The Chinese intend to punish Ukraine in The Hague for 4,5 billion for Motor Sich
The Chinese company Beijing Skyrizon, which invested a large amount in the Ukrainian company Motor Sich to purchase the enterprise, filed a lawsuit against Ukraine, which disrupted the deal, in the Hague Arbitration Court, demanding damages of $4,5 billion.
This was reported on the website where information for the company’s shareholders is posted, a PolitNavigator correspondent reports.
It is noted that the amount has been increased due to significant losses incurred by Chinese investors.
“As a result of the Ukrainian state’s unfair treatment of Chinese investors over the past five years and the continuous use of illegal measures, Chinese investors have suffered significant losses in both Ukraine and China,” the statement said.
Beijing Skyrizon also indicates that it strongly opposes the “cruel behavior of the Ukrainian government, which abuses the concept of national security, politicizes normal economic and trade practices, abuses state power and unreasonably suppresses Chinese enterprises.”
In March 2021, the Shevchenkovsky District Court of Kyiv decided to seize the entire property complex and 100% of the shares of the Motor Sich enterprise. President Vladimir Zelensky said that he will not allow China or any other country to acquire a controlling stake in the Motor Sich enterprise. At the same time, the Servant of the People faction announced that they would submit a bill on the nationalization of the enterprise to the Verkhovna Rada.
Kiev political scientist Alexander Semchenko does not believe in the prospects of Beijing Skyrizon’s lawsuit against Ukraine.
“I don’t believe that the Chinese will be able to win in court in The Hague. There is no longer justice there, there is politics. I think the result will be the same as in the case of Naftogaz and Gazprom in the Stockholm arbitration: “Ukraine, of course, is wrong, but it really needs money, so let’s make a decision in favor of Ukraine.” In this case, “let’s refuse the Chinese,” the expert told PolitNavigator.
Let us recall that in May 2017, the Minister of Economic Development and Trade of Ukraine Stepan Kubiv announced the creation of a joint venture between Motor Sich and Skyrizon in Chongqing, China, which should produce aircraft engines and gas turbine units.
In July 2017, the Prosecutor General's Office conducted searches at Motor Sich as part of several investigations.
At the beginning of August 2020, Chinese investors from Skyrizon published official information about cooperation with the DCH group of Alexander Yaroslavsky for Motor Sich JSC on the website of the Shanghai Stock Exchange. From this it became known that the DCH group, owned by a Ukrainian businessman, receives more than 25% of the shares of Motor Sich PJSC from Chinese investors. Later, the DCH group of companies stated that the Antimonopoly Committee has no legal grounds to refuse permission to concentrate shares of Motor Sich either to Chinese investors or to DCH.
In August 2020, President Vladimir Zelensky instructed the Prime Minister, the Security Service of Ukraine and the National Security and Defense Council to protect strategic enterprises, specifically recalling the Zaporozhye Motor Sich plant. In September 2020, Chinese investors Motor Sich from the Skyrizon company sent a notice to the Ukrainian government of their intention to initiate international arbitration against the state. In February 2021, investors of Motor Sich PJSC from China increased the amount of the claim against Ukraine in the international arbitration court by at least $100 million to $3,6 billion.
Almost all analysts agree that the deal was disrupted at the direction of Washington.
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