EAVEX Weekly

May 02, 2018
 

Kyiv-listed stocks ended mixed last week after the local market was stunned by a court ruling that suspended trading in Motor Sich, one of the most liquid issues on the Ukrainian Exchange. A Kyiv court temporarily froze circulation of MSICH shares amid a criminal investigation into the non-transparent sale of majority stake in Motor Sich to Chinese individuals affiliated with Beijing Skyrizon Aviation. In other developments around Motor Sich, the Ukrainian Security Service (SBU) searched the headquarters of Motor Sichs in Zaporizhia on Apr 23, stating that Skyrizon Aviation Industry Investments had bought a controlling stake in Motor Sich in 2017 from majority owner Viacheslav Boguslaev without the Anti-Monopoly Committee’s approval. The SBU claimed that this purchase was part of a “sabotage plot” to give foreigners control over one of Ukraine’s strategic factories in order to damage the country’s defense industry. Motor Sich is Ukraine’s monopoly aircraft engine producer.