Chinese lawsuit against Ukraine

RUSSIA / FSU POLITICS - In Brief 22 Dec 2020 by Alex Teddy
On December 17 investors from China launched a legal action against the Ukrainian Government. They brought a USD 3.5 billion arbitration case. Kyiv refused to allow the aviation engine manufacturer Motor Sich to be sold to the Chinese. The US lobbied hard for Kyiv to do this.Skyrizon is the organization that filed the case. They claim that the Ukrainians took their investment in Motor Sich because their shares were frozen.Vyacheslav Bohuslayev owned Motor Sich. He wanted to sell it to Skyrizon. The US did not want such aircraft technology falling into Beijing's hands.Motor Sich is badly in need of investment. The company has thousands of employees who face being laid off. No NATO country company wants to buy it.The Chinese investors tried and failed to get their shares unfrozen. They have appointed arbitrators to sort it out as provided for by the Ukrainian-Chinese Investment Treaty.Skyrizon needs to demonstrate that it is a private company and not a semi-state one. It also needs to prove that the shares were bought transparently or the action shall fail.China has a cooperative relationship with Moscow but it is also fraught. Beijing backs Ukraine on the Crimean issue.

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