Kiev «slept through» the attack of China on the Ukrainian economy

© RIA Novosti / Stringreplace in fotoracconti at the facility Alpine gas-compressor station Volovets in the Carpathian region. Archival photoKiev «slept through» the attack of China on the Ukrainian economy© RIA Novosti / Stringreplace the image Bank

China becomes largest investor in a number of sectors of the Ukrainian economy, writes «».

While the Kiev authorities are at war with an imaginary «Russian aggression» in the struggle for Ukrainian resources to the leaders coming out of China with significant opportunities and a clear strategy.

Chinese loans and investments exceeded loans from the IMF, together with three billion dollars from Russia. The risks are minimal — loans with the goods against the security of the product itself.

So attractive to Chinese investors turned out to be alternative energy. At the end of 2016, the Chinese company CNBM, has issued the right of ownership of the 10 largest solar power plants in Ukraine with total capacity of 267 MW, giving a total of about a billion dollars.

Funding in this case came in the form of commodity loans: supplied hi-tech equipment which was vital. After the Ukrainian company could not pay for it, it became the property of the Chinese Corporation.

«The acquisition of control over assets was completed in exchange for the repayment of irrevocable and besaratinia debt for that amount for commodity transactions for the supply of equipment,» — said the General Director of CNBM Yunji Chen.

The same scheme can be implemented with «Ukrtelecom», which in 2015 has signed an agreement with China Development Bank (CDB) and Huawei on the modernization of telephone networks and the Internet. Under the agreement, Chinese investors put the «Ukrtelecom» equipment pledge of the equipment, which costs $ 45 million. From CDB «Ukrtelecom» has received a loan of $ 50 million with maturities up to 2023.

At the end of 2016, the outstanding loan amounted to almost $ 13 million. Meanwhile, the total amount of pledges of «Ukrtelecom» at the end of last year amounted to 11.8 billion hryvnias (about $ 450 million). The entire property is estimated at about $ 4 billion (154 million dollars).

The interest of the Chinese causes and Ukrainian traditional energy. At the end of 2012, «Naftogaz» has agreed with China development Bank (China Development Bank Corporation) loan of $ 3.6 billion for the program of substitution of natural gas with coal. This line of credit Ukrainian company did not use, but in 2015 filed in economic development four investment proposals, which among other things include the purchase of equipment for gas production. At the end of August 2016, the China development Bank extended the availability period of the loan to «Naftogaz» to 25 December 2017.

It is possible that «Naftogaz» will also receive a commercial loan secured by equipment. In case of nonpayment, the Chinese side will get control of the assets of the company.

In addition, China’s plans include the construction of high-tech enterprises in Ukraine. It is advantageous, first, because of the low salaries in Ukraine, and secondly, in Kiev the agreement on free trade zone with the EU, which will allow made in Ukraine Chinese goods is easier to go to the European market.

With active introduction of Chinese capital also may face and the land market. Thus, the growth of Chinese influence in Ukraine, looks inevitable, concludes the author.