Mykola Kladiev, chief financial officer of Swiss-headquartered iron ore miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has stated that the company has stopped two pelletizing lines due to the additional financial pressure resulting from suspended VAT refunds on exported products.
Mr. Kladiev stated that the suspended VAT refunds led to a decrease in production volumes and wage payments. In January and February this year, the VAT refund amounted to about $25 million, and the state did not cover this amount.
Kladiev noted that last year the company invested $102 million and had planned to keep investments at a similar level in 2025. However, the suspension of VAT refunds has forced Ferrexpo to suspend investment projects, with the company now investing only the minimum necessary to maintain the fixed assets it uses.
