Russian State Auction for UGC Gold Miner Stake Fails Due to Lack of Bids
Overview of the Failed UGC Gold Miner Stake Auction
Background of the UGC Stake Seizure
MOSCOW, May 18 (Reuters) - The Russian state failed to auction a stake in gold producer Uzhuralzoloto (UGC) it had seized last year, a state auction website showed on Monday, saying no one had submitted a bid.
A Russian court ruled last July that a majority stake in UGC, previously owned by businessman Konstantin Strukov, should be seized and transferred to the state, part of a wider pattern of nationalisations of assets of Russian companies.
Details of the Auction and Valuation
Russia's federal property management agency Rosimushchestvo put up Strukov's assets for auction earlier this month, valuing them at 162.02 billion roubles ($2.22 billion). His former 67.2% stake in UGC - one of Russia's top 10 gold miners - was valued at 140.43 billion roubles.
Outcome of the Auction
On Monday, the state auction website said the planned sale had failed.
"The bidding was declared invalid, as no applications for participation in the procedure were submitted at the end of the deadline for submitting applications," the website said.
It was not clear if a new auction was planned.
Legal and Financial Context
Corruption Allegations and Asset Seizure
Prosecutors moved last year to seize the stake owned by Strukov after they accused him and several others of obtaining their property "through corruption." However, he is not in custody and has not been formally charged.
Wider Asset Auctions and Treasury Replenishment
Russia's Finance Ministry is putting up a number of confiscated assets for auction, hoping to replenish the federal treasury.
Previous Major Asset Sales
In January Russia managed to sell one of the country's largest and most modern airports, Moscow's Domodedovo, to a subsidiary of another Moscow airport, Sheremetyevo, for 66 billion roubles - just half of its starting price of 132.3 billion roubles.
($1 = 72.9000 roubles)
(Reporting by Anastasia Lyrchikova; Writing by Lucy Papachristou; Editing by Mark Trevelyan)
