Two Russian-affiliated mining companies saw shares rise after saying they will not be affected by new sanctions imposed on Russia.
Eurasia Mining PLC (AIM:EUA) and Amur Minerals Corporation (AIM:AMC, OTC:AMMCF), which are both heavily invested in Russian mining, alerted investors that latest sanctions would not have an impact on their operations, saying no individual or entity were linked in any way.
The US sanctioned two of Russia’s state-owned banks: VEB and Promsvyazbank, while the UK placed sanctions on five Russian banks and three billionaires: Gennady Timchenko, Boris Rotenberg and Igor Rotenberg.
In December, Eurasia Mining signed a legally binding cooperation agreement with Russian state-owned Far East and Arctic Region Development Corporation, while Amur' operations are entirely focused in eastern Russia.
Fresh sanctions were placed on Russia by the West, Japan and Australia in response to the country recognizing the independence of separatist regions Donetsk and Luhansk, and sending troops into the regions on a “peacekeeping” mission.
Most sanctions are focused on limiting Russian individuals’ and entities’ access to capital through Western markets, and have not yet hit the mining sector.
But US draft legislation explicitly names 12 Russian banks as potential targets for sanctions, and would also give powers to hit companies in the oil & gas and mining sectors.
Amur’s share price rose 3.07% through early afternoon to 2.42p while Eurasia shares rose 8.28% to 17.88p as both made similar announcements today.
Both Eurasia’s and Amur’s share prices have fallen more than 20% in the last month as investors protect themselves from the impacts of an increasingly likely war in Ukraine.
Amur gave up huge gains arising from confirmation that it was in discussions to sell its subsidiary Irosta Trading Ltd. for £100mln.
Further sanctions are expected by all parties if Russia engages in an all-out invasion of Ukraine.