Ferrexpo owner Zhevago to step down from board after arrest

Iron pellet producer Ferrexpo Plc said on Thursday its controlling shareholder, Kostyantyn Zhevago, will leave the board with immediate effect, following the billionaire's detention by French authorities.

Earlier in the day, Ferrexpo said Zhevago's detention was unrelated to matters at the London-listed firm and the board was seeking to clarify the situation. Zhevago holds a 50.3% stake in Ferrexpo. He was arrested on Tuesday at Ukraine's request on suspicion of embezzlement and money-laundering linked to the disappearance of $113 million from the now bankrupt lender Finance & Credit Bank.

"The board is taking steps to document his (Zhevago) resignation formally and will update the market as appropriate," Ferrexpo said in a statement.