Economy 2023-08-15T06:13:19+03:00
Ukrainian news
NSDC To Return Motor Sich To State Ownership In Near Future

NSDC To Return Motor Sich To State Ownership In Near Future

NSDC, National Security and Defense Council, Motor Sich, state ownership

The National Security and Defense Council (NSDC) has made a decision according to which Motor Sich (Zaporizhia), the largest manufacturer of aircraft engines and gas turbine units, will be returned to state ownership in the near future.

NSDC Secretary Oleksii Danylov announced this at a press conference, Ukrainian News Agency reports.

"According to this decision, the Motor Sich enterprise will be returned to the Ukrainian people, the Ukrainian state in a legal constitutional way in the near future," he said.

Danylov noted that such a decision was made as part of the consideration of the issue at a meeting of the NSDC on March 11 on the status of implementation of the NSDC decision of March 1, 2018 on urgent measures to protect national interests in the field of aircraft construction.

He stated that the shares of the state-owned enterprise "in a strange way" got into the ownership of private individuals, and this must be corrected, since Motor Sich is a state enterprise strategic for the state.

At the same time, Danylov stressed that people who have already invested in Motor Sich will receive appropriate compensation.

As Ukrainian News Agency earlier reported, in February, the Shevchenkivskyi District Court of Kyiv arrested ordinary registered shares of Motor Sich, placed on accounts in securities of the Dragon Capital depositary institution, as part of the investigation of the case under Part 1 of Article 14 (preparation for a crime), Article 113 (sabotage), Part 1 of Article 15 (attempted crime) and Part 1 of Article 111 (treason) of the Criminal Code.

In January, Ukraine imposed sanctions for three years (until January 2024) against Skyrizon Aircraft Holdings Limited (British Virgin Islands), which owns 10% of Motor Sich shares, and Beijing Skyrizon (China), wishing to acquire shares of the enterprise, as well as related companies.

At the same time, the Cabinet of Ministers decided to involve lawyers to protect the interests of Ukraine in a litigation with Chinese citizens, including Wang Jing, who call themselves shareholders of Motor Sich.

Earlier, the United States Department of Commerce imposed sanctions on Beijing Skyrizon in connection with the fact that the Chinese company poses a threat to U.S. national security.

In November 2020, the Antimonopoly Committee for the third time returned without consideration the application of the DCH group of Oleksandr Yaroslavskyi and its partner Beijing Skyrizon for the acquisition of Motor Sich shares.

On August 4, DCH announced that it had reached an agreement with investors of the Skyrizon Aircraft Holdings Limited (British Virgin Islands) on cooperation in the development of the Motor Sich.

Former AMCU chairperson Yurii Terentiev admitted sanctions from the United States in the case of joint control by Skyrizon Aircraft and the Ukroboronprom state concern over the Motor Sich.

President Volodymyr Zelenskyy considers it a priority to preserve Motor Sich in Ukraine.

In July 2019, the AMCU began considering the case on obtaining joint control by Skyrizon Aircraft Holdings Limited and the Ukroboronprom concern over the Motor Sich.

The AMCU also considered the acquisition by Skyrizon Aircraft of shares of Granum Corporation (Panama), Likatron Enterprises Limited (Cyprus) and Reckoner Investment Holdings Limited (Cyprus), which provides an excess of 50% of votes in the supreme governing bodies of these companies.

It is noted that these concentrations were stages of a multi-stage deal aimed at the acquisition of joint control over Motor Sich PJSC by Skyrizon Aircraft and the state of Ukraine represented by the Ukroboronprom.

Earlier, the question of inadmissibility of selling Motor Sich to Chinese companies was repeatedly raised by U.S. officials in conversation with their Ukrainian colleagues.