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:
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.
