Ferrexpo's Ukrainian mining subsidiary executive charged with $41 million tax evasion scheme
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The head of Ukraine's Poltava Mining faces criminal charges for allegedly evading over Hr 1.7 billion ($41 million) in corporate taxes through fraudulent export pricing, the Economic Security Bureau announced in a press release on July 18.
Poltava Mining is a subsidiary of London-listed Ferrexpo, which is majority owned by sanctioned oligarch Konstantin Zhevago. The company serves as one of Ukraine's largest iron ore exporters and a major employer in the central region.
Investigators forwarded an indictment to court against the executive of the mining and processing plant, the economic crimes agency reported in a press release.
The bureau did not identify the suspect by name, but Viktor Lotous is listed as chairman of the board of Poltava Mining. In February 2025, he and the company's management were charged with illegal mining, being accused of causing Hr 157 billion ($3.78 billion) in damages.
The charges in the latest case include large-scale tax evasion and issuing deliberately falsified official documents as part of a criminal scheme, which could result in up to 10 years in prison for the head of Ukraine's Poltava Mining.
According to the Economic Security Bureau, the case is being overseen by prosecutors from the Prosecutor General's Office. In August 2024, the CEO and three other top managers of Poltava Mining were suspected of conducting illegal mining of minerals of national importance over a six-year period.
In February, the State Bureau of Investigation announced plans to nationalize 49.5% of Poltava Mining as part of a broader wartime crackdown on sanctioned oligarch assets.
Konstantin Zhevago, the majority owner of Ferrexpo, was arrested in absentia in July 2024 on separate embezzlement charges involving $33.6 million from Finance and Credit Bank.
In April, Ferrexpo reported a 26% drop in first-quarter pellet production, citing suspended tax refunds by Ukrainian authorities.
