Mining giant halts production due to Russian attacks on ports in the Odesa region

The mining company Ferrexpo has temporarily suspended iron ore production at its Ukrainian facilities. This was due to intensified Russian attacks on ports in the Odesa region, which have significantly hampered exports by sea.

The company announced this.

Ferrexpo noted that the constant threat of shelling of Ukrainian ports and the surrounding waters has significantly restricted export logistics routes through the Black Sea. Given these circumstances, and to preserve working capital, the company decided to temporarily suspend production.

At the same time, the company emphasized that it continues to fulfill its obligations to European customers using existing product inventories.

The resumption of production depends, among other things, on an injection of additional working capital. Currently, Ferrexpo can supply products to its European customers from existing inventories.

In the absence of additional financing, the group expects its net available cash to be sufficient until mid-September 2026.

Ferrexpo’s main asset—the Poltava Mining and Processing Plant—had previously been preparing to halt operations due to a liquidity shortage and the suspension of seaport operations. Ferrexpo itself had already halted seaborne shipments of pellets due to Russian attacks on the ports of Greater Odesa.

The Russian-provoked blockade of the Odesa ports has already impacted the operations of the Metinvest Group—production at its mining and processing plants could drop by a third as early as August. The Southern Mining and Processing Plant in Kryvyi Rih is also partially suspending production due to Russian attacks on civilian merchant ships heading to Ukrainian Black Sea ports.

Ferrexpo owns 100% of the shares in Yeristivsky Mining and Processing Plant LLC, 99.9% of Bilanivsky Mining and Processing Plant LLC, and 100% of the shares in Poltava Mining and Processing Plant PJSC. Businessman Kostyantyn Zhevago is a shareholder of the Ferrexpo Group .

Ірина Глухова