Central Asian Stock Exchanges Preferred Over London

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Sanctions are having effects not remotely previously considered feasible as the true impact of them start to be felt across Eurasia. Some of the negative side will impact upon London, while positive impacts can be felt as far away as Astana in Kazakhstan.

An example, and possible trend-setter is Russia’s Polymetal, which is due to leave the London Stock Exchange and relocate its domicile to Kazakhstan and the Astana Exchange.

Polymetal International PLC said on Wednesday (May 10) that it plans re-domicile to Kazakhstan from Jersey and delist from the London Stock Exchange, a move that requires shareholder approval. That is expected to be granted at the next Polymetal general meeting, to take place on May 30, with the company expecting to de-list from the London Stock Exchange on July 17.

Polymetal are a precious metals business, mainly dealing in gold and silver, and began trading as a premium listing of the London Stock Exchange in 2011. It also listed on the Astana International Exchange in Kazakhstan in 2019. It operates mines in both Russia and Kazakhstan.

Polymetal shares fell 26% to 205.83 pence each in London on Wednesday morning following the announcement.

The company currently has its registered address in Jersey, but it said that due to sanctions by Russia on that jurisdiction under Russia’s ‘unfriendly countries list’, the domicile in the Channel islands “places a significant risk on the continued existence of the group in its current form”.

Polymetal also Wednesday reported that in the quarter to March 31, it produced 345,000 ounces of gold equivalent, down 4.7% from 362,000 a year ago.  In Russia, its production grew by 2.7% to 229,000 from 223,000, while its Kazakh output fell by 17% to 115,000 from 139,000 ounces.

The move is a boost to the Astana Stock Exchange as Polymetals are a world=class business operation. That will both assist with educating the Astana bourse concerning international standards and will assist in developing the Astana Exchange as a focal point for Central Asian capital financing. It may also prove a magnet for analytical mining and commodities talent to relocate to Kazakhstan.

Source: London Stock Exchange 

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