Petropavlovsk investors could be wiped out by sale, warns mining firm

London-listed company facing financial pressures after UK placed sanctions on key Russian client

The London-listed mining company Petropavlovsk has warned investors they may be wiped out though a potential sale, as it struggles to regain its footing after UK sanctions against a key Russian client.

The miner said it was facing financial pressures due to UK government restrictions on Gazprombank, which is one of Petropavlovsk's main customers and buys all of its gold. Gazprombank, which processes most payments for the Russian oil and gas sector, has been subject to UK sanctions since 24 March.