Abromavicius calls for more state control over Motor Sich

Ukraine should be able to veto the Chinese acquisition
of aeronautics engine manufacturer Motor Sich (MSICH UK), head of Ukroboronprom
supervisory board Aivaras Abromavicius said in an interview with the
epravda.com.ua news site published on Nov. 28. “I am sure that in such a
sensitive sphere as intellectual property, the state should have the final word
on exports,” he said. “I believe that we should approve the same kind of law as
in development countries in which the state has the right to veto the purchase
of critically important enterprises by foreign investors.” He added that the
state should control sensitive technologies.

A controlling stake of 50% or more has already been
acquired by Chinese investors, Abromavicius said. “The buyer has asked for the
possibility to consolidate more than 50% of the factory’s shares. Yesterday we
submitted to the Anti-Monopoly Committee a request to extend the terms for two
months,” he said. “We want to reach an agreement with the new owners about our
relations. They want to sign new license agreements. So this situation will
continue for two more months. We will use this time for reaching specifics,” he
said.

Zenon Zawada: Motor Sich is a situation in which a valuable asset in located in a
state that is incapable of supporting or protecting it. It’s not realistic to
expect the inefficient Ukrainian government to control the firm. Given the high
stakes involved and U.S. attempts to undermine the sale, we can expect the
company’s future to remain in limbo for years.