Company Owned by Billionaire Gold Miner May Be Seized by Russian Government for Allegedly Breaching Regulations: Report

The Russian government is attempting to seize a gold mining firm owned by a billionaire accused of breaking a rule that bans public officials from engaging in entrepreneurial activity.

The Russian Prosecutor General’s Office has filed a lawsuit to seize shares of billionaire Konstantin Strukov’s gold mining company, Yuzhuralzoloto, state-owned media Tass reports.

Strukov, who has been a deputy of the Legislative Assembly of the Chelyabinsk Region for 25 years, while also the deputy chairman of the Legislative Assembly, acquired the firm through a bankruptcy procedure. He was also the company’s CEO between 1997 and June 2001 before he became chairman of the board of directors.

The government’s lawsuit alleges that Strukov violated a ban on all public officials from engaging in business activity.

The rule also requires politicians to sell all their securities, shares, or stakes in companies before taking office.

According to Tass, Yuzhuralzoloto produces over 450,000 ounces of gold per year, which is $1.505 billion annually with a profit of 34 billion rubles – $432.43 million.

Prosecutors allege that Strukov frequently takes profits from the mine and transfers them abroad to Montenegro, Belgium, Switzerland, Luxembourg, Latvia, Estonia and Turkey where he and his family purchased houses, yachts and other luxury items.

The Russian government is requesting that 100% of Strukov and his daughter’s ownership of the company be transferred to the state.

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