Foreign investors invested $ 1298.0 million of direct investments (joint-stock) in Ukrainian economy in the first half of 2014.
Investments are directed into developed areas of economy.
Industrial enterprises are concentrated 32.1% of total direct investment in Ukraine, financial institutions and insurance – 25.3%.
Industrial enterprises are concentrated $ 16,079.5 million (32.1%) of direct investments, processing enterprises – $13542.3 million, mining and quarrying development – $ 1566.6 million, electricity, gas, steam and air conditioned enterprises – $ 896.6 million. The company metallurgical industry, manufacture of fabricated metal products supplied by $ 5780.6 million of direct investments, food, beverages and tobacco production – $ 2954.7 million, production of rubber and plastic products, other non-metallic mineral products – $ 1360.1 million, engineering, except the repair and installation of machinery and equipment – $ 1096.4 million, manufacture of chemicals and chemical products – $ 1048.6 million.
Financial institutions and insurance accumulated $ 12,669.4 million (25.3% of direct investment in Ukraine), repair of motor vehicles and motorcycles – $ 6424.3 million (12.8%), organizations specializing in real estate transactions – $ 4046.7 million (8.1%), professional, scientific and technical activities – $ 3313.2 million (6.6%).
The top countries- investors (83% of total direct investments) are: Cyprus – $ 15699.4 million, Germany – $ 5943.0 million, Netherlands – $ 5349.9 million, Russian Federation – $ 3051.9 million, Austria – $ 2782.8 million, United Kingdom – $ 2417.9 million, Virgin Islands (Brit.) – $ 2054.7 million, France – $ 1741.0 million, Switzerland – $ 1373.2 million and Italy – $ 1082.0 million.
The analysis of dynamic of capital investments
The leading sectors of economy, in terms of attracting capital investment in January – June 2014 remain: industry – 36.2 billion hrn.; construction – 15.3 billion hrn.; repair of motor vehicles and motorcycles – 8.6 billion hrn.; agriculture, forestry and fisheries – 6.4 billion hrn.; transport, warehousing, postal and courier activities – 6.1 billion hrn.; real estate – 3.9 billion hrn.; information and telecommunications – 3.4 billion hrn.; financial and insurance activities – 2.9 billion hrn.
Amounts of capitals for development increased in January-June 2014: temporary accommodation and catering – 2.3 percent (0.6 percent of the total); financial and insurance activities – 0.6 percent (3.3 percent); construction – 0.2 percent (17.7 percent).
The share of bank and other loans in total investment was 10.2 percent.
Ukraine remains prospective for investment and it is sufficiently integrated into the world economy.
By the World Bank’s rating in “Doing Business-2014” Ukraine has risen by 28 positions compared to the “Doing Business-2013”.
For further improvement of Ukrainian economy topical issue for today is to improve the legal and institutional framework to enhance the capacity of mechanisms to ensure a favorable investment climate and forming the basis of preserving and improving the competitiveness of the national economy.
Positive steps in this direction have already been made:
One of the main tasks for the Government is to create legislation and work out measures to improve the mechanism of public investment management. On website has been published Projects of Law of Ukraine “On Amendments to the Budget Code of Ukraine (regarding state investments)” and “On Amendments the Law of Ukraine “On Investments “. The main aims of it:
Ministry of Economic Development adopted the draft Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine regarding incentives for investment”. It has been registered by № 2101a 22 May 2013.The main aims of it:
Bill was adopted as a basis 09/05/2013.
Energy independence and state security through diversification of sources and routes for natural gas in Ukraine is expected.
After approval of all details of the national project “LNG – terminal” envisages investment tender will be held for the construction of the ground terminal in second phase.
New Law reforming gas and transport management allowsto European and American companies to participate in the management of Ukrainian gas transportation system, namely 51% shares belong to Ukraine, and 49% – the company can acquire the EU, the European Energy Community and the United States.
In order to improve the investment climate and investment support of regional development in Ukraine has implemented technical assistance projects:
According to the central and local authorities in Ukraine today are implemented 228 projects on the basis of public-private partnerships.Projects that are implemented on the basis of public-private partnerships include the following areas of economy:
The main factor that creates a positive investment image of the country is the quick and quality solutions of local problems. Small and medium business now have considerable potential for sustainable economic development in social sector.
These measures are to improve the investment climate in Ukraine and increase the inflow of foreign investment and capital investment in its economy.
Please don’t hesitate to contact Sadko Consulting should you are interested in our services of market researches and reports in Ukraine.
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