Beijing demands from Kyiv to protect the legitimate interests of Chinese investors in connection with the decision to nationalize Motor Sich enterprise (Zaporizhia), more than 50% of which is owned by Chinese companies, Chinese Foreign Ministry Spokesman Zhao Lijian has said.
“China demands that Ukraine, in accordance with the law, protect the legitimate interests of Chinese enterprises and investors,” Lijian said.
Earlier Secretary of the National Security and Defense Council (NSDC) of Ukraine Oleksiy Danilov said that PJSC Motor Sich would soon be legally returned to the ownership of Ukraine.
The Chinese shareholders of Motor Sich initiated an arbitration against the state of Ukraine in December 2020 seeking to recover $3.6 billion. They claim that the Ukrainian authorities expropriated their investments, as well as violated their other rights stipulated by the intergovernmental agreement on the encouragement and mutual protection of investments between Ukraine and China from October 1992. The international law firms WilmerHale, DLA Piper, and Bird&Bird are representing Chinese investors’ interests in the claim.
According to a source in the Ukrainian government, currently about 75% of Motor Sich’s shares are already owned by a group of Chinese owners, and some part of the disputed block of shares acts as collateral for financing provided, among other things, by China Development Bank.
PJSC Motor Sich is one of the world’s largest manufacturers of engines for aviation equipment, as well as industrial gas turbine units. It supplies products to more than 100 countries around the world.
The international rating agency S&P Global Ratings has confirmed the long-term sovereign ratings of Ukraine in foreign and national currency on the global scale at “B” level, ratings on the national scale at “uaA” and short-term ratings at “B”, the outlook for long-term ratings is stable.
“Ukraine’s growth, balance of payments and public finances exceeded our expectations in 2020. The adequacy of reserves has improved, which provides protection against possible adverse external events, including further delays in the payment of concessional loans,” the agency explained the rating confirmation on Saturday night.
At the same time, S&P noted that epidemiological considerations continue to pose a serious risk.
The agency indicated that it could raise the ratings over the next year if Ukraine’s external liquidity indicators and the consolidation of state finances are better than projected today, including as a result of a more active economic recovery.
At the same time, the ratings could be downgraded in the event of disruptions to concessional financing from international financial institutions or from capital markets, which would call into question the government’s ability to meet its debt service obligations, S&P said.
“Such disruptions may occur if the government abandons key reforms, such as ensuring the independence of the National Bank of Ukraine (NBU), which acts as a monetary authority and regulator of the financial system,” the message reads.
In the evening of March 12, at a meeting of the regional commission of the State Commission on Manmade Disaster, Emergency Response, it was decided to put under quarantine the tourist complex Bukovel and restrict entry to the territory of Polianytsia territorial community, which only local residents or people who work there can freely move through, the local newspaper Halka reports.
“It was decided to terminate the activities of the Bukovel resort. Tourists will not be able to visit it. If you are a tourist, then you must understand that you are not going to Bukovel – you are going to the red quarantine zone, a high-risk zone. We are making such a forced decision, and probably not the last. After all, the red zone, in which we live, is growing, and we do not see a trend towards its decrease,” said head of Ivano-Frankivsk Regional State Administration Andriy Boichuk.
The new rules will take effect from 24:00 on March 13.
“As of today, 51 administrative protocols have been drawn up in Bukovel tourist complex: for lift operators, ski equipment rental points. Additional checkpoints will be introduced on the territory of Polianytska territorial community. Only local residents or those who have a place of work in this settlement will be able to move freely, subject to quarantine requirements,” said Volodymyr Holubosh, head of the Main Department of the National Police in Ivano-Frankivsk region.
The state-owned Ukreximbank (Kyiv) has opened a long-term credit limit for Centravis Production Ukraine, part of Centravis Ltd., in the amount of EUR 35 million, which is equivalent to UAH 1.177 billion.
According to Centravis press release published on Thursday, March 4, the company is going to use these funds to produce new types of seamless pipes, introduce environmental and energy-saving technologies and further upgrade the production.
“The bank opened a credit limit of EUR 35 million for five years to maintain the high competitiveness of products in world markets as well as to ensure timely and full implementation of the investment program aimed at developing sales of high value-added products,” Director of Corporate Banking Department (private enterprises) at Ukreximbank Oleksandr Isniuk said, who is quoted by the press service.
In turn, Centravis CFO Alexandre Joseph added that raising funds in Ukreximbank would strengthen the company’s financial stability and would provide the opportunity to annually invest at least EUR 7 million in the development and output of new products.
“Since we work with world top brands, we need to be proactive and maintain focus on efficiency and customer service. We believe that cooperation with Ukreximbank is a classic win-win story for Ukraine. Our company exports over 98% of its products. The foreign exchange earnings amount to about EUR 150 million. This helps to improve the foreign trade balance of Ukraine and strengthen the ‘made in Ukraine’ presence in the world market,” Joseph said.
The press release recalled that despite the tailspin due to the coronavirus pandemic, Centravis maintained a stable position among the world’s best manufacturers of seamless pipes over 2020. The production volume amounted to 19,050 tonnes. The company doubled its EBITDA compared to 2019 — to EUR 14 million.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region).
Centravis is one of the world’s top ten players, supplies products to ThyssenKrupp, BMW, Alstom, Linde, Samsung, Volkswagen and other companies. The company employs over 1,400 employees.
Ukreximbank, the sole owner of which is the state, was established in 1992. According to the National Bank of Ukraine, as of January 1, 2021, in terms of total assets (UAH 246.877 billion), Ukreximbank ranked third among 73 banks operating in the country.
Quotes of interbank currency market of Ukraine (UAH for €1, IN 01.02.2021-27.02.2021)
Quotes of interbank currency market of Ukraine (UAH for $1, IN 01.02.2021-27.02.2021)
