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Kinross says Russia operations unaffected by US sanctions

23rd February 2022

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Canadian miner Kinross Gold said on Wednesday operations in Russia were operating according to plan and that they were not affected by the US sanctions announced by President Joe Biden on Tuesday.

The company pointed out that it had successfully operated in Russia for more than 25 years and that it had previously managed through similar situations, while complying with applicable laws.

Kinross noted that the majority of its procurement was coming from Russia and that about 98% of the employees of its Russian subsidiaries were locals. Further, given the ice road supply season, its operations have a full year of supplies on hand.

Kinross refines gold produced from its Russian mines in-country and retains flexibility to sell its gold domestically and internationally.  In 2022, Kinross expects about 13% of its global production to come from Russia.

Kinross operations are located in the Russian Far East and are about 7 000 km away from Ukraine.

On Tuesday, Biden announced sweeping sanctions on major Russian bank VEB and its military bank, PSB, as well as on the country’s sovereign debt and on three individuals, two of whom are the sons of high-ranking Russian government officials. The bank sanctions will prohibit US financial institutions from processing transactions for VEB and PSB. This would effectively cut the banks out of transactions involving US dollars, the global reserve currency. 

Meanwhile, London-listed nickel/copper sulphide explorer Amur Minerals also stated that the US and UK sanctions had no impact on its operations or activities in the far east of Russia.

Edited by Creamer Media Reporter

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