The listed mine operator Petropavlovsk, which has come under pressure because of Gazprombank's money claims, wants to file for bankruptcy in London.

The company announced that it would submit a corresponding application to a London court in the coming days.

In April, the Russian Gazprombank, which is affected by Western sanctions, demanded that Petropavlovsk immediately repay a loan of 201 million dollars.

The group emphasized that it was "very unlikely" to be able to refinance the loan in the short term.

Petropavlovsk shares, listed on the London Stock Exchange, have fallen more than 90 percent since Russia invaded Ukraine in February.

The company, which operates its main mines in the Amur region of Russia's Far East, has been unable to sell gold due to British sanctions against Gazprombank, which acted as purchaser of all of the company's gold production under two loans.

Share to be suspended from trading

Once one of London's largest gold miners, Petropavlovsk was close to being included in the UK's leading FTSE 100 index just over a decade ago.

But the company, founded by banker Peter Hambro, was forced into a debt swap to save the company, sparking years of boardroom turmoil after a number of Russia-leaning businessmen took a large stake and pushed for change.

Now the war and subsequent sanctions have compounded the company's problems.

The company has been in trouble since April after failing to repay a loan from Gazprombank and a revolving credit facility totaling $288.1 million.

The miner has $304 million senior notes due November and $33 million convertible notes due 2024.

According to the report filed on Tuesday, the company applied to suspend trading of its shares on the London Stock Exchange and plans to apply for suspension of its shares on the Moscow Stock Exchange "in due course".

The company is in talks with two parties interested in purchasing its operating subsidiaries, the report said.

Talks with both parties are ongoing but may not result in a sale, the company said.


"Even if the sale goes through, given the group's high level of debt, it is highly unlikely that there will be a gain for shareholders," the company said in its report. As of June 30, Petropavlovsk had assets at book value of approximately 1 $.6 billion while liabilities were about $1.7 billion, the company said.