Ukraine-based iron ore group Ferrexpo PLC (LSE:FXPO) has distanced itself from its former chief executive and current non-executive director Kostiantyn Zhevago following his arrest at a French ski resort on fraud charges.
Zhevago, a former Ukrainian MP, was picked up in Courchevel earlier in the week on an international arrest warrant following accusations by Ukraine he had embezzled more than US$100mln.
In a stock exchange statement, Ferrexpo noted Zhevago’s arrest but said it was to do with matters "unrelated to the company.
"The board of directors of Ferrexpo is seeking to clarify the situation and will update the market as appropriate," it said.
Zhevago owns a majority stake in Ferrexpo through various vehicles and was the company’s chief executive until 2019 when he stepped down after the allegations were made.
Ukraine issued a domestic arrest warrant for Zhevago in 2019 followed by an international warrant in 2021.
Shares in Ferrexpo eased 1.3% to 162.3p.