Ukrainian agri-oligarch gives Ferrexpo $50 million lifeline, company to resume London trading

Ferrexpo, a key Ukrainian mining company, will return to trading on the London Stock Exchange (LSE) next week after being rescued by Ukrainian oligarch Andrii Verevskyi, the company announced in a statement on Sept. 4.

In total, the company raised $100 million, with Verevskyi, who owns the major agricultural company Kernel, providing $50 million. He purchased half of the new shares Ferrexpo placed on the market for 16.5 cents each.

The company’s largest shareholder, Fevamotinico, which is owned by wanted oligarch Kostyantyn Zhevago, committed nearly $30 million — the second-largest investment.

While the company’s future looked bleak amid a slew of legal and wartime problems, Verevskyi’s investment will provide some relief, particularly for the 8,000 workers employed at its Poltava mine, one of the most important iron ore mines in Europe.

The cash-strapped company previously said it only had enough financing to survive until mid-September, when it needed to raise $100 million, and was reaching out to investors. However, it struggled to find willing partners for months.

Ferrexpo’s problems were exacerbated after it was suspended from the LSE on May 1 because it wasn’t able to finalize and publish its audited 2025 financial results on time. But with the newly raised funds, Ferrexpo will return to trading on Sept. 7.

The company’s board of directors welcomed the investment, with Lucio Genovese, the board’s non-executive chair, writing in a statement that the company will be able to resume exports to international customers, resume spending it had previously postponed, and increase production when conditions in Ukraine improve.

"The proceeds will also crucially help secure thousands of jobs that are central to Ferrexpo, our local communities and the wider Ukrainian economy," he added.

Ferrexpo and many others in Ukraine’s mining sector have long argued that the government is treating the company unfairly, sending a negative signal to foreign investors.

The issues concern the company’s connection to Zhevago, who was arrested in France in late 2022 after fleeing Ukraine in 2019. He is suspected of running an embezzlement scheme involving $113 million through his now-defunct bank, Finance & Credit Bank, between 2007 and 2015, as well as bribing the head of Supreme Court in 2023.

The company has sought to distance itself from Zhevago, noting that he is a minority shareholder with a 49.5% stake, while the remainder is held by international investors, including BlackRock.

Nonetheless, after the government sanctioned Zhevago in 2025, Ukraine’s tax service began suspending VAT refunds. With around $100 million in refunds currently withheld, the company says it has had to cut staff and reduce operations.

Additionally, the company had to suspend iron ore production in late July as Russia attacked Ukraine’s Black Sea ports, preventing maritime exports, its key export route.

At the same time, high electricity costs in Ukraine and power outages following Russian strikes on energy infrastructure have made operations expensive and difficult for the company.