London-listed mining giant Ferrexpo is preparing for a legal battle with Ukraine over the government’s plan to partially nationalize the Poltava mine. The mine, located 200 miles southwest of Kyiv, is Ferrexpo’s primary asset, making it the world’s third-largest exporter of iron pellets.
The dispute arises from Ukraine’s crackdown on oligarch Kostyantyn Zhevago, who owns 49.5% of Ferrexpo. Zhevago, currently under investigation for alleged embezzlement linked to the collapse of his bank in 2015, has been targeted by Kyiv’s efforts to reclaim lost funds. After failing to seize his stake through the London courts in 2023, Ukraine is now attempting to take a direct stake in the mine.
Ferrexpo argues that this move violates Ukraine’s bilateral investment treaty with the UK. The company has formally notified Ukraine that if the nationalization proceeds, it will initiate international arbitration. Chairman Lucio Genovese warned that such actions could deter foreign investment in Ukraine’s post-war recovery.
The Ukrainian government has not yet responded to requests for comment. With major investors such as BlackRock, Fidelity, and JPMorgan involved, the outcome of this legal standoff could have significant implications for Ukraine’s economic future.
