CEO and majority owner of Ukraine’s largest iron ore pellet exporter Ferrexpo Kostiantyn Zhevaho has stepped aside from his position of Ferrexpo's CEO amid a snowballing crisis over Bank Finance and Credit (F&C Bank).

"Zhevaho has informed the board of Ferrexpo of his decision to step aside, temporarily, from his position of CEO of the group to focus on resolving certain matters in Ukraine relating to one of the businesses he owned until 2015," Ferrexpo said in a statement posted on the London Stock Exchange (LSE) on October 28.

In October, the National Anti-Corruption Bureau of Ukraine (NABU), the nation's main anti-graft body, informed Zhevago that he was under suspicion of submitting false information in mandatory declarations made by members of parliament for the years 2015, 2016 and 2017.

The same month, Ukraine's State Bureau of Investigations (SBI), one of the nation's main anti-graft agencies, put Zhevaho on the country's wanted list. Zhevago is suspected of embezzling funds of the nation's bank Finance and Credit Bank (F&C Bank), which he previously owned.

The move followed August's SBI statement that the agency is investigating Zhevago on allegations he embezzled $113mn from F&C Bank. According to Olha Varchenko, the SBI’s deputy director, the agency is checking to see if there are links between Zhevago and a scheme that allowed an offshore company to take loans from certain foreign banks in 2007-2014 using F&C Bank’s $113mn in correspondent accounts as collateral.

The foreign banks seized the collateral in the autumn of 2015 immediately after F&C Bank was declared insolvent, because the offshore company defaulted. Zhevago is the former controlling owner of F&C Bank, according to local media.

The board has appointed Chris Mawe, Chief Financial Officer (CFO), to acting CEO of the group. Mawe will take over all executive responsibilities of Zhevaho in addition to his existing financial responsibilities.

Mawe has deep knowledge of the Group and during his 11 years with Ferrexpo he has been instrumental in the development and implementation of many of the strategic initiatives which have ensured that the group is in a financially strong position and able to grow in a sustainable manner, according to the statement.

Meanwhile, Zhevaho will remain on the board as a non-independent, non-executive director. These changes will take effect immediately and until further notice, according to Ferrexpo.

"The board, including Zhevaho, believes that this temporary change of leadership is necessary and in the interests of all shareholders to enable Zhevaho to focus on on-going matters in Ukraine without impacting the company's operations. Zhevaho continues to have the full support of the board."