According to preliminary calculations of the UkraineInvest, Ukraine Investment Promotion Office, in 2020-2022 it is expected to attract about US$ 2.2 billion of investments in the Ukrainian economy.
“Currently, the Office is working on 46 investment projects and for the period 2020-2022 it expects to attract at least US$ 2.2 billion to the Ukrainian economy. About US$ 527 million of investments in the next year and a half are planned to be carried out by companies that already operate in Ukraine,” said Sergiy Tsivkach, Chief Executive Officer at UkraineInvest.
Moreover, UkraineInvest is planning to open 10 to 15 of its international offices. “Now we are negotiating with such centers as New York, London, Stockholm and other capitals where there are potential investors,” Tsivkach said during a press conference “Ukraine: which investment projects will return Ukraine to the focus of foreign investors?"
FDI in Ukraine during H1 2020 decreased by US$ 294 million. At the same time, in the second quarter, part of the losses of the beginning of the year was compensated.
According to the National Bank of Ukraine (NBU), FDI inflows for the second quarter of 2020 amounted to US$ 1,255 million, with an outflow of US$ 1,549 million recorded in the first quarter.
“Businesses held back from investing due to the increase in COVID-19 cases and uncertainty around the further spread of disease. Unresolved issues in alternative energy also had a negative impact. Significant growth in capital investment was seen only in postal and courier activities amid a robust growth in delivery services and online trade,” reads NBU’s recent report.
Pursuant to U.S Department of State’s report, “Ukraine’s economic recovery remains fragile as it continues to struggle to overcome years of corruption and government mismanagement, and as vested interests and oligarchic influences continue to manipulate public policy for personal gain. The latter has jeopardized a new IMF assistance program, which is the linchpin for international financial support for Ukraine and a crucial factor in maintaining investor confidence in the country.
“Moreover, the President’s decision to completely overhaul the Cabinet on March 6, 2020 raised concerns over the future of the reforms and the power oligarchs continue to wield. It also resulted in a lot of uncertainty just as Ukraine began to face the immense public health and economic challenges brought on by an unanticipated global health pandemic. Due to COVID-19, external demand for Ukrainian goods is collapsing and internal measures to reduce the spread of coronavirus have had a major disruptive impact on both domestic production and consumption. The IMF forecasts that Ukraine’s GDP will contract by 7.7 percent in 2020,” the report reads.