Shmyhal announces the relocation of Motor Sich: The Cabinet of Ministers approved a pilot project

On Tuesday, the Cabinet of Ministers approved a pilot project to relocate the Zaporizhzhia of the Motor Sich plant. The new mechanism provides for the accelerated design of production facilities and their connection to communications under a simplified procedure, which will allow the company to fulfill state defense contracts in a continuous mode, reported defense minister Denis Shmyhal.

"We are launching a new pilot project for Motor Sich. We are accelerating the design of new facilities of the enterprise. We provide them with water, gas, heat, and electricity under a simplified procedure. We enable the creation of ancillary infrastructure for the continuous operation of relocated facilities. We guarantee the protection of sensitive security information. All of this will intensify the restoration and creation of new Motor Sich facilities to fulfill government defense contracts 24/7," the statement said.

The government's decision is a package one.

It also specifies the conditions, criteria and mechanisms for providing financial state support to defense companies, including partial compensation of interest and lease payments.

• Motor Sich is one of Europe's largest manufacturers of aircraft and helicopter components based in Zaporizhzhia. The company had one engine-building and three machine-building plants. It also owns Motor Sich Airlines.
• Motor Sich's main owner was former MP Viacheslav Bohuslaev, who sold a 56% stake in the company to the Chinese holding Beijing Skyrizon Aviation Industry Investment Co Ltd in 2016. In October 2022, Bohuslaev was arrested.
• In November 2012, Bohuslaiev's key asset, the Motor Sich plant passed under the control of the Ministry of Defense along with four other strategic enterprises of Ukraine: Ukrtatnafta, AvtoKrAZ, Ukrnafta and Zaporozhtransformator.