Chinese investors had tried to take over the Ukrainian Motor Sich through a "straw man construction". The government stepped in and blocked the transaction. The Chinese are now suing some US $ 3,6 billion in damages in court. The investors want to demand this amount from the government of Ukraine.
The matter is highly explosive because the government feared that Motor Sich's technology and know-how could be transferred to China and used there for military projects. According to the local news agency, the government is now facing a claim for damages in the amount of 3,6 million US dollars. For the stocks that are frozen due to a decree, the Chinese paid only $ 700 million.
As if that weren't enough: the Chinese Foreign Ministry also intervened in the meantime and called on Ukraine to respect the rights of companies and investors from China. The Ukrainian government countered and asked for additional information about the buyers and the origin of the funds.
The diplomatic tensions have no impact on the flight operations of Motor Sich Airlines, which is a subsidiary of the group concerned. The carrier built recently canceled the offer. Apart from a few international routes, Motor Sich Airlines primarily flies within Ukraine.