Ferrexpo flags risk from collapsed Swiss bank; shares tank (updated)

Ferrexpo

09/03/2026 09:02

Adds further details and share move

Ferrexpo seeks new banking partners after MBaer collapse

FAG holds $3 million with MBaer, recovery timing unknown

Ferrexpo Poltava Mining restarts production

March 9 (Reuters) - Iron ore pellet producer Ferrexpo FXPO.L on Monday warned of "material negative consequences" unless it secured alternative banking arrangements after its Swiss banking partner MBaer collapsed.

Ferrexpo's shares fell as much as 4.8%.

The company's Swiss subsidiary, Ferrexpo AG (FAG) had a banking relationship with MBaer Merchant Bank AG, which the Swiss financial regulator is set to wind down for alleged money-laundering violations and breaching sanctions against Iran and Russia.

Mbaer's collapse compounds trouble for the Ukraine-focused miner that has been grappling with operational setbacks amid the Russia-Ukraine war and legal troubles involving a major stakeholder.

Ferrexpo, which used the bank to make commercial payments outside Ukraine, said that FAG holds approximately $3 million with MBaer.

The company said its net cash resources were approximately $30 million as at February 27, 2026.

Ferrexpo said that it does not expect a material impact on its subsidiaries in Ukraine but is limited in its ability to make payments outside Ukraine following the collapse.

FAG currently expects to recover its deposit with MBaer in full, although the timing of being able to do this is currently unknown, Ferrexpo said.

SEEKING ALTERNATIVE BANKING PARTNERS

Ferrexpo said that it is actively exploring alternative banking options for FAG.

However, "these discussions are and historically have been complicated by the issues surrounding one of the beneficiaries of The Minco Trust, which is the owner of Fevamotinico S.a.r.l.", the company said.

Fevamotinico, controlled by Ukrainian billionaire Kostyantin Zhevago, holds nearly half of the company, according to the company's website.

Zhevago, one of the beneficiaries of Fevamotinico's owner Minco Trust, has been accused of embezzlement and sanctioned by the Ukrainian government.

PRODUCTION RESTART AT FPM

The company also said it had restarted production at its struggling Ferrexpo Poltava Mining unit after power supply in the region was hit by the conflict in Ukraine.

One pellet line is in operation currently, the company said, adding that the group was using its own fleet of rail wagons to export to customers in Eastern and Central Europe.

(Reporting by Simone Lobo in Bengaluru; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Kate Mayberry)

((Simone.Lobo@thomsonreuters.com, +919920570373))