Ferrexpo faces insolvency risk by mid-September

Ferrexpo, a Ukrainian iron ore producer, is facing a critical liquidity crisis that could lead to insolvency by mid-September if new capital is not secured. The company has warned that it needs to raise at least $100 million through a capital increase to maintain operations and meet financial obligations.

As of June 30, available cash reserves were reported at approximately $27 million. The company’s financial stability is further compromised by frozen funds at Mbaer Bank and the need to manage significant operational challenges. To generate immediate liquidity, the company recently sold the transport ship ‘Iron Destiny’ for $7.7 million.

Operational difficulties have severely impacted production and exports. Following attacks on ports in the Odessa region and drone strikes on vessels in the Black Sea, Ferrexpo has suspended all maritime shipments of iron ore pellets. This logistical blockade has contributed to a sharp decline in output; in the first half of 2026, iron ore production fell by 54 percent, and premium pellet production dropped by 41 percent compared to the previous year. Trading of Ferrexpo shares on the London Stock Exchange has been suspended since early May.