Foreigners not to be allowed into Sukhoi Log

​Kommersant has learnt that the Government might sharply restrict the number of potential competitors of Rostekh for one of the largest gold deposits in the world “Sukhoi Log” (about 130 mln ounces of reserves and resources). The Ministry of Natural Resources suggested allowing only companies without foreign shareholders to participate in the auction. In fact it closes an opportunity to participate not only for foreigner but for the largest gold miners of Russia as well – their beneficiaries hold companies via offshore structures. The restriction might be avoided by means of foundation of new legal bodies or spin-off of affiliates of gold miners but it will make the preparation for the auction more complicated.

The Minister of Natural Resources, S. Donskoi, said that the project had been submitted to the Government but its content was not released.

The reserves and resources of the Sukhoi Log in the Irkutsk region make up about 130 mln ounces that refer it to the federal deposits. Foreign investors can receive federal sites only by the permission of the Government according to the federal law “On subsoil”. The start-up payment for the deposit might make up about 5 bln roubles, the Ministry of Natural Resources said.

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