Poltava Mining's accounts blocked, depriving thousands of wages, says Ferrexpo

7 February, 04:25 PM
Kostiantyn Zhevaho (Photo:Олександр Медведєв/NV)

Kostiantyn Zhevaho (Photo:Олександр Медведєв/NV)

London-listed Ferrexpo has announced that all accounts of Poltava Mining have been blocked, the company said in a statement on Feb. 7.

The Shevchenkivskyi District Court of Kyiv has frozen all bank accounts of Poltava Mining, which is part of oligarch Kostiantyn Zhevaho's Ferrexpo company.

All cash transactions, except for the payment of taxes, fees, and other tax payments, have been suspended.

The enterprise noted that the court made this decision at the request of representatives of the Office of the Prosecutor General of Ukraine as part of an investigation into the company's alleged rent evasion.

Video of day

At the same time, Ferrexpo claims that the blocking of accounts is "a manifestation of excessive pressure on the company."

The company notes that when deciding on the seizure of property, the court must take into account the consequences of the seizure of property for third parties, which, according to the law, includes the employees of the company.

According to Ferrexpo's statement, the seizure of all the company's accounts jeopardizes the payment of salaries to more than 7,500 employees and contractors.

"Salary payments were scheduled for Feb. 7, 2023," the company said.

Also on that day, the company planned to make an additional payment to all employees to support employees and their families.

Earlier, the Economic Security Bureau served a notice of suspicion to the chief accountant of Ferrexpo Poltava Mining owned by billionaire Zhevaho.

In turn, the management of the enterprise stated that as of Feb. 2, 2023, no top manager of the company had been charged in accordance with the current legislation of Ukraine.

Ferrexpo later reported that a top manager was issued a notice of suspicion only on the evening of Feb. 3.

In September 2022, NV reported that the Court of Appeal in Ukraine had invalidated the sale and purchase agreement for a 40.19% stake in Poltava Mining, which was concluded 20 years ago. The shares were transferred to the former owners — companies from the VS Energy group, which have Russian ties.

Ferrexpo owns 100% of Poltava Mining, 100% of Yeristovo Mining and 99.9% of Bilanivsky Mining. Ferrexpo shares are listed on the main market of the London Stock Exchange.

Follow us on Twitter, Facebook and Google News

Ukraine Today
Fresh daily newsletter covering the top headlines and developments in Ukraine
Daily at 9am EST
Show more news