Ferrexpo: Ukrainian agribusiness millionaire Andrii Verevskyi takes stake in Zhevago group
An investment from the agricultural sector brings momentum to mining company Ferrexpo. Who is behind the money and what it means for trade with Europe.
The Ukrainian iron ore group Ferrexpo receives – surprisingly – a financial injection in the millions from the agricultural sector.
In return, the company's listing on the London Stock Exchange, which has been suspended for some time, is to be resumed.
Ferrexpo is one of Europe's largest iron ore pellet producers and traditionally supplies steel mills in Austria, Germany, and other EU countries.
Who is providing the money
The financing comes from Ukrainian agro-millionaire Andrii Verevskyi, owner of Kernel Holding.
For Ferrexpo, the capital inflow means fresh money at a time when production and exports have been severely restricted by the war situation in Ukraine.
Lucio Genovese, chairman of the Ferrexpo board, welcomed the investment in a statement and emphasized that the company would thereby be able to resume exports to international customers.
According to Genovese, previously postponed investments are to be caught up with the fresh capital. Once conditions in Ukraine improve, Ferrexpo also plans to ramp up production.
The company operates its iron ore mines and pellet plants in the central Ukrainian region of Poltava, one of the country's most important raw material locations.
The resumption of trading on the London Stock Exchange is considered a central step in enabling institutional investors to regain access to Ferrexpo shares.
Significance for supply chains
Before the war, Ferrexpo supplied iron ore pellets to steel manufacturers in several European countries, which need these as a raw material for steel production.
For European steel manufacturers, including voestalpine in Austria, which rely on Ukrainian iron ore as a raw material for steel production, the resumption of Ferrexpo's export business is directly relevant to raw material supply and supply chain planning.
The investment volume of 50 million dollars is not much compared to the company's previous market value, and represents the first documented external capital inflow since the start of trading suspension.
Where is majority owner Konstantyn Zhevago?
While various criminal proceedings are underway against him, Ukrainian oligarch Konstantyn Zhevago is staying in France.
In the coming weeks, we will report on the progress of proceedings against him, in which former president of the Supreme Court of Ukraine, Vsevolod Kniaziev, will also testify as a key witness against him.
Source: kyivindependent.com | Original Article