Viktor Medvedchuk: Ukraine’s sanctions against China is a negative message to investors, contributing to further rapid capital outflow from the country
The Ukrainian government has ceased to create even an image of independence from the external rule of the United States of America. No sooner had the US Department of Commerce introduced sanctions against the Skyrizon Chinese company, as the Ukrainian government, trying to please the overseas rulers, introduced sanctions against Skyrizon and a number of other Chinese companies – shareholders of the Ukrainian Motor Sich enterprise.
The White House initially openly opposed the acquisition of Motor Sich by the Chinese company, indignant that Beijing would use Ukrainian technologies. “Secretary Pompeo expressed US concern about China’s ill-intentioned investments in Ukraine, in particular Beijing’s efforts to acquire the Motor Sich engine manufacturer”, the media quoted the State Department’s communiqué following a conversation between the US Secretary of State and the Ukrainian President in August 2020.
This is despite the fact that the reputation of Ukraine in relation to investors has long and seriously damaged, and the scandal over Kiev’s violation of the rights of Chinese shareholders of Motor Sich has already reached the international arbitration court.
Moreover, China has so far remained our country’s largest trading partner. According to the State Customs Service, trade between Ukraine and China in 2020 increased to USD 15.4 billion (from USD 12.79 billion in 2019), and Beijing remains the main exporter of Ukrainian products and the largest importer to Ukraine.
The declaration by the Ukrainian authorities of a sanctions war against the world’s largest economy does not just look ridiculous. This is Kiev’s complete foreign policy mistake. The unfriendly policy of official Kiev towards Beijing can seriously undermine the position of Ukrainian exporters on the world market and provoke an even more active outflow of investments from Ukraine than the one that has already been observed in recent years. This, among other things, is also a clear signal to all potential investors to bypass Ukraine due to its complete dependence on the external control of the United States, as well as the corruption prevailing in our country, the insecurity of investments and the poorly predictable policy of the authorities towards foreign capital.
Due to manual control by the United States, Ukraine has long lost its political identity in the world arena. Now our country is also deprived of its main trade and economic partners, left with nothing but huge debts and complete dependence on Western creditors who are ready to buy up Ukrainian assets for peanuts. The Ukrainian government consistently, using illegal administrative methods, destroys their competitors, which directly goes against the interests of the Ukrainian people.
Chair of the Political Council of the Opposition Platform - For Life party