British Polymetal International has concluded the sale of all Polymetal JSC shares to the Mangazeya group, linked to Sergei Yanchukov. The total value of the transaction reached $3.7 billion, with Polymetal receiving $300 million in cash after taxes. The deal’s details were confirmed in a statement released on Polymetal’s official site, providing shareholders and investors with a clear view of the completed transaction.
Speaking about the financial implications, Polymetal’s president, Vitaly Nesis, explained that divesting Russian assets enabled a meaningful reduction in external debt by $2.2 billion. Additionally, the company was able to fully settle intra-group indebtedness totaling $1.04 billion. Following the closing of the transaction, Polymetal reported a net cash position of approximately $130 million, reinforcing the company’s liquidity profile as it transitions its strategic focus away from the Russian market.
Bold steps were taken as part of a broader strategic recalibration that received backing from Polymetal’s shareholders. Nesis remarked that the exit from Russia helps balance the risk profile and paves the way for a forthcoming strategic plan. With the deal wrapped up, management outlined plans to present a new approach in May, addressing how the business intends to allocate capital, steer operations, and pursue growth opportunities in its remaining footprint and international assets, all while maintaining prudent financial discipline.
The acquisition of Polymetal is recognized as one of the most significant mergers and acquisitions in Russia’s mining sector in recent years. The entity that emerged as the owner controlled Polymetal’s production assets located across the country, including facilities in Magadan, the Sverdlovsk region, the Khabarovsk Territory, Yakutia, and Chukotka. These assets formed the core of Polymetal’s heavy mineral and polymetallic mining operations within the Russian Federation during the pre-exit period.
Beyond the exit, Polymetal retained strategic interests outside Russia, notably the Kyzyl and Varvarinskoye mines in Kazakhstan, as well as the Irtysh mining and development project. Among the major holdings were Mercury Investments of Oman, which owned a 23.9% stake, and BlackRock, with a 7.5% stake. These shareholdings reflect a diversified investor base that supported the transaction and the broader strategic shift accompanying the sale. The deal’s completion followed formal approval from Polymetal’s shareholder base on March 7, aligning governance with the new ownership structure.
In related developments, political and regulatory contexts were noted as influential factors in the completed arrangement. It was reported that a high-level political authorization earlier in the year provided a framework for Polymetal’s decision to reallocate assets and pursue non-Russian opportunities while addressing national regulatory considerations. While the specifics of governmental consultations are not disclosed, the overarching outcome is seen as enabling a more flexible corporate footprint and strategic agility for the group in a changing global mining landscape.
Additionally, the broader industry context was underscored by reference to a previous exit by a major industrial player. Finnish equipment manufacturer Konecranes had also withdrawn its operations from Russia, a development that further shaped the shifting landscape for foreign investors in the region and highlighted the ongoing reassessment of exposure to the Russian market by multinational groups. The consolidation and divestment activity surrounding Polymetal thus sits within a wider pattern of strategic realignment among global mining companies during the period.