Business news from Ukraine

Based on its performance from January through September of this year, the Kryvyi Rih Iron Ore Plant (KZRK) saw its net loss increase by 27.5% compared to the same period last year, reaching 1 billion 895.524 million UAH.

According to KZRK’s interim report, available to the agency “Interfax-Ukraine,” the loss in the third quarter amounted to 488.141 million UAH.

Over the first nine months, revenue from ordinary operations decreased to 566.023 million UAH from 1 billion 601.822 million UAH.

The uncovered loss as of the end of September 2026 amounted to 1 billion 356.570 million UAH.

In an official response from KZRK’s Director of Human Resources, Natalia Goncharova, to a media inquiry regarding the situation at the enterprise, it is stated that the plant has been in a difficult financial and economic situation for a long time. The Commercial Court of Dnipropetrovsk Oblast has initiated bankruptcy proceedings against KZRK and implemented an asset disposal procedure, the term of which has been extended until January 6, 2027.

It is noted that throughout 2026, the situation significantly worsened due to the Russian Federation’s ongoing military aggression against Ukraine, systematic attacks on energy and transportation infrastructure, power outages, logistical constraints, and rising production costs. In 2026, production and economic indicators continued to deteriorate. Currently, three of the four mines operate primarily in dewatering mode, and the volume of commercial production amounts to only about 5% of the pre-war level.

At the same time, a significant portion of the enterprise’s expenses remains constant regardless of production volumes. This primarily concerns ensuring mine dewatering, which is necessary to prevent the flooding of mine workings and preserve the possibility of resuming production. KZRK accounts for about 70% of the total volume of mine water accumulation in the Kryvbas region. The situation is further complicated by the state’s failure to reimburse over 762 million UAH in value-added tax. Meanwhile, the company’s wage arrears amount to 561.7 million UAH.

“The right to receive a portion of the budgetary reimbursement in the amount of 112 million UAH has already been confirmed by court decisions in cases No. 160/14987/24, No. 160/22289/24, No. 160/23824/ 24, No. 160/25992/24, and No. 160/10456/24; however, the corresponding funds have not yet been received,” states the response from the director of human resources, posted on the company’s official website.

It adds that under these circumstances, the company is forced to minimize expenses that are not directly related to ensuring production operations, industrial safety, and the preservation of production capacity. This applies, in particular, to revising the organizational structure and optimizing staffing levels in accordance with actual production volumes.

“At the same time, despite the complexity of the situation, we have managed to achieve certain improvements over the past few months. While in April 2026 the company’s mines were cut off from the power supply, mine workings were flooding, and salaries had not been paid since the beginning of the year, power supply to all mines has now been restored, the bulk of the work to pump out mine water has been completed, and related work remains at the “Kozatska” mine. “Salary payments have been partially resumed, repayment of previously accumulated debt has begun, and investments have been made to restore production,” the document emphasizes.

It is also noted that the main objective for 2027 remains increasing the volume of marketable ore production. Demand for the company’s products exceeds its current production capacity; therefore, increasing output is viewed as the key prerequisite for stabilizing the company’s situation.

“The situation remains challenging, and a quick resolution of all problems should not be expected. Currently, KZRK’s main efforts are focused on preventing mine flooding, preserving production capacity, resuming mining operations, and securing the financial resources needed to fulfill its obligations to employees and creditors,” Goncharova concludes.

As previously reported, in the first half of this year, KZRK saw its net loss increase by 9.4% compared to the same period last year—to 1 billion 407.383 million UAH, while revenue from ordinary operations fell to 336.132 million UAH from 1 billion 250.939 million UAH.

In the first quarter, KZRK’s net loss increased 4.4-fold compared to the same period last year—to 378.948 million UAH from 85.925 million UAH. During this period, revenue from ordinary activities decreased to 135.457 million UAH from 705.526 million UAH.

In 2025, KZRK reported a net loss of 2 billion 988.138 million UAH, compared to a loss of 2 billion 14.015 million UAH in 2024; revenue from ordinary activities for this period amounted to 1 billion 963.643 million UAH.

KZRK ended 2024 with a net loss of 2 billion 14.015 million UAH, whereas in 2023 it amounted to 63.411 million UAH. Net revenue in 2024 amounted to 3 billion 443.081 million UAH, compared to 5 billion 577.923 million UAH in 2023.

It was previously reported that on May 23, 2025, “Your Energy Supplier” LLC (Kyiv) filed a petition with the Commercial Court of Dnipropetrovsk Oblast to initiate bankruptcy proceedings against KZRK due to outstanding payments for electricity consumed. The Commercial Court of Dnipropetrovsk Oblast ruled to open bankruptcy proceedings against KZRK on June 9 of this year.

KZRK specializes in underground iron ore mining. It comprises four mines: “Pokrovska” (formerly “Zhovtneva”), the “Kryvyi Rih” mine (“Batkivshchyna”), “Kozatska” (formerly “Hvardiyiska”), and “Ternivska” (formerly the Ordzhonikidze Ore Administration, later the Lenin Ore Administration).

According to the National Securities and Stock Market Commission as of August 2026, as of October 23, the main shareholder of KZRK is Starmill Limited (Cyprus), which owns 99.8812% of its shares. Prior to the initiation of bankruptcy proceedings, operational control of the plant was exercised by the “Privat” Group.

In May 2023, Ukraine imposed sanctions against dozens of foreign companies linked to Russian individuals that own significant assets in Ukraine, including KZRK. Some of these assets had already been seized, but the sanctions paved the way for their confiscation. The corresponding Presidential Decree No. 279 of May 12 was published on the President’s website. In particular, the list of legal entities includes Starmill Limited, which owns 99.89% of KZRK under the operational control of the Privat Group.

The company’s authorized capital is 1 billion 991.233 million UAH.