The tax authorities have suspended VAT refunds to Ferrexpo for nearly 513 million UAH: the company has responded

"The tax authorities state that the suspension of VAT refunds is related to the imposition of personal sanctions on Kostiantyn Zhevago. As previously announced, these sanctions are personal in nature and have not been directly imposed on the company. Ferrexpo believes that personal sanctions against Kostiantyn Zhevago should not be used to exert financial pressure on Ferrexpo, especially considering that the majority of voting shares in Ferrexpo are owned by international investors, including some of the largest global banks, investment, pension, and sovereign wealth funds", - the Ferrexpo statement reads.

The company believes that the suspension of VAT refunds creates significant financial pressure on Ferrexpo, which will lead to a drastic reduction in the scale of its business to only 25% of its full production capacity.

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 and the State Tax Service of Ukraine to take urgent and effective measures to reinstate the VAT refunds.

It is worth noting that Ferrexpo stated that the transfer of 49.5% of Poltava Mining shares to the management of ARMA could lead to the case being reviewed in international arbitration, as it violates Ukraine's international investment agreements with the United Kingdom and Switzerland.

Earlier, Ferrexpo announced that it ended 2024 with a net loss of US$50 million. Compared to 2023, the loss decreased by 41%.