Ukraine's Ferrexpo, controlled by sanctioned oligarch Kostyantyn Zhevago, cut first-quarter pellet production by 26% to 1.35 million tons after US$12.5 million value-added tax (VAT) refunds were suspended. 

While reducing pellet lines from two to one, its total output rose 3% to 2.13 million tons on strong Asian demand. 

Ukrainian authorities linked the tax dispute to Zhevago's embezzlement case, which Ferrexpo said unfairly impacts its international investors. The conflict may force production cuts to 25% of its full capacity.