Ferrexpo contributed 0.7% to the economy of Ukraine in 2022

The Group provided fifth of the economy of Poltava region

The Group, as a basis of the Ukrainian economy, generated US$0.5 billion of gross domestic product (GDP) or 0.7%, incl supply chain in 2022, according to calculations of GMK Center, given in the study “Commitment to Ukraine”. The study presents Ferrexpo`s contribution to socio-economic development of Ukraine in 2007-2022.

Ferrexpo directly contributed 0.33% to GDP. Also, Ferrexpo provided 0.35% of GDP in other sectors, being large consumer of goods and services, and a major employer. Its indirect and induced contribution are part of total contribution.

Ferrexpo’s activities are crucial for the welfare of the Poltava region with 1.5 million population. More than 20% of the gross regional product (GRP) of the Poltava region depends on the Group.

Ferrexpo is a significant contributor to the Ukrainian economy through taxes and royalties both on national and regional scale. The Group provided 64% of the budget tax revenues in Horishni Plavni, where main Ferrexpo`s operational assets are located.

By 2022, Ferrexpo’s share in the Ukrainian economy had increased by 1.9 times since the IPO. It reflects large-scale investments by the Group and positive impact on the local and national economy.

Ferrexpo invested US$3.3 billion to Ukrainian economy since the IPO in 2007 being one of the largest investors in the Ukraine with an average share of total industrial CAPEX of 2.5% in 2007–2022.

Despite the war, Ferrexpo generated 2.1% of Ukraine’s export of goods revenues in 2022, even though output and iron ore prices declined.

As GMK Center reported earlier, Ferrexpo in 2023 produced 3.84 million tons of pellets. The total production of iron ore products amounted to 4.15 million tons.