The office of Russia's Prosecutor General has filed a lawsuit seeking to transfer ownership of some shares in gold producer Uzhuralzoloto (UGLD.MM) to the state, Russian news agencies reported on Thursday, citing law enforcement sources.
Russian prosecutors have stepped up the seizure of domestic assets through the courts this year, ruling that a leading grain trader, Moscow's Domodedovo airport, and strategic warehouse assets be handed to the state.
Moscow-listed shares in Uzhuralzoloto, or UGC, Russia's fourth-largest gold producer, were down 9.4% by 0829 GMT, having slumped around 17% earlier in the session. UGC is under U.S. sanctions.
Prosecutors and UGC did not immediately respond to a request for comment.
A woman who answered the phone at the office of Russia's Prosecutor General said she could not confirm the report and that the office would only respond to a written request for information.
UGC is owned by billionaire Konstantin Strukov, who has been placed under sanctions by some Western countries, including Britain, which has said his work as a director of a company in the Russian extractives sector supported the Russian government.
The TASS news agency, citing a source in the prosecutor's office, said the lawsuit sought to transfer Strukov's shares to the state.
The Kommersant daily reported that the lawsuit alleges Strukov illegally obtained control of UGC. It said a preliminary hearing was scheduled for July 8.
Reuters has sought comment with Strukov through UGC.
Foreign companies have grappled with the risk of state seizure since Russia sent troops into Ukraine in February 2022, but Moscow, citing strategic stability and domestic security, has increasingly turned its attention to domestic assets too.
Prosecutor General Igor Krasnov, who has led the state's efforts to seize property worth 2.4 trillion roubles ($30.46 billion), last month said foreign companies that return to the country would be watched closely to ensure Russia benefited.
($1 = 78.8000 roubles)
