Motor Sich Not on Sale for Oboronprom

Owners of Ukrainian Motor Sich announced termination of negotiations on selling a portion of their enterprise to Russia’s Oboronprom, the subsidiary of Russia’s state arms trader, Rosoboronexport. The analysts attribute this move of Ukrainian company to changes in political environment in Ukraine, which strengthened the standing of Motor Sich chief, Vyacheslav Boguslaev. But Oboronprom has more optimistic explanation. It claims Motor Sich wants to bring momentum to dragging talks.
“So far, we have nothing to negotiate. Oboronprom failed to offer anything to us,” Vyacheslav Boguslaev, who is the general director and principal owner of Motor Sich said yesterday. So, the talks on Motor Sich future membership in the engine holding that is currently created by Oboronprom have been at least shelved.

“Once an integrated structure is set up in Russia, we will see its Charter and decide whether it makes sense to join it,” Boguslaev said, though only two months ago he appeared quite eager to cooperate with Russia and consider offers for selling the company’s stocks.

Motor Sich is one of the biggest engineering enterprises in Ukraine. It makes engines for helicopters (Mi, Ka) and planes (An-124, An-140, Yak-130). The management controls over 90 percent in the enterprise. Vyacheslav Boguslaev is the principal owner, according to informal data. The annual sales of Motor Sich are estimated at $300 million to $400 million.

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