Ucraïna: Invertir a Ucraïna
On February 24th 2022, Russia initiated a military conflict on the Ukrainian territory, which profoundly upsets the current political and economic context in both countries and will have substantial ramifications on the investment climate. For the ongoing updates on the developments of Russia-Ukraine conflict please consult the dedicated pages on BBC News.
According to UNCTAD's World Investment Report 2021, FDI flows to Ukraine decreased by about USD 7 billion in 2020, turning into net disinvestment (- USD 868 million), because of the combined effects of the Covid-19 pandemic, macroeconomic problems and geopolitical tensions. FDI stocks in Ukraine had already declined as Russian investors had withdrawn much of their assets. The stock of FDI was about USD 49 billion in 2020. Reinvested earnings were particularly responsive to uncertainties in the economic environment. Mining, manufacturing, trade and financial services were some of the activities most hit by the recession. Food, beverage and tobacco production, and information and communication, by contrast, were among the few industries that avoided the decline. According to the National Bank of Ukraine data, FDI stock as of the end of September 2021 amounted to USD 65.4 billion. Notwithstanding the difficult economic environment, a project finance agreement has been signed with Chinese investors to develop the USD 1 billion, 800 MW onshore wind farm in Donetsk. In the manufacturing sector, the largest new foreign investment was in Kostal (Germany), a USD 170m project to produce automotive components. Generally, investments are made in manufacturing, wholesale and retail trade, mining, financial services and real estate. The main investors in Ukraine are Cyprus, the Netherlands, Switzerland, Germany and the UK. Russia’s invasion of Ukraine in February 2022 is expected to deeply and lastingly deteriorate business climate. Insecurity, political and economic uncertainty, supply chain disruptions and infrastructure destruction will likely lead to massive capital outflows.
In addition to political instability, investors pointed out before the war that the underlying inefficiency and corruption in the justice system were among the main obstacles to investment. Other serious obstacles are the complexity of laws and regulations, poor compliance with contracts and poor governance. Despite administrative difficulties, Ukraine remains an attractive investment destination for numerous reasons: the country has a large internal market, proven agricultural potential, energy and mineral resources and a strategic geographic location, making it a transit hub and a gateway to Europe and Eurasia. In addition, the current government appears to have been actively engaged in reforming the investment climate. In June 2018, a new law aimed at more transparency entered into force, and in 2021, new tax reductions, import customs duties exemptions, preferential land ownership rights, as well as measures to improve the rule of the law were introduced. A National Strategy to increase FDI, developed by EY, was also adopted. The country has progressed regularly and significantly on the investment climate indicators of the World Bank's Doing Business index. Ukraine ranks 64th (out of 190 economies) in the Doing Business 2020 report, gaining 7 places compared to the previous year. Progress has been made in obtaining building permits, connection to electricity, protection of minority investors and cross-border trade. To attract more FDI inflows, Ukraine has simplified and reduced the costs of the registration procedure for representative offices of foreign business entities.
Foreign Direct Investment | 2019 | 2020 | 2021 |
FDI Inward Flow (million USD) | 6,017 | -36 | 6,549 |
FDI Stock (million USD) | 54,210 | 52,091 | 62,131 |
Number of Greenfield Investments* | 48 | 45 | 77 |
Value of Greenfield Investments (million USD) | 1,421 | 2,221 | 2,248 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Ukraine | Eastern Europe & Central Asia | United States | Germany |
Index of Transaction Transparency* | 9.0 | 7.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 2.0 | 5.0 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 6.0 | 6.8 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
The key assets of the Ukrainian economy in terms of FDI include:
The weak points of the Ukrainian economy in terms of FDI include:
Vols fer algun comentari sobre aquest contingut? Escriu-nos.
© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: January 2023