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Petropavlovsk, headquartered in Moscow, mines gold in the Russian Far East © AFP via Getty Images

Trading in Petropavlovsk shares has been suspended after the indebted Russian gold producer said it would file for administration with the High Court in London.

The London-listed miner was plunged into crisis earlier this year after the UK imposed sanctions on its main lender Gazprombank following Russia’s invasion of Ukraine.

Gazprombank demanded immediate repayment of a $200 million loan in April, but then ceded the rights to the debt to UMMC-Invest, a Russian metals producer.

In a statement, Petropavlovsk, which mines gold in Russia’s Far East and is headquartered in Moscow, said it was “highly unlikely” it would be able to refinance the short-term loan.

The company also has $300 million of principal outstanding on a bond due to mature in December that it is struggling to refinance.

Attempts to find a buyer for its assets had sparked interest from one party, the company said, and talks were continuing.

However, given its level of debt, there was no certainty that there would be a return for shareholders.

In its announcement, Petropavlovsk also included statements it plans to file with the High Court in London. One said the company had assets of around $1.62 billion at the end of June and potential liabilities of $1.7 billion.

Petropavlovsk is one of the few Russian groups whose shares are still traded in the UK.

Its shares closed at 1.2p on Monday, down from 19p at the start of the year. At that price, his equity is valued at less than £50m.

Petropavlovsk has also requested a halt to trading in its Moscow-listed shares.

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