**Ferrexpo’s Ukraine Subsidiary Hit with $3.78 Billion Civil Claim**
A Ukrainian court has been asked to award a massive sum of money, Hr 157 billion ($3.78 billion), against Poltava Mining (FPM), the Ukrainian subsidiary of London-listed Ferrexpo.
The company’s shares dropped by 21% after the news broke out, hitting their lowest point since November.
**What Happened?**
Ferrexpo denied all allegations made against its subsidiary. The company said it mines and extracts iron ore according to its mining license and follows best practices in environmental standards.
However, Ukrainian police accused the company of conducting illegal mining activities over a six-year period.
In August 2024, the CEO and three top managers of Poltava Mining were suspected of carrying out this illegal activity.
**What’s at Stake?**
Ferrexpo owns 100% of Poltava Mining (FPM). A significant stake in Ferrexpo is owned by businessman Kostyantyn Zhevago, who has been charged with embezzlement. BlackRock, a US investment company, also holds a 6.74% stake in the firm.
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