Ferrexpo faced restrictions on the corporate rights of Ukrainian subsidiaries

Iron ore pellet producer Ferrexpo said a court has prohibited the transfer of ownership and other corporate rights associated with shares to the company's subsidiaries in Ukraine.

“It is understood that the restrictions are part of an ongoing series of legal proceedings against Konstantin Zhevago relating to Finance and Credit Bank and are not related to the Ferrexpo group,” the London-listed mining company said on Tuesday.

Why is it important
Ukrainian billionaire Zhevago, Ferrexpo's largest shareholder, is facing legal troubles amid Ukraine's efforts to fight corruption, which is vital to meeting the terms of joining the European Union despite a full-scale Russian invasion.

Context
In January, Zhevago won a bid to dismiss a London lawsuit alleging embezzlement from now-bankrupt lender Finance & Credit Bank.

Ukrainian prosecutors also filed lawsuits in Ukrainian courts against Zhevago and froze Ferrexpo shares in three of its Ukrainian subsidiaries.

The restrictions announced on Tuesday differ from those associated with the stock freeze, Ferrexpo said.

Answer
Ukraine-focused Ferrexpo said it has “no intention and has never had any intention of transferring shares in its subsidiaries.”

Zhevago, who also faces legal proceedings related to Finance and Credit Bank, in which he indirectly owned a 95% stake before its collapse in 2015, has repeatedly denied any wrongdoing.

What's next
Ferrexpo said it is currently reviewing possible legal and other remedies available and intends to "vigorously defend its rights."