Ferrexpo chief executive Kostyantin Zhevago steps aside amid probe

Ferrexpo chief executive Kostyantin Zhevago has temporarily stepped aside as he looks to resolve investigations into his businesses in the Ukraine.

The billionaire businessman, who controls the FTSE 100 Ukrainian miner, has decided to temporarily take a leave of absence so he can “focus on resolving certain matters in Ukraine relating to one of the businesses he owned until 2015”.

The business in question is Finance and Credit, a bank which was controlled by Zhevago and declared insolvent four years ago. Ukrainian authorities have reportedly launched an investigation into the business and suspect Zhevago of embezzling funds from the bank and of large-scale money laundering.

The investigators have also started a process to add Zhevago to an international wanted list after he failed to appear for questioning about the business in September.

Zhevago lost his parliamentary seat in July and is no longer shielded by political immunity. He has denied any wrongdoing.

Sources in the eastern European country also say authorities are looking at opening a separate investigation into Blooming Land, a Ukrainian charity which Ferrexpo gave money to.

Ferrexpo chairman Steve Lucas said: the change of leadership was “necessary and in the interests of all shareholders.”