Russia plans to sell a 67.2% stake in the Yuzhuralzoloto Group of Companies (UGC), a major gold producer, on June 19. This sale follows the seizure of UGC's assets by the Russian state in July 2025 from businessman Konstantin Strukov. The Federal Property Management Agency reported that an initial electronic auction held on June 10, 2026, for the YUGK group was deemed invalid due to a lack of bids. The current market value of the stake is estimated at $1.3 billion, although previous valuations for the stake have ranged from $1.6 billion to $1.9 billion.
The Federal Property Management Agency intends to announce a Dutch auction on June 11, 2026, with the collection of applications running for five working days until June 18, 2026. In this type of auction, the price can be reduced by up to 50% of the initial sale price, potentially reaching 81.01 billion rubles. The price reduction step is set at 2% of the initial sale price, or 3.24 billion rubles, while the price increase step is 0.5% of the initial sale price, or 810.1 million rubles. Potential buyers must apply through the Roseltorg platform and submit a deposit of 20% of the initial bidding price, equivalent to 32.4 billion rubles. For the auction to be valid, at least two bidders must submit applications, required documents, and the deposit.
This sale is part of a broader pattern of nationalizations by Russia, with authorities estimated to have confiscated private assets worth approximately $50 billion since the start of the conflict in Ukraine. The Russian central bank previously stated in October 2025 that the state had violated the rights of minority shareholders in UGC by not making a mandatory offer after the seizure. The new owner of UGC will be expected to make a buyout offer after the purchase. YUGK specializes in gold mining and processing in Russia, with estimated resources of 46 million ounces of gold equivalent, sufficient for at least 30 years of stable operation. In 2025, UGC's net profit increased by 81.2% to 16 billion rubles, with revenue up 43.4% to 108.8 billion rubles, and EBITDA rising by 23.9% to 42.6 billion rubles. Net debt increased by 10% to 83.8 billion rubles.
Several previous attempts to sell the stake, including auctions in May, have failed to attract sufficient bidders. The first auction on May 18 failed to draw any bidders, and during a second attempt on May 26, the sole interested bidder was disqualified. A third auction also saw its only potential bidder disqualified for not submitting the required deposit. This recurring challenge highlights difficulties in the sale process amidst a broader trend of asset nationalization.
