As Ukraine-based JSC Motor Sich competes with JSC Russian Helicopters to get Indian Air Force’s contract of overhauling VK -2500-3 engines of Mi-17 V 5 helicopters, it faces scrutiny for having major Chinese investments.
It is alleged that Beijing’s Skyrizon Aviation holds around 80 per cent of Motor Sich through several foreign companies and small shareholders.
Motor Sich is facing an inquiry back home from various agencies. It is stated that security services in Ukraine have alleged that the purchase of the company’s stock by Skyrizon Aviation is an attempt to take its assets out of their country.
In its defence, Motor Sich states that there was, “no direct financing by China or purchase of shares or joint ventures” and they took loan on interest from Skyrizon, which it has to repay with interest by 2026. Last month, JSC Russian Helicopters and Motor Sich entered into competition with each other to get an overhauling deal from IAF.
The bid was issued on August 10, 2020. Both the companies participated in the bid opening which was held on September 22, 2020 at the Air Force Headquarters in New Delhi.
JSC Russian Helicopters’ claims JSC Russian Helicopters participated in the bid opening under designer/OEM certificate issued JSC UEC (United Engine Corporation) Klimov. It found that Motor Sich also participated in the bid.
JSC Russian Helicopters thereafter conveyed to IAF that VK-2500-03 engines latest “overhaul manual have never been handed to any other enterprise.” It also stated that the information is confirmed by the Federal Air Transport Agency of the Russian Federation.