7th Feb 2023 08:37
(Alliance News) - Ferrexpo PLC on Tuesday said Ukrainian courts have granted an order to freeze one of its subsidiary's bank accounts amid accusations of a "potential underpayment."
Ferrexpo is a Swiss-headquartered iron ore pellet producer with operations in central Ukraine. Its shares were down 2.3% to 149.00 pence each in London early Tuesday.
Ferrexpo said that it has notification in Ukraine of a court order issued at the request of the prosecutor in Ukraine to freeze the bank accounts belonging to one of its subsidiaries in Ukraine. The subsidiary is Ferrexpo Poltava Mining.
The company explained that this is due to an ongoing investigation in Ukraine that relates to the "potential underpayment" of iron ore royalty payments during the years 2018 to 2021.
Ferrexpo denies all accusations made as part of the investigation. The company said that it has consistently operated in accordance with the legal and fiscal frameworks of Ukraine, and it is therefore seeking to resolve matters through the Ukrainian legal system and will appeal the decision.
"The group has consistently followed the established legal due process for such disputes, and the group has fully cooperated with local authorities throughout this process to date," Ferrexpo said.
"Furthermore, the group notes that the nature of the investigation is similar to two separate investigations previously faced by other major international metals and mining companies operating within Ukraine."
By Sophie Rose; Alliance News reporter
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