Mar 31, 2022 - Economy

Canadian gold miner nears deal for Russia business

Illustration of a wooden block in the colors of the Russian flag being pulled from a tower of blocks.

Illustration: Megan Robinson/Axios

Canadian miner Kinross Gold is in exclusive talks to sell its Arctic Russian mine to Fortiana, a Cyprus-based investment firm controlled by Russian businessman Vladislav Sviblov, according to The Wall Street Journal.

Why it matters: Lots of Western firms announced plans to leave Russia after the Ukraine invasion, but this would be the first successful sale.

Pricing: Kinross valued its Russian assets just north of $600 million at year-end 2021. Since then, however, the price of gold has spiked, while the price of Russian assets has tanked.

Data: Yahoo Finance; Chart: Axios Visuals
  • The company said earlier this week it wants to sell its Russian business, but didn't identify a buyer.

Related news: British energy giant BP has contacted state-backed firms in China and the Middle East, as it keeps seeking a buyer for its 20% stake in Russian oil giant Rosneft, per Bloomberg.

More from the WSJ: "The Toronto-based miner has more than a 25-year history operating in Russia and has survived several prior crises. But waves of Western sanctions against Russia for its invasion of Ukraine have prompted companies across various industries to re-evaluate their operations in the country amid increasing struggles of getting new parts and accessing banking services to do business."

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