Exclusive Ferrexpo channels nearly $3 bln into Ukraine’s economy since 2022

Suspension of VAT refunds threatens further socio-economic contribution

Ferrexpo, the London-listed iron ore producer with operations in Ukraine, has injected almost $3 bln into Ukraine’s economy through salaries, taxes, capital investment, and local procurement since the start of Russia’s full-scale invasion, according to the company’s Responsible Business Report 2024.

Between February 2022 and the end of June 2025, Ferrexpo contributed more than $180 mln in wages, $340 mln in taxes, $400 mln in capital expenditure, and over $1.9 bln in purchases from Ukrainian suppliers. These flows helped sustain regional economies in Poltava and neighbouring regions, where the group’s mining operations, logistics infrastructure, and service contractors are concentrated.

“By remaining operational we have been able to remain relevant maintaining a workforce, continuing to supply our customers, and supporting our local communities and Ukraine as a whole”, commented Lucio Genovese, Interim Executive Chair of Ferrexpo.

However, the report also warns that suspension of VAT refunds in 2025 threatens this level of engagement. Ferrexpo has to make deep cost cuts, including stoppage of two pelletising lines and placing one third of the workforce on furlough or reduced working hours. As a result, Ukrainian economy could lose up to $180 million in missed salaries, taxes, and procurement spending this year alone.

As previously reported by GMK Center, Ferrexpo increased income tax payments in Ukraine by one-third last year. In 2024, the income tax paid by Ferrexpo totalled $23 mln (+76.9% y/y) of which $16 mln (+33.0% y/y) was paid in Ukraine. The income tax paid includes withholding tax on intercompany dividends and interest payments considered as income tax paid.