Investment Climate of Ukraine: Business Forecasts

Author : Ruslan Sobol

Source : 112 Ukraine

Although the dynamics of attracting investments are changing every year in Ukraine, there are certain nuances to which business pays special attention
21:48, 13 February 2019

Open source

The economical development and the stability of the exchange rate, as well as the social guarantees of the state are directly dependent on the business environment and a favorable investment climate.

This thesis could be easily translated into numbers and synchronized with the word ‘trust’ and the rule of law, which would guarantee the protection of the investment.

Although the dynamics of attracting investments are changing every year in Ukraine, there are certain nuances to which business pays special attention. In particular, a trusted investment climate.

The rule of law is of great importance when our private property should be protected. When open market rules of the game work and the real competition is in effect.

According to the State Statistics Service, in 2017, foreign investors from 76 countries of the world invested 1,630.4 million dollars of direct investment (equity capital) into the economy of Ukraine.

The most significant amounts of investment were directed to institutions and organizations engaged in financial and insurance activities - 26.1%, and industrial enterprises - 27.3%.

There are also major investor countries, in particular Cyprus - 25.6%, the Netherlands - 16.1%, the Russian Federation - 11.7%, the United Kingdom - 5.5%, Germany - 4.6%, the British Virgin Islands - 4,1% and Switzerland - 3.9%.

Speaking about the statistics of attracting investments, it is necessary to take into account that some of them are the money of Ukrainian businessmen who are withdrawing them to foreign banks and then transfer as investments into the economy of Ukraine. That is, the so-called reinvestment occurs.

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As for foreign investors, they pay attention to human resources, and the departure of our engineers, designers and other technical specialists abroad. This forms an exponential indicator for the investment climate.

On the other hand, attracting investment contributes to the privatization process, which takes place transparently on electronic platforms. Investors are offered objects of both large privatization and small.

The budget for 2019 showed17 billion hryvnia, which the state can receive from privatization. If we align the correspondence between investments and the level of wages, then we will return our specialists back home.

Of course, investors still have questions about the ratio between quality and the possibilities of using facilities in which they invest their funds. They make an analysis of the market on which they will be able to work - external or internal, as well as sectoral needs.

If we talk about the Ukrainian business, we must take into account that some enterprises expand their markets, reaching the level of Eastern Europe.

Therefore, on the one hand, there is an expansion into new markets, an expansion of business and sales. On the other hand, the business is raising its assets and will return to Ukraine with money, goods, offers for the market, and the like.

In general, a complex of these factors - government policy, investment climate, business interest make it possible to form a positive outlook for business development in Ukraine.

The main thing is that our goal was not only to get statistics in the form of numbers, but the development of the economy. Therefore, we must take care of the legal field and guarantees of investment protection.

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