Latest news with #Zhevago
Daily Mail
5 days ago
- Business
- Daily Mail
Miner Ferrexpo sees iron ore output plummet after Ukraine suspends VAT refunds
Ferrexpo has reported a massive slump in iron ore production following the Ukrainian Government's decision to suspend tax refunds for the firm. The mining company delivered 1.3 million tonnes of iron ore during the quarter ending March, compared to 2.1 million in the previous quarter, which was the highest amount since Russia's full-scale invasion of Ukraine in February 2022. Meanwhile, the Swiss-headquartered group's pellet output plunged by 39 per cent from more than 1.3 million tonnes to 821,882 tonnes. Ferrexpo has been forced to downsize its operations to one pelletising line and to reduce the production of high-grade concentrate due to the halting of VAT refunds and their negative impact on liquidity levels. The suspension follows sanctions imposed by President Volodomyr Zelensky on the oligarch Kostiantyn Zhevago, who controls a 49.5 per cent stake in Ferrexpo and was once dubbed 'Europe's youngest self-made billionaire'. Zhevago has been accused of embezzling funds from Finance & Credit Bank, which collapsed in 2015. He has denied all allegations. Ukraine's government attempted, but failed, to seize his stake in Ferrexpo's Poltava mine through the courts in 2023. In March, the Daily Mail reported that Ferrexpo would initiate international arbitration proceedings if Ukraine part-nationalised the site, which is Ferrexpo's largest iron ore mine. 'All efforts and representations are underway with the respective authorities and government bodies in Ukraine and internationally to try to resolve the VAT refund suspension,' said Lucio Genovese, interim executive chair of Ferrexpo. Ferrexpo noted on Monday that demand for its high-grade low-alumina concentrate from customers in China continued to be strong. The group's annual production volumes remain far below pre-2022 volumes due to the conflict in Ukraine disrupting export operations and many employees serving in the country's armed forces. Mark Crouch, market analyst for eToro, said: 'Ferrexpo has long been navigating treacherous terrain, but the war in Ukraine has brought unprecedented disruption.' However, he added: 'It's worth remembering that Ferrexpo has weathered severe downturns before. 'The company's shares have traded at significantly lower levels during prior crises, such as the 2008 financial meltdown and the 2015 commodities rout. 'For long-term investors with a high-risk appetite, this may be seen not as a crisis, but as yet another turbulent chapter in Ferrexpo's volatile history.' Ferrexpo shares were 0.7 per cent higher at 49.1p on late Monday afternoon, taking their losses to around 55 per cent since the year began.
Reuters
17-04-2025
- Business
- Reuters
Ferrexpo hit with fresh suspension of VAT refunds in Ukraine
April 17 (Reuters) - Ukraine-focused miner Ferrexpo (FXPO.L), opens new tab said on Thursday that Ukrainian tax authorities have decided to suspend the refund of value-added tax worth 456.6 million hryvnias ($11.03 million) for February to two of its Ukrainian units. This follows a similar suspension of its January VAT refunds in March when 512.9 million hryvnias were withheld. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Ferrexpo previously said the VAT refund suspension was related to the imposition of personal sanctions on Ukrainian billionaire Kostiantyn Zhevago, who is the largest shareholder of the London-listed company. "Personal sanctions on Zhevago should not be used as an instrument to place financial pressure on Ferrexpo," the miner said. Zhevago is facing allegations that he embezzled money from the now-bankrupt lender Finance & Credit Bank, in which he had a 95% indirect shareholding before its 2015 collapse. Ferrexpo said it has undertaken significant cost-cutting measures to preserve liquidity, impacting its workforce, mining, and processing operations, among other areas. ($1 = 41.3900 hryvnias)
Reuters
20-02-2025
- Business
- Reuters
Ukraine moves to nationalise Ferrexpo's Poltava mining plant
KYIV, Feb 20 (Reuters) - Ukraine said on Thursday it had moved to nationalise the Poltava mining and processing plant, the largest mine belonging to London-based iron ore pellets producer Ferrexpo (FXPO.L), opens new tab, amid investigations into the alleged misappropriation of funds related to illegal mining. Ferrexpo in recent years has had to navigate various investigations into its main shareholder, sanctioned Ukrainian businessman and former politician Kostyantyn Zhevago, as Ukrainian authorities have tried to tackle corruption in a crackdown that continued after Russia's invasion in 2022. On Thursday, the Ukrainian state bureau of investigations said it was preparing to lodge an appeal with Ukraine's justice ministry at the High Anti-Corruption Court, requesting the nationalisation of assets and corporate rights to the Poltava plant. It said that according to its investigations the plant's management had misappropriated over 370 million hryvnias ($8.86 million), and that its property and corporate rights had been frozen as part of pre-trial investigations. "The Company has not received any formal notification of such a claim and is working with its legal advisors to understand the situation," Ferrexpo in a statement. "It is proposed to nationalise 541 real estate objects owned by the plant, as well as 172 land plots that are under early lease to the plant for 49 years," the bureau said in a statement. "It is also proposed that the court consider the transfer of corporate rights for the amount of 49.5% of the authorised capital of Poltava mining and processing plant to the state." Ferrexpo said in January it had noted media reports of accusations by the Ukrainian prosecutor's office against senior managers of its unit FPM over alleged illegal mining and sale of waste products. The group said operations were unaffected by the legal case, and that FPM viewed the accusations as being "without merit". Zhevago has repeatedly rejected accusations against him.
Yahoo
20-02-2025
- Business
- Yahoo
Ukraine moves to nationalize Ferrexpo's mining subsidiary
Ukraine's State Bureau of Investigation and Justice Ministry are preparing to nationalize Poltava Mining, a subsidiary of London-listed Ferrexpo, which is majority owned by oligarch Konstantin Zhevago, the SBI announced on Feb. 20. The move comes amid Ukraine's broader crackdown on assets linked to sanctioned oligarchs during wartime. Ferrexpo is one of the country's largest iron ore exporters and employers in central Ukraine. The lawsuit seeks to transfer 49.5% of Poltava Mining and its assets to state ownership, including 541 properties, 172 land plots, and over 2,300 railway cars with tracks. Half of Ferrexpo's shares belong to Zhevago, who was arrested in absentia in July 2024 on embezzlement charges of Hr 1.4 billion ($33.6 million) in a case involving Finance and Credit Bank. Ukraine's National Security and Defense Council (NSDC) recently announced sanctions and criminal proceedings against against a number of Ukrainian businessmen and former high-ranking officials, including Zhevago. Poltava Mining in February was also hit by a civil claim for Hr 157 billion ($3.78 billion) over illegal mining in Ukraine and the sale of waste products. "Initial accusations on the illegal sale of waste products have transformed into accusations that FPM is illegally mining and selling subsoil, which is said to have caused damage to the environment," Ferrexpo said in a statement on Feb. 4. The company denied the allegations, declaring its intentions to defend its position in the Ukrainian courts. The lawsuit does not affect the company's operations, the statement said. Earlier, in September 2024, the SBI sent a case to court against seven Poltava Mining officials for illegal mining and sale of minerals worth Hr 370 million ($8.9 million). Read also: Trump may seek simplified resources deal with Ukraine, Reuters reports We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
