The United States is concerned about China’s attempts to purchase a controlling stake in Ukrainian engine manufacturer Motor Sich, according to Secretary of State Michael Pompeo.
During a phone call with Ukrainian President Volodymyr Zelenskiy on Aug. 26, Pompeo called Chinese investments into Ukraine “malign,” the State Department said in a readout of the call.
The U.S. has strongly opposed the possible sale of aerospace giant Motor Sich and its advanced technology to China long before the call.
The Zaporizhia-based company is strategically vital to Ukraine — it is one of the world’s largest manufacturers of turbine engines and engine parts for civilian and military aircraft.
So when the company’s president, former pro-Russian lawmaker Vyacheslav Boguslayev, said that he sold his stake in Motor Sich to Chinese state-owned companies in 2019, it provoked sharp criticism.
The Pentagon and NATO believe that Chinese investment in Ukraine may be a double-edged sword for the country and its allies.
But China appreciates Ukrainian military technology. The country is eyeing Motor Sich to build a fleet of modern, next-generation helicopters, probably in partnership with Russia.
The decision on China’s acquisition of the company cannot be finalized without the approval of Ukraine’s Antimonopoly Committee. The committee may prevent the purchase. However, the deal is still under review, although the preliminary date for the committee’s review to conclude expired in February.
