Chinese investors of Motor Sich say number of plaintiffs rises, arbitration claims against Ukraine reach $3.6 bln
Chinese investors of PJSC Motor Sich have increased the preliminary cost of claims against Ukraine in international arbitration from $3.5 billion to $3.6 billion, according to the website created by them for the company shareholders' meeting, which was never held on January 31 this year.
"The increase in the amount of the previous claims is due to the fact that the initial group of plaintiffs was expanded to include several more Chinese shareholders, who also suffered significant losses due to Ukraine's actions in violation of its international obligations," the plaintiffs said.
According to them, the investment dispute should be heard by an ad hoc arbitration court, which is currently being formed by the parties.
As reported, the Chinese investors notified Ukraine of filing a claim with international arbitration on December 5, 2020 seeking the recovery of $3.5 billion in connection with the violation of their rights. Their interests will be represented by international law firms WilmerHale, DLA Piper and Bird & Bird. Arzinger will act as an advisor on Ukrainian law in international arbitration.
According to a source in the government, currently about 75% of Motor Sich's shares are already owned by a group of Chinese owners, and some part of the disputed stake acts as collateral for financing provided, among other things, by China Development Bank.
Early August 2020, Beijing Xinwei announced that it had abandoned its attempt to obtain permission to purchase Motor Sich together with the Ukroboronprom state concern, and now Yaroslavsky's DCH is its new partner. The companies have already submitted applications to the Antimonopoly Committee of Ukraine four times, the last time in December last year, but to no avail.