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Ukraine moves to nationalize Ferrexpo's mining subsidiary

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Ukraine moves to nationalize Ferrexpo's mining subsidiary
A conveyor belt drops iron ore pellets onto an outdoor storage pile at the Yeristovo and Poltava iron ore mine, operated by Ferrexpo Poltava Mining PJSC, in Poltava, Ukraine, on Friday, May 5, 2017. (Vincent Mundy/Bloomberg via Getty Images)

Ukraine's State Bureau of Investigation and Justice Ministry are preparing to nationalize Poltava Mining, a subsidiary of London-listed Ferrexpo, which is majority owned by oligarch Konstantin Zhevago, the SBI announced on Feb. 20.

The move comes amid Ukraine's broader crackdown on assets linked to sanctioned oligarchs during wartime. Ferrexpo is one of the country's largest iron ore exporters and employers in central Ukraine.

The lawsuit seeks to transfer 49.5% of Poltava Mining and its assets to state ownership, including 541 properties, 172 land plots, and over 2,300 railway cars with tracks.

Half of Ferrexpo's shares belong to Zhevago, who was arrested in absentia in July 2024 on embezzlement charges of Hr 1.4 billion ($33.6 million) in a case involving Finance and Credit Bank.

Ukraine's National Security and Defense Council (NSDC) recently announced sanctions and criminal proceedings against against a number of Ukrainian businessmen and former high-ranking officials, including Zhevago.

Poltava Mining in February was also hit by a civil claim for Hr 157 billion ($3.78 billion) over illegal mining in Ukraine and the sale of waste products.

"Initial accusations on the illegal sale of waste products have transformed into accusations that FPM is illegally mining and selling subsoil, which is said to have caused damage to the environment," Ferrexpo said in a statement on Feb. 4.

The company denied the allegations, declaring its intentions to defend its position in the Ukrainian courts. The lawsuit does not affect the company's operations, the statement said.

Earlier, in September 2024, the SBI sent a case to court against seven Poltava Mining officials for illegal mining and sale of minerals worth Hr 370 million ($8.9 million).

Trump may seek simplified resources deal with Ukraine, Reuters reports
The sources told Reuters that Trump wants to make a deal before potentially authorizing more U.S. military aid for Kyiv or moving forward with an attempt to broker formal Ukraine-Russia peace talks.
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Yana Prots

Newsroom Intern

Yana Prots is an intern on the business desk of the Kyiv Independent. She previously worked as a journalist at the NGO Center of United Actions and as a social media editor at Hromadske media. Yana holds a bachelor’s degree in journalism from the Taras Shevchenko National University of Kyiv and completed a year as an exchange student at the University of Zurich. Now, she is pursuing a master’s degree in International Finance and Investment at the Taras Shevchenko National University of Kyiv.

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