Top management of key enterprise of Zhevaho's business empire charged
Photo: SBI

The Security Service of Ukraine and the State Bureau of Investigation have pressed charges against the top management of Ferrexpo Poltava Mining, the main business asset of Kostiantyn Zhevaho, reported the SBU, the Office of the Prosecutor General and the State Bureau of Investigation.

Among them are the chairman of the company's board, his deputy, the chief accountant, the head of the sales department. In general, according to part 5 of Art. 191 (possession of property) and Part 3 of Art. 209 (money laundering) of the Criminal Code, six people are suspected.

The case concerns the years 2019-2021.

According to the investigation, the management of Poltava Mining sold crushed stone, which is formed as a result of the development of iron ore deposits, at a price of UAH 30-50 ($0.81-1.35) to shell corporations, who then sold it at market value – ten times more expensive. In this way, UAH 380 million ($10.3 million) was legalized, the Prosecutor General's Office said.

As part of the investigation, 15 searches were conducted in Kyiv, Kharkiv and Poltava oblasts, in the offices and residences of the suspects.

The suspects are going to be arrested, but no preventive measures have been chosen for them yet.

Ferrexpo has not yet responded to reports of charges to its top managers.

Ferrexpo Poltava Mining is an enterprise in the city of Horishni Plavni, the largest Ukrainian exporter of iron ore coils to Europe. It is part of the Ferrexpo group, the majority owner of which is businessman Kostiantyn Zhevaho.

At the beginning of 2023, the Kyiv court seized the bank accounts of Poltava Mining in the case of non-payment of rent, the chief accountant of Ferrexpo Poltava Mining was then charged. The parent company said that it considers this as a manifestation of excessive pressure on the company.

In 2019, Zhevaho was charged with possible involvement in the embezzlement of UAH 2.5 billion ($97 million) from the Finance and Credit Bank and was declared an international wanted man. At the end of December 2022, Zhevaho was detained in France, but Ukraine could not extradite him.