Ukraine Plans Nationalization of Ferrexpo's Poltava Mining Amid Allegations

Ukraine's State Bureau of Investigation (SBI) is moving to nationalize Poltava Mining, a subsidiary of Ferrexpo, amid allegations of illegal mining and misappropriation of funds. The appeal to the High Anti-Corruption Court seeks to transfer 49.5% of the mining company's assets to state ownership, including numerous properties and railway cars. Ferrexpo's shares plummeted nearly a third following the government's announcement, reflecting investor anxiety surrounding the allegations against the company and its majority shareholder, Kostyantyn Zhevago. Zhevago, who faces embezzlement charges and has been implicated in a civil claim for significant damages, denies any wrongdoing and intends to defend the company’s position in court. The nationalization efforts are part of a broader crackdown on assets linked to sanctioned oligarchs in Ukraine during wartime. Ferrexpo maintains that the recent developments do not impact its operational capabilities.