners themselves export their products. Last year there were talks that Russian bars could be refined in Kazakhstan. Now Bloomberg, citing Import Genius, writes that the bars go to Asian countries without any identifying stamps. China, Türkiye, Hong Kong, UAE are mentioned. Traders are little-known companies that previously traded, for example, agricultural products. Russian bars are presumably going to be melted down or to Asian jewelers.
Meanwhile
Assets appear in gold mining that can become “feed” for market leaders. A sad fate befell the London-registered company Petropavlovsk, which, at the end of 2021, was the fourth in terms of production in the country. Last year, its founder Pavel Maslovsky received 5.5 years in prison in a case that arose as a result of a corporate conflict. Even before the verdict, the company sold its key mines to the Ural Mining and Metallurgical Company (UMMC) at almost a fivefold discount. Until the beginning of last year, UMMC was considered controlled by Iskander Makhmudov. Then the company announced the termination of communication with the billionaire, without disclosing details. According to rumors, UMMC will continue to participate in the purchase of gold assets. We will tell you about how the “golden redistribution” takes place in one of the next issues.
