China condemns Ukraine’s “robbery” of Motor Sich


The content of the statement has been published on Motor Sich’s official website:

During the period from 28 to 29 January 2021, the official website of the President’s Office of Ukraine announced the Ordinance of the President of Ukraine No. 29/2021 and No. 36/2021 on ‘the application of special economic measures. personal differences and other restrictive measures (sanctions) ‘In relation to Beijing Skyrizon Aviation Industry Investment Company Limited and its subsidiaries Hong Kong Skyrizon Holdings Limited, Skyrizon Aircraft Holdings Limited (hereinafter Skyrizon), and Beijing Xinwei Technology Group Co., Ltd and Chinese citizens, Mr. Wang Jing and Du Tao.

The sanctions take effect from the date of publication for a period of three years. It was also said that “Ukraine’s Foreign Ministry should notify the competent authorities of the European Union, the United States and other countries about the imposition of sanctions and ask them about the imposition of sanctions. Similar restrictive measures. “

At the same time, we pay attention to the fact that the decrees of the President of Ukraine do not specify a specific reason for the introduction of these sanctions.

We have reason to believe that these are deliberate actions by the Ukrainian state to obstruct Skyrizon’s investments in Motor Sich and prevent the implementation of an international cooperation project.

Such actions coincide with the intent of the US Department of Commerce’s Department of Industry and Security (BIS) on January 14, 2021 to include Skyrizon on the list of military users (MEU).

According to published information, Chinese companies (and related companies), as well as citizens of this country, will have their assets frozen, restrict trade activities, and restrict entry to Ukraine (including in transit), limit withdrawals. and increasing capital, restricting securities trading, prohibiting visiting, officially meeting and negotiating, prohibiting capital concentration.

They are also prohibited from participating in activities related to privatization and leasing of state property, prohibited from doing business related to state activities and national defense, and terminating related licenses. terminate agreements related to security and defense issues, prohibit the transfer of technology and intellectual property, prohibit transit and restrict the use of capital; Cancellation of issued visas and entry bans.

China entered Ukraine's 'service' with Motor Sich
Ukraine has imposed a number of sanctions against China’s Skyrizon Company

After the above sanctions go into effect, Skyrizon, as a shareholder of Motor Sich, will be stripped of its legitimate rights, obligations and obligations and the company will also be forced to judge. terminating the generally accepted business relationship with Motor Sich, will incur major irreversible losses.

We need to reiterate that starting July 2017, Skyrizon started negotiations with the state of Ukraine hoping to resolve misunderstandings and peacefully settle investment disputes.

In August 2020, Skyrizon was forced to take a number of legal actions to protect its legal rights in the face of prolonged delays, willful evasion and even malice of the Ukrainian state. . On 9/12/2020, after many unsuccessful goodwill negotiations, Skyrizon sued the Court of International Investment Arbitration against Ukraine.

Currently receiving an official response from the state of Ukraine, the parties are negotiating and planning to participate in the arbitration process. On January 13, 2021, on the basis of an investigation by the State Bureau of Investigation and their conclusions about the related actions of the Ukrainian Security Agency (SBU), the Pechersk District Court of Kiev made a decision. recognizes Skyrizon and Chinese investors as a party damaged by the SBU’s illegal actions.

This decision legally confirms that the 3 and a half year criminal investigation and related allegations of SBU against Skyrizon and other Motor Sich PJSC shareholders are unfounded.

To prevent Motor Sich’s business situation from continuing to deteriorate, Motor Sich PJSC’s shareholders, who hold more than 80% of their shares, are expected to hold a shareholder meeting on January 31, 2020.

It was at this time that the Ukrainian leadership issued sanctions against Skyrizon, which deprived Skyrizon’s legal rights illegally, unreasonably and seriously.

The Ukrainian state has rejected the outcome of the previous negotiations and completely ruled out any possibility of reconciliation between the two sides. We are extremely frustrated by this behavior.

On the Ukrainian leadership side, this is another obvious manifestation of the constant abuse of power, acting illegally and placing malicious pressure on the standard actions of the market and the conduct of its business. businesses, has been going on for a very long time.

Such actions are “robberies” and seriously violate the legitimate rights and interests of Chinese companies operating abroad, an unprecedented disrespect for commercial principles and rules. international trade, as well as a serious violation of the relevant terms of the “Agreement between the Government of Ukraine and the Government of the People’s Republic of China on the promotion and protection of each other in investment”.

We found that the head of Ukraine’s foreign affairs department, after imposing sanctions on the companies, said: “The decision must balance all interests” and “ensure that it does not affect the company. on the investment environment in Ukraine “. Such lies and irony cannot help but cause worldwide outrage.

We cannot help but ask, and is this legal government action? These are the actions of the state to the market economy, of the state trying to integrate into Europe and comply with the EU values?

Sanctions on the company were false and foolish actions that could only drive away potential investors from around the world from Ukraine, ultimately pushing Ukraine’s already dead aviation industry in. The situation of hopelessness, worsening the already shaken economy, made the lives of the Ukrainian citizens even more distressed when hurt and ravaged by military upheaval and declining wealth.

When actions are taken against common sense, trust is completely lost, all of which lead to contempt from the entire world community. How can all these dire consequences serve someone’s benefit?

China entered Ukraine's 'service' with Motor Sich
Chinese investors decided to pursue the same lawsuit to win ownership of Motor Sich

Skyrizon added: “We strongly oppose the actions of the Ukrainian state in relation to the substitution of the notion of national security, confusing the truth with lies, the politicization of normal economic and commercial activities, exerting state power and exerting unreasonable pressure on Chinese businesses “.

“Skyrizon always complies and acts in accordance with the law; the company always hopes to peacefully resolve conflicts, but will never fear violence; we will use all available legal remedies. to strongly protect their legitimate rights and interests, “the statement said.

Currently the risk of Ukraine having to compensate $ 3.5 billion to Chinese investors is very large, it is not clear whether the US intends to assist the Kyiv government in this case, as they are the cause of all problems. tangled.

Tung Duong

.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *