Ferrexpo commented on the suspension of VAT refunds by the tax authorities

The mining company Ferrexpo has announced that the Ukrainian tax authorities have suspended VAT refunds for its enterprises. The refund for January, amounting to UAH 512.9 million (approximately $12.5 million), has been suspended. According to the company, the tax authorities link their actions to the imposition of personal sanctions on Kostiantyn Zhevago, who is one of the company's shareholders.

This was reported by RBC-Ukraine.

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 is placing significant stress on our business, at a time when we are already managing many other challenges. The monthly refund of VAT is a significant contribution to the Company and if it is not received it will have a massive broader impact on the business and all its stakeholders. Ferrexpo calls on the Ministry of Finance.

Ferrexpo's statement emphasizes that the personal sanctions against Kostiantyn Zhevago should not be used to exert financial pressure on the company. The company notes that the majority of Ferrexpo's voting shares are not owned by Zhevago but by international investors, including major global banks, investment funds, pension funds, and sovereign wealth funds.and the State Tax Service of Ukraine to take urgent and effective measures to reinstate the VAT refunds.

Ferrexpo predicts that due to the suspension of VAT refunds, the company will be forced to drastically reduce the scale of its business to only 25% of its full production capacity.

Earlier, it was reported that Ferrexpo ended 2024 with a loss but managed to reduce it by 41% compared to 2023 — from $84.75 million to $50 million.

Ferrexpo plc has also stated that the transfer of a 49.5% stake in Poltava Mining to the management of ARMA violates Ukraine’s international investment agreements with the United Kingdom and Switzerland, which could lead to an international arbitration case.

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