9th Mar 2026 10:55
(Alliance News) - Ferrexpo PLC on Monday warned of a risk of "material negative consequences" for the firm from the collapse of a Swiss bank.
The Baar, Switzerland-based iron ore producer in Ukraine said its Swiss subsidiary has a banking relationship with MBaer Merchant Bank AG, which recently had its licence revoked and has been ordered to liquidate by the national banking regulator.
Ferrexpo said MBaer was used by the firm to make commercial repayments outside of Ukraine, and it holds around USD3 million with MBaer as part of its net cash resources of around USD30 million.
The firm noted that a statement from the bank's liquidators said that sufficient assets are available to satisfy all clients and creditors in full.
As a result, Ferrexpo expects to recover its deposit in full, though it noted that the timing of this is currently unknown.
"The revocation of MBaer's licence does not affect [Ferrexpo] or the group's relationships with its other banking partners and is not expected to have a material impact on the group's operating subsidiaries in Ukraine," Ferrexpo said.
Despite the liquidation, Ferrexpo said it has been able to make certain payments outside of Ukraine, but is limited in its ability to do so.
It said management is exploring banking options so that it can continue to make commercial payments, but said these have historically been complicated by issues from one of the beneficiaries of the Minco Trust, former director Kostiantyn Zhevago.
"Unless the group is able to arrange alternative banking arrangements outside of Ukraine, there is a risk of material negative consequences for the group," it said.
Ferrexpo added that improvements in the availability and price of domestic and imported electricity has permitted the restart of production at operating subsidiary Ferrexpo Poltava Mining.
One pellet line is in operation at this time, the firm said. It is using its own fleet of rail wagons to export to customers in eastern and central Europe.
"It is pleasing that with the onset of spring in Ukraine, we have been able to restart our operations and produce and export our premium iron ore products. Following intense attacks on Ukrainian power generation and transmission infrastructure, we are grateful for the hard work across the country that has enabled repairs to be completed quickly," said Interim Executive Chair Lucio Genovese.
"I am also grateful to colleagues who have worked tirelessly to restart the operations of one pelletiser line. This demonstrates, once again, our ability to be flexible and agile in a very challenging environment."
Shares in Ferrexpo were down 2.8% at 48.89 pence on Monday morning in London.
By Michael Hennessey, Alliance News reporter
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