The mining company Ferrexpo with assets in Ukraine points to the illegality of the revocation of one of the licenses – for the exploration of the Haleshchyna (Kremenchug) deposit of ferruginous quartzites – after the sanctions were imposed on the Belanovsky mining and processing plant (BGOK, Gorishny Plavni, Poltava region), a part of the group.
According to Ferrexpo’s annual report, on June 24, 2021, the official website of the president published a decree enacting the decision of the Rada of National Security and Defense of Ukraine on the application of personal special economic and other restrictive measures and sanctions.
BGOK is included in the list of legal entities subject to sanctions.
“The decree and the decision do not contain legal grounds for the application of sanctions,” the group believes.
At the same time, it is specified that the sanctions revoke the license to develop the Galeshchino deposit, one of the two licenses owned by BGOK.
The company continues to defend its interests in courts. The next court hearing is scheduled for April 3, 2023.
The Galeshchinskoye deposit is at the exploration stage and is located to the north of the group’s active mining operations.
As reported, Ukrainian President Volodymyr Zelensky signed a decree on June 24, 2021, which enacted a decision of the National Security and Defense Council to permanently cancel the licenses of nine mining companies, including BGOK, which is part of Konstantin Zhevago’s Ferrexpo group. The decree cancels the special permit for the use of subsoil resources at the Galeshchynskoe (Kremenchug) iron ore deposit from 2004 to 2036.
Ferrexpo is an iron ore company with assets in Ukraine.
Ferrеxpo owns a 100% stake in Yeristovskiy GOK LLC and a 99.9% stake in Belanovskiy GOK LLC. Before the September 2022 court ruling, Ferrexpo also owned 100% of Poltava GOK PJSC.
