Bloomberg quoted Polymetal said last Thursday that panic selling of precious metal assets in the country because of the global financial crisis has run its course as the price of gold rises and the ruble falls.

Mr Vitaly Nesis CEO of Polymetal at a conference organized by the Adam Smith Institute said that "There are still very many assets for sale but there is no panic like there was in October or November. There are still many sellers who want to exit the business and who have problems with liquidity.”

He said that mines in the country are fantastically attractive because of a 39% increase in the price of the metal since the crisis broke in October and a slump in the ruble that raised the local value of dollar denominated gold sales and now the company is looking at potential acquisition targets in Russia.”

Mr Yevgeny Ivanov CEO of Polyus Gold said that "Almost everything is for sale. Many companies made the mistake of financing their long term projects with short term loans and those assets are now for sale.

He said that "Those companies whose financial position is steady and whose shares are still perceived as a reliable payment instrument should buy assets. The ruble devaluation adds 59% to companies' sales when revenues are converted into the currency and Polyus is in talks over potential acquisitions in Russia and Commonwealth of Independent States.”

(Sourced from Bloomberg)