Ferrexpo suspends production in Ukraine due to restrictions on maritime exports

Iron ore company Ferrexpo has temporarily suspended the production of iron ore products at its enterprises in Ukraine. The decision was made due to significant restrictions on Black Sea export routes and the need to preserve working capital.

The company explained that the constant threat of Russian attacks in the areas of Ukrainian ports has complicated maritime logistics. The resumption of mining and pellet production will depend, in particular, on attracting additional financing.

Ferrexpo will continue to supply products to European customers from existing stockpiles. Without new funding, the company estimates that its available funds will last until mid-September 2026.

The financial forecast will also be influenced by iron ore prices, electricity costs, the suspension of VAT refunds, and court proceedings around the Poltava Mining and Processing Plant.

The company also reported a vessel carrying Ferrexpo pellets, with which an incident occurred at the end of July. The owner was able to find the ship and move it out of the high military risk area. Currently, the vessel is being towed to one of the nearest Black Sea ports for a technical inspection and assessment of the cargo condition.

Earlier, it was reported that the Poltava Mining and Processing Plant, owned by Ferrexpo, will shut down operations on Monday, August 3rd, for approximately 10–20 days. The reason was a critical financial situation, further exacerbated by Russian attacks on merchant vessels and the actual blockade of maritime exports.

In conclusion: London Stock Exchange