**Ukraine’s Poltava Mining Executive Faces Criminal Charges**
The head of Ukraine’s Poltava Mining, a subsidiary of London-listed Ferrexpo, is facing criminal charges for allegedly evading over Hr 1.7 billion ($41 million) in corporate taxes through fraudulent export pricing. The Economic Security Bureau announced this on July 18.
Poltava Mining is one of Ukraine’s largest iron ore exporters and a major employer in the central region. The company serves as a crucial player in Ukraine’s economy, with its parent company Ferrexpo being majority-owned by sanctioned oligarch Konstantin Zhevago. This latest development raises questions about the financial dealings of the company and its ties to Ukraine’s oligarchy.
**Background on the Company**
Poltava Mining has faced scrutiny before for its business practices. In February 2025, the executive board chairman Viktor Lotous and the company’s management were charged with illegal mining, accused of causing Hr 157 billion ($3.78 billion) in damages. The company has also been involved in disputes over tax refunds, leading to a significant drop in production.
**Investigation and Charges**
The Economic Security Bureau announced that investigators have forwarded an indictment against the executive of Poltava Mining’s mining and processing plant. The charges include large-scale tax evasion and issuing deliberately falsified official documents as part of a criminal scheme. This could result in up to 10 years in prison for the head of Ukraine’s Poltava Mining.
**Impact on Ferrexpo**
Ferrexpo, which is listed on the London Stock Exchange, has faced challenges due to suspended tax refunds by Ukrainian authorities. The company reported a 26% drop in first-quarter pellet production, citing these suspended refunds. This latest development may have further implications for the company’s financial stability and reputation.
**Wider Context**
Konstantin Zhevago, the majority owner of Ferrexpo, was arrested in absentia on separate embezzlement charges involving $33.6 million from Finance and Credit Bank. The State Bureau of Investigation had also announced plans to nationalize 49.5% of Poltava Mining as part of a broader wartime crackdown on sanctioned oligarch assets.
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