REG - Ferrexpo plc - Ukraine subsidiaries VAT refunds

FerrexpoAnnouncement

17/04/2025 17:46

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RNS Number : 5412F  Ferrexpo PLC  17 April 2025

17 April 2025

 

Ferrexpo plc

("Ferrexpo" or the "Company")

 

 

Ukraine subsidiaries VAT refunds

 

Ferrexpo plc (LSE: FXPO) advises that it has received a further notification
from the Ukrainian tax authorities of their decision to suspend the refund of
VAT for two of its Ukrainian subsidiaries, Ferrexpo Poltava Mining (FPM) and
Ferrexpo Yeristovo Mining (FYM), for the month of February 2025. The aggregate
amount of the VAT refund is UAH 456.6 million (approximately US$ 11.1
million). This follows the announcement made on 21 March 2025, concerning the
notification of the suspension of the VAT for January 2025.

The explanation provided by the tax authorities for the suspension relates to
the imposition of personal sanctions on Kostiantyn Zhevago. 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).
 Given these explanations it is likely that subsequent VAT refunds may also
be refused.

In the Company's view, personal sanctions on Mr Zhevago should not be used as
an instrument to place financial pressure on Ferrexpo.

As previously disclosed, the suspension of VAT refunds is placing financial
pressure on the Group's liquidity and has forced a reduction in production to
25% of full capacity. To preserve liquidity, significant cost-cutting measures
are ongoing, affecting the workforce, mining and processing operations,
repairs and maintenance, capital expenditure and humanitarian and social
funding. In tandem, all efforts and representations are underway with the
respective authorities and government bodies in Ukraine and internationally to
try to resolve this issue.

 

 

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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