In News

Sanctions against Chinese investors Motor Sich: who benefits from and why Experts told who will win and who will lose from Ukrainian sanctions against Chinese investors

Sanctions against Chinese investors Motor Sich: who benefits from and why Experts told who will win and who will lose from Ukrainian sanctions against Chinese investors

President of Ukraine VolodymyrZelenskyy introduced changes to the NSDC decision of December 14, 2020 on the application of personal special economic sanctions against Chinese investors in Motor Sich. Given that he previously presented Ukraine as an ideal country for investment. Why everything turns out exactly the opposite and what needs to be done to change the situation – “Comments” were analyzed together with experts.

Investments or selfish motives

Academician, First Vice-President of the Academy of Economic Sciences of Ukraine Anatoly Peshko believes that China wants not so much to invest money as to get access to the technical documentation of Motor Sich. But also the actions of the Ukrainian authorities (both Petro Poroshenko, in which they approved the admission of Chinese investors to the enterprise, and VolodymyrZelensky, in which Chinese investors sent an investment dispute to international arbitration in order to recover damages from the state of Ukraine, which was estimated at $ 3.5 billion. ; now also sanctions)he considers it extremely unprofessional. “China wants to get access to our technologies. The ability to produce unique motors for helicopters, planes, tanks. Outbid our specialists. There are also geopolitical tensions (Ukraine imposed sanctions after the United States, which is fighting with China for various markets, – ed.). All this could have been foreseen if the state were ruled by competent people.It should be reasonable to write out the requirements for investors so that they invest in production, stimulate sales.In parallel – to create the most favorable conditions for investment, to give guarantees of the possibility of making a profit, to reduce the tax pressure. We have no guarantees (laws do not work), taxes are huge. What kind of attractiveness can we talk about? This year we were not even properly represented at the Davos Economic Forum. The very same place where Zelensky last year promised large investors special protection conditions and tax holidays for 5 years. This is the silence …Because there is nothing to imagine! The economy has collapsed, state lands have been plundered, “Anatoly Peshko emphasizes. According to the expert, Zelensky and his entourage do not have enough knowledge and experience to not only proclaim beautiful slogans, but also to implement them. And this, Anatoly Peshko notes, concerns not only promises to investors …


Deputy Director of the National Institute for Strategic Studies, YaroslavZhalilo, emphasizes that favoring foreign investors does not at all mean promiscuity in accepting foreign capital. “The determining factors that shape the attitude towards investors should be transparency, reliability of data on the owners of financial resources, compliance of these investors with modern standards of the international community, which include, in particular, environmental requirements, lack of connection with criminal activities and terrorism, non-proliferation of defense technologies and dr.The sanctions against Chinese businessmen do not contradict the intentions of supporting investors, which were previously guaranteed by the president. here we are talking about preventing the proliferation of defense technologies “, – explains YaroslavZhalilo. He also emphasizes that it is important to control the behavior of investors in the country: compliance with the requirements of fair competition, compliance with labor law, environmental requirements, financial control regulations, etc. Support the same investors, according to YaroslavZhalilo, primarily concerns the solution of legal issues, the protection of property rights, information support.

A hopeless situation

Political expert Svetlana Kushnir comments on the situation as follows: “Well, well. This was to be expected! When the experts warned that the games with Motor Sich are fraught with consequences, they did not hear or listen to us … Now, the situation with relations with China – not so hot, so now we are imposing sanctions. ” We brought ourselves into a hopeless situation ourselves, the expert notes. “To get involved in a fight between China and the United States, despite the fact that we have missed the chance to enter the new Silk Road (read – to receive a huge financial resource from China), that we are dependent on loans and US policy – you need to be able to do this”- Svetlana Kushnir emphasizes. In her opinion, an attempt to rectify the situation (blocking the implementation of the contract, including with the help of the AMCU and the SBU, now it has come to sanctions) presents Ukraine in a very bad light. “Part of the pan-Asian economic community is receiving a clear signal that it is better not to do business with Ukraine if you don’t want to lose a lot of money.Representatives of the Western business and financial world will also become even more away from us, for we are a strange investment entity … We know how to walk on a rake. This time we just got a bigger rake. It would be nice to punish those officials who at one time “contributed” to the conclusion of this contract, “sums up Svetlana Kushnir. Let us remind you that Ukrainian experts explained the situation around Motor Sich and gave their forecasts about the future of the enterprise.