Saturday, March 27, 2021

Ukraine is not afraid of CCP

Editor : Xie Jinghan / Source : Voice of America / https://www.aboluowang.com/2021/0327/1573730.html / Direct translation / Image : Web Screenshot


News (1)

Unite with Canada to ask the CCP to release people immediately

After the CCP began a closed-door trial of two Canadians on March 19, Ukrainian Foreign Minister Kuleba said on the same day that Ukraine is united with Canada and Ukraine called on the CCP to release them immediately.

Kuleba said on Twitter that the trial process of the two Canadians must be honest and transparent, and they must also be guaranteed the right to legal defense and the consular services provided by Canada.

In the past, Ukraine was usually more cautious when it came to CCP affairs. The CCP’s current relationship with Canada is indifferent. Ukraine is now supporting Canada to criticize the CCP. Such moves are rare in Ukrainian diplomacy.

News (2)

Canada has helped Kiev.  Ukraine returns support in favour

Ukraine and Canada have always had close ties. Canada has a large Ukrainian immigrant community, and many local Ukrainian expatriates have actively supported the 2014 Ukrainian Square Revolution.

After Russia annexed Crimea and invaded eastern Ukraine, Canada has provided Ukraine with a lot of assistance and support. Freeland, a well-known Canadian politician, actively promoted Canada to help Ukraine train military personnel during his tenure as foreign minister. Freeland’s mother family immigrated to Canada from Ukraine. She herself worked in Kiev and speaks Ukrainian.

News (3)

Completely eliminate the CCP’s freezing of all assets and real estate of "Madasić"

On the same day that Ukrainian Foreign Minister Kuleba issued a document in support of Canada’s criticism of the CCP, a court in the capital city of Kiev ordered the freezing of 100% of the company’s equity and all the company’s real estate, and the frozen equity was handed over to the Ukrainian government. Managed by a government department. This government department is mainly responsible for investigating, wanted and managing assets acquired due to corruption and crime. The State-owned Ukrainian National Defense Industry Corporation, which is responsible for arms exports and the defense industry, has already expressed its intention to participate in the management of "Madasić". The Ukrainian government had earlier decided to nationalize the "Madasić" company.

Ukrainian media reported that Chinese investors currently hold approximately 75% of the controlling interest in "Madasić". But the management and operation of the company is still in the charge of the former boss Boguslayev's team. From the Soviet era, Boguslayev has been leading this enterprise. Chinese investors tried to convene a general meeting of shareholders in January this year to seize the management and operation rights of the company, but failed. Ukrainian security agencies dispatched special forces military police to patrol and stand guard at the factory, and local parliamentarians also came forward to organize people to demonstrate in the factory area to prevent Chinese investors from controlling the enterprise.

News (4)

Different responses will affect the investment climate and the interests of retail investors

The "Madasić" incident has not only become the focus of Ukrainian society, but also aroused various reactions. Many people support the nationalization of the authorities. An influential Ukrainian media person and current affairs commentator Portnikov said that the authorities' actions successfully prevented Ukraine's cutting-edge technology from falling into the hands of the CCP.

However, some Ukrainian economic and business people believe that "Madasić" stocks can be freely traded, and that the government's nationalization has broken Ukraine's national image, especially the investment climate, and investors will be discouraged from Ukraine.

The remaining approximately 19% of "Madasic" is held by minority shareholders and retail investors, including some employees of "Madasic". The shares held by these employees were acquired in the privatization of the company. These small shareholders originally expected that after the acquisition by Chinese investors, the price of their stocks would rise sharply, but now they have all become waste paper.

Ukrainian activist Semy Kikiko, who represents the interests of minority shareholders, said that after the court freezes 100% of the shares and transfers them to government agencies for management, the interests of about 3,500 minority shareholders and retail investors have been harmed, and the loss can reach US$100-200 million.

News (5)

Russia is concerned about whether there is an opportunity for Ukraine to try to balance the forces of all parties

Russia is also paying close attention to the development of this incident, especially the possible future direction of relations between Ukraine and the Chinese Communist Party. The Russian media has extensively reported and analyzed the CCP’s acquisitions and various possible retaliations by the CCP against Ukraine. Some analysts believe that China's failure to acquire Ukrainian engine companies will make the CCP continue to rely on Russian engine supplies, and Russian companies will receive more orders from the CCP. Moscow also hopes that the CCP can stand more on Russia's side on the Ukrainian issue.

Ukrainian Foreign Minister Kuleba once said that how to handle the "Madasić" incident and the relationship between Ukraine and the CCP depends on how Ukraine balances various forces and influences.

Ukrainian strategic issues scholar Bulkovsky said that the CCP does not like Ukraine being too backward to the West. If Ukraine can balance the strengths of all parties and at the same time increase its own strength, it will be more confident when fighting the CCP.

Bulkovsky: "If Ukraine’s internal political situation is stable and its national power increases, it is an important balancing force between the European Union and Russia, the Black Sea and Central Europe. In this case, it will be easier to find a match with Beijing’s interests. Place."

The CCP is currently Ukraine's largest trading partner country. Ukraine’s exports of iron ore, metals, and especially various agricultural products are very dependent on the Chinese market. Beijing’s response so far is still limited to the statement of the Chinese Ministry of Foreign Affairs, demanding Ukraine to safeguard the rights and interests of Chinese investors.

At the same time, the first batch of COVID-19 vaccines provided by the CCP to Ukraine arrived in the capital Kiev on March 25.


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