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Kremlin declines to comment on situation around gold firm Yuzhuralzoloto

"At present, this remains a matter handled by supervisory and law enforcement authorities," Dmitry Peskov said

MOSCOW, July 7. /TASS/. Kremlin Spokesman Dmitry Peskov declined to comment on the situation involving the Yuzhuralzoloto gold mining firm.

"This issue does not fall within the scope of the presidential administration. At present, this remains a matter handled by supervisory and law enforcement authorities. Therefore, we cannot provide any comments," Peskov told reporters.

About the Yuzhuralzoloto situation

Earlier, the Prosecutor General's Office filed a lawsuit with the Sovetsky District Court of Chelyabinsk seeking the transfer of shares in Yuzhuralzoloto (UGK), controlled by the company’s largest shareholder Konstantin Strukov, to the state. A source within the Prosecutor General's Office informed TASS about the legal action.

According to the lawsuit, Strukov, who has served as a deputy in the regional legislative assembly since 2000 and as deputy chairman since 2017, violated the prohibition on holding business interests. Through bankruptcy proceedings, he allegedly seized the assets of Yuzhuralzoloto, the company he previously led, by establishing PAO Yuzhuralzoloto Group of Companies (PJSC UGK).

Currently, the holding produces 450,000 ounces of gold annually, operating deposits in the Chelyabinsk Region, Krasnoyarsk Region, and the Republic of Khakassia. Its market capitalization exceeds 180 billion rubles ($2.3 billion), annual revenue amounts to 54 billion rubles ($685 million), and net profit reaches 34 billion rubles ($431 million). The lawsuit filed by the Deputy Prosecutor General of Russia demands the transfer of 100% of the shares in LLC Management Company UGK and all shares of PJSC UGK to state ownership.