The introduction of sanctions by the state of Ukraine against Chinese shareholders of Motor Sich is ‘a barbaric robbery and a significant violation of their legal rights’. The Chinese shareholder of Motor Sich intends to use all possible legal means, including international arbitration, to strongly protect its legitimate rights and interestsm, as was stated in the official statement of Skyrizon on the website of the Extraordinary Meeting of Shareholders of Motor Sich PJSC.
As per their statement,"After the entry into force of the above-mentioned sanctions, SKYRIZON, as a shareholder of Motor Sich, will be illegally deprived of its legal rights, obligations and obligations, and the company will also be forced to terminate generally accepted business relations with the Ukrainian company Motor Sich, which will entail huge irreversible losses. On the part of Ukraine, such actions are barbaric robbery and serious violation of the legitimate rights and interests of Chinese companies working abroad, unprecedented disrespect for the principles and rules of international trade, as well as a serious violation of the relevant provisions of the "Agreement between the Government of Ukraine and the Government of the People's Republic of China on the Promotion and Mutual Protection of Investment".
Skyrizon added that Zelensky's decree does not contain specific reasons for the introduction of these sanctions, so there is "reason to believe that these are deliberate actions of the Ukrainian state in order to prevent SKYRIZON's investments in the Ukrainian company Motor Sich and prevent the implementation of the international cooperation project. We have reason to believe that such actions coincide with the purpose of the U.S. Department of Commerce's Bureau of Industry and Security (BIS) action, dated January 14, 2021, to include SKYRIZON in the Military End-User List (MEU)”.
The document describes a complete chronology of attempts to resolve the situation. Skyrizon noted that since July 2017, the company has been negotiating with the state of Ukraine in the hope for peaceful resolution of the investment dispute. Starting in August 2020, Skyrizon was forced to take a number of legal actions " in the face of the long delay, deliberate evasion of issues and even malicious defamation by the State of Ukraine. On December 9, 2020, after multiple good faith negotiations failed, SKYRIZON began international investment arbitration against the state of Ukraine. At the moment, an official response has been received from the state of Ukraine, the parties are negotiating and planning to participate in the arbitration process. On January 13, 2021, on the basis of an investigation by the State Bureau of Investigation and its conclusions on the relevant actions of the Security Service of Ukraine (SBU), the Pechersk District Court of Kyiv issued a decision in which it recognized SKYRIZON and Chinese investors as a victim of illegal actions of the SBU”.
“In order to avoid further deterioration of Motor Sich's business conditions, Motor Sich shareholders, who own more than 80% of shares, planned to hold a general meeting of shareholders on January 31, 2021. It was at this point that the Ukrainian leadership issued sanctions decrees against SKYRIZON, which illegally, unreasonably and grossly deprived SKYRIZON of its legal rights. The State of Ukraine has abandoned the results of previous negotiations and completely excluded any possibility of reconciliation between the two sides.," it was said in the statement of the Chinese shareholder of Motor Sich.
In addition, Skyrizon was outraged by the statement of Ukrainian Foreign Minister Dmitry Kuleba.
"Such lies and irony will cause indignation around the world," Skyrizon said. "Sanctions against the company are erroneous and stupid actions that can only scare away potential investors to Ukraine from all over the world, finally driving Ukraine into a desperate situation, worsen the nowadays shaky economy of Ukraine and making the life of the Ukrainian people traumatized and devastated by military shocks even worse with the decline of well-being... Actions contradicting the common sense, loss of trust, lost, shameless covering of the criminals -, all this leads to the condemnation by the entire world community."
The summary of the statement says that Skyrizon strongly opposes the criminal actions of the Ukrainian state, the substitution of national security concepts, mixing truth with lies, politicization of normal economic and trade activities, abuse of state power and unjustified pressure on Chinese enterprises.
"Skyrizon always complies with the law and acts respectively. The company always hopes for a peaceful resolution of conflicts, but will never be afraid of violence; we will use all possible legal means to strongly protect our legitimate rights and interests," the document summarizes.