Ukraine net FDI amounts USD 2.2 bln in 9M19

Net foreign direct investment (FDI) in Ukraine reached
USD 2.2 bln 9M19, the State Statistics Service reported Nov. 28. In particular,
capital inflow amounted to USD 1.8 bln, while the loans of direct investors
increased USD 0.38 bln.

FDI inflows were highest from Cyprus (USD 476 mln),
the Netherlands (USD 279 mln) and Russia (USD 196 mln) in 9M19. The most
activity occurred in the finance (USD 682 mln) and industry (USD 301 mln)
sectors.

Evgeniya Akhtyrko: The
presence of Cyprus and Russia among the most active investors in Ukraine
implies that a significant share of FDI to Ukraine involves the repatriation of
capital. The larger community of international investors continue to avoid
investing in Ukraine given its high level of corruption and low level of
protection of investor rights.

We expect net FDI to Ukraine in 2019 will amount to
USD 2.4 bln (according to the balance of payments methodology of the NBU), or
the same level as in 2018.