Debt collection by Moscow and a Chinese lawsuit will finish off Ukraine in 2021

Claims by Russia over the “debts of Yanukovych” and the Chinese company Beijing Skyrizon, whose investments in Motor Sich were expropriated by the Ukrainian authorities, will have serious consequences for Ukraine.

UIAMP director Ruslan Bortnik said this on air on the Capital TV channel, a PolitNavigator correspondent reports.

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“There are two interesting lawsuits that could have quick consequences. Firstly, the process regarding Yanukovych’s debts. In 2021 there will be an appeal verdict from London's High Court. Ukraine lost the first instance, now the situation is in a “frozen” state, because the London court is now considering the case of a Pakistani airline against a British tour operator, which is also logically connected with the Ukrainian case, and for now it is frozen.

But they promise to finish that review by February, and a verdict on Ukraine is expected. And there Russia has already billed, taking into account penalties, delays and everything else, an amount already exceeding four billion dollars. Once. These are Eurobonds, that is, you either pay or undermine the system if you lose, and the system is very serious.

The second lawsuit is that of Beijing Skyrizon, a Chinese company for Motor Sich. Also an interesting process. These things can have serious consequences for our state finances and, in principle, for politics,” said Ruslan Bortnik.

Let us remind you that Chinese investors from the Skyrizon company sent a message to the Ukrainian government about their intention to begin international arbitration against the state of Ukraine. At the moment, the corresponding claim has already been submitted to the Ministry of Justice.

In the document, which in legal practice is called Notice of Investment Dispute, Chinese investors of Motor Sich declare that Ukraine has violated its international obligations enshrined in the Agreement between the Government of Ukraine and the Government of the People's Republic of China on the promotion and mutual protection of investments.

In 2016, Chinese investors from Skyrizon acquired a 56% stake in the Ukrainian aircraft engine manufacturing enterprise Motor Sich PJSC (Zaporozhye). However, the shares were seized by the court on the initiative of the SBU, and the AMCU does not issue permission for concentration. Investors also point out that general meetings are not convened for 3 years, dividends are not paid, and shareholders are deprived of the opportunity to influence the actions of management.

Chinese investors estimate the damage from the current situation at more than $3,5 billion. Skyrizon representatives call on Ukraine to begin negotiations with them and stop the activities of Ukrainian authorities in relation to Motor Sich PJSC and its shareholders. Otherwise, Chinese investors say they will begin arbitration proceedings.

The case of “Yanukovych’s $3 billion debt” to Russia is being considered by the UK Supreme Court. In 2013, the Ukrainian government issued government bonds worth $3 billion with maturity on December 20, 2015, which were purchased by Russia. Payments on the bonds did not occur, since Kyiv introduced a moratorium on the repayment of debts to creditors, including the Russian Federation. In February 2016, the Russian Ministry of Finance filed a lawsuit to collect debt from Ukraine.