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Ferrexpo Faces Financial Strain Amid VAT Refund Suspension in Ukraine

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Ferrexpo Faces Financial Strain Amid VAT Refund Suspension in Ukraine

The latest update is out from Ferrexpo ( (GB:FXPO) ).

Ferrexpo announced that its Ukrainian subsidiaries have had their VAT refunds for January 2025 suspended by Ukrainian tax authorities due to personal sanctions on Kostiantyn Zhevago. This suspension, affecting refunds worth approximately US$ 12.5 million, is expected to strain the company’s liquidity, forcing reductions in production and sales amidst low iron ore prices and high costs. This situation will likely lead to decreased procurement and lower contributions to Ukraine’s economy, prompting Ferrexpo to urge Ukrainian authorities to reinstate the refunds.

More about Ferrexpo

Ferrexpo is a Swiss-headquartered iron ore company with assets in Ukraine, listed on the London Stock Exchange under the ticker FXPO. It is part of the FTSE 250 and FTSE4Good indices. The company produces high-grade iron ore pellets, a premium product for the global steel industry, which helps reduce carbon emissions and increase productivity in steelmaking. Before the 2022 Russian invasion of Ukraine, Ferrexpo was the world’s third-largest exporter of pellets, supplying premium steel mills globally.

YTD Price Performance: -27.22%

Average Trading Volume: 3,214,968

Technical Sentiment Consensus Rating: Hold

Current Market Cap: £479.8M

Find detailed analytics on FXPO stock on TipRanks’ Stock Analysis page.

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