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News agencies report that Russia is suing for its ownership stake in Uzhuralzoloto's gold producer.

Russian news agencies, citing sources in law enforcement, reported that the office of Russia’s Prosecutor-General has filed a suit to transfer ownership of certain shares of gold producer Uzhuralzoloto.

Russian prosecutors have increased the seizure and confiscation of assets in Russia through the courts. This year they have ordered the transfer to the government of a major grain trader, the Domodedovo Airport, as well as strategic warehouse assets.

Uzhuralzoloto (UGC), Russia's fourth largest gold producer and listed on the Moscow Stock Exchange, was down 9.4% at 0829 GMT after falling around 17% in earlier trading. UGC is subject to U.S. sanction.

The UGC and the Prosecutors did not respond immediately to a comment request.

The woman who answered the telephone at the Russian Prosecutor's General Office said that she couldn't confirm the report, and that her office would only reply to written requests for information.

UGC is owned and controlled by Konstantin Strukov. He has been sanctioned by several Western countries including Britain for his role as director of an extractives company in Russia.

According to a source from the prosecutor’s office, the lawsuit was filed to transfer Strukov’s shares to state.

The Kommersant reported that Strukov is accused of obtaining control of UGC illegally in the lawsuit. The newspaper reported that a preliminary hearing would be held on July 8.

Strukov has been contacted by UGC for comment.

Since Russia's troops entered Ukraine in February 20, 2022, foreign companies have faced the threat of state seizing their assets. However, Moscow has been increasingly focused on domestic assets, citing domestic security and strategic stability.

Last month, Igor Krasnov - the prosecutor general who led the government's effort to seize assets worth 2.4 trillion rubles ($30.46billion) - said that foreign companies returning to Russia would be closely monitored to ensure Russia benefits. $1 = 78.8000 Roubles (Reporting and editing by Andrew Osborn, Barbara Lewis and Anastasia Lyrchikova)

(source: Reuters)