China opposes unilateral sanctions by foreign governments on Chinese enterprises and hopes that Ukraine will protect the legitimate rights and interests of Chinese enterprises and investors, said Wang Wenbin, spokesman for the PRC Ministry of Foreign Affairs.
“China as always opposes unilateral sanctions on Chinese enterprises by foreign governments. In the meantime, we ask Chinese enterprises to abide by laws when doing business overseas. We hope the Ukrainian side will uphold the legal rights and interests of Chinese enterprises and investors,” he said a press conference on Monday, the MFA’s website reports.
At the same time, the Internet edition of ZN.UA reported that on Monday the Ministry of Foreign Affairs of Ukraine received a note from the Ministry of Foreign Affairs of the PRC, in which it expressed concern over the actions of Ukrainian authorities against Chinese investors in Motor Sich, in particular the use of sanctions against Chinese companies and their management.
President of Ukraine Volodymyr Zelensky, by decision of the National Security and Defense Council (NSDC), on January 29 imposed sanctions on Chinese citizen Wang Jing and related Beijing Xinwei Technology Group Co., Ltd; Beijing Skyrizon Aviation Industry Investment Co., Ltd (both are based in Beijing); Skyrizon Aircraft Holdings Limited (British Virgin Islands) and Hong Kong Skyrizon Holdings Limited (Hong Kong), which in recent years have been trying to implement the rights of PJSC Motor Sich shareholders, who are placed on the sanctions list of Ukraine.
According to the decision of the NSDC and Zelensky decree No. 29 dated January 28, 2021, the sanctions imposed for three years provide, in particular, the blocking of assets, restriction of trade operations, partial or complete cessation of the transit of resources, flights and transportation across the territory of Ukraine. Other restrictions include preventing the withdrawal of capital from Ukraine, a complete ban on transactions with securities of which they are issuers, and a ban on the purchase of enterprises in Ukraine. The list of sanctions also includes a ban on increasing the size of the charter capital of business entities in which sub-sanctioned persons own 10% or more, and cancellation of official visits, meetings, negotiations on the conclusion of contracts or agreements.
John Bolton, who at the time was National Security Advisor to then President Donald Trump, spoke about concerns of the United States about the sale of Motor Sich to Chinese owners during a visit to Kyiv at the end of August 2019. At the end of 2019, Chargé d’Affaires of the United States in Ukraine William Taylor said that the United States is counting on a new deal to attract an American or other investor to Motor Sich so that the enterprise is not sold to the Chinese buyer. According to Interfax-Ukraine, this issue was also raised during the visit of U.S. Deputy Secretary of State Stephen Biegun to Ukraine at the end of August 2020.
In addition, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce early January 2021 put the Chinese company Skyrizon on the Military End-User (MEU) List, cooperation with which requires additional permits. Chinese state-owned company Skyrizon has also been added to the economic blacklist, due to its desire to acquire and indigenize foreign military technology, U.S. Secretary of Commerce Wilbur Ross said.
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.
Ukraine has started preparations for negotiations on new agreements on a free trade area (FTA) with Egypt, Jordan, Indonesia and China, Minister of Economic Development, Trade and Agriculture Ihor Petrashko has said.
“Preparations are underway for negotiations on an FTA with Egypt, Jordan, Indonesia and China,” he said during a press conference in Kyiv on Tuesday.
He also said Ukraine has started negotiations with the EU on revising the Association Agreement.
Petrashko said the additional capitalization of the Export Credit Agency (ECA) to UAH 2 billion, which is provided by the 2021 national budget, will strengthen Ukraine’s export positions
Ukraine is holding negotiations with China on the delivery of a coronavirus vaccine, Ukrainian Foreign Minister Dmytro Kuleba said.
“[China says] that they stand ready to supply it. The Health Ministry has concrete information, and we are helping them now in order to facilitate certain contacts between representatives of the Health Ministry and representatives of the [vaccine] producer,” Kuleba told the Ukraine 24 TV channel on Thursday.
The Interdepartmental Commission on International Trade (ICMT) has completed a review of antidumping measures regarding the import of seamless stainless steel pipes to Ukraine from China, extending their effect for another five years.
According to a report in the Uriadovy Kurier newspaper published on December 19 of this year, the measures were revised in connection with their expiration.
Based on the results of the revision, the ICMT found that the level of anti-dumping measures applied was sufficient to prevent dumping of imports and causing damage to the national producer; the position of exporters and economic conditions are such that the possibility of new types of dumping that will harm domestic producers is not ruled out.
The current voluntary pricing commitments from foreign manufacturer/exporter Zhejiang Longda Stainless Steel Co., Ltd are sufficient to prevent dumping and damage.
“National interests require the continuation of anti-dumping measures regarding the import of seamless stainless steel pipes to Ukraine from China,” the commission said.
In this regard, the commission decided to complete the revision and extend the anti-dumping measures applied by its decision of November 27, 2014 for another five years. At the same time, extend the voluntary price commitment of Zhejiang Longda Stainless Steel Co. to stop dumping imports of seamless stainless steel pipes to Ukraine from China. The final anti-dumping measures should not be applied to this manufacturer/exporter, due to the fact that the voluntary obligation to stop dumping imports to Ukraine continues.
The decision of the commission made on December 14, 2020 came into force from the date of publication of this report (from December 19, 2020).
Nova Poshta Global, part of the Nova Poshta group of companies, has created an additional hub for international shipments in Lviv: it launched charter flights to Lviv airport and opened the second central sorting station.
According to Nova Poshta, the first charter flight from the United States flew to Lviv in early December. On board were more than 15,000 items of the NP Shopping service with a total weight of over 30 tonnes. Nova Posta Global plans to operate flights from the United States regularly, twice a week: one flight to Lviv and one to Kyiv.
In addition, the company plans to carry out charter flights from China both to Lviv and Kyiv. In particular, on December 6, a flight with departures from the Chinese online store AliExpress, on board of which there were 60,000 parcels with a total weight of 20 tonnes, already arrived at Boryspil International Airport.
“Soon we expect the arrival of two more flights, which will deliver about 20 more tonnes of cargo,” the company said.
Previously, the company’s flights with international departures arrived only at Boryspil airport, and went through customs clearance and sorting at the central station in Kyiv.
Since the beginning of this year, Nova Poshta Global has more than doubled its volumes, delivering 5.7 million shipments: an increase that has put additional strain on the sorting station.
The third container train from China on a new route, which delivered 41 forty-foot containers with shoes, non-ferrous metal products, medical and pharmaceutical equipment, consumer goods and other combined cargo, arrived at the Kyiv-Lisky station.
The press service of Ukrzaliznytsia reported last week, the company has already received 17 trains from different regions of China. These trains run from Wuhan and Jinannan and carry 43 containers with various cargoes: magnesium sulfate, equipment, aluminum frames, disposable syringes, PET bottles and light industrial products.
Trains cover the distance of transportation, which is more than 9,000 km across the territory of four countries, in 15 days.
Ukrzaliznytsia will continue receiving trains from China according to a new logistics scheme with a further increase in their frequency.
“The introduction of new logistics schemes for the transportation of goods allows attracting additional cargo flows and opens up new opportunities for the users of transport services to deliver goods to their destination. This work is carried out together with the solution of pressing issues regarding tariff policy, technical re-equipment, improving the technology of the transportation process and services,” the company said.
Ukrzaliznytsia added that its branch Lisky center of transport service plans to continue active work on identifying new promising routes for container trains.
