Ferrexpo PLC on Tuesday said it is withdrawing a proposed interim dividend due to unexpected events in Ukraine.

Ferrexpo is a Baar, Switzerland-based iron ore pellet producer in Ukraine, supplying the pellets to steel makers globally.

The company said it is not proceeding with the proposed interim dividend of 3.3 US cents it had proposed in January due to a claim against one of its Ukrainian subsidiaries, Ferrexpo Poltava Mining.

Back then, Ferrexpo said that a Ukrainian court of appeal confirmed a $125 million claim against the company over loan agreements.

Ferrexpo had said the claim was made against Ferrexpo Poltava Mining for UAH4.73 billion. FPM back in January had announced it would file an appeal to the Supreme Court in Ukraine, with Ferrexpo saying the local subsidiary has ‘compelling arguments to defend its position’.

Ferrexpo shares fell 4.9% to 76.95 pence each on Tuesday morning in London.

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