Ukrainian President Volodimer Zelensky appears to have halted long-standing efforts by the Chinese-backed company Skyrizon to acquire engine maker Motor Sich.
On January 29, Zelensky issued a presidential decree sanctioning Skyrizon and its boss Wang Jing.
Antonov An-124s are powered by four Sich Progress D-18T engines.
Punishments related to Wang are in effect for a period of three years, blocking his right to use and dispose of assets in Ukraine, as well as restricting his ability to travel to or within the country.
Another decree applies similar restrictions to four entities associated with Wang: Skyrizon Aircraft Holdings, Hong Kong Skyrizon Holdings, Beijing Skyrizon Aviation Industry Investment, and Beijing Xinwei Technology Group.
The sanctions, announced on January 15, coincided with the Trump administration adding Beijing Skyrizon Aviation Industry Investment to its military end-user (MEU) list, making it difficult for US companies to do business.
2017 media reports indicate that Skyrizon has accumulated around 80% of Motor Sich shares. This raised concerns in Washington, D.C. that the company's propulsion capabilities could fall into the hands of Beijing, which has been focused heavily on developing the ability to mass-produce aircraft engines. Ukraine, for its part, sees the United States as a vital ally against Russia.
Major engines in the Motor Sich portfolio include the Progress D-18T, which powers Antonov's An-124 and An-225 strategic transports, the Ivchenko AI-25 training aircraft, including China's AVIC Hongdu JL-8, and the Progress D -436 equips the An-148 and Beriev Be-200. It also manufactures Progress D-27 for the An-70 transport aircraft.
In an interview with HBO Axios on January 23, Zelensky stated that Ukraine is opening its doors to do business with all countries, but is setting the benchmarks by selling a stake in a strategic company like Motor Sich.
"The problem is not related to China," he said. "The question is not even how the shares of Motor Sich were bought under the former president, under [Petro] Poroshenko. The problem is that we have no right to sell the majority stake in the management of strategic defense companies in Ukraine to any country ... "My presidency remains. I am not here forever, and I am not the Secretary-General. During my presidency, this will not be the case."