Russia Sells Major Gold Mine for Half Its Initial Price
Russia has finalized the sale of a gold mine it took over from billionaire Konstantin Strukov, managing to find a buyer after several unsuccessful attempts and a price reduction of nearly fifty percent.
The deal involved the sale of a 67.2% stake in the Jużuralzołoto group, one of Russia’s largest gold mining companies, for 93 billion rubles (approximately $1.3 billion), as reported by the state news agency TASS.
Efforts to attract buyers in previous sale attempts were hindered by an initial asking price of 162 billion rubles.
Challenges in Asset Sales
This transaction highlights the difficulties faced by Russia in divesting state-controlled companies after seizing local firm assets worth billions over the past year. Issues such as corruption, illegal asset acquisitions, and dual citizenship have been cited as obstacles to successful sales, according to mining.com.
The sale took place via a Dutch auction, a method where the seller gradually lowers the asking price until a buyer agrees to the purchase.
According to Kommersant, BTS-Most Holding, the new owner, is linked to Chechen businessman Ruslan Baisarov, who has interests in coal extraction and transportation.
Jużuralzołoto, located in the Chelyabinsk region, produced 385,800 ounces of gold in 2025, placing it among the top five gold mining companies in Russia. The firm was previously owned by Strukov, whose family had managed the mine for decades.
Background on Konstantin Strukov
Strukov, 67, is a member of the ruling United Russia party and has served as a long-time deputy in the Chelyabinsk regional parliament. In 2021, he received the Order of Merit for the Fatherland, second class, a significant state award usually granted to high-ranking officials and business leaders for their contributions to the Russian economy and public service.
However, prosecutors accused him last year of illegally taking control of the asset while in public office, a charge that was upheld in court. In July 2025, Strukov and his family were banned from leaving Russia as the authorities moved to seize their stakes in 11 companies. Strukov attempted to flee to Turkey but was caught by the FSB at the last moment.
