Ukraine FDI dips 0.2% in 1Q19
4 June 2019
Stock of foreign direct investment (FDI) to Ukraine
declined 0.2% q/q in 1Q19 to USD 41.5 bln, the State Statistics Service
reported on May 30. It was weighed down by contracting loans of direct investors,
which declined by USD 131 mln. At the same time, net capital inflow of USD 91
mln partially compensated these losses.
FDI inflows were highest from Russia (USD 138 mln) and
Cyprus (USD 106 mln) in 1Q19. The most acitvity occurred in the finance (USD
326 mln) and industry (USD 122 mln) sectors.
Evgeniya Akhtyrko: The
presidential elections apparently affected investment decisions, resulting in
reduced loans.
We expect political turbulence will ease after the
parliamentary elections on July 21 and subsequent government formation. As soon
as the situation stabilizes, we project a revival of investments to Ukraine. We
expect USD 2.4 bln net FDI by the year end.
