China asks Ukraine to properly resolve the conflict issue surrounding the purchase of Motor Sich shares by Chinese investors, Chinese Foreign Ministry Spokesperson Hua Chunying said at a briefing, answering a question from the RIA Novosti Russian state agency about the reaction to possible nationalization enterprises by decree of the President of Ukraine.
“China asks the Ukrainian side to protect the legitimate rights and interests of Chinese enterprises and investors in accordance with the law and properly resolve the relevant issues,” Chunying said in a transcript of the March 25 briefing on the Chinese Foreign Ministry’s website.
The spokesperson said that the Foreign Ministry was informed about the relevant documents on Motor Sich.
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.
Citizen of China Wang Jing and affiliated Beijing Xinwei Technology Group Co., Ltd; Beijing Skyrizon Aviation Industry Investment Co., Ltd (both based in Beijing); Skyrizon Aircraft Holdings Limited (the British Virgin Islands) and Hong Kong Skyrizon Holdings Limited (Hong Kong), which have been trying in recent years to realize the rights of PJSC Motor Sich shareholders in Ukraine, have been included in the sanctions list of Ukraine.
According to the decision of the National Security and Defense Council (NSDC) and the decree of President of Ukraine Volodymyr Zelensky dated January 28 (No. 29), the sanctions imposed on them for three years provide, in particular, the blocking of assets, restriction of trade operations, partial or complete cessation of transit of resources, flights and transportation on 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 the persons under sanctions own 10% or more, and the cancellation of official visits, meetings, negotiations on signing contracts or agreements.
