UMMC Eyes Majority Stake in UGC Amid Controversial State Seizure

Russian copper producer UMMC is negotiating with the government to acquire a majority stake in gold mining company UGC, previously seized by the state over corruption allegations. This comes amid a backdrop of significant asset redistributions since Russia's military action in Ukraine began.

Russian copper producer UMMC is in discussions with the government to purchase a majority stake in the gold mining company UGC, according to industry sources. The state had seized UGC in July following corruption allegations.

The Izvestia newspaper reported that Atlas Mining, which holds UMMC assets, is negotiating the terms. The Finance Ministry and UMMC have not commented on the matter.

Amid sanctions, the state has confiscated significant assets, valued at over $50 billion, from Western firms and Russian owners since the Ukraine conflict began. While UMMC negotiates for UGC, the government intends to sell some assets. UMMC's offer is reportedly half of the government's asking price.

(With inputs from agencies.)