Ukrainian court 'arrests' majority owner's shares in Ferrexpo

"This decision is another step to protect the interests of the creditors of the Finance& Credit bank," said Viktor Novikov, deputy managing director of the Fund. The Fund said in a statement it was seeking to recover nearly 46 billion hryvnias ($1.25 billion) in damages.

A Ukrainian court has "arrested" shares owned by billionaire Kostyantyn Zhevago in iron pellet producer Ferrexpo (FXPO.L) following compensation claims over his now bankrupt bank, Ukraine's Deposit Guarantee Fund said on Tuesday.

Zhevago is under investigation in Ukraine on suspicion of embezzlement and money laundering linked to the disappearance of $113 million from lender Finance & Credit Bank (F&C), which was declared bankrupt in 2015. Zhevago has denied any wrongdoing. "This decision is another step to protect the interests of the creditors of the Finance& Credit bank," said Viktor Novikov, deputy managing director of the Fund.

The Fund said in a statement it was seeking to recover nearly 46 billion hryvnias ($1.25 billion) in damages. The Kyiv commercial court decided to "arrest" 50.3% stakes in the Poltava, Eristivskiy and Bilanivskiy mining plants that belonged to Zhevago via Ferrexpo, the statement said. The facilities are located in the Poltava region of central Ukraine.

Zhevago, 49, was arrested in France on an international warrant issued by Ukraine and released by a French court in December on bail of 1 million euros ($1.07 million). Ukraine has been trying to clean up its oligarch-dominated economy stepped up despite Russia's invasion.

($1 = 36.9100 hryvnias) ($1 = 0.9382 euros)

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