Ferrexpo loses appeal on restrictions on 50.3% stake in FPM

The Kyiv Court of Appeal has dismissed an appeal by
Ferrexpo AG to cancel a restriction on a 50.3% stake in the shares of Ferrexpo
Poltava Mining (FPM), the main production asset of Ferrexpo plc (FXPO LN), the
company said in an Oct. 6 statement.

This announcement means that the restriction covering
50.3% of the shares in FPM remains effective, according to Ferrexpo’s statement.
Ferrexpo’s operations remain unaffected as the freeze does not affect the
shares’ ownership, but prohibits their transfer, the company said.

Recall, on June 19 Ferrexpo announced that a Kyiv
district court has placed restrictions on the 50.3% stake in FPM
after Ferrexpo won its appeal on June 2 against the previous analogous
restrictions.

Recall, on June 10 a Kyiv district court allowed for
the arrest of Kostyantin Zhevago, Ferrexpo’s majority owner and former CEO, for the second time after this
court’s previous decision was overturned in an appellate court on
May 25. Citing Ukraine’s State Deposit Guarantee Fund,
Interfax-Ukraine said on June 10 the restriction was related to the
criminal investigation into alleged embezzlement from the
failed F&C Bank, in which Zhevago was a majority owner.

Zhevago owns a 50.3% stake in Ferrexpo plc, Ferrexpo
plc owns 100% of Ferrexpo AG, and Ferrexpo AG owns 100% of FPM.

Dmytro Khoroshun: We continue
to assess the immediate risks to Ferrexpo’s business from Zhevago’s legal
problems as low. This is because we think Zhevago should be able to settle with
the state his legal problems stemming from his failed bank.