Court Questions Ferrexpo Control of Poltava Iron Ore

Yesterday, the Ukrainian High Economic Court upheld an earlier verdict by the Donetsk Appeals Court, which invalidated Ferrexpo’s (FXPO LN) purchase of a 40.19% in Poltava Iron Ore (PGOK: U/R). Ferrexpo is appealing the ruling to the Supreme Court. Eugene Cherviachenko: This disappointing news comes as no suprise, this legal skirmish began on the eve of the company’s IPO and most investors have apparently factored in this risk. It is also important to note that how this case continues will be sensitive to the results of the upcoming elections and we don’t expect the Supreme Court to hear the case until a new government has been formed.