China’s Skyrizon takes Ukraine to The Hague over failed Motor Sich bid
- Chinese company seeks US$4.5 billion in compensation over deal scuppered on national security grounds
- Rare move could open up new route for Chinese investors looking for redress, observer says
Observers said the request for arbitration was rare and reflected a growing awareness among Chinese companies about resorting to the law under increased scrutiny on national security grounds.
Beijing Skyrizon Aviation Industry Investment said its Chinese investors, including its founder Wang Jing, had filed an application to the Hague-based Permanent Court of Arbitration over the failed purchase of Motor Sich, one of the world’s advanced military aircraft engine manufacturers.
“Chinese investors have suffered significant losses both in Ukraine and in China as a result of the unfair treatment by Ukraine against Chinese investors over the past five years and the continuing implementation of illegal measures,” the company said in the statement on its WeChat account on Monday.
Skyrizon, which has sought to acquire a controlling stake in Motor Sich, has accused the Ukrainian government of violating a reciprocal investment protection agreement signed between Beijing and Kyiv in 1992, adding that it had not ruled out the possibility of pursing further damages.