Sanctions against Russia who benefits? Er…Russians, case study Petropavlovsk.

One day, I know not when, there will be no sanctions against Russia. And at that point we might be allowed to ask, without being accused of being an apologist for President Putin, who exactly benefits from all of these sanctions. Hat tip to JW for a summary of what happened after AIM listed Petropavlovsk (POG) went bust. This company, once worth £500 million, was largely owned by British shareholders. So, who benefits from its collapse? Yup. It is the Russians.

Winnifrith Vindicated yet again, Petropavlovsk – The fat Lady to sing on Monday

Petropavlovsk (POG) was obviously aware that I was driving across France on Tuesday and distracted by the most stressful of episodes, as it took the chance to suspend its shares and say that it would appoint administrators while I was distracted. Today it said that the hearing in the Courts to settle the administration is scheduled for Monday. As the fat lady warms up there are three key takeaways from someone who predicted this on March 4 HERE.

Petropavlovsk (#POG) – Q1 production and sales report, notes sanctions impact

Petropavlovsk – even Stevie Wonder can see the writing on this wall

For Petropavlovsk (POG) – as I warned you all on March 4^th, here – things go from bad to worse. Its banker and sole purchaser of gold, GazpromBank, is sanctioned by the UK, so the AIM-listed miner cannot generate any revenues, or even pay interest on its debts. Today, the banksters have thus stated that the company is in default and called in the loans.

Petropavlovsk (#POG) – notices purporting to require debt repayment, “considering the implications”

Petropavlovsk warns that its shareholders could be wiped out: told y’all

On March 4 of this year, I warned you - in the most explicit tones - that Petropavlovsk’s (POG) relationship with Russia’s Gazprombank meant it could be wiped out. The company pooh-poohed this idea via RNS; clearly, the bulletin board savants knew better. But here we are, and now, even the company has admitted it!

Petropavlovsk (#POG) – considering options including operating subsidiaries sale but not currently clear of returns, “if any”

Petropavlovsk (#POG) – early stages of discussions on a potential restructuring of debt with sanctioned Gazprombank

Petropavlovsk could be toast by tea-time, it is utterly screwed by sanctions: Told y'all!

On March 4 I asked if Petropavlovsk (POG) shares could be a zero citing its banking relationship with Gazprombank as one of two reasons why it might be. On March 9, the company pooh poohed the suggestion with an RNS which, with hindsight, in light of news today, was manifestly dishonest.

Petropavlovsk (#POG) – urgently considering implications of lender and off-taker Gazprombank being sanctioned

Petropavlovsk - morally bankrupt, shareholders should feel dirty

Petropavlovsk (POG) has today issued a statement “Events in Ukraine.” After this I would feel dirty owning its shares, it shows a company that is morally bankrupt.

Petropavlovsk (#POG) – sanctions update, as at end-Jan 49.9% of shares beneficially owned by Russian individuals or entities

Petropavlovsk (#POG) – attempting to mitigate risk of supply chain disruption, “sufficient funds available to service its current debt”

Could Petropavlovsk be a zero – 2 reasons not to bottom fish

Lucian Miers warns me that sentiment could change very quickly and so he’d be nervous of shorting Petropavlovsk (POG)at 1.52p with a £60 million market cap. But this company could be a zero for one of two reasons. Let’s start with the biggest shareholders:

Peter Hambro slams KPMG report into Petropavlovsk which slates him and associates for $302.4m of potential frauds

A "private & confidential" KPMG report commissioned by the new managers of Petropavlosk (POG) has, as you can see below, been published in full by the company and claims that its founders Peter Hambro and Dr Pavel Maslovskiy and associates may have taken out $302.4 million to which they were not entitled. But Hambro says that he and Maslovskiy (currently incarcerated in a Russian jail) were not given, as promised and as the company says they were, a chance to comment on the report which,he says, is riddled with innaccuracies.

Petropavlovsk (#POG) – KPMG report into historical transactions, company to review findings with legal counsel

Petropavlovsk (#POG) – High Court dismisses application for injunctive relief made by JSC Uzhuralzoloto

Petropavlovsk (#POG) – updates on actions taken following AGM and EGM votes

Petropavlovsk (#POG) – appointment of KPMG to investigate historic transactions with related parties

Petropavlovsk (#POG) – “Investigative Committee of Russia for the City of Moscow has initiated an investigation into events involving Petropavlovsk's Interim CEO, Mr Maksim Meshcheryakov”