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The company disclosed that the committee of independent directors of its board has concluded in March a review into Ferrexpo’s sponsorship arrangements with its related party, football club (FC) Vorskla. The $17mn loan made by FC Vorskla to another related party, Collaton Limited, should be repaid in full by July 31, 2022, as per arrangements put in place by Ferrexpo’s majority owner and former CEO, Kostyantin Zhevago and his associated entities, according to the release. However, if it turns out that FC Vorskla or Collaton Limited misappropriated some funds provided by Ferrexpo, the company might accrue liabilities, including fines and penalties.
Ferrexpo’s total available distributable reserves stood at $318mn at the end of 2020, with dividends of $78mn (USc 13.2 per share) proposed in January and $233mn announced today. The amount of the distributable reserves takes into account the relevant thin capitalization rules and dividend-related covenants for the company’s major bank debt facility. The payment of further dividends during the 2021 calendar year will require a waiver from lenders, or full repayment of this facility, according to the release.
During a call with the investors the same day, the company's acting CFO Roman Palyvoda said, without giving a formal guidance, that the company sees a possible increase of its CapEx of up to 50% y/y to about $300mn in 2021, adding that its investment plans remain flexible.
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Workers at Kryvyi Rih Mining and ArcelorMittal Kryvyi Rih are also starting protest campaigns for an increase in wages by 30%. "The workers of the AMKR enterprise took industrial action today. The protesters note that the action is preventive and, if the administration of the enterprise does not sit down at the negotiating table regarding the demands, the protest will increase in scale. The main demand of the union members is to increase wages to European levels, and have salary levels reflect the conditions labour," said the head of the Independent Trade Union of Miners of Ukraine Mikhail Volynets on Facebook
Leading Ukrainian steel mill ArcelorMittal Kryvyi Rih in the Dnipropetrovsk region posted net profits of UAH740.902mn ($26.5mn) in 2020 after losing UAH2.265bn a year earlier. Despite the problems caused by the coronacrisis the company benefited from the surge in iron prices that took off in the fourth quarter of last year and are currently at nine-year highs. Retained earnings amounted to UAH30.120bn over the year, according to the company's statement released ahead of the annual shareholders meeting slated for April 29 Over the past year, ArcelorMittal Kryvyi Rih reduced its current liabilities by 33.3%, to UAH17.866bn, and long-term ones by 5.3%, to UAH9.605bn, the company said, as cited by Interfax Ukraine. At the same time, the plant reduced accounts receivable by 16%, to UAH21.638bn. The assets of the enterprise in 2020 decreased by 9.4%, to UAH88.350bn, including the cost of fixed assets increased by 8.9%, to UAH51.996bn. According to the draft decisions, at the meeting, the shareholders intend to allocate UAH9.610bn or UAH2.49 per ordinary registered share for the payment of dividends on ordinary shares. ArcelorMittal Kryvyi Rih is the largest
72 UKRAINE Country Report April 2021 www.intellinews.com