Ukraine’s National Securities and Stock Commission (NKCPFR) will move forward with the nationalization of several companies related to the so-called local “oligarchs” (some of which have maintained business relations with Russia even after the invasion).
among which is Motor Sich, manufacturer of engines that have equipped aircraft such as the Antonov An-124, An-225, Yakovlev Yak-42 and the Beriev Be-200, as well as military helicopters such as the Mi-8AMTSh-VN “Sapsan”, KA-52 “Alligator” and Mi-28N “Night Hunter”.
This decision, Interfax-Ukraine agency reported, is based on the law on transfer, expropriation, or seizure of property under the legal regime of martial law dated November 6.
The Ministry of Defense of Ukraine will be responsible for managing the account to which the shares will be transferred, and, regarding the payment of the corresponding compensation, it is specified that in case it cannot be made immediately, it will be made within the next five budget periods after the abolition of martial law. The valuation of expropriated property will be made following the processes established in the relevant legislation.
Vyacheslav Boguslaev, president of Motor Sich, was arrested at the end of October on charges of collaborationist with Russia after it was detected that even after the invasion suffered by Ukraine, engines and other spare parts for military helicopters from that country continued to be supplied. This businessman sold in 2017 56% of the company’s shares to the Chinese holding company Beijing Skyrizon Aviation.
According to a publication of Forbes Ukraine, “due to the presence of violations, in particular, to compliance with antitrust legislation, transactions with shares of “Motor Sichi” were blocked”, which led to the Chinese company to make a claim before an international court for USD 4.5 billion.
Washington objected to Chinese investors acquiring Motor Sich and, in the last days of President Donald Trump’s administration, Washington added Skyrizon to a list of companies linked to Defense technology procurement, called MEU, short for Military End-User, restricting their access to US exports.
In January 2021, Motor Sich even made a sale of four hundred engines to China to power its JL-10 advanced trainers, in the absence of a local solution. The Chinese government’s interest is logical. They wish to acquire Ukrainian know-how in modern aircraft motorization, which is an area where local developments are not occurring as quickly as required.
In addition to Motor Sich, the Ukrainian government will also nationalize Ukrnafta, Ukrtatnafta, AvtoKrAZ and Zaporizhtransformator.
