Ferrexpo Navigates Banking Hurdles as Ukrainian Operations Resume
Published on 03/11/2026 at 05:34 | Redaktion boerse-global.de
Ferrexpo has restarted iron ore pellet production at its Ukrainian facilities following an improvement in the stability of the country's power supply. This operational recovery, however, coincides with a significant financial complication stemming from the license revocation of a key Swiss banking partner.
Production Restarts After Grid Repairs
Operations at the Poltava Mining site had been suspended since January due to severe constraints on industrial power consumption caused by widespread infrastructure damage. The company has now brought one pellet line back online. Repairs to the national electricity grid, coupled with more stable energy prices, have created conditions that allow for continuous manufacturing.
To manage exports, Ferrexpo is utilizing its own fleet of rail wagons to supply customers across Eastern and Central Europe. Interim Chief Executive Lucio Genovese stated that enhanced grid capacity is now enabling more flexible handling of export logistics.
Swiss Banking Partner Enters Liquidation
Simultaneously, Ferrexpo AG, the group's Swiss subsidiary, is confronting challenges with its primary bank for international transactions. The Swiss Financial Market Supervisory Authority (FINMA) has withdrawn the license of MBaer Merchant Bank AG and ordered its liquidation. This institution was crucial for Ferrexpo's cross-border payments and settlements outside Ukraine.
As of March 9, the subsidiary held approximately $3 million in deposits with the now-insolvent bank. This represents a notable portion of the group's total liquidity, which stood at about $30 million at the end of February. While liquidators anticipate a full repayment of these deposits, a precise timeline for recovery remains uncertain.
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Search for New Financial Channels Intensifies
The company's capacity for international wire transfers remains severely constrained, despite some recent successful cross-border payments. Management is actively seeking new banking partners outside Ukraine to normalize payment flows.
Ferrexpo has warned that a failure to establish reliable new banking channels in a timely manner could have a material adverse effect on its overall business. The operational mining subsidiaries within Ukraine, along with relationships with other, unaffected banking partners, are not impacted by the regulatory action in Switzerland.
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