Private equity giant Blackrock has taken a punt on beleaguered Russian gold miner Polymetal, doubling its stake to just over 10% even as the stock takes a battering from sanctions imposed against Moscow.
Shares in Polymetal have plunged more than 70% as the West denies Russian banks access to financial payment systems in response to the invasion of Ukraine. The company is due to report results on Wednesday and expected to pay a dividend to shareholders.
Blackrock, the world’s largest asset manager, revealed its investment in a stock exchange filing on Tuesday.
One of Polymetal’s largest investors, the massive Norwegian sovereign wealth fund, has said it is divesting its Russian investments. To add to the miner’s woes, it is about to be booted from its prestigious place in London’s FTSE 100 index of blue-chip stocks.
Fellow Russia-exposed miner Evraz has also been battered by the sanctions, imposed after President Vladimir Putin ordered an unprovoked invasion of Ukraine.
Shares in Evraz are down by 55% over the last five days, meaning heavy losses for Roman Abramovich, the owner of Chelsea football club, who holds a 30% stake in the company.
Polymetal’s main customers are Russian banks who sell it on to international gold markets.