On January 29, Ukraine announced sanctions against legal entities and individuals who invested in Madasic, including four Chinese companies and one Chinese citizen, RIA Novosti reported.
The four companies are “Tianjiao Aircraft Holdings Ltd”, “Hong Kong Tianjiao Holdings Ltd”, “Beijing Tianjiao Aviation Industry Investment Co. “Beijing Xinwei Technology Group Co., Ltd.” and the Chinese citizen is Wang Jing, born in 1972. They were subjected to a number of restrictive measures such as freezing of assets, restriction of transportation, prohibition of transit of their resources, aircraft, etc. through the territory of Ukraine and prevention of capital flight from Ukraine for three years.
The matter started when the Chinese shareholders of the Ukrainian aero-engine giant Motor Sich, Dah Chong Hong Group Ltd. and Tianjiao Aircraft Holdings Ltd. tried to acquire the shares of Motor Sich last year, but were rejected by Ukraine.
At the Time, sources said that Ukrainian President Zelensky said that the decision was made on the basis of so-called “geopolitical risks”. However, some analysts say that Ukraine cancelled the acquisition due to pressure from the United States. China’s DCH filed an international arbitration against Ukraine in December last year, demanding compensation.
According to Dovetail, a pro-China overseas Chinese media outlet, Madasich is a major Soviet defense enterprise and one of the world’s most important aircraft engine manufacturers, operating engines for military aircraft, cruise missiles and helicopters. Some Russian experts have pointed out that once China gets hold of the company, it could greatly simplify and reduce maintenance costs for helicopters, with significant benefits for controlling the design and manufacture of engines.
The U.S. Department of Commerce last year blacklisted the Chinese company Tianjiao as a “military end-user”, with 58 Chinese and 45 Russian companies on the list.
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