Ukraine aerospace sector's push for Western tie-ups met with skepticism
investing.comBy Valerie Insinna and Joanna Plucinska
LONDON/WASHINGTON (Reuters) — Ukrainian aerospace group Motor Sich has little to show so far for a wartime effort to woo potential partners in the West, as it seeks new direction after it lost Russia as its biggest client and had a China tie-up blocked.
The challenges facing one of Ukraine's best-known conglomerates underline how hard it is for the country's companies to expand when there are concerns over their track record on corruption and as the conflict with Russia grinds on.
State-owned Motor Sich is Ukraine's main manufacturer of aircraft and helicopter engines, including for some of the world's largest cargo planes.
«We want to turn to the West,» Chief Executive Olexiy Nikiforov told Reuters in an interview.
For almost a year, he has chased meetings with U.S. defense contractors like Lockheed Martin (NYSE:LMT) and RTX at air shows and government events.
He hopes to get another chance to make his case for greater industrial collaboration this week when U.S. and Ukrainian defense officials and industry executives gather in Washington for a summit on Wednesday and Thursday hosted by the White House.
Kyiv is stepping up its weapons production and also hopes joint ventures with international armament manufacturers can help to revive its domestic industry.
But Reuters' interviews with more than a half dozen U.S. defense executives, former U.S. officials and experts suggest many hurdles are hindering progress for Motor Sich.
U.S. businesses are open to future cooperation with Ukrainian firms, but it will take time to prove they can conduct business in a way that complies with U.S. and European regulations, they said.
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