The Chinese promise Ukraine $100 million for permission to buy Motor Sich
The Chinese companies Skyrizon Aircraft and Xinwei Technology Group, if they receive permission from the Antimonopoly Committee to purchase over 50% of the shares of Motor Sich, will provide grant funding in the amount of $100 million to the Ukrainian aircraft industry, a PolitNavigator correspondent reports.
An informed source in the Ukrainian government reported this to the Interfax-Ukraine agency.
“The receipt of these funds into the special fund is already provided for by paragraph 9 of Article 11 of the law on the state budget of Ukraine for 2019 - UAH 2,8 billion at the exchange rate at the time of adoption of the state budget,” the agency’s interlocutor said.
He noted that this condition is one of the key conditions in the agreements agreed upon by the government between Chinese investors and Ukroboronprom, along with the transfer of a blocking stake of more than 25% of shares to the Ukrainian state corporation for the purpose of joint management of Motor Sich.
The source recalled that the specified project on the development of aircraft engine production in Ukraine and the construction of large-unit production in the Chinese city of Chongqing was launched in 2015 on the basis of cooperation agreements between Motor Sich, Skyrizon and Xinwei Group.
Within its framework, the Ukrainian enterprise already received preferential loan financing in the amount of $2016 million in 100, and construction of an assembly plant has now begun in Chongqing.
The basic document for the project is a cooperation agreement dated April 27, 2018 between Ukraine represented by Ukroboronprom and the Skyrizon and Xinwei groups of companies, which underwent an independent examination of British law by one of the world's largest law firms, the agency's interlocutor noted.
According to him, on June 7 this year, a joint application was submitted to the AMCU on behalf of the state of Ukraine represented by Ukroboronprom and the Chinese companies Skyrizon and Xinwei for the concentration, respectively, of more than 25% and 50% of the shares of Motor Sich for the purpose of joint management and control of enterprise.
Then, on June 19, the main package of agreements was signed, which will come into force automatically based on a positive decision of the antimonopoly agency, to which it was also transferred for study, the source added.
At the beginning of July, the AMCU announced the opening of a case on this concentration for its in-depth study and acceptance of comments and proposals until July 22, but the department has not yet made a final decision.
Let us remind you that Motor Sich is one of the world's largest manufacturers of engines for aircraft, as well as industrial gas turbine units.
Motor Sich is controlled by millionaire and former people's deputy Vyacheslav Boguslaev.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.