The interest of Aleksandr Yaroslavskyi, famous Ukrainian businessman, owner and president of DCH, in the aircraft industry will help Ukraine solve several economic and political problems.
This opinion was expressed by experts interviewed by the editors' office, commenting on the resonant statement of the DCH group on reaching an agreement with Chinese investors representing Skyrizon Aircraft Holdings Limited.
Let us remind you that we are talking about joint activities of the Ukrainian and Chinese parties to develop aircraft manufacturing and, in particular, the aircraft engine building enterprise ‘Motor Sich’ (Zaporizhzhia).
‘Any cooperation with Chinese investors is good. Over 29 years after the establishment of diplomatic relations between Ukraine and the People’s Republic of China, investments have come next to nothing,’ Ihor Lytvyn, Ukrainian diplomat, Head of the Board of the Association of Ukrainian-Chinese Strategic Partnership, commented on the prospects for joint Ukrainian-Chinese projects.
In his opinion, any configuration of such future cooperation will benefit Ukraine. The country will be able to preserve technology, develop aircraft production, and extract additional income from its presence on the international market.
Taras Zagorodnyi, the political scientist, also noted that such cooperation opens excellent prospects for Ukraine. ‘There is China’s interest, they have a big problem – they have an aircraft program, but no engines. Despite their technological breakthrough, which they have made over the past 20 years, they have an issue with aircraft engines. They want to launch civil aircraft, too, etc. China is a large sales market,’ the expert explained.
At the same time, experts recalled that the interests of large geopolitical players intersected around the ‘Motor Sich’ plant, which is why the Ukrainian enterprise cannot develop, emphasizing that politics should not interfere with the economy.
‘This is a commercial transaction. As far as I know, everything was legal. What do the Americans have to do with it? What does the Ukrainian government have to do with it? We are talking about completely legal transactions that were made back in 2016. Then everyone, including the Americans and the Antimonopoly Committee, woke up in 2019! And now something incomprehensible is happening around this,’ Lytvyn says.
The current situation can be resolved purely on the economic manner.
‘This is a question with very high stakes. Where will the enterprise be located? How will the employees work? Where will the technologies go and will they go? If everything remains in Ukraine, this is a big plus that Yaroslavskyi can do. I do not know Yaroslavskyi’s interest in this deal yet but let us see where all this will come. If there is a defence staff order in Ukraine, for example, and it is localized on our territory, then the stable profit will not hurt anyone. I do not exclude that Yaroslavskyi is interested in the defence order,’ Zagorodnyi said.
‘Motor Sich’ is one of the world’s largest enterprises for the manufacturing, testing, maintenance and repair of 55 types and modifications of economic and reliable engines for 61 types of aircraft and helicopters for various purposes. The company was acquired by Chinese investors associated with Skyrizon in 2016, investing more than $100 million in the development of production. The investors intended to transfer 25% of the shares to the state voluntarily. However, in June 2020, Ruslan Korzh, Advisor to the General Director of the State Enterprise ‘UkrOboronProm’, said that the proposal was irrelevant.
In recent years, Aleksandr Yaroslavskyi has acquired the Kharkiv Tractor and Dnipro Metallurgical Plants, the Sukha Balka mine, has an experience in the development of the Kharkiv International Airport and is building the Dnipro International Airport as a private investor. The businessman has also repeatedly confirmed his interest in participating in the ‘big privatization’ of large-scale industry enterprises.
