Ferrexpo halts production in Ukraine due to threats to exports by sea

The company has temporarily suspended the production of iron ore products due to risks to exports and a lack of working capital.

Mining company Ferrexpo has temporarily suspended the production of iron ore products in Ukraine due to constant Russian attacks on port infrastructure and threats to maritime exports. The company reported this in an appeal to investors on the London Stock Exchange, Interfax-Ukraine reports. 

Ferrexpo noted that they can currently supply European customers with existing stocks. The resumption of production will depend, in particular, on attracting additional working capital.

The company also warned that in the absence of new financing, its available cash resources will last approximately until mid-September 2026.

Separately, Ferrexpo reported on the situation with a vessel that was damaged as a result of a Russian attack while transporting a batch of iron ore pellets. The vessel was found, removed from the military risk zone and is currently being towed to one of the nearest Black Sea ports for technical inspection and assessment of the cargo condition.

Earlier, the chairman of the board of Poltava GOK Viktor Lotous estimated the value of the cargo on board at approximately $5–6 million and did not rule out its loss in the event of the vessel drifting towards the temporarily occupied Crimea.

According to the results of the first half of 2026, Ferrexpo produced 1.39 million tons of pellets, which is 36% less than in the same period last year. At the same time, in the second quarter the company increased production by 64% compared to the first quarter – to 860.2 thousand tons.

As of June 30, Ferrexpo’s net cash position was about $21 million, while at the end of 2025 this figure reached $47 million.

As USM wrote, Ferrexpo previously suspended maritime deliveries due to Russian shelling.