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Feb 12, 2021
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The gap between Kiev and Beijing as Zelensky’s stump of branches of a Ukrainian tree

The tree of Ukraine has not turned green. Those who promised to achieve this, with the desperation of the doomed, did exactly the opposite. They are diligently sawing the last branches, on which they were going to sit out in a critical period for the country.

The oldest trees in Ukraine are the same age as Kievan Rus

The oldest trees in Ukraine are the same age as Kievan Rus

To please the new American administration, on January 28 and 29, Vladimir Zelensky imposed sanctions against Chinese investors in Motor Sich by two decrees. In addition to Wang Jing, the key shareholder of this strategically important engine building enterprise, Chinese citizen, these measures apply to Chinese companies. Hong Kong Skyrizon Holdings Limited, Skyrizon Aircraft Holdings Limited, Beijing Xinwei Technology Group Co., Ltd and Beijing Investment Company Skyrizon Aviation Industry Investment Co., Ltd. They provide blocking of assets; prohibition of the withdrawal of capital and resources outside Ukraine; prohibition to make transactions with securities, the issuers of which are persons who have come under the sanctions; failure to provide or cancellation of visas to persons involved in sanctions.

On January 31, the Security Service of Ukraine disrupted the holding of an extraordinary meeting of shareholders of Motor Sich, which was initiated by Chinese investors and a Ukrainian businessman, the owner of the company. DCH Alexander Yaroslavsky. Life at the enterprise is mainly glimpsed only on the line for the production of motors for Turkish drones “Bayraktar”. However, the Turks also suspended new orders, worried about the example of the confiscation of Chinese shares.

Such a turn was not expected even by the many-wise accustomed Chinese, who are now the first trade partners of Ukraine. In 2019, they pushed Russia to second place in this indicator (over $ 10 billion a year).

Beijing can hardly understand how, after such unfriendly steps, Kiev intends to maintain the achieved level of cooperation. After all, this is not just an unprecedented impudence, but some kind of complete recklessness from the point of view of Ukraine’s economic interests. Ukrainian experts can explain the chosen sharp form of resolving the situation with the stay of the Chinese on Motor Sich with only one. Zelensky, worried about the lack of any contact with the newly elected US President Joe Biden, who has not even expressed a desire to speak to him at least by phone, decided to attract the attention of the American leader in such an expensive way. The United States has long sought to completely eliminate the PRC companies from the Ukrainian remnants of the former Soviet military-industrial complex. Only did the President of Ukraine think about what consequences this will bring not to him personally, but to his people from China?

V. Zelensky

V. Zelensky

Beijing’s response was immediate. Ukrainian Foreign Ministry speaker Oleg Nikolenko admitted that the Chinese side, not prone to public scandals, in early February of this year. has already sent a confidential note to Kiev. According to the information that appeared, this note provides for a number of painful measures against Ukrainian exports to the PRC of corn, soybeans, wheat, sugar and other agricultural products, as well as metal products. Taking into account the low European quotas, Ukraine, in fact, has no other markets for the sale of these products.

MID KNR

MID KNR

But in the 2019-2020 marketing year, Ukraine’s exports to China amounted to 6.3 million tons of grain, in July 2020 – January 2021 it has already reached 6.9 million tons. In monetary terms, this brought Ukraine $ 1.87 billion in 2020. And the prospects were optimistic: Kiev and Beijing had already agreed on the access of Ukrainian wheat, peas, sorghum and other crops to the Chinese market. Russian manufacturers can rub their hands. Isn’t this “zrada”?

The Chinese edition of Huanqiu Shibao writes that “Pro-Western Ukrainian politicians”Apparently, they proceeded from the fact that Chinese diplomats always care about the feelings of cooperation partners, and the sanctions mainly concern individual companies. Therefore, they expected that China’s response to sanctions would not inflict serious losses on them. However, their assessment was erroneous, and the Chinese side immediately expressed with all severity and seriousness its position, speaking out categorically against such unilateral sanctions. It is impossible to imagine what other reaction Zelensky’s “woodcutter” expected from Beijing, but Ukraine will receive a powerful retaliatory blow along all lines, and most importantly, those who provoked this new economic conflict from Washington and are not going to somehow compensate for the expected losses to Kiev.

“Now you can forget about the project” One Belt, One Road “, – said the Ukrainian economic expert Oleksiy Kushch. In his opinion, Ukraine could earn only on this project due to the logistics margin of 10-15 percent of GDP. And because of the “motor scandal” she “fell out of the radar of Chinese investors forever.”

Megaproject

Megaproject “One Belt, One Road” and Ukraine

As they think experts, Ukraine also expects the activation of China in international courts, and not only in a claim for $ 3.5 billion, which investors filed in connection with Motor Sich, but also for the return of investments that were made before. We are talking about a loan in the amount of $ 1.5 billion, which the state Export-Import Bank of China provided to the State Food and Grain Corporation of Ukraine (GPZKU) in December 2012 for the purchase of grain. The Chinese claim that “… the Ukrainian authorities, by their behavior, expropriated their investments, as well as violated other rights provided for by the current agreement on the promotion and mutual protection of investments signed on October 31, 1992 between the governments of Ukraine and China.”

The question arises, where does Ukraine get money to pay off these amounts in case of a loss in court? Its GDP is falling rapidly and there are no sources to increase the budget revenues. There is only one traditional way – to increase prices, taxes and utility tariffs. However, this will inevitably lead to an increase in social protests, in which the authorities, for lack of other resources, will have to rely only on the restraining force of the bayonets.

Another Chinese foreign economic publication argues that China should think about supplying Ukraine with vaccines against COVID-19… In his opinion, cooperation should be based on mutual trust, and “Ukraine’s unfounded sanctions against Chinese companies are unlikely to make China believe that Ukraine sincerely wants to cooperate with China.”… The newspaper believes that the Chinese vaccine should be provided to Ukraine only after the payment of compensation demanded from it in court in the amount of $ 3.5 billion.

Chinese vaccine

Chinese vaccine

And if there is no Chinese vaccine, then for Ukraine there will be only British rejected in many countries of the European Union AstraZeneca, the efficiency of which is in the region of 60-70%, in contrast to, say, 91.6% of the “proudly rejected” by Kiev Sputnik V… In addition, as the doctors established, AstraZeneca is not suitable for the elderly at all and has serious side effects. So, a few days ago, the German media reportedthat in older citizens the effectiveness of the British vaccine is only 8% and it is ineffective against new strains that may appear after vaccination. It has already been officially abandoned in 11 states – Greece, Spain, France, Germany, Belgium, Denmark, Sweden, the Netherlands, Poland, Italy, Portugal. But it is for the supply of 12 million doses AstraZeneca (more than 90% of all purchases, for the elite – a couple of percent Pfizer) Ukraine has already signed a contract not subject to rejection. Another step by the country’s leadership, dictated by anything but concerns about the population.

Marriage from AstraZeneca for Ukraine

Marriage from AstraZeneca for Ukraine

This is how, consistently “chopping off the branches of its own tree,” Zelensky’s team brings itself and the country to a state where it will only sit on bayonets. And this, as you know, is not the most convenient position for any government.

Cover photo: Ukrainian-Chinese cooperation in the production of aircraft engines is all in the past

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