The Ukrainian investment market continues to attract the attention of foreign businessmen. In particular, last year the volume of foreign investment in Ukraine exceeded the figures for certain periods before the conflict. Find out more about the reasons for the interest of foreigners in investing in Ukraine and the amount of money involved

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Ukraine is an attractive and economically profitable market for investors, even in war conditions. This is evidenced by the interest of foreign entrepreneurs, which remains high. Only in recent months it became known that several foreign financial groups are planning to invest in Ukrainian assets - to privatize one of the state-owned banks and buy the rights to a mobile communications operator. In general, in 2023, the volume of direct foreign investments in Ukraine exceeded the indicators of some pre-war years.

Why do foreigners invest in Ukraine and what sums are involved? We will find out further.

We will remind you where Ukrainians will invest in 2024, we told you earlier.

Who invests in Ukraine and how much?

Currently, local Ukrainian companies and foreign firms that have been working on the Ukrainian market for a long time invest the maximum sums in the state economy. However, the number of depositors is constantly growing. In particular, almost 35% of the member companies of the European Business Association had or have investment projects in Ukraine in 2022-2024.

The average amount of investments in the economy of Ukraine ranges from 3 to 8 million US dollars. In general, according to the National Bank, in 2023, foreign entrepreneurs invested 4.25 billion US dollars in the economy of Ukraine. This amount even exceeds some years before the full-scale invasion (2016 and 2017). However, the majority of these investments (US$3.2 billion) are reinvested revenues of foreign companies already operating in Ukraine.

In 2023, active foreign businesses in Ukraine invested mainly in restoring facilities damaged by shelling or occupation, and also invested in backup energy sources, including the purchase of large industrial generators.

Which sectors of the Ukrainian economy will attract foreign investors in 2023-2024?

● Foreign arms manufacturers are currently showing the greatest interest in Ukraine. UAV manufacturers Baykar and Quantum-Systems plan to build production facilities on the territory of the country, as well as the German concern Rheinmetall, which plans to build four plants for the production of projectiles, military equipment and air defense equipment on the territory of the country.

Why so? Locating enterprises in Ukraine significantly reduces logistics costs. The second advantage is that companies will have the opportunity to test their developments in the conditions of a real war and quickly improve them, which affects the competitive advantage of the product.

● Banking sector – Hungarian OTP Bank Plc. became interested in the privatization of the recently nationalized "Sens Bank".

● Mobile communications – the French holding NJJ Capital, which intends to acquire the mobile operator lifecell, is also planning to enter the Ukrainian market.

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Why do foreigners invest in Ukraine?

Before the Great War, Ukraine was in dire need of foreign investment to modernize its economy, but no government programs helped attract foreign capital.

However, after the start of the full-scale invasion, the expansion of investment became a personal way for foreign entrepreneurs to express their support for the Ukrainian people.

Of course, only good intentions are not capable of attracting billions of dollars, because entrepreneurs are always primarily driven by the opportunity to make a profit. Ukraine also has certain advantages here:

● Lack of competition in some sectors - low competition in the domestic market helps to attract foreign investors.

● Large sales market - Western companies see prospects in Ukraine, so they try to increase production even before the end of the active phase of the war. For example, CRH invests in cement production and increases its share in the domestic market.

● Proximity to the EU and opportunities that will open up for business after the country's accession to the European Union.

● Highly qualified workforce is cheaper than in European countries, which increases the profitability of potential production.

Therefore, despite the significant decline due to russian aggression, a number of sectors of the Ukrainian economy remain potentially interesting for investors and are able to attract significant funds, which is very important for the restoration of the state.

We remind you! The global real estate market is currently undergoing significant changes, fueled by technological advances and the development of digital economies, which allows investors to expand their operations internationally. At the same time, the Ukrainian real estate market remains attractive for investment. In this article, we will talk with experts about the best places to invest.

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

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