Our Ref: 115/К
To the President of Ukraine
To the Prime Minister of Ukraine
To the Chairman of the Verkhovna Rada of Ukraine
To the Heads of Parliamentary Parties of the VRU
D.H. Arakhamia (SP)
Y.A. Boyko (OPFL)
V.Z. Rabinovich (OPFL)
Y.V. Tymoshenko (Fatherland)
A.V. Herasymov (ES)
I.V. Herashchenko (ES)
S.I. Rakhmanin (Voice)
V.V. Bondar (For the Future)
T.I. Batenko (For the Future)
O.I. Kulynych (Trust)
Official Address of the President of DCH Group
Regarding Motor Sich JSC
Only by preserving and developing the manufacturing industry and, above all, the high-tech mechanical engineering, Ukraine can prosper in the modern world of technological revolutions. At the same time, unfortunately, we observe some real-life processes that contradict this strategic vector ensuring the global competitiveness of the Ukrainian economy.
Almost three months have passed since the Chinese investors of Motor Sich JSC sent a notice to the Ministry of Justice of Ukraine as to the start of the $3.5-billion investment dispute with Ukraine. Internationally, as a rule, this is the period set aside for the pre-arbitration resolution that has not taken place in this case.
Accordingly, the Chinese investors of Motor Sich JSC, including our partner Skyrizon Aircraft Holdings, are clearly aimed at seeking justice in international arbitration. Over the past four years, they have not been able to exercise their rights as the shareholders due to the actions of the Ukrainian authorities that violate the bilateral Agreement on the Encouragement and Reciprocal Protection of
Investments between Ukraine and China dated December 31, 1992, and see no prospect of any fair resolution in the Ukrainian legal environment.
The experts from the most respected law firms worldwide are convinced that the Ukrainian authorities have no reason to prevent the Chinese investors of Motor Sich JSC from contributing to the development of the Ukrainian economy and the industry revival. With a high degree of certainty, the international court of arbitration will have the same opinion.
As a sincerely committed citizen of Ukraine and a businessman interested in its economic growth, I consider it my duty to try to prevent the upcoming unfavourable sequence of events that could cause severe damages to the financial position of our country and its international reputation.
Moreover, extremely significant damages are already evident.
Today, Motor Sich JSC is one of the largest enterprises in one of the largest Ukrainian cities – actually stands idle without sales markets and any investments in modernization. It loses unique experts and puts its employees on forced leaves. And every minute the situation is getting more complicated and irreversible.
Motor Sich and the Ukrainian aircraft industry as a whole deserve a better fate than a slow death due to a lack of investment resources and technological degradation.
As historical figures to whom the Ukrainian people have entrusted the levers of state power, you have a chance to stop the escalation in the conflict situation and make a landmark and far-sighted decision – to stop violating the rights of the Chinese investors of Motor Sich JSC. And the sooner this is done, the better it is for Ukraine, Zaporizhzhia region and thousands of employees of Motor Sich JSC.
If someone – due to the lack of information – has any concerns about the compliance of the commercial transaction between the private legal entities with the national interests of Ukraine, then DCH Group is a guarantor of the compliance with these interests by acquiring 25% +1 shares of Motor Sich JSC. The DCH’s investment portfolio has enough successful anti-crisis management cases when financial injections and efficient management brought plants and factories back to life in order to make sure that it will achieve success this time too.
I believe that this chance will be taken, while double standards and politically motivated prosecution of legitimate businesses will be a thing of the past. I ask you to help resolve the situation with Motor Sich JSC before it is too late.
Owner and President of DCH Group