Foreign investments: who and where has invested money in Ukraine for the last four years
Big Western investors are cautious about Ukraine, and investing foreign funds in long-term projects in the Ukrainian economy is more of an exception than the rule. Much of the money comes to the country from offshore, where they were taken, in fact, from the Ukrainian economy. Our employees who invest not so much in business but in their own families bring in a large share of foreign money. The most demanded investors are the industries where they can make money quickly, especially without the risk of losing their investment. We offer a look at how much foreign investment and which countries came to Ukraine during 2015-2019 and which industries were most attractive to investors. The data are given without taking into account the temporarily occupied territories of the Autonomous Republic of Crimea and parts of Donetsk and Luhansk regions.
According to the State Statistics Committee, during 2015, $ 4,3 billion direct investments came to Ukraine. Next year, the volume of investments increased by almost 2% to $ 4,5 billion. In 2017, the flow of direct investment into Ukraine fell by 43% to just over $ 2.5 billion.
In 2018, the situation improved slightly and investments increased by 14.3% to $ 2,8 billion. During 2019, the amount of money invested in Ukraine decreased by 11.8% to $ 2,5 billion.
The three countries from which Ukraine has received the largest investments in the last four years include the Russian Federation, Cyprus and the Netherlands.
Cyprus received $ 0.6 billion in 2015, but next year revenues declined by 30% to just over $ 0.4 billion. In 2017, Cyprus investment increased by 17%, but again declined again by almost 5% to almost $ 0.5 billion. In 2019, nearly $ 1 billion in investment has been received from Cyprus offshore.
In 2015, the Russian Federation invested $ 1,6 billion in Ukraine and, over the next year, revenues increased by 0.5%. Since 2017, investments from the aggressor country have decreased every year: initially by 64% ($ 0.4 billion), in 2018 – by 18% ($ 0.2 billion) and in 2019 – they fell by 60% ($ 0.2 billion).
In 2015, the Netherlands invested $ 0.8 billion in the Ukrainian economy. The following year, revenues fell by 68% ($ 0.3 billion). In 2017, investment inflows increased by almost 10%, and in 2018 – it jumped by 240% and in monetary terms amounted to almost $ 1 billion. In 2019, the situation has changed dramatically and the amount of money invested in Ukraine has decreased by 68% to $ 0.3 billion.
The largest investments were made in the industry, finance and insurance, real estate operations, trade, repair of motor vehicles and IT.
In 2015, the largest amount of money was invested in finance and insurance ($ 2.7 billion). IT industry ranked second in terms of financial inflows ($ 0.5 billion). More than $ 0.3 billion has been invested in wholesale and retail trade. A little less money went into the development of industry. $ 0.1 billion has been invested in real estate operations.
In 2016, in all these industries, the number of investments increased, in particular in the industry – by 80%.
The next year saw a significant outflow of investments from the financial sector (-54.4%) to $ 1.3 billion and trade (-66%) to less than $ 0.2 billion.
In 2018, the financial sector lost another 6% of investments, totaling $ 1.2 billion during the year, industry $ 0.3 billion (-42%), IT industry – $ 0.1 billion (-22%). At the same time, real estate operations grew by 244% and received $ 0.4 billion in financial injections. Investment in the trade and repair of cars increased by 236%, totaling $ 0.6 billion.
In 2019, investments in the financial services sector were down by almost a quarter, but investment in the industry doubled. Real estate began to invest 46% less ($ 0.2 billion), and auto sales and repairs received 65% less investment than the previous year, returning to 2017 ($ 0.2 billion).
Source: slovoidilo.ua
