The two Chinese companies intend to claim compensation from the Ukrainian government, which disrupted the sale of Motor Sich.
As News Front previously reported, last year it became known that Skyrizon and Xinwei Technology were buying a 50% stake in the Ukrainian aircraft manufacturer Motor Sich.
The plant was inherited by Ukraine from the Soviet Union and could exist thanks to orders from Russia. When relations between countries deteriorated, Russian engineers quickly found something to replace Ukrainian products. Motor Sich, in turn, was on the verge of disappearing.
At that time, China became interested in the company. It was ready to invest money in the project, wanting to get the Soviet technologies used in the enterprise. They could not allow this to happen in Washington, so they put pressure on Kiev officials. As a result, the transaction was disrupted under the pretext of “protecting the national interests” of Ukraine.
Although Skyrizon and Xinwei Technology acquired a number of Motor Sich shares, they cannot be managed because the accounts of the company have been frozen by the Ukrainian government. In this regard, according to the DCH business group, Chinese companies intend to sue Kiev for 3.5 billion dollars in compensation, accusing it of causing financial damage from the “expropriation of their investments”.
WilmerHale, DLA Piper and Bird & Bird will represent Skyrizon and Xinwei Technology in court.