Against the background of the decision of the Ukrainian tax authorities to suspend VAT refunds for January 2025 to the amount of UAH 512.9 million ($12.4 million), Swiss-headquartered iron ore miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has stated that the suspension puts additional financial pressure on the company, forcing it to reduce production and sales.
Without VAT refunds, Ferrexpo said it is forced to reduce the scale of its business to only 25 percent of its full production capacity, putting thousands of jobs at risk, forcing the company to stop any future investments in Ukraine, and halving its purchases of goods and services in Ukraine, which will put local companies that depend on Ferrexpo at risk.
The company has called on the Ministry of Finance and the State Tax Service of Ukraine to take urgent measures to restore VAT refunds. “Instead of forcing Ferrexpo to reduce its business, the authorities should promote its growth so that the company can further support the Ukrainian economy,” the statement said.