23 Jan 2024 10:20

Ukrainian authorities seek to nationalize assets of former Motor Sich president

MOSCOW. Jan 23 (Interfax) - Ukraine's Justice Ministry filed a lawsuit in the country's High Anti-Corruption Court on January 22 to seize the assets and corporate rights of former Motor Sich president Vyacheslav Boguslayev and former Borisfen Avia LLC CEO Petr Konenko.

The lawsuit seeks to apply sanctions prescribed by Article 4.1.11 of Ukraine's Law on Sanctions to Boguslayev and Konenko, Ukrainian media reported, citing the ministry's statement.

The ministry is asking the court to seize for the state more than 30 pieces of real estate (residential and nonresidential buildings and land), as well as corporate rights in more than 10 legal entities from Boguslayev and Konenko, who are "linked by constant business ties." This includes stakes of up to 100% in insurance company Motor-Garant, the Vinnytsia Aviation Plant and MSB Helicopters, as well as trademarks and patents to industrial designs.

Boguslayev and the director of Motor Sich's foreign trade department were detained by Ukraine's Security Service in October 2022 on charges of collaboration. All of their assets, totalling over UAH12 billion, were frozen as part of the criminal case.

In early November 2022, the Ukrainian authorities announced the seizure of shares in five strategic companies, including Motor Sich, Ukraine's largest manufacturer of aircraft engines and gas turbines.

Boguslayev was Motor Sich's largest shareholder prior to the sale of a controlling stake in the company to China's Skyrizon. This stake was subsequently frozen by a court order and the Chinese investors tried unsuccessfully for several years to officially complete the purchase. In January 2021, Ukraine imposed sanctions against the Chinese investors involved in this deal. The owner of Skyrizon Aircraft Holdings, Wang Jing said earlier that the deal was carried out in July 2016.

President Vladimir Zelensky signed a law in June 2023 to remove from the market banks of countries subject to sanctions. This law also applies to Boguslayev's Motor Bank. The National Bank of Ukraine stripped Boguslayev of the right to vote 100% of shares in the bank in November 2022.

The official exchange rate was UAH37.53/$1 on January 22.