Russia’s Gazprombank requests $288m repayment from gold producer Petropavlovsk
Russian gold producer Petropavlovsk has received a request from Gazprombank for an immediate repayment of $288.1m.
Gazprombank, which has been heavily sanctioned by the UK government amid the war in Ukraine, has demanded repayment of some $201m for a term loan.
The company has also requested repayment of approximately $87.1m, due under the group’s Russian subsidiaries’ revolving credit facilities by 26 April.
Both requests included accrued interest, the gold producer said in an update on the London Stock Exchange on Wednesday morning.
“The company is considering the implications of these notices with its advisers,” Petropavlovsk added.
Petropavlovsk’s share price fell dramatically on the open on Wednesday morning, down more than 28 per cent.
Earlier this month, Petropavlovsk said it was considering the sale of its operating subsidiaries, against a backdrop of escalating operational difficulties.
It has previously said it cannot make interest payments because Gazprombank is on the sanctions list.
The miner has been unable to make an interest payment of $560,000 to Gazprombank, due on 25 March, with an interest payment of approximately $12.36m due on 14 May.
The firm said on Wednesday that it also received a notice from Joint Stock Company UMMC-INVEST, as successor agent under the term loan, after Gazprombank assigned all its rights under the loan and associated finance documents to UMMC.