Two Ferrexpo's Ukrainian Subsidiaries Hit by Another VAT Refund Suspension worth $11.1M

Ferrexpo PLC has reported another hurdle imposed by the Ukrainian tax authorities on their subsidiaries, Ferrexpo Poltava Mining (FPM) and Ferrexpo Yeristovo Mining (FYM). According to Ferrexpo, the suspension of VAT refunds, amounting to an aggregate of UAH 456.6 million (approximately US$ 11.1 million), comes despite any act of sanctions on the company and its subsidiaries.

The suspension notice, which mirrors a previous one in January 2025, is seemingly linked to personal sanctions on Kostiantyn Zhevago. Ferrexpo maintains that such personal sanctions should not be utilised as a tool to pressure the company financially.

While battling these financial headwinds, Ferrexpo continues to seek intervention from Ukrainian and international government bodies to resolve the issue. They remain hopeful for a positive response as they highlight that personal sanctions should not have ripple effects on a company’s financial stability.

Being a Swiss-based iron ore company with substantial holdings in Ukraine, Ferrexpo is a significant player in the global steel industry. Prior to the devastating Russian invasion of Ukraine in February 2022, it was named the world’s third-largest exporter of pellets. Despite current hardships, Ferrexpo reaffirms its status as a critical provider to premium steel mills globally.