# Ferrexpo financial and operational crisis > Live situation record from CLSTR: https://clstr.news/situations/ferrexpo-financial-and-operational-crisis > Updated: 2026-08-28T02:39:54.000Z. Sources: 3. Developments: 2. Ukrainian iron ore producer Ferrexpo is facing a severe liquidity crisis that threatens the company with insolvency by mid-September if it cannot secure at least $100 million through a capital increase. As of June 30, the company reported approximately $27 million in available cash. Financial stability has been undermined by frozen funds at Mbaer Bank and a blocked $90.4 million VAT refund from the Ukrainian state. To generate immediate liquidity, the company sold the transport ship ‘Iron Destiny’ for $7.7 million. Operational and logistical challenges have significantly impacted production. Following attacks on ports in the Odessa region and drone strikes on vessels in the Black Sea—including a July 28 incident that resulted in a crew member's death—Ferrexpo suspended all maritime shipments of iron ore pellets. These disruptions led to a sharp decline in output during the first half of 2026, with iron ore production falling by 54 percent and premium pellet production dropping by 41 percent compared to the previous year. Trading of Ferrexpo shares on the London Stock Exchange has been suspended since early May. ## Timeline ### 2026-08-28: Ferrexpo faces liquidity crisis, requires $100 million capital increase Ferrexpo, a Ukrainian iron ore pellet producer, faces a liquidity crisis and requires at least $100 million in new capital as cash reserves are projected to last only until mid-September. 2 sources. https://clstr.news/cluster/ferrexpo-faces-liquidity-crisis-requires-100-million-capital-increase ### 2026-08-25: Ferrexpo faces insolvency risk by mid-September Ukrainian iron ore producer Ferrexpo faces potential insolvency by mid-September unless it secures at least $100 million in new capital amid production drops and Black Sea shipping blockades. 2 sources. https://clstr.news/cluster/ferrexpo-faces-insolvency-risk-by-mid-september --- Cite as: Ferrexpo financial and operational crisis. CLSTR, https://clstr.news/situations/ferrexpo-financial-and-operational-crisis