Ferrexpo CEO temporarily steps aside amid Ukrainian allegations

Ferrexpo on Monday said its chief executive, Kostyantin Zhevago, has temporarily stepped down due to allegations relating to Finance & Credit JSC, a businesses he owned until 2015.

Earlier this month, Ukrainian investigators started a process to add Zhevago, who is suspected of large-scale money laundering and embezzling funds from his former banking business, to an international wanted list after he failed to appear for questioning in September.

Finance & Credit JSC was declared insolvent four years ago and held $174m of the iron ore pellet company's cash at the time.

Ferrexpo said Zhevago will remain on the board as a non-independent, non-executive director. The FTSE 250 company has appointed chief finance officer Chris Mawe as acting chief executive.

Mawe has 11 years of experience at Ferrexpo, which said he had been instrumental in ensuring that the group is in a financially strong position and able to grow in a sustainable manner.

Non-executive chairman Steve Lucas said: "The board, including Mr Zhevago, believes that this temporary change of leadership is necessary and in the interests of all shareholders to enable Mr Zhevago to focus on on-going matters in Ukraine without impacting the company's operations. Mr Zhevago continues to have the full support of the board."

At 0830 GMT, the shares were down 0.9% at 132.30p.