Ukraine capital inflow reaches USD 2.55 bln in 9M15

Ukraine’s capital inflow swelled 34.1% to USD 2.55 bln in 9M15 from USD 1.9 bln in 9M14, Ukrstat reported on Nov. 17. The main sources of capital inflow were investments in telecommunication (USD 743 mln) from the Netherlands, in the banking sector from Russia (USD 483 mln) and flows from Austria (USD 172 mln). Capital outflow in 9M15 fell 40.7% to USD 526 mln compared to USD 888 mln a year ago. At the same time, FDI slid 3.3% yoy (USD 1.8 bln) owing to an exchange rate adjustment. 

Alexander Paraschiy: Capital inflow has improved somewhat, though this strengthening looks rather sporadic. The reported inflow was due to two main sources, with bank recapitalization being one of them. The other source, telecommunications, also looks like a one-time capital injection. Apart from that, we do not see any institutional investors eager to spend their money amid debt restructuring, sluggish reforms and the military conflict. We anticipate stronger investments by the middle of 2016.