China aims to buy Ukraine's aircraft engine factory, US quickly blocks
The US government was so concerned about the possibility of China successfully acquiring a Ukrainian engine factory that it immediately dispatched national security adviser John Bolton to Kiev.
RT reported that Mr. Bolton left for Kiev immediately after the G7 Summit in France ended on August 26. The US national advisor said he looked forward to meetings with "partners" in Kiev to promote Washington's vision of "a stronger and more prosperous Ukraine."
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| US National Security Adviser John Bolton is expected to meet with Ukrainian officials about the fate of the Motor Sich aircraft engine plant (right). Photo: Reuters |
However, Mr. Bolton did not comment on an article published in the Wall Street Journal last weekend, which asserted that one of the above meetings would be related to the fate of Motor Sich, the factory seeking approval from a Kiev-based supervisory agency to sell a large stake to two Chinese companies.
The move has raised alarm in Washington, where hawks fear Beijing will not only acquire the Zaporozhye plant, but also the technology and expertise to build aircraft and helicopter engines.
In 2017, Beijing Skyrizon Aviation Industry Investment tried to buy nearly 49% of Motor Sich, but Ukrainian security services blocked the deal. The sale of Motor Sich shares was also frozen in April 2018 to prevent them from falling into the hands of “unapproved parties.”
Now Beijing Skyrizon has joined forces with Xinwei Group to make another attempt, this time to acquire more than 51% of the Ukrainian plant. While the remaining 25% of Motor Sich is expected to be sold to Ukroboronprom, a Ukrainian state-owned military corporation.
The deal needs to be approved by the Ukrainian Antimonopoly Committee, where Bolton is scheduled to visit during his ongoing trip.
Motor Sich was founded in 1907 and is currently Ukraine's only aircraft engine factory. The company has fallen into a difficult situation.
Antonov, a company that specializes in manufacturing transport aircraft using Motor Sich engines, also had to close in 2016 and merge with Ukroboronprom after Kiev rejected a deal to receive Chinese investment to complete the An-225 strategic transport aircraft model.
Last August, after pressure from Washington blocked Motor Sich's chances of partnering with the Chinese, a Ukrainian politician said it would only be fair if the US replaced China as a customer.
“If the Americans don’t want us to sell to China, let them buy our aircraft engines,” said politician Oleh Lyashko. However, Mr. Lyashko’s party lost last month’s parliamentary elections, so it has no say in the matter.
New Ukrainian President Volodymyr Zelensky, who won a landslide victory over US-backed rival Petro Poroshenko in April's general election, has received numerous "red alerts" from Western non-governmental organizations and has directed his priorities toward joining the North Atlantic Treaty Organization (NATO).
It remains to be seen whether Mr. Zelensky will yield to pressure from Washington like his predecessor, at least regarding the fate of the Motor Sich Plant.
