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Ferrexpo flags risk from collapsed Swiss bank; shares tank

9th March 2026

By: Reuters

  

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Iron-ore pellet producer Ferrexpo on Monday warned of "material negative consequences" unless it secures alternative banking arrangements after its Swiss banking partner MBaer collapsed, sending shares down 4%.

The company's Swiss subsidiary, Ferrexpo AG (FAG) had a banking relationship with MBaer Merchant Bank, which is set to be wound down by the Swiss financial regulator for alleged money-laundering violations and breaching sanctions against Iran and Russia.

Ferrexpro, which used the bank to make commercial payments outside Ukraine, said that FAG holds approximately $3-million with MBaer.

Ferrexpo said that it does not expect a material impact on its subsidiaries in Ukraine but is limited in its ability to make payments outside Ukraine following the collapse.

FAG currently expects to recover its deposit with MBaer in full, although the timing of being able to do this is currently unknown, Ferrexpo said.

The company also said it had restarted production at its struggling unit Ferrexpo Poltava Mining after power supply in the region was impacted by the conflict in Ukraine.

Edited by Reuters

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