Business
Due To The Decision Of The Tax Authorities Not To Refund VAT, Ferrexpo Warns Of Serious Negative Consequences: Reduction In Workforce, Procurement, Taxes, And Investment
LONDON, UK / ACCESS Newswire / March 27, 2025 / Ferrexpo, an iron ore company headquartered in Switzerland and listed on the London Stock Exchange, warns about the negative socio-economic consequences of the decision of the Ukrainian tax authorities ...
About this update from Ferrexpo Plc
[{"type":"text","content":"LONDON, UK / ACCESS Newswire / March 27, 2025 / Ferrexpo, an iron ore company headquartered in Switzerland and listed on the London Stock Exchange, warns about the negative socio-economic consequences of the decision of the Ukrainian tax authorities to suspend VAT refunds for January 2025 in the amount of UAH 512.9 million (approximately US$12.5 million).","length":357,"tagName":"p"},{"type":"text","content":"The suspension of VAT refunds puts additional financial pressure on Ferrexpo. This means that the company will be forced to reduce production and sales. These actions cause damage and further complicate already difficult operating conditions.","length":242,"tagName":"p"},{"type":"text","content":"Without VAT refunds, Ferrexpo is forced to radically reduce the scale of its business to only 25% of its full production capacity. This has an immediate impact, since planned production will be cancelled, resulting in the following consequences:","length":245,"tagName":"p"},{"type":"text","content":"1. Thousands of jobs will be at risk;","length":37,"tagName":"p"},{"type":"text","content":"2. Tax revenues to the Poltava region and the state budget of Ukraine will immediately decrease by at least 50%;","length":112,"tagName":"p"},{"type":"text","content":"3. Ferrexpo will be forced to stop any future investments in Ukraine;","length":69,"tagName":"p"},{"type":"text","content":"4. Purchases of goods and services in Ukraine will be halved, which will put local and national companies that depend on Ferrexpo at risk. This also includes reducing the use of Ukrainian railways and ports;","length":207,"tagName":"p"},{"type":"text","content":"5. The economic and social stability of local communities will be disrupted.","length":76,"tagName":"p"},{"type":"text","content":"Commenting on the economic and social risks, Lucio Genovese, Executive Chairman, said: "Ferrexpo is an important contributor to Ukraine's economy and society, especially in times of war. A monthly VAT refund is a significant cash flow contribution for any company, and if it is not received, will have a huge impact on the business and all its stakeholders. Ferrexpo calls on the Ministry of Finance and the State Tax Service of Ukraine to take urgent and effective measures to restore VAT refunds."","length":513,"tagName":"p"},{"type":"text","content":"Chief Opera...