A major transaction in Russia’s gold mining industry has finally been completed. A company controlled by businessman Ruslan Baisarov has acquired a controlling stake in UGC at a price nearly one and a half times lower than the initial valuation. The buyer sees the asset not only as a collection of mineral deposits but also as a hedge against economic uncertainty and a platform for growth in the mining sector.
BTS-Most acquired a 67.2% stake in UGC and its associated assets for RUB 93.2 billion. The asset was sold on the fourth attempt. Other bidders included a company affiliated with UMMC and Innovation LLC, whose application was rejected by the commission.
BTS-Most Holding was established in 2024 and is part of the SK Most Group. Its principal owner is Ruslan Baisarov, who also controls the Tuva Energy Industrial Corporation (TEIC). With this acquisition, his business interests now extend beyond infrastructure and energy into precious metals mining.
Several factors influenced the decision to purchase the asset. First, gold is widely regarded as a reliable store of value with strong liquidity. Such an asset helps reduce dependence on government contracts and budget cycles, which is particularly important for a construction and infrastructure group.
Second, the timing proved favorable. The starting price of the stake was RUB 140.4 billion, but the final transaction value was significantly lower. According to analysts, the discount relative to fair value may be as high as 20%. In an environment where financing remains limited across the mining industry, buyers with available capital have gained access to attractive opportunities.
Third, the acquisition offers clear operational synergies. TEIC already has experience in the mining sector, while BTS-Most possesses extensive expertise in heavy equipment and large-scale industrial projects. These capabilities can be leveraged to accelerate UGC’s investment program and improve operational efficiency.
The asset itself has substantial growth potential. UGC operates two major production hubs—the Ural Hub and the Siberian Hub. Combined resources amount to 46 million ounces under the JORC classification. In 2025, gold production increased by 13% and exceeded 12 tonnes. For the current year, the company expects output of between 12.5 and 14 tonnes.
The transaction positions Baisarov as a significant player in Russia’s gold mining industry. A defensive asset acquired at a discount and supported by strong industrial expertise could offer considerable upside in value over the coming years.
Source: @nerzhavey
Image: Dmitry Azarov / Kommersant
