Russia values seized stake in gold producer UGC at $1.9 billion ahead of auction in May

Russia’s property agency has valued a 67.2% stake in gold producer UGC at 140.4 billion roubles ($1.85bn) ahead of an auction scheduled for early May. The stake was seized after a July 2025 court ruling transferring it from businessman Konstantin Strukov to the state, part of wider nationalisations that have unsettled investors. Russia’s central bank said the state breached minority shareholders’ rights by not making a required offer after the seizure; the new owner is expected to make a buyout offer post-purchase. The auction was delayed last year as rising gold prices prompted the state to seek a higher price; at current market gold prices the stake is valued at about $1.6bn. The move underscores ongoing political and legal risk for investors in Russian assets and could weigh on sentiment toward Russian mining assets and any related securities.