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Ukraine FDI falls 12% in 1H14

Ukraine FDI falls 12% in 1H14

15 August 2014

Foreign investment fled Ukraine in 1H14, according to UkrStat figures released on Aug. 15. FDI in equity fell 11.9% yoy, or USD 6.8 bln, compared to slim growth of 0.4% yoy, or USD 224 mln, in the same year-ago period.

 

Alexander Paraschiy: We could hardly expect something positive on foreign investment considering the political turmoil and current military conflict. Yet according to the Ukrstat report, the main reason for the decline was a revision of FDI in equity for devaluation effects. What’s more, provisional NBU reports indicate that FDI has begun to increase gradually, rising USD 214 mln in June. Nevertheless, we don’t expect more than zero FDI growth in 2014, even if the political situation improves.

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