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Ukraine probing Ferrexpo charity on possible money laundering

Mining News - Published on Mon, 29 Apr 2019

Image Source: Bloomberg
UNIAN reported that Ukraine is investigating whether a charitable foundation set up primarily to coordinate London-listed Ferrexpo Plc's philanthropic activities was used to launder money and evade taxes. Ukraine prosecutor said in a court filing in Kyiv in February “Officials of Blooming Land Charitable Foundation abused their powers to seek illicit benefits, damaging state interests. Blooming Land may have received payments from businesses, legalizing the proceeds via converting them into cash under the guise of donations for charity.”

The investigation is still on going.

Through donations to Blooming Land, Ferrexpo says it supports charitable activities in Ukraine. A unit of the iron-ore miner gave the foundation about USD 110 million over the past six years to fund causes such as diabetes awareness and care of the elderly. Other funding for Blooming Land comes from Khimreaktiv LLC, an entity connected to Rosava, which is controlled by Ferrexpo's majority shareholder and chief executive officer, Kostyantin Zhevago.

The probe into Blooming Land threatens to overshadow Ferrexpo's renaissance since losing USD 174 million in an insolvent Ukrainian bank controlled by Zhevago in 2015.

Source :

Posted By : Rabi Wangkhem on Mon, 29 Apr 2019
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