Page 81 - UKRRptFeb21

under my presidency...During my presidency, this will not be the case.”
Following the president’s decree, which introduced a decision of Ukraine’s Security and Defense Council, Ukraine’s Security Service blocked Motor Sich’s shareholder meeting scheduled for January 31. At the meeting, the shareholders were planning to initiate the replacement of the company’s supervisory board, which is still controlled by “red director” Viacheslav Boguslayev (who allegedly sold his stake in the company to Chinese investors in 2016-2017).
In its comment on January 30, Skyrizon called the development “a barbaric robbery and a serious violation of the legitimate rights and interests of Chinese companies” and a “serious violation” of the agreement on the mutual encouragement and protection of investments between Ukraine and China. The company promised to use all available means to protect its legal rights and interests.
The Ukrainian sanctions only add uncertainty about the future of Motor Sich, which is one of the most economically successful and technologically advanced Ukrainian aerospace & defense companies. Namely, they increase the risk that Motor Sich will continue losing its markets, orders and workforce, thus lowering any chance for its turnaround. While the interests of the U.S. in sanctions against Motor Sich's shareholders are clear – the nation will benefit from the failure of the aviation giant – the reasoning for the Ukrainian sanctions looks unclear. By having satisfied the ambitions of the U.S. government to kill the company, the Ukrainian president is working against Ukraine’s industry and its plan to create jobs in Ukraine. Moreover, the Ukrainian sanctions against Skyrizon are much stricter than those introduced by the U.S. government.
81​ UKRAINE Country Report​ February 2021 ​ ​www.intellinews.com