On January 29, 2021, Ukrainian President Volodymyr Zelenskyy signed the decree with immediate effect on the imposition of personal economic restrictions, accompanied by a number of other sanctions against certain individuals and Chinese legal entities over a period of three years.
Specifically the list includes Chinese citizens Wang Jing, Du Tao and Chen Hoisheng, as well as Beijing Xinwei Technology Group Co., Ltd (Beijing), Beijing Skyrizon Aviation Industry Investment Co., Ltd (Beijing), Skyrizon. Aircraft Holdings Limited (British Virgin Islands) and Hong Kong Skyrizon Holdings Limited (Hong Kong), are related to the acquisition of shares in Ukraine’s Motor Sich engine manufacturing complex in 2016.
The sanctions provide for the temporary blockade of assets as well as the possibility of using property, prohibition of commercial transactions and capital withdrawal, resource transit, flight and transport in Ukraine, all permits previously issued and some other restrictions are no longer in effect.
President Zelenskyy also instructed Ukraine’s Ministry of Foreign Affairs to notify the European Union, the United States and other countries of the sanctions being imposed, accompanied by a proposal to take similar measures.
|Ukraine is determined to prevent China from acquiring Motor Sich in order to fulfill US demands|
Note that Motor Sich is a large engine manufacturer. Chinese investors have bought 56% of the shares of the above enterprise. This has caused opposition from the US, which is actively discouraging China from owning Ukraine’s aviation technology, because of concerns that it will serve its military interests.
Then the Ukrainian authorities, represented by the Security Service – SBU, the Prosecutor’s Office and the Court, seized the company’s shares and, by all means, prevented Chinese businessmen from gaining power. control Motor Sich by blocking actual access.
In late 2020, Chinese investors announced that they were forced to file an application to the International Court of Arbitration with a request against Kiev. They want to recover from the Government of Ukraine the amount of compensation up to 3.5 billion USD.
In the face of the new developments, how Beijing will react to Kiev’s next action is unknown, but it is certain that there will be a response from China, the reason is that Ukraine has directly enacted. has committed a number of treaties between the two sides, including the agreement on investment protection.