Company BTS-Most won Yuzhuralzoloto gold miner auction: TASS

The Russian government has successfully sold a majority stake in Yuzhuralzoloto Group of Companies (YUGK), one of the country’s largest gold producers, following a revised auction process. According to TASS, the winning bidder was BTS-Most, a private investment firm, which secured the 67.2% stake in the company. The auction, held on May 26, 2026, marked the second attempt to sell the asset after the initial auction failed due to a lack of bids.

The government had previously lowered the asking price from 140.4 billion rubles ($1.9 billion) to approximately 81 billion rubles ($1.1 billion) to attract potential buyers. The final sale price has not been disclosed, but the successful transaction represents a significant step in the privatization of nationalized assets following the government's seizure of YUGK from businessman Konstantin Strukov in July 2025.

YUGK, which operates gold mining hubs in the Urals and Siberia, reported strong financial performance in 2025, with revenue rising 43.4% to 108.8 billion rubles and net profit increasing by 81.2% to 16 billion rubles. Despite its profitability, the company carries a high debt burden, with net debt reaching 83.8 billion rubles.

The sale of YUGK is part of a broader effort by the Russian government to monetize assets seized from private owners since the start of the Ukraine war. The government has confiscated hundreds of companies worth tens of billions of dollars, a strategy that has drawn criticism from analysts who argue it has damaged investor confidence. The successful auction of YUGK may signal a shift in the market’s willingness to participate in such privatization efforts, though long-term investment sentiment remains uncertain.