Ferrexpo subsidiary has bank accounts frozen over iron ore

The bank accounts of a Ukrainian subsidiary of FTSE 250 mining company Ferrexpo have been frozen after claims it underpaid iron ore royalty payments.

A Ukrainian court has ordered the accounts of Ferrexpo Poltava Mining, which operates in the Swiss-based exporter’s largest mine, to be suspended amid an investigation into the allegations. Ferrexpo is being investigated by the prosecutor general of Ukraine for the potential underpayment of iron ore royalty payments between 2018 and 2021.

Ferrexpo denies all accusations made as part of the inquiry. It said it has fully cooperated with authorities and operated in accordance with the legal and fiscal frameworks of Ukraine.