Quick overview

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Russia’s third-largest gold producer, Yuzhuralzoloto, was ordered to be nationalized by a Chelyabinsk region court on Friday, the government’s most recent takeover of significant private property during a time of war. On July 2, a lawsuit was filed by the Prosecutor General’s Office to take the Yuzhuralzoloto Group of Companies (YUGK) and ten of its affiliated companies away from Konstantin Strukov, a regional lawmaker and billionaire.

Raids on the companies’ offices were extensively reported in conjunction with the case. Strukov, who led Yuzhuralzoloto before going into politics, is accused by the prosecution of unlawfully seizing control of the business by abusing his official position

.According to the lawsuit, he turned the business into a publicly traded joint stock company and gave his daughter, Alexandra Strukova, a Swiss national, and close associates ownership.

Strukov, a member of the ruling United Russia party and the deputy chairman of the Chelyabinsk regional legislative assembly, is ranked as the 78th richest person in Russia with an estimated net worth of $1.09 billion. In 2023, Yuzhuralzoloto produced 10 metric tons of gold, bringing in 25 billion rubles ($320 million), but it also reported a 7.2 billion ruble ($90 million) loss.