Mining company Ferrexpo plc, with its main assets in Ukraine, ended January-June this year with a net loss of $196.004 million, compared with a net profit of $55.490 million in the same period last year.
According to the company’s interim report on Wednesday, the pre-tax loss for the period was $186.899 million, compared with a pre-tax profit of $75.671 million in January-June 2024.
Revenue in the first half of 2025 decreased by 17.5% to $452.607 million. At the same time, EBITDA amounted to $3.890 million compared to $79.043 million at the end of June 2024 and $69.310 million at the end of 2024.
Cash and cash equivalents at the end of June 2025 amounted to $52.262 million, at the end of June 2024 – $115.131 million, and at the end of 2024 – $105.919 million.
The report states that the group’s underlying EBITDA remained positive at around $4 million for the first half of 2025, despite losses for the period, although this is significantly lower than for the same period in 2024. The sharp decline was mainly due to lower operating profit as a result of an adjusted lower production plan following the refusal to refund VAT in Ukraine and lower realized prices, which could not be offset by the effects of lower C1 production costs and further cost-cutting measures initiated by the group during the second quarter of 2025.
Commenting on the group’s performance, interim CEO Lucio Genovese noted that the company started the year on a strong footing, with its best quarterly production since the full-scale invasion of Ukraine in February 2022. However, this momentum was significantly curtailed in the second quarter as the group was forced to reduce its activities due to the decision by the Ukrainian tax authorities to suspend VAT refunds to its subsidiaries. This is reflected in a 40% drop in production in the second quarter compared to the first quarter.
“We quickly took steps to reduce our costs. We have now had to reduce working hours or send approximately 40% of our employees on leave. We have also implemented programs to optimize the speed of disclosure, repair, and maintenance, and have reduced non-essential expenses across the business. These actions were necessary and mitigated the serious negative impact of the suspension of VAT refunds. We have managed to reduce our costs as much as possible to remain competitive in the face of low iron ore prices,” Genovese said.
He added that since the full-scale invasion of Ukraine in February 2022, Ferrexpo has continued to operate and export its products despite the enormous challenges caused by the war.
As reported, Ferrexpo posted a net loss of $50.03 million in 2024, down 41% from $84.753 million in 2023. Revenue for 2024 amounted to $933.263 million, compared to $651.795 million in 2023 (an increase of 43.2%). EBITDA amounted to $69.310 million, compared to $98.871 million adjusted for 2023. Cash and cash equivalents at the end of 2024 amounted to $100.835 million, compared to $108.293 million at the end of 2023, $106.397 million in 2022, and $117 million at the end of 2021.
Ferrexpo ended 2023 with a net loss of $84.753 million compared to a net profit of $219.997 million in 2022, which is four times lower than the profit in pre-war 2021 ($870.993 million). Revenue for 2023 amounted to $651.795 million, compared to $1 billion 248.490 million in 2022 (a decrease of 47.8%). At the same time, EBITDA fell by 83% to $130.242 million compared to $765.113 million in 2022.
Ferrexpo owns 100% of Yeristovsky GOK LLC, 99.9% of Bilanovsky GOK LLC, and 100% of Poltava GOK PJSC.
The Ma’Rizhany Industrial Park (Zhytomyr region) plans to double its industrial hemp processing capacity, according to Dmytro Kysilevsky, deputy head of the Verkhovna Rada Committee on Economic Development, on Facebook.
He noted that as of early August 2025, the plant will be able to process 10,000 tons of hemp per year. Increasing the area under cultivation to 4,000 hectares will allow the plant to reach a processing capacity of 20,000 tons of raw materials per year. In the 2025 season, there will be more than 1,600 hectares of industrial crops within a 20 km radius of the park.
“The Ma’Rizhany industrial park is actively persuading farmers in the Zhytomyr region to switch from unstable and politicized grain supplies to the European Union to long-term contracts with Ukrainian customers for a new, promising, and traditional crop for Ukraine. Well, the demand for hemp fiber is growing on the world market, which is the best financial guarantee for farms that will become partners of the industrial park,” Kysilevsky said.
The MP expressed confidence that the industrial park has enough free space to accommodate the next stages of deep processing of industrial hemp.
In May 2025, the largest industrial hemp primary processing enterprise in Ukraine began operations in the Ma’Rizhany industrial park. Ma’Rizhany Hemp Company renovated an old flax factory and built a modern production facility with a capacity of 14,000 tons per year of long fiber for the textile industry. It is expected that related processing products, such as short fiber and chaff, will find application in nonwoven materials (heat and sound insulation), paper, building blocks, chipboard, and bioplastics.
As reported, IP “Ma’Ryzhany” occupies about 30 hectares, the territory of a former flax processing plant. It will be the first park in Europe for the primary processing of bast crops. It was entered in the Register of IPs in August 2024. It is planned to create more than 700 jobs.
Taxes, fees, and mandatory payments to the general and special funds of Ukraine’s state budget for the first seven months of 2025 amounted to UAH 2.09 trillion, while cash expenditures amounted to UAH 2.78 trillion, which is approximately 41% and 24% higher than the corresponding figures for the first seven months of 2024.
According to operational data from the State Treasury Service published by the Ministry of Finance on its website on Tuesday, revenues to the general fund increased by 42% to UAH 1.47 trillion, while expenditures increased by 20% to UAH 2.17 trillion.
It is noted that after raising the military tax from 1.5% to 5% and introducing a condition for reserving salaries of UAH 20,000 this year, personal income tax and military tax came in second place in terms of revenues for the first seven months of this year, amounting to UAH 200.1 billion compared to UAH 117.0 billion last year.
In addition, the main revenues were provided by: VAT on goods imported into the customs territory of Ukraine – UAH 294.4 billion (from January to July 2024 – UAH 262.3 billion), VAT on goods produced in Ukraine – UAH 183.1 billion for reimbursement of UAH 101.5 billion (UAH 153.3 billion for reimbursement of UAH 83.6 billion), corporate income tax – UAH 160.5 billion (UAH 153.0 billion), excise tax – UAH 159.6 billion (UAH 109.7 billion).
In addition, dividends and part of the net profit of state-owned companies amounted to UAH 60.8 billion (UAH 64.6 billion), import and export duties – UAH 30.1 billion (UAH 27.6 billion), rent for the use of subsoil resources – UAH 22.0 billion (UAH 28.0 billion).
The Ministry of Finance added that another UAH 84.2 billion (UAH 38.6 billion) was added to the budget from the National Bank’s profits.
According to the information, the ERA mechanism launched by the G7 at the end of last year to use revenues from frozen Russian assets significantly increased grant international aid revenues to the budget – to UAH 210.9 billion compared to UAH 40.3 billion in the first seven months of 2024, although in July of both this and last year, these funds were not available.
Revenues from the single social contribution to pension and social insurance funds in January-July 2025 increased by 22.4% to UAH 369.4 billion, including in July by 20.4% to UAH 54.8 billion.
The Ministry of Finance also reported that as part of the financing of the general fund of the state budget, state borrowings to it in January-July 2025 amounted to UAH 998.0 billion (for 7 months of 2024 – UAH 873.2 billion), or 93.8% of the plan, including UAH 302.9 billion (UAH 279.2 billion) from the domestic market through the placement of government bonds, including UAH 61.8 billion in foreign currency – $853.8 million and EUR557.7 million. At the same time, UAH 140.3 billion was raised through the issuance of military government bonds.
According to the release, approximately $16.7 billion or UAH 695 billion (UAH 594 billion) was received from external sources, including approximately $12.1 billion under the ERA, out of the total amount of this mechanism of up to $50 billion.
In addition, Ukraine received another EUR3.1 billion from the EU under the Ukraine Facility preferential long-term loan, $0.96 billion from the IMF, and $0.26 billion from the World Bank for the projects “Transforming Health Care through Reform and Investments in Efficiency” (THRIVE), “Building Resilient Infrastructure in Vulnerable Environments in Ukraine” (DRIVE) and “Modernization of the Social Support System for the Population of Ukraine.”
Payments on public debt in January-July 2025 amounted to UAH 370.5 billion (UAH 259.1 billion), or 96.7% of the plan, and service payments amounted to UAH 198.5 billion, or 72.6% of the plan.
As reported, the 2025 state budget was approved with revenues of UAH 2 trillion 327.1 billion, including the general fund – UAH 2 trillion 133.3 billion (excluding grants and international assistance), and expenditures of 3 trillion 929.1 billion hryvnia, including the general fund – 3 trillion 591.6 billion hryvnia. Last week, the Verkhovna Rada, at the government’s proposal, increased this year’s budget expenditures by 400.5 billion hryvnia and revenues by 147.5 billion hryvnia.
In 2024, the state budget received UAH 3 trillion 120.5 billion in revenues, which is UAH 448 billion, or 16.8%, more than the 2023 state budget. The general fund’s revenue grew by 513.9 billion hryvnia, or 30.9%, to 2 trillion 177 billion hryvnia, including international financial assistance in the form of grants amounting to 453.6 billion hryvnia, compared to 433.9 billion hryvnia in 2023.
State budget expenditures in 2024 increased by UAH 464.5 billion, or 11.6%, compared to 2023, to UAH 4 trillion 479.3 billion, in particular, under the general fund – by 15%, or UAH 454.5 billion – to UAH 3 trillion 488.8 billion.
Ukrzaliznytsia carried 625,000 passengers between July 28 and August 3, which is 4.4% or 26,000 more than during the same period in 2024, according to the company’s head, Oleksandr Pertsovsky, in the first issue of the weekly operational statistics on passenger traffic.
“It is important for us to be as transparent as possible so that you can see how tickets for popular destinations are being sold, so we are starting a new tradition: we will share detailed passenger transport statistics on a weekly basis during this peak period,” Pertsovsky said on his Facebook page, responding to criticism of the company for ticket shortages.
According to him, it was possible to increase transportation while reducing the number of cars by nine (three were lost and six became completely unsuitable for operation due to their age limit) through more efficient use of the fleet: on average, one car carried 467 passengers, compared to 436 last year, which is 7.1% more.
Percovsky also emphasized that the number of passengers in children’s groups this year increased by 51% to 30,410 people during the reporting week.
In addition, UZ transported 10,000 military personnel through a special reserve, which is 2.1 times more than during the same period last year.
According to the company’s statistics, the largest number of requests in the app was recorded for train No. 95/96 Kyiv-Rakhiv: 143,100 requests and 5,700 monitoring requests with 1,950 seats available; train No. 81/82 Kyiv-Yasinya: 131,000 requests and 4,700 monitoring checks with 2,810 seats available; and train No. 57/58 Kyiv-Uzhhorod: 112,000 requests and 4,400 monitoring checks with 1,250 seats available.
On these trains, 27% to 33.5% of seats are available for free sale, while 6.5% to 11% are reserved for carpooling, and the rest are for group transportation.
UZ clarified that the highest percentage of children’s groups was on train No. 95/96 Kyiv — Rakhiv — 62% of seats in group bookings, followed by No. 81/82 Kyiv — Uzhhorod — 60% and No. 57/58 Kyiv — Yasinya — 59%.
The company notes that since last year, 95 cars have reached the point where they require expensive repairs, while as of August 3, 1,488 cars were in service on long-distance trains.
As reported, in the first half of 2025, Ukrzaliznytsia increased passenger traffic by 1.2% compared to the first half of 2024, to 13.52 million. This is 23% more than in January-June 2024, as previously reported by the company’s CEO Oleksandr Pertsovskyi on Facebook.
The relocation of Ukrainian businesses abroad, which in 2022 took the form of emergency evacuation, is becoming strategic planning to diversify risks, enter EU markets, and ensure business continuity, according to Kateryna Danilova, partner at Barristers Law Firm.
“While in 2022 relocation was often an emergency evacuation, it is now taking on the characteristics of strategic planning with the aim of diversifying risks, entering EU markets, and ensuring business continuity,” she told the Interfax-Ukraine news agency.
Danilova noted that “since the start of the full-scale invasion, Ukrainian businesses have kept up their interest in relocation, although it’s changed depending on what’s happening on the front lines and the overall economic situation.”
According to the lawyer’s observations, the information technology (IT) sector is the most active in terms of relocation, due to its mobility, focus on global markets, and minimal dependence on physical assets.
“For IT companies, relocation often means opening offices in EU countries to retain their teams, which also allows them to guarantee continuity and stability of services to their clients and simplifies access to international financial infrastructure. Many companies based in Diia.City are setting up overseas hubs while keeping a significant part of their development in Ukraine,” she said.
In addition, according to Danilova, manufacturing companies in light industry, woodworking, component manufacturing, and the food industry are also very active in relocation.
“The main driver for them is the desire to protect production facilities from physical destruction, bring production closer to European consumers, expand the sales market, etc.,” she said.
Agrarian and processing enterprises are also active in relocation, seeking opportunities to create processing capacities in neighboring EU countries to gain access to the market without logistical complications at the border.
In addition, these are companies in the creative industry, consulting, and marketing, which, like IT, are mobile and actively integrating into the European market.
Commenting on the geography of relocation, Danilova noted that the choice of a relocation country depends on many factors, including geographical proximity, logistics, business conditions, the availability of support programs, the tax climate, and cultural and linguistic similarities.
Currently, the main destinations for Ukrainian businesses are Poland, which leads in the number of relocated Ukrainian companies, and Germany, where Ukrainian businesses are attracted by economic stability, access to the largest EU market, and high purchasing power, although this country is “characterized by a higher level of bureaucracy and tax burden.”
In addition, Ukrainian businesses are relocating to Romania and Bulgaria, which are gaining popularity thanks to, in particular, competitive tax rates and lower labor costs, the Czech Republic and Slovakia, which are traditionally attractive due to their cultural proximity and favorable conditions for small and medium-sized enterprises, and the Baltic countries (Lithuania, Latvia, Estonia), which are “interesting for technology and innovation companies due to their developed digital infrastructure and favorable investment climate.”
However, Danilova stressed that “it is legally impossible to transfer an employee from a Ukrainian legal entity to a foreign one, as they are different business entities operating in different legal systems,” but in practice, companies use a number of mechanisms.
These include, in particular, dismissal in Ukraine and employment abroad, which is the most common and transparent mechanism, but requires the employee to obtain a residence and work permit in the country of relocation, or a business trip, which is risky for long-term work abroad.
In addition, companies use mechanisms for concluding civil law contracts, where an employee registers as an individual entrepreneur in Ukraine (or as an individual entrepreneur in the country of relocation) and concludes a service contract with a foreign company. This model is flexible but carries the risk of additional taxes and penalties.
Another common mechanism is intra-corporate transfer (Intra-Corporate Transferee), which is used in EU countries that have implemented the relevant EU Directive, which creates simplified conditions for the temporary transfer of key managers, specialists, and trainees within a group of companies. This requires, in particular, the existence of legally related Ukrainian and foreign companies. Another popular mechanism is outsourcing or “leasing” of employees, which involves removing employees from the payroll on condition that they are hired by a foreign company. However, Ukrainian legislation does not contain clear regulatory provisions governing such legal relations.
Commenting on the pitfalls of Ukrainian legislation in the field of relocation, Danilova noted a number of restrictions in the Ukrainian legal field, in particular, currency restrictions, rules for controlled foreign companies (CFC), transfer pricing (TP), as well as restrictions on travel abroad and the movement of assets.
In addition, banking compliance and opening a bank account for a new company in the EU founded by Ukrainian citizens, the complexity of managing a dual structure, the loss of preferential treatment upon the actual transfer of activities abroad, in particular IT companies, which may lose the advantages of the special legal and tax regime of Dnipro.City, as well as adaptation to foreign legislation.
“Relocating a business abroad is an effective tool for minimizing the risks of war, but at the same time it is a complex legal and organizational project. The success of relocation directly depends on comprehensive strategic planning that takes into account all legal, tax, financial, and operational aspects,” she said.
Barristers, BUSINESS, Danilova, ENTERPRISES, LAWYER, RELOCATION
On July 31, the III UKRAINE INVESTMENT CONGRESS 2025 took place at the Parkovy Exhibition Center — the main event of the year for the investment, construction, and architecture industries.
The event brought together over 4,857 participants: representatives of international and national investors, banks, development companies, industrial groups, municipalities, government agencies, and industry associations.
The congress became a platform for frank dialogue about the future of Ukraine’s investment market, the development of joint reconstruction strategies, and the search for new formats of public-private partnership.
“The main investment today is people. Ukrainians who start businesses even during the war, create jobs, and change communities. Our task is to provide them with the conditions, tools, and partners to scale up.”
The program covered the most pressing aspects of the investment environment.
1. Ukraine’s investment attractiveness.
Participants discussed how to increase confidence in the Ukrainian market, reduce regulatory barriers, and create transparent rules of the game. It was emphasized that the stability and predictability of state policy is a key signal for large investors.
2. Investment and geopolitics.
Panel discussions touched upon the new architecture of international cooperation. Experts emphasized that the war has changed the priorities of global players, and Ukraine should become an example of effective integration into economic alliances through partnerships with international funds and corporations.
3. Capital for ideas: how banks evaluate projects.
Representatives of the banking sector presented criteria for making financing decisions: from a thorough analysis of the business model to an assessment of geographical and security risks.
“Our main task is to build relationships with clients based on trust. If we understand the business and believe in the idea, it is easier to make a positive decision,” said Semen Babaev, Deputy Chairman of the Management Board of PRAVEX BANK.
4. Private investment and insurance mechanisms.
A separate discussion was devoted to investor protection: risk insurance and compensation under international law. This is especially important for small and medium-sized businesses, which are the quickest to respond to reconstruction needs.
5. Alternative energy and distributed generation.
Representatives of the energy sector emphasized that green energy projects are among the most attractive for private investors. The Investment and Development Fund – First, which focuses on financing such initiatives, was presented for the first time.
6. Defense projects and dual-use.
The focus is on attracting private capital to dual-use projects. During the presentation, the launch of Ukraine’s first mutual fund, the Verum One Security Fund, was announced.
7. Development and architecture.
The community of architects called for a change in the urban planning paradigm: the chief architect should not only be the creator of the environment, but also the manager of the community’s investment development.
8. Production of building materials.
Participants agreed that creating their own production facilities is a strategic task that will reduce construction costs and accelerate infrastructure restoration.
“Investment is not just about finance. It’s trust, new technologies, and responsibility for a shared future. We have shown that Ukraine is ready for recovery and open partnerships.”
General Partner: Creator-Bud
General Sponsor: HutJet
Strategic Partners: ViYar, Saint-Gobain, and Regips
Premium Partner: ITUM
Partners: Bang & Olufsen, Zezman, Lizrome, RIEL, Edplit, Laterem, Vlasne misto, Sheriff, Riyako&partners, Metinvest, Ribas hotels Group, BlissGroup, HOLZ, Galleria Porcellanato, Akam, Plitos, DzenResidence, AGT PLUS, Eva Sad, Benjamin Moore, Danapris Doors, ElfDecor, Listelli, Alumil, FitoArt, Matro, HomeStyle, Bonsso, Jung, Arbofari, Galantpol, Decoration Club, EPSA, Skarlat, Skogur, World of Interior Solutions, Rodors, Quarzwerke Group Representative Office in Ukraine, Supermarket of Fittings, Karcas24, UK Expertise, Maestro, Karbosnab, Nova Dacha, Budmall, AS Architecture & Design Building, WoodAndHearts, Varenycia, Studio Design Inspiration
General information partners: Interfax-Ukraine, FOCUS
Information partners: DELO.ua, DsNews, Kyiv24, Channel 33, Europe +, Kraina FM, Rubryka, First Business, Business Women, True.ua, Property Times, Skyscraper, InVenture, Comments.ua, DomRia, Izba, Femida.ua, Ukrainian Steel Construction Center, Build Portal, Prof Build, VARTO, Time of the First, HIS.
Organizers: DMNTR Media Group—a team with 25 years of experience in organizing professional events for the architectural, construction, and investment audiences.
Key projects include the Ukrainian Construction Congress, Ukraine Investment Congress, All-Ukrainian Interior of the Year competition, Ukraine Urban Awards, and the Creator of the Year architecture and development award.
The media group also publishes DMNTR magazine and actively develops social media with insights, news, and reports.
Follow us:
Instagram: www.instagram.com/ukrainian_building_congress
Facebook: www.facebook.com/share/16RUuTVCQ1
Tel.: 044 461 91 28
Photo: Pavlo Botanov, Andriy Sarymsakov
