The Chinese company Skyrizon, an investor in the Ukrainian aircraft engine manufacturer Motor Sich, has demanded $ 4.5 billion of compensation from Ukraine through the Permanent Court of Arbitration in The Hague for violation of the investment agreement between the two countries. This was reported by the Global Times.
"Beijing-based Chinese investment company Skyrizon announced on Sunday that it has submitted the application for arbitration to the Permanent Court of Arbitration in The Hague, requesting a ruling that Ukraine had violated the Sino-Ukrainian bilateral investment agreement, demanding $4.5 billion compensation for alleged unfair treatment of Chinese investors by Ukraine," the message says.
According to the announcement, Chinese investors have suffered significant losses both in Ukraine and in China due to a five-year unfair treatment and the continued implementation of illegal measures in Ukraine. The company said that it will use all possible legal weapons to defend its legitimate rights.
On January 29 this year, Ukrainian President Volodymyr Zelensky signed an order imposing sanctions on three Chinese citizens and four Chinese companies, including Skyrizon to freeze its assets in Ukraine.
Earlier, in 2019 half of the shares of the enterprise were bought out by the Chinese investors. But on January 29 this year, President Volodymyr Zelensky imposed sanctions against Chinese investors of Motor Sich. Sanctions were imposed for three years. Restrictions include blocking assets, restricting trade operations, and preventing capital outflows from Ukraine.
On March 26, Zelensky put into effect the decision of the National Security and Defense Council of March 11 to return PJSC Motor Sich to state ownership. Shortly afterward, China urged the Ukrainian authorities to protect the rights of Chinese Motor Sich investors.
PJSC Motor Sich is one of the world's largest manufacturers of engines for aircraft and industrial gas turbines. It delivers products to more than 100 countries.