# Ferrexpo subsidiary faces UAH 35.3 billion tax penalty report in Ukraine

- Link: https://www.directorstalkinterviews.com/ferrexpo-subsidiary-faces-uah-35-3-billion-tax-penalty-report-in-ukraine/4121259497
- Published: 2026-08-06T07:14:25+01:00
- Author: Ethan Davis

**Ferrexpo Plc** (LON:FXPO) has said that, following the Russian invasion of Ukraine,
the Ukrainian government introduced Martial Law and the National Bank of Ukraine
subsequently imposed significant currency control restrictions, including reducing
the maximum settlement period for invoices under export and import contracts.

The Company and FPM has been notified that, following an unscheduled documentary
internal review, without an on-site inspection, to assess FPM’s compliance with 
the aforementioned currency control regulations for the periods falling primarily
between 1 July 2021 and 31 December 2025, the relevant tax authorities have issued
a report, dated 14 July 2026, assessing a penalty against FPM in the total amount
of approximately UAH 35.3 billion (approximately US$788 million).

FPM considers the review to be irregular on the grounds that it was conducted with
multiple procedural violations and that the tax authority failed to consider relevant
factual circumstances, including arbitration awards under several export contracts.
Those awards procedurally preclude the imposition of penalties in respect of those
contracts, which account for the majority of the penalty assessed.

FPM has filed formal objections to tax authority in connection with the report. 
If the objections are upheld, the findings of the report may be revised, including
through a re-audit with on-site presence. If the tax authority does not amend the
findings, it must issue tax notices-decisions ("TNDs") setting out the amount of
the penalty. FPM intends to challenge any such TNDs through administrative proceedings
before the tax authority and/or the Ukrainian courts. Pending the completion of 
the administrative and/or judicial review process, the financial liabilities set
out in the TNDs remain unconfirmed and unenforceable.

Further information will be provided as and when appropriate.

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