Between 28 January and 2 February 2021, the president of Ukraine enacted three decisions of the National Security and Defense Council of Ukraine:

(“Sanctions Decisions”) imposing personal special economic and other restrictive measures (sanctions). The Sanctions Decisions target the following persons:

  • Chinese nationals Wang Jing, Du Tao, Cheng Huisheng and companies Skyrizon Aircraft Holdings Limited, Hong Kong Skyrizon Holdings Limited, Beijing Skyrizon Aviation Industry Investment Co. Ltd., Beijing Xinwei Technology Group Co. Ltd. and Twinstar Holdings S.A. (“Chinese Investors”) — the current and prospective shareholders of Motor Sich PJSC, a Ukrainian aircraft engines manufacturer. The aim of the sanctions is to prevent the concentration of shares of Motor Sich, one of the world’s largest manufacturers of aircraft engines, in the hands of the Chinese Investors.
  • JET4U, an airline company operating flights to the Crimea.
  • Ukrainian media tycoon Taras Kozak allegedly related to the pro-Russian politician Viktor Medvedchuk.
  • Ukrainian TV channels 112 TV, Zik, Newsone and certain other media companies beneficially owned by Taras Kozak (“Media Companies”).

The Sanctions Decisions impose the following restrictions:

  • assets freeze — temporary restriction of the right of a person to use and dispose of their property
  • restriction of trade transactions
  • restriction on the withdrawal of capital from Ukraine

The sanctions imposed against the Chinese Investors also include the following restrictions:

  • The Chinese Investors are prohibited from acquiring new shares in Motor Sich PJSC.
  • The increase of share capital in the Ukrainian companies in which the Chinese Investor directly or through other entities owns 10% and more of the share capital or otherwise exercises influence on the management of the company is prohibited.
  • Ukrainian residents are prohibited from entering into any transaction with respect to the securities issued by the Chinese Investors.

The sanctions imposed against TV channels 112 TV, Zik, Newsone and the Media Companies additionally prohibit:

  • the broadcasting of TV channels 112 TV, Zik, Newsone and the distribution of TV programs of the Media Companies
  • the provision of telecommunication services to the Media Companies and of the use of public telecommunication networks by the Media Companies
  • the transfer of technologies and IP rights to and from the Media Companies

The full list of legal entities and individuals subject to sanctions is set forth in the annexes to the Sanctions Decisions.

Any counterparty dealing with entities or individuals on the sanctions lists must carefully assess the exact scope of the sanctions applicable to a particular transaction and the implications of dealing with such entities and individuals.

Author: Hanna Shtepa.