Chinese investors filed a lawsuit against Ukraine over billions of losses from investments in PJSC ” Motor Sich “. The company is engaged in the development and production, repair and maintenance of aircraft engines. reported the press service of DCH group.
Investors on December 5, 2020 notified the Ukrainian government to apply to international arbitration … The Chinese side is trying to collect $ 3.5 billion from Ukraine on the basis of an agreement between Kiev and Beijing on support and mutual protection of investments, writes RIA Novosti .
Chinese investors started investing in Motor Sich back in 2016. Then the Beijing Skyrizon company entered into a loan agreement for $ 100 million with the Ukrainian enterprise. Two years later, Motor Sich’s shareholders included five Chinese companies and one Chinese citizen. In total, they owned 56 percent of the company’s shares.
In 2017, Chinese investors became interested in the acquisition of control over Motor Sich Security Service of Ukraine a > (SBU). After it became known about the plans of the company and Chinese investors to build a plant in China for the production and maintenance of Chinese engines, the SBU opened a criminal case. She suspected the Chinese side of conspiracy and intention to move the assets and production facilities of Motor Sich outside Ukraine. As part of the criminal case, in the spring of 2018, the court seized 56 percent of the shares of the Ukrainian company.
In the fall of 2020, Chinese investors still complained that, due to the seizure of shares, they still cannot manage the acquired asset and influence the company’s management. This resulted in a sharp deterioration in the financial situation of the enterprise and the loss of sales markets.