Politics 2021-10-15T05:07:29+03:00
Ukrainian news
Official Statement: Oleksandr Yaroslavskyi Called on Authorities to Protect the Rule of Law and Save Motor Sic

Official Statement: Oleksandr Yaroslavskyi Called on Authorities to Protect the Rule of Law and Save Motor Sich

Oleksandr Yaroslavskyi, DCH Group, Motor Sich
Motor Sich JSC. Photos from open sources
Motor Sich JSC. Photos from open sources

Ukraine has to stop preventing the rightful shareholders of Motor Sich from disposing of their property. Otherwise, Chinese investors may resort to international arbitration in order to protect investments, which will become an extremely unpleasant case for investment prospects, and may also cool relations between our country and its largest trading partner.

This is officially stated by Oleksandr Yaroslavskyi, a well-known Ukrainian businessman, and published on the DCH website as a comment regarding the actions of the Ukrainian authorities towards foreign investors of Motor Sich.

"DCH is ready to use its experience and knowledge to ensure that Motor Sich develops and works for the benefit of Ukraine. We guarantee that the existing manufacturing capabilities, technologies, jobs, and intellectual property rights will be reserved and developed. We will do our best to provide confidence in the future to the personnel of the enterprise and protect the interests of Ukrainians. This is extremely important because the enterprise has virtually no owner at the moment, its performance indicators are steadily deteriorating, and urgent anti-crisis measures are needed to prevent its final destruction," said Aleksandr Yaroslavskyi.

The DCH owner recaps that the security officials and representatives of Anti-Monopoly Committee of Ukraine have been putting pressure on the Chinese shareholders of Motor Sich for several years. Its artificiality, misrepresentation, and political overtones are obvious to everyone.

"If, in addition to the corrupt intentions of officials, there were some objective circumstances, make no mistake about it — the previous government would have brought this process to the end, i.e., to an international scandal," the businessman commented on another precedent of state raiding. "The three years that have passed since the arrest of the Motor Sich shares are enough to sort things out and decide whether it is legal or illegal. However, no one risked to outrage bluntly, since it would be a gross violation to consider the following situation to be a crime: when the businessmen lawfully purchase shares of a private joint-stock company from a businessman. Any country and any pragmatic government need no negative international assessment of actions towards investors."

Oleksandr Yaroslavskyi stressed that the processes that were currently occurring in relation to Motor Sich could not but cause concern. When the Chinese investors disclosed information about a joint application with DCH to Anti-Monopoly Committee of Ukraine as part of the mandatory disclosure on the Shanghai Stock Exchange, the prosecutor's office additionally seized the shares and further qualified the situation as high treason. Moreover, it is clear that employees of Anti-Monopoly Committee of Ukraine are under pressure, which intends to prevent DCH from implementing their agreements with Chinese partners and, in general, to prevent them, the rightful shareholders of Motor Sich, from disposing of their property and exercising their equity rights.

"Of course, law enforcement agencies must maintain law. However, this poses the question: who exactly is a high traitor in this situation? A person who wants to revive a dying enterprise, keep jobs for 25 thousand citizens of Ukraine and show that our country has a powerful aircraft industry? Or those who prevent law-abiding investors from doing this? I believe that the answer is clear for any sane person and patriot," said the President of DCH in his statement.

Oleksandr Yaroslavskyi added that all controversial issues can be settled in a lawful manner taking into account the rules of Ukrainian and international law in this case, but “some officials continue to put pressure on business, violate the rights of foreign investors, and trample on the rule of law as a fundamental principle of democracy.”

It is stated that the politically motivated illegal decisions of law enforcement and regulatory authorities are extremely similar to everything that Aleksandr Yaroslavskyi and DCH faced in 2016 when they were launching KhTP after it was unfairly shutdown by the previous government under the same treason pretext. All charges have been dropped since then. The plant has been operating and manufacturing products. Moreover, it is home to a high-tech business park that DCH is creating.

Oleksandr Yaroslavskyi stated that he was ready to use his experience and knowledge to ensure that Motor Sich develops and works for the benefit of Ukraine. However, it is unacceptable for him to make any attempts to force investors to come to an agreement with someone. It has to be considered within the framework of anti-corruption legislation. "We are open to honest public dialogue in a lawful manner. The government and business have one common interest — well-being of Ukraine," stressed Aleksandr Yaroslavskyi.

In his statement, he points out that the DCH partners — private Chinese investors — invested in a private Ukrainian enterprise intending to modernize it and ensure that it supplies products, which are important to Ukraine, to the domestic market of the PRC. If the government of Ukraine continues to prevent them from exercising their legitimate rights and interests, the consequences can be extremely unfavorable for our country. "Presumably, it may include the filing of multimillion-dollar actions by the Chinese party in international courts and a significant cooling in bilateral relations with China as a key trading partner of Ukraine," Oleksandr Yaroslavskyi warns about the possible consequences of the situation with Motor Sich in this case.

"I would like to thank Volodymyr Zelensky, the President of Ukraine, for his attention to Motor Sich JSC that is the foundation for the aircraft industry of Ukraine. On behalf of DCH and our Chinese partners, I would like to ask the President to intervene in this situation. I hope that a statist decision will be made, which will help to preserve Motor Sich for Ukraine and will comply with the national interests of our country thanks to the political will of the authorities," summarized Oleksandr Yaroslavskyi, the President of DCH.

To recap, DCH owned by Oleksandr Yaroslavskyi signed an agreement with the Chinese company Skyrizon as to the joint development of Motor Sich.

The day before, the Chinese company Beijing Xinwei Technology Group disclosed relevant information about its activities and announced on the Shanghai Stock Exchange that its subsidiary Beijing Skyrizon and the Ukrainian company DCH owned by Oleksandr Yaroslavskyi, together with its affiliated companies, submitted a new application on the purchase of the Motor Sich shares to the Anti-Monopoly Committee of Ukraine on August 4.

In turn, Volodymyr Zelensky, the President of Ukraine, called on Denys Shmygal, the Prime Minister of Ukraine, to analyze this case regarding the sale of a controlling stake of Motor Sich, among other similar enterprises, and assess the implications of this transaction for the economic interests of Ukraine. "The country cannot intervene in the sale of shares to some investors and in similar purchase deals. In fact, this issue needs to be resolved by means of arbitration and litigation. When the decision has to be made not by politicians but by impartial institutions that are intended to do so worldwide," said the Prime Minister in an interview for Radio Svoboda.

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