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The Ukrainian authorities continue the line of behaviour, which the Chinese investors of PJSC Motor Sich regard as an attempt to expropriate their investments.
One and a half months have already passed since they filed a claim and a proposal to start negotiations, but the working group has not yet been created, and Ukraine has come closeк to the prospect of paying a $3.5 billion fine in arbitration. This is the opinion of the well-known expert Aleksandr Okhrimenko, states Ukrnovosti.
‘Surprisingly, the Ukrainian authorities have done completely nothing to avoid the international arbitration court for Motor Sich so far. Chinese investors proposed a pre-arbitration settlement on August 4, submitting a claim to the Ministry of Justice, but the discussion of the issue has not yet begun! Neither the Cabinet of Ministers, nor the NSDC, nor the SSU, nor the AMCU, none of the relevant ministries bothered to address the issue that could cost Ukrainian taxpayers $3.5 billion!’ says Okhrimenko.
According to the expert, the Ukrainian government does not show the slightest interest in negotiations with the Chinese investors in Motor Sich. But this ‘ostrich’ policy does not help to resolve the issue constructively but brings the state of Ukraine closer to international arbitration step by step. ‘Since the working group has not been created, the negotiation process has not moved from its place. And the court process is more and more entering into the picture ahead. And it will cost Ukraine $3.5 billion and cause practically uncompensated damage to the remnants of our investment image,’ said Aleksandr Okhrimenko.
The expert confirmed the information that one of the largest and most respected law firms from the USA represents the interests of Motor Sich in international arbitration.
‘This further increases the chances of Chinese investors to win in court and makes it almost inevitable to pay a multi-billion dollar fine if it comes to international arbitration. At the same time, the participation of American lawyers completely dispels the myth that everyone in the United States is violently opposed to Chinese investments in Motor Sich. Americans are pragmatic in everything, and we need to follow their example,’ Okhrimenko is convinced.
As it is known, Chinese investors from Skyrizon sent a letter to the Ukrainian government about their intention to start international arbitration against the state of Ukraine. Now, the corresponding claim has already been submitted to the Ministry of Justice, as a representative of Skyrizon said. In the document called Notice of Investment Dispute in legal practice, the Chinese investors of Motor Sich claim that Ukraine violated its international obligations, enshrined in the Agreement between the Government of Ukraine and the Government of the PRC on the encouragement and mutual protection of investments. The damage from the current situation, which negatively affects the relationship of Skyrizon and its affiliated structures with banks and stock exchange quotations, is estimated by Chinese investors at more than $3.5 billion. They call on Ukraine to immediately begin negotiations and stop the illegal activities of the Ukrainian authorities concerning PJSC Motor Sich and its shareholders. If Ukraine is unable to respond quickly and start negotiations or otherwise fulfil its international obligations, Chinese investors will use their right to initiate arbitration.
