According to a report by RIA Novosti on the 12th, Danilov, secretary of the Ukrainian National Security and Defense Committee, stated on the 11th that due to the strategic importance of the aerospace company Madasic to Ukrainian national security, Ukraine will re-nationalize it. The shareholders of Maasic include China Beijing Tianjiao Aviation Industry Investment Co., Ltd. (hereinafter referred to as Beijing Tianjiao). Chinese Foreign Ministry spokesperson Zhao Lijian responded to relevant questions at a regular press conference on the 12th, saying that China requires Uzbekistan to protect the legitimate rights and interests of Chinese companies and investors in accordance with the law, and properly handle related issues.
Danilov said on the 11th: “At present, a decision has been made that the Madasic company will be returned to the Ukrainian people. It will be taken back to the state by means of laws and constitutions in the near future, and the bill on nationalization will be submitted to the Parliament soon. Deliberation.” He also mentioned that the company’s investors will be compensated. It is understood that the privatization of Madasic was completed many years ago, but the United States opposes the acquisition of Madasic by Chinese investors. Amelin, an expert at the Institute for the Future of Ukraine, said that the re-nationalization of Madasić will deal a heavy blow to Ukraine’s investment environment and will arouse a strong response from China. He said: “This plan is unrealistic. After Ukraine takes this step, any country in the future will protect its investors and will never invest in Ukraine again. Ukraine’s move may be to restrict Chinese companies’ access to related technologies. But this is a big risk for Ukraine.” Boltnik, director of the Ukrainian Institute of Political Studies, also said that this decision is a bad sign for any investor, indicating that any investment in Ukraine requires Political protection, otherwise, foreign investors may become victims of geopolitical struggles at any time.
Russian Satellite Network said on the 12th that after Ukraine’s “People’s Public Servant Party” chairman David Alahamia claimed to submit a bill to nationalize the Madasi company, Beijing Tianjiao Aviation Industry Investment Co., Ltd. issued a statement stating that The nationalization of Sic is illegal and violates the rules of the market economy. Ukraine will be put to shame in front of the world for this.
Madsic is the only company in Ukraine that specializes in the production of aircraft engines. In recent years, Chinese investors and cooperative companies have seen the poor performance of Madsic and bankruptcy is imminent, so they came up with the idea of acquisition. However, the acquisition of Madasic by Chinese companies has been obstructed by the Ukrainian government. In August last year, the Ukrainian Anti-Monopoly Commission rejected the applications submitted by Xinwei Technology Group’s subsidiaries Beijing Tianjiao and DCH Group to buy shares in Madasiqi. In January of this year, Ukrainian President Zelensky signed an order to impose sanctions on four Chinese companies including Beijing Tianjiao and three Chinese citizens, all of whom are investors in Madassic.
According to Mironenko, an expert at the Institute of European Studies of the Russian Academy of Sciences, Ukraine’s main ally is the United States, and the Uzbek government hopes to get help from the United States, while the United States’ main opponent is China. The engine technology owned by Motor Sic is quite sensitive. Therefore, when making a decision, Uzbekistan will first consider the “worries” of the United States. It is not clear how the company will survive without the Chinese market. Uzbekistan’s move is depriving the company of the future of Madasi.