As a consequence of multiple years of violation of the powers of Chinese investors and shareholders of PJSC Motor Sich, Ukraine ended up in the 'blacklist' kept by the PRC – a list of countries banned or not approved by China for international business and investment cooperation with their companies.
It was stated by Yuriy Romanenko, the Head of Political Programs of the Ukrainian Institute of the Future.
‘Firstly we do sell Motor Sich to the Chinese, then we do not, because the United States has received a response. And we got to the Chinese 'blacklist' limiting strategic partnership with Ukraine or any regular business contacts for business because they got dumped. And not once,’ the expert wrote.
According to Romanenko, it is an outcome of the country’s vague external economic and political strategy, which creates potential disputes with all possible powerful strategic partners and harms the country, its economic interests, and international business ties.
Ultimately, due to its contradictory policies, Ukraine may lose any potential strategic partners.
Romanenko added that this way Ukrainian politicians ‘set them up for serious problems in relations with both China and the West once again.’
Let us recall that Ukraine blocked the activities of Motor Sich after the purchase of its shares by Chinese investors three years ago.
Now, the Ukrainian Ministry of Justice is considering a letter from Chinese investors with an offer for an out-of-court settlement of the situation with the participation of all interested parties within the framework of a special interdepartmental group.
If Ukraine continues to block the shares of Motor Sich, Chinese investors will go to international arbitration demanding compensation for losses of about $3.5 billion. According to the Institute of International Finance, China and its companies are one of the largest global suppliers of foreign direct investment for many countries of the world; foreign direct investment of companies from the PRC around the world amounted to $110.6 billion at the end of 2019.
China has been Ukraine’s #1 foreign trade partner since 2019.
