Russia to continue buying diamonds through state fund in 2025
The Russian budget for 2025-2027 has set aside $1.55 billion for the purchase of precious metals and gems.
Kinross Gold (TSX: K; NYSE: KGC) has said that the company was in “uncharted territory” regarding the closure of the sale of its Russian assets.
In April, the company announced that it had entered into a definitive agreement with the Highland Gold Mining group of companies to sell its Russian assets for $680 million, weeks after Western nations announced sanctions on Russia after the country began its war on Ukraine.
According to the deal, which Kinross said was secured by an extensive security package and would require the approval of the Russian government, the company is scheduled to receive its first set of payments before the end of 2023 and the last before the end of 2027.
“We are in uncharted territory here, it’s a very fluid situation,” Paul Rollinson, Kinross CEO, said during the company’s quarterly results conference call, when asked if there are concerns about closing the sale of the company’s Russian assets and Highland paying in dollars.
“We have pursued a process as laid out by the (Russian) government and so in terms of looking after our people, looking after the environment, finding a responsible buyer and following the process, we feel we have really done everything we can. But again, I would say we are in uncharted territory,” he added.
