NewsTigers Realm Coal hit with sanction breach, forced to sell Russian assets

Tigers Realm Coal hit with sanction breach, forced to sell Russian assets

Tigers Realm Coal
Tigers Realm Coal
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8:26 AM EDT, April 18, 2024

The mining conglomerate Tigers Realm Coal faced a legal setback, losing a court case related to breaking sanctions imposed by the Australian government. This verdict mandates the cessation of its coal mining operations in Russia and the shipment of coal to Asia, prompting the company to sell its Russian business.

Backed by philanthropist billionaires Paul Little and Jane Hansen, Tigers Realm Coal has decided to offload its Russian coal ventures. This move comes in the wake of an Australian court ruling, finding the company's activities in Russia's Far East in breach of government sanctions implemented following Russia's invasion of Ukraine, as reported by "The Sydney Morning Herald".

Tigers Realm has been extracting coking coal in sub-zero temperatures from its Russian sites via several subsidiaries, with the coal being shipped to Asian markets.

In defense, the company's legal team argued that the mining operations were solely based in Russia, and the coal never made its way to Australia.

However, this argument failed to sway the judge. Consequently, Tigers Realm Coal has chosen to divest from its operations in the southwestern region of the Chukotka Autonomous Okrug.

According to "Kommiersant", a Russian newspaper, the coal assets in Chukotka are set to be sold for $49 million to APM-Invest, owned by Russian businessman Mark Buzuk. This deal requires approval from Tigers Realm Coal’s shareholders, the Federal Antimonopoly Service, and the President of Russia.

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