U.S. Attempting To Prevent China From Buying Motor Sich - Media

The United States’ National Security Adviser John Bolton is trying to block China’s pending acquisition of the Motor Sich company, a Ukrainian producer of aircraft engines and gas turbines.

According to the Interfax Ukraine news agency, this was reported by The Wall Street Journal, which cited senior officials within the United States presidential administration.

According to the publication, the United States believes that this deal will give Beijing vital defense technology, and Bolton's personal involvement in the deal underscores its growing importance to the United States’ national-security establishment.

According to media reports, Bolton will visit Kyiv this week, during which he plans a meeting with the management of Motor Sich.

As reported, on June 7, the government of Ukraine (represented by the Ukroboronprom state defense concern), the Skyrizon company (China), and the Xinwei Group (China) jointly applied to the Antimonopoly Committee of Ukraine to authorize Skyrizon and Xinwei to acquire more than 25% and 50% of the shares in Motor Sich, respectively, and jointly manage and control the company with Ukroboronprom.

The relevant package of agreements was signed on June 19. The package of agreements, which was also submitted to the Antimonopoly Committee for examination, will enter into force automatically if the antimonopoly committee approves the deal.

The Antimonopoly Committee of Ukraine announced in early July that it had begun considering the proposed deal and that it would accept comments and proposals until July 22, but the committee has not yet announced its final decision.

As the CFTS portal reported, Skyrizon and Xinwei Group assumed a number of social and manufacturing obligations in their application to the Antimonopoly Committee of Ukraine for approval of the deal to acquire more than 50% of Motor Sich, including the obligation to preserve jobs and salaries and place sufficient orders to ensure development of Motor Sich.

It was also reported that the Chinese companies would provide a grant of USD 100 million to Ukraine if the Antimonopoly Committee authorizes acquisition of more than 50% of Motor Sich. Provision has already been made for these funds in the special fund of Ukraine’s state budget for 2019.