Major Ukrainian firm faces bankruptcy risk over $57,000 debt default
Career of Poltava GZK. Photo - Wikipedia

The unpaid debt of the Poltava Mining plant to Production and commercial association (PCA) Kysen, due to which one of Ukraine's largest enterprises faces potential bankruptcy, amounts to 2.2 million hryvnias ($57,292) the press service of the Ferrexpo company told

Stay updated with the latest news by following us on X (Twitter)

Ferrexpo noted "speculations in the media" regarding the statement of LLC PCA Kysen and declared obstacles to the timely, by March 12, repayment of Poltava Mining's debt to its contractor company.

"Having learned about the proceedings [regarding Poltava Mining, which was accepted for consideration by the Commercial Court of Poltava Oblast], the Ferrexpo board took measures to repay the debt of Poltava Mining to LLC PCA Kysen. Given the restrictions on transactions with bank accounts of Poltava Mining in Ukraine and the nature of the payment made to repay the debt, the company cannot currently guarantee that the funds will be received on time. For this reason, Poltava Mining is simultaneously seeking to agree on an extension of payment terms," Ferrexpo reported.

Poltava mining and beneficiation plant is an enterprise in the city of Horishni Plavni, and is the largest Ukrainian exporter of iron ore coils to Europe. It is part of the Ferrexpo group.

Ferrexpo is a Swiss iron ore company with assets in Ukraine. The main activity is the production and export of iron ore coils. Current production assets are Poltava and Yerystiv mining and beneficiation plants. Ferrexpo plc owns 100% of the shares of Ferrexpo AG, which also owns 100% of the shares of Poltava Mining and 100% of the shares of Yerystiv Mining and Processing Plant. The key shareholder of the company is the Ukrainian businessman Kostiantyn Zhevaho.

In addition, Poltava Mining received a new notification about the execution of the court order on blocking the bank accounts of the Poltava Mining. This is due to a National Police investigation that has been ongoing since November 2022 into alleged illegal mining.

"Ferrexpo is working closely with its legal counsel and other legal advisors to review and resolve this situation. At this time, Ferrexpo's operations remain unchanged," the company said in a statement.

The application for bankruptcy of the main business asset of Kostiantyn Zhevaho was filed by LLC PCA Kysen, whose beneficiary is Eduard Shelayev. He is also the nominal owner of the Ukrainian football club Vorskla, whose president is Zhevaho.

On January 26, the Eastern Commercial Court of Appeal in Kharkiv ordered the recovery of 4.7 billion hryvnias ($122.4 million) from the Poltava Mining plant in favor of Maxi Capital Group LLC. The company did not agree with this decision, calling it commissioned.

In 2023, the head of the board of Poltava Mining received three indictments within four months - from the State Security Bureau, the National Police and the Economic Security Bureau.

In 2019, Zhevaho was charged with possible involvement in the embezzlement of 2.5 billion hryvnias ($65.1 million) from the Finance and Credit bank and was declared internationally wanted. At the end of December 2022, Zhevaho was detained in France in Courchevel, but France refused to extradite him to Ukraine.