Motor Sich is a Ukranian aircraft maker. Credit: Mixabest.

A Ukrainian court has rejected an appeal filed by China-based Skyrizon Aircraft Holdings to unfreeze the shares of aircraft engine manufacturer Motor Sich.

This ruling by the Kiev court has come as a major setback for Skyrizon Aircraft Holdings, which has sought to acquire Motor Sich in a transaction that was opposed by the US, which is the biggest military aid donor to Ukraine.

Although the Chinese firm acquired a majority stake in Motor Sich, the shares were frozen in 2017 following a probe by Ukraine’s security service SBU.

Since Ukraine’s relations with Russia soured after Moscow annexed Crimea peninsula in 2014, both the US and China have been competing to gain influence in Ukraine, reported Reuters.

The Kiev court froze the shares over the pending SBU investigation into whether the selling of shares of Motor Sich will impact its national security as it could allow sensitive technology into the hands of foreign company.

Dated 13 March, the ruling was shared with the parties last week.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Skyrizon intends to launch further appeals, reported Reuters.

Motor Sich cut its association with its biggest customer Russia following the latter’s annexation of Crimea.

It is reported that the firm is now operating at less than 50% capacity.

Former Prime Minister Anatoliy Kinakh told Reuters that ‘Motor Sich has become a hostage to the geopolitical situation’ and has urged for a quick resolution to the issue.

The state’s anti-monopoly panel has begun its probe and is waiting to secure more documents to decide whether the sale can be approved.