Ferrexpo owner suspected of misdeclaring his business interests

Kostyantyn Zhevago, the CEO and majority owner of
Ukraine’s largest iron ore pellet exporter Ferrexpo (FXPO LN, FXPOLN), might face
criminal charges for not declaring some of his business interests in his 2015
and 2016 state asset and income declarations, the ukranews.com news site
reported on Feb. 11, citing an anonymous law enforcement source. The National
Anti-Corruption Bureau of Ukraine has submitted a request to prosecutors for
parliament to strip Zhevago, an independent MP, of his parliamentary immunity
to face the possible charges, the report said.

Dmytro Khoroshun: We think
that the probability of Zhevago losing his parliamentary immunity is low in the
current parliament. Indeed, it has already rejected requests to strip more
controversial MPs of their immunity.

Nevertheless, it remains to be seen whether Zhevago keeps
his Rada seat in the upcoming October parliamentary elections, and whether
charges against him are pressed in case he ceases to be an MP.

We retain our neutral view on FXPOLN Eurobonds.