CHINESE INVESTOR IN MOTOR SICH CRITICIZES UKRAINE'S SANCTIONS, CLAIMS NO POSSIBILITY OF RECONCILIATION

Interfax – Ukraine

Feb 1, 2021 

Shareholder of Motor Sich, Chinese Skyrizon Aviation Industry Investment Co., considers the sanctions imposed by Ukraine against Skyrizon and related persons for three years to be unreasonable and calls them the main goal of preventing investments in Motor Sich.

Skyrizon, as a shareholder of Motor Sich, will be unlawfully deprived of its legal rights, obligations and commitments, and the company will also be forced to interrupt the generally accepted business relationship with the Ukrainian Motor Sich company, which will entail huge irreversible losses, the company said in a statement on the website, created to attempt to hold a meeting of shareholders of PJSC on January 31, which turned out to be unsuccessful.

Skyrizon also believes that such actions by Ukraine coincide with the goal of the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce, which on January 14 this year put Skyrizon on the Military End-User (MEU) List.

The state of Ukraine rejected the results of the previous negotiations and completely ruled out any possibility of reconciliation between the two sides, the company said.

Skyrizon said that, starting in July 2017, it began negotiations with the state of Ukraine in the hope of “settling misunderstandings and amicably resolving the investment dispute,” but on December 9, 2020, it began international investment arbitration against Ukraine and has already received an official response. “The parties are negotiating and plan to participate in the arbitration process,” the company said.

The Chinese company also said that on January 13, it succeeded in challenging the refusal of an investigator from the State Bureau of Investigation to recognize Skyrizon as an injured party in the Pechersky District Court on January 13 in the case initiated early November last year on its complaint against the SBU.

According to the company, such actions on the part of Ukraine may scare off other potential investors and worsen the situation in the aircraft industry.