Ferrexpo cuts payments to FC Vorskla in H1 2020, making enquires in relation to loan
The sponsorship payments of Ferrexpo company with assets in Ukraine to FC Vorskla LLC, based in Ukraine and belonged to the majority shareholder in the company Kostiantyn Zhevaho, in H1 2020 totaled $1.506 million, while payments for advertisement, marketing and general public relation services over the period reached $2.15 million, while a year ago it was $5.38 million.
According to the half-year report of Ferrexpo published on Wednesday, The board, acting through the Committee of Independent Directors (the CID) has been making enquires in relation to the use of a loan provided for the needs of FC Vorskla. Whilst the enquiries by the CID remain ongoing, the group's sponsorship payments to FC Vorskla Cyprus Limited remain suspended.
"Together with its third party legal and forensic accountant advisers, the CID has requested information from FC Vorskla and other third parties about the use of the loan proceeds," the company said in the report.