YuGOK may fall into a debt hole: how much it has not paid to the state
14 May 18:34
The Southern Mining and Processing Plant (YuGOK), one of the largest industrial enterprises in Kryvyi Rih, is at the center of a large-scale financial scandal. According to a Supreme Court ruling issued in April 2025, the company is obliged to pay more than UAH 3.9 billion to the state budget, "Komersant Ukrainian" reports, citing Ruslan Kravchenko, head of the State Tax Service.
As of mid-May, these funds have not been transferred.
The property of Pivdennyi GOK JSC was transferred to a tax lien due to non-payment of tax liabilities in the amount of UAH 3.7 billion. Unfortunately, the payer is currently ignoring the court decision. The amount has not been paid within the 10 days provided for by the Tax Code of Ukraine for voluntary fulfillment of a monetary obligation. Since the beginning of May, this debt has officially become a tax debt,” Kravchenko wrote.
He added that the State Tax Service has already sent a letter to the debtor regarding the need to pay the tax debt, a tax claim and made a decision to inventory the property. Based on the act drawn up and agreed with the taxpayer, the property was registered as a tax lien.
If the debt is not paid, the property described in the tax lien will be sold to repay the debt. It is worth noting that the debt is subject to a penalty of 120% per annum of the NBU discount rate.
Due to the failure to comply with the court decision, the property of YuGOK was transferred to a tax lien. This decision allows the state, through the State Tax Service, to take control of the company’s assets – both production facilities and real estate – for the duration of further legal procedures.
Risks to the regional economy
Local authorities and experts are concerned about the situation around YuGOK. If the litigation is delayed, the company may face serious difficulties, including the risk of staff reductions or even bankruptcy proceedings. According to trade unions, the plant employs more than 5,000 people, and each job directly or indirectly provides income for several families.
A similar situation has already occurred with Ingulets GOK, which suspended production in 2024 due to rising electricity tariffs and logistics costs. A blow to another major mining and processing plant could have serious consequences for the economy of the entire Dnipropetrovska oblast, where mining and metals are a key industry.
The role of management
According to unofficial information from social media, Pivdennyi GOK’s CEO Konstantin Fedin has not been at work since the Supreme Court’s ruling. There has been no official comment from the company or management. This only increases the uncertainty surrounding the future of the plant.
Experts note that further delays in resolving the situation may not only undermine confidence in the company in the international market, but also jeopardize the fulfillment of contracts with external partners.
It is worth noting that the situation with YuGOK is under special control of local authorities and tax authorities. In the absence of a compromise and enforcement of court decisions, the company may become another example of how financial and legal conflicts threaten to destabilize entire regions.
What you need to know about Southern GOK
Yuzhny GOK is a strategically important asset that is part of the mining and processing segment of the Ukrainian steel industry. The plant specializes in the extraction and processing of iron ore, exporting its products to Europe and Asia.
Southern Mining and Processing Plant (Pivdennyi GOK) is one of the largest enterprises in the mining and metals sector of Ukraine, located in Kryvyi Rih, Dnipropetrovska oblast. Established in 1955, the plant was the first enterprise in Eastern Europe to extract and enrich poor iron ore using an open-pit method.
The company specializes in the extraction of magnetite quartzite from the Skelyuvata deposit and the production of iron ore concentrate and sinter. Ore is mined using an open pit method. The plant’s products are supplied both to the domestic market of Ukraine and for export, in particular to China.
The plant is jointly controlled by Metinvest Holding and Evraz Group. According to the data, the main shareholders are Jetere Limited (owns 59.76% of the shares) and Zantest Limited (29.88%). The company’s CEO is Konstantin Fedin.
As of 2021, YuGOK produced 13.58 million tons of iron ore concentrate. In 2022, the plant resumed production after a four-month downtime caused by the blocking of seaports and electricity shortages. The plan for November 2022 was to produce 173 thousand tons of concentrate.
YuGOK is one of the largest employers in the region, employing more than 6,000 people. The company also actively supports social initiatives and infrastructure projects in Kryvyi Rih.
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