REG - Ferrexpo plc - Statement regarding Ukraine VAT refunds

FerrexpoAnnouncement

21/03/2025 07:15

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RNS Number : 5859B  Ferrexpo PLC  21 March 2025

21 March 2025

 

Ferrexpo plc

("Ferrexpo" or the "Company")

 

 

Ukraine subsidiary VAT refunds

Ferrexpo plc (LSE: FXPO) advises that two of its Ukrainian subsidiaries,
Ferrexpo Poltava Mining (FPM) and Ferrexpo Yeristovo Mining (FYM), have
received notifications from the Ukrainian tax authorities of a decision to
suspend the refund of VAT for the month of January 2025, in the aggregate
amount of UAH 512.9 million (approximately US$ 12.5 million).

The explanation provided by the tax authorities for the suspension relates to
the imposition of personal sanctions on Kostiantyn Zhevago. As previously
disclosed by the Company, these sanctions are personal in nature to Mr Zhevago
and the sanctions have not been imposed directly on the Company or any of its
subsidiaries (the Ferrexpo Group). In the Company's view, personal sanctions
on Mr Zhevago should not be used as an instrument to place financial pressure
on Ferrexpo where a majority of the voting shares are owned by international
investors, including some of the biggest global banks, investment, pension and
sovereign wealth funds.

As disclosed in the Full Year Financial Results for 2024, released on 19 March
2025, the suspension of VAT refunds will put financial pressure on the
Ferrexpo Group's liquidity and force it to reduce production and sales, in an
already low iron ore price and high cost environment.  In turn, this will
lead to significantly lower procurement of goods and services within Ukraine
and result in lower taxes, royalties and social contributions by the Ferrexpo
Group to the Ukrainian economy and society.

Commenting on the suspension of VAT refunds, Lucio Genovese, Executive Chair
said:

"Ferrexpo is a significant contributor to the Ukrainian economy and society,
especially during a time of war.  The suspension of VAT refunds will place
significant stress on our business, at a time when we are already managing
many other challenges. Ferrexpo calls on the Ministry of Finance and the State
Tax Service of Ukraine to take urgent and effective measures to reinstate the
VAT refunds."

This announcement contains inside information. The person responsible for the
release of this announcement is Mark Gregory, Group Company Secretary.

 

 

For further information please contact:

 Ferrexpo:
 Nick Bias       n.bias@ferrexpo.com                                                     +44 (0)7733 177 831
                 (mailto:n.bias@ferrexpo.ch?subject=Ferrexpo%20contested%20securities)

 Tavistock:
 Jos Simson      ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)              +44 (0)20 7920 3150

 Gareth Tredway                                                                          +44 (0)7785 974 264

 

About Ferrexpo

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine and
a listing in the equity shares commercial companies category on the London
Stock Exchange (ticker FXPO) and a constituent of the FTSE 250 and FTSE4Good
indices. The Group produces high grade iron ore pellets, which are a premium
product for the global steel industry and enable reduced carbon emissions and
increased productivity for steelmakers when converted into steel, compared to
more commonly traded forms of iron ore. Ferrexpo's operations have been
supplying the global steel industry for over 50 years. Before Russia's
full-scale invasion of Ukraine in February 2022, the Group was the world's
third largest exporter of pellets. The Group has a global customer base
comprising of premium steel mills around the world. For further information,
please visit www.ferrexpo.com (http://www.ferrexpo.com/) .

 

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