Ferrexpo suspends sea deliveries due to Russian shelling
28.07.2026 - 14:43
Russia has damaged a ship carrying 55,000 tons of iron ore pellets in the Black Sea belonging to mining company Ferrexpo.
One of the ship’s crew members was killed in the attack, the company said in a press release, Forbes reports.
Ferrexpo said it would be temporarily unable to export products by sea and its financial situation had deteriorated significantly.
“Due to constant Russian drone and missile attacks on port infrastructure and vessels, shipowners have begun to cancel voyages. As a result, the company does not expect to be able to resume sea exports in the near future,” the statement said.
According to current estimates, the company’s available funds will be enough to operate only until the end of August 2026.
Ferrexpo currently has about 189,000 tons of pellets ready for shipment. Of these, 55,000 tons of high-quality DR pellets are on the damaged vessel, and about 90,000 tons are stored in storage. The company estimates the cost of production and delivery of this product at approximately $20 million.
At the same time, the vessel remains afloat, but the condition of the cargo and the vessel itself is not yet known. The company is working to save the vessel, but due to the current situation, this is not easy to do.
In particular, Ferrexpo reported the incident to the insurer and is working with all parties to settle insurance payments.
The company recalled that in recent months it has increased the production of high-quality DR pellets for buyers from the Middle East and expected to increase their export through Black Sea ports in the second half of 2026. However, after the attack on the vessel and the cancellation of the activities of other vessels, this route will be unavailable in the near future.
The board of directors is currently considering various options for mitigating the impact on the business. In particular, the company continues to work on attracting at least $100 million in new capital to ensure financing of current activities.
