Ferrexpo’s Double Squeeze: A Kyiv Court Battle and a $100 Million Funding Logjam Keep Shares Frozen

A Ukrainian court hearing this week at the Pecherskyi District Court in Kyiv has added a fresh dimension to Ferrexpo’s deepening crisis. The Asset Management Agency (ARMA) is seeking to seize roughly 49.3 percent of the shares in the iron ore miner’s key subsidiary, Ferrexpo Poltava Mining, claiming illegal extraction of mineral resources. Ferrexpo insists all its mining licences are valid and vows to fight the case “resolutely.” The legal tussle comes as the company’s shares remain suspended on the London Stock Exchange with no resumption date in sight.

The trading freeze, imposed at the start of May 2026 at Ferrexpo’s own request after it missed the April 30 deadline for its 2025 annual report, hinges entirely on a single hurdle: the auditors will not sign off on the accounts without a going-concern opinion. That opinion, in turn, depends on the successful closure of a $100 million equity injection. Until the audit is complete and the annual report published, the UK Financial Conduct Authority (FCA) will keep the stock locked. The last traded price was 28.58 pence.

Cash has been draining fast. Reserves stood at roughly $101 million in December 2024, slid to $47 million by December 2025, dropped further to $25 million at the end of March 2026, and hit about $20 million by mid-April. A small lifeline came from the sale of the 245-metre transport vessel Iron Destiny, equipped with four Liebherr cranes and idle since the war began. The $7.7 million proceeds have extended the company’s runway from the end of June to roughly the end of August 2026. That still leaves a gaping hole. Ferrexpo is also waiting for a $90 million pre-tax refund from the Ukrainian state, but it remains unreleased. Its operating unit Poltava Mining is facing insolvency.

Production continues to haemorrhage. Ferrexpo is running only one of its four pelletising lines, slashing output to just a quarter of pre-war capacity. In the first quarter of 2026, iron ore production collapsed by 72.1 percent year-on-year to 592,751 tonnes. Intermittent strikes on Ukraine’s energy infrastructure have forced further stoppages, and each halt eats into cash. Exports rely on the company’s own rail fleet to Central and Eastern Europe, with seaport access still severely restricted and energy costs weighing on margins.

Should investors sell immediately? Or is it worth buying Ferrexpo?

The $100 million capital increase is stuck in negotiation. Fevamotinico, the vehicle of major shareholder Kostyantyn Zhevago that holds 49.32 percent of Ferrexpo, has offered its irrevocable support on condition it can participate pro rata in an increase of up to $100 million. Institutional investors have expressed non-binding interest in contributing more than that sum, but the terms attached to their commitments cannot be met within the necessary timeframe, according to the company. The board is racing to finalise the fundraising before the cash buffer evaporates.

Borrowing is not an option. Banks and other lenders are unwilling to provide financing due to sanction concerns linked to Zhevago, anti-money laundering rules, and know-your-client (KYC) complications stemming from the shareholder’s Ukraine ties. Seizure orders have been placed on group assets, including shares in Ferrexpo AG and its Ukrainian subsidiaries, while an ongoing insolvency proceeding against the entity FPM blocks any secured debt financing on acceptable terms.

With the trading suspension still in place and the annual report blocked until the money is raised, Ferrexpo is running out of road. If the $100 million equity injection falls through in the coming weeks, a payment default could hit by late summer, leaving existing shareholders facing a total loss. For now, all sides remain locked in a waiting game: the Kyiv court, the auditors, the investors, and the regulators each holding a piece of the puzzle that must fall into place before trading can resume.