Russian Broker VTB Freezes Gold Miner UGC's Shares Held by Retail Investors

Retail investors holding shares in one of Russia's largest gold producers, Yuzhuralzoloto Group of Companies (UGC), have had their assets frozen by broker VTB, an action linked to a government lawsuit to seize the company from its billionaire owner.
The move follows a court order for "interim measures" as part of a case brought by Russia's Prosecutor General's Office to nationalize the assets of Konstantin Strukov, a regional lawmaker who controls UGC. A depository report from VTB, reviewed by media, shows the shares have been moved to a restricted account section labeled "under arrest." VTB confirmed the action complies with a court order.
The seizure has caught minority shareholders in the crossfire of the state's legal battle against Strukov, who is accused of using his political position to unlawfully gain control of UGC and other assets. The Association of Retail Investors suggested VTB may have interpreted a broad court order to "seize the shares" as applying to all holdings, not just the majority stake targeted by prosecutors.
The main hearing for the nationalization lawsuit is scheduled for July 10 in a Chelyabinsk court, following a closed preliminary session on July 8. The case has sent ripples through the market, with the Moscow Exchange halting trading of UGC shares on July 4 after they plummeted nearly 30%. Other major brokers and Russia's National Settlement Depository have reportedly not yet received similar seizure orders for their clients' holdings.