Ferrexpo’s $7.7 Million Ship Sale Buys Time Amid Frozen VAT and Insolvency Threat
Published on 05/16/2026 at 16:26 | Redaktion boerse-global.de
For Ferrexpo, every dollar counts. The iron ore producer has sold its last transport vessel, the Iron Destiny, for $7.7 million in a bid to stave off a looming cash crunch. The proceeds buy the company just two months of extra breathing room — its reserves are now expected to last until the end of August 2026, rather than late June as previously forecast.
The sale is a stopgap in a crisis driven by a far bigger number: around $90 million in value-added tax refunds that Ukraine’s tax authorities have withheld since March 2025. The government refuses to release the money because of personal sanctions against Kostiantyn Zhevago, Ferrexpo’s largest single shareholder, even though the company itself is not under sanctions. As of 31 March 2026, freely available cash stood at just $22 million, a steep drop from total liquidity of $47 million at the end of 2025.
The frozen tax refunds have paralysed Ferrexpo’s financing options. Institutional investors and banks are reluctant to engage with a group whose dominant shareholder faces serious legal troubles. Zhevago is suspected of embezzling some $113 million through his now-dissolved bank between 2007 and 2015. He was arrested in France at the end of 2022; Paris has twice rejected Kyiv’s extradition requests, in 2023 and again in 2025.
Should investors sell immediately? Or is it worth buying Ferrexpo?
Against this backdrop, Ferrexpo is scrambling to seal a capital increase of at least $100 million. Zhevago’s holding company, Fevamotinico, has pledged to contribute up to that amount proportionally. Institutional investors have expressed non-binding interest in a $100 million recapitalisation, but no signed deal exists. The company’s auditors have refused to sign off on the 2025 annual results until the funding is secured, and the London Stock Exchange suspended trading in the shares on 1 May as a result. The stock last changed hands at 28.58 pence, a fraction of its 52-week high of 87.10 pence.
Operationally, the producer is running at roughly a quarter of its pre-war capacity. Only one of four iron ore pellet production lines is active. In the first quarter of 2026, output collapsed 72% year-on-year to 592,750 tonnes, after Russian strikes on Ukrainian energy infrastructure repeatedly shut the mine down. Many employees are on reduced hours or furloughed, and all non-essential investment has been halted.
A separate legal problem is adding to the pressure. Ferrexpo’s Ukrainian subsidiary is in a court-ordered insolvency process tied to a disputed guarantee claim worth 4.7 billion hryvnia. The company has fully provisioned for the sum and is fighting the claim, but the proceedings inject further uncertainty.
Management now faces a binary outcome. If the capital raise succeeds, the annual accounts can be published and the listing reinstated. If it falls through — or if Kyiv fails to unlock the frozen VAT refunds — the group will run out of money by the end of August. Neither outcome is in Ferrexpo’s direct control.
Ad
Ferrexpo Stock: New Analysis - 16 May
Fresh Ferrexpo information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
