New Round on Motor Sich

2 min read
New Round on Motor Sich
Security Service of Ukraine (SBU) has announced on March 19th that the Shevchenkivskyi District Court of Kyiv seized property and 100% of Motor Sich shares. The page stated that the property was transferred to the Asset Recovery and Management Agency (ARMA) management with the obligatory definition of a state-owned management company.

The press service of SBU states that the SBU Main Investigation Department is currently conducting a pre-trial investigation into Motor Sich in two areas.

The first area – upon the facts for sabotage and subversive activities in favour of Russia.

The second area – upon the facts of possible violations of the law during the initial privatization and subsequent illegal concentration of shares.

“It’s not just about the fate of one company, but about how the state can protect its interests. “After all, protection of Motor Sich is a matter of national security,” said the Head of the SBU, Ivan Bakanov.

JSC Motor Sich will continue its work within current legislation, preserving jobs and fulfilling obligations under production contracts.

New Round on Motor Sich

The first area of investigation will be followed under Articles 14, 15, 111 and 113 of the Criminal Code of Ukraine (for sabotage and subversive activities favouring the Russian Federation).

The second area of investigation –will be pursued under Articles 209, 212 and 364 of the Criminal Code of Ukraine. It examines violations of the law during the initial privatization and subsequent illegal concentration of shares.

On September 4th, 2020, Chinese investors of Motor Sich sent a notification to the Ministry of Justice of Ukraine about an investment dispute demanding the reimbursement of $ 3.5 billion (later, the amount of the lawsuit increased to $ 3.6 billion). In early December, the Chinese side appealed to international arbitration under an agreement between Ukraine and China on promoting and mutual protection of investments.

New Round on Motor Sich

Back in 2016, the Chinese agreed with Motor Sich owner Vyacheslav Boguslaev to buy the plant. However, the deal was not completed due to government intervention.

In July 2017, theSBU instituted criminal proceedings for sabotage. Since April 2018, at the SBU investigator’s request to preserve material evidence, the Motor Sich action has been under arrest.

New Round on Motor Sich

In January 2021, the United States blacklisted the Chinese company Skyrizon, trying to acquire Motor Sich and Ukrainian businessman Oleksandr Yaroslavsky.

Related Posts