Ferrexpo iron ore mining group - a large iron ore mining group in Ukraine - has just issued an emergency signal after MBaer Merchant Bank AG was revoked its license by regulators.
The collapse of this financial institution put Ferrexpo at risk of losing control of the 3 million USD deposit, a key resource serving the group's international commercial payment activities.
Although asset liquidation units affirmed that they are fully capable of paying creditors, Ferrexpo admitted that the capital recovery time has not yet been determined.
The breakdown of the international payment channel at a financial center considered the safest in the world has dealt a heavy blow to the group's ability to fulfill financial obligations outside the territory of Ukraine.
This challenge became even more serious due to prolonged legal troubles related to former Director Kostiantyn Zhevago, making the search for a replacement bank deadlocked.
Despite financial pressure from Switzerland, in the manufacturing sector, Ferrexpo has recorded positive recovery signals. Thanks to improved domestic supply and stable electricity prices, Ferrexpo Poltava Mining subsidiary has officially restarted its first pellet production line.
The Group is currently mobilizing the maximum number of private carriages to boost exports of goods to the Central and Eastern European markets as soon as spring begins.
Interim CEO Lucio Genovese affirmed that the effort to quickly repair energy infrastructure after Russia's fierce attacks is proof of the flexibility of businesses in a challenging environment.
However, operational achievements are still not enough to reassure investors. At the London trading session, Ferrexpo shares recorded a 2.8% decrease immediately after information about liquidity risks from Switzerland was publicly announced.
This event reflects the harsh reality that Ukrainian strategic enterprises are fighting simultaneously on two fronts: direct military firepower on the ground and indirect financial weapons from the instability of the global banking system.
Production recovery is a logistical victory, but the financial gap in Switzerland still threatens the long-term stability of the group in 2026.
