The President has an opportunity to return ‘Motor Sich’ to the traditional niche of the world aviation industry leader
An intriguing development has appeared in the infamous story of ‘Motor Sich’. It promises Ukraine a real chance to regain its world position as a leader in the aircraft industry.
Leading domestic experts came to this opinion, assessing the joint appeal of the Chinese Skyrizon and the Ukrainian DCH Group to the Antimonopoly Committee of Ukraine with an application for the acquisition of a controlling stake in the Zaporizhzhia engine-building plant.
On August 6, 2020, the parent structure of Beijing Skyrizon, the Chinese company Beijing Xinwei Technology Group Co., Ltd., announced the fact of applying for the purchase of ‘Motor Sich’ assets together with Aleksandr Yaroslavskyi's DCH Group.
Volodymyr Zelenskyi’s reaction was immediate. The President instructed the Cabinet of Ministers to remove all factors hindering the development of Ukrainian strategic assets and to assess the impact on the economic security of the investment agreement on ‘Motor Sich’.
The expert community of Ukraine appreciated the event, calling on Zelenskyi to cut the Gordian knot of the toxic heritage of the pigs and return ‘Motor Sich’ to the traditional niche of the world aircraft industry leader.
According to Aleksandr Okhrimenko, Director of the Ukrainian Analytical Centre, the Antimonopoly Committee of Ukraine’s interference in the Skyrizon investment project already being implemented at ‘Motor Sich’ was beneficial to Poroshenko and the “Svinarchuks’”, but completely contradicted the sound national interests of Ukraine.
Now, Mr Zelenskyi has a unique opportunity to revive the strategic plant as the largest Ukrainian investor in the person of Aleksandr Yaroslavskyi is ready to enter the enterprise together with the Chinese.
‘The situation with interference in the deal by the Antimonopoly Committee and the Security Service of Ukraine is quite strange, but only for those who do not understand Ukrainian realities. In fact, Poroshenko and his “Svinarchuks” blocked the project of cooperation between ‘Motor Sich’ and the Chinese, when the investors already invested a lot of money in a Ukrainian enterprise. It is is not a very pleasant legacy for President Zelenskyi. When did the Antimonopoly Committee catch on? When the Chinese side applied for concentration in a large block of several disparate blocks of shares of the enterprise! And if the documents would not have been submitted? A Chinese company, whose shares are the exchange, acted under the generally accepted international practice of transparent business conduct – announced the concentration. In the same way, the Security Service of Ukraine “suddenly” acted – also after the transaction. Mr Zelenskyi now has the opportunity to chop off this “legacy of the Svinarchuks” and give “Motor Sich” a chance to develop, and Ukraine to preserve technologies and technological production,’ Okhrimenko is convinced.
Sergey Belashko, Director of the Agency for Social Communications, is in solidarity with his colleague. He believes that although the statements of Volodymyr Zelenskyi on the situation around PJSC ‘Motor Sich’ are weaselled, the essence is that it is time for Ukraine to determine its priorities, i.e. whether to keep scientific developments, personnel, technologies and niche leadership in the production of aircraft engines or constantly looking back at their American ‘friends’ and finally lose positions in the international market and tens of thousands of jobs in the high-tech industry in 3-5 years.
‘Having retained a strategic enterprise, a promising industry and qualified personnel, Ukraine can apply for participation in projects worth billions of dollars. The games of the “Svinarchuks” around PJSC ‘Motor Sich’ and their attempts to “participate” in a deal worth many millions of dollars influence the process, like when the dogs bark, but the caravans move on. Mr Zelenskyi will have to make a choice. But to make the right decision, the President must have an extraordinary scale of personality and state thinking. Will Mr Zelenskyi be able to demonstrate these qualities, we will see,’ Belashko says.
In 2016, ‘Motor Sich’ was acquired by Chinese investors related to Skyrizon, investing more than $100 million in the development of manufacturing. Subsequently, the case touched a transfer a 25% stake in ‘Motor Sich’ to the State Concern ‘UkrOboronProm’. However, in June 2020, Ruslan Korzh, Advisor to the General Director of UkrOboronProm, said that ‘the offer is no longer relevant.’
In response to the President’s appeal, Denis Shmygal, Prime Minister, said that the further fate of ‘Motor Sich’ should be decided by the court, saying ‘Ukraine is a state with a market economy. Accordingly, the state cannot interfere in the sale of blocks of shares to some investors or the purchase of these shares. And here, in fact, the question is in the manner of arbitration disputes. The decision should be made not by politicians, but by impartial institutions that are intended for this all over the world. "
Source: https://delo.ua/business/zelenskij-dolzhen-dat-motor-sichi-shans-na-razvi-371432/
