Ukraine FDI falls 13% on the Cyprus crisis in 1Q13

Net FDI in Ukraine decreased 13% in 1Q13 to USD 736.6 mln from USD 846.9 mln in 1Q12, according to state statistics released on May 15.

Alexander Paraschiy: To a large extent, we can blame the Cyprus banking sector crisis for the decline in FDI – net investments from Cyprus were at a record low of USD 43.5 mln, 21x smaller than in 1Q12 (USD 951 mln). Nevertheless, offshore shelters remained the key source of investment in Ukraine, confirming that new investment remains at pitiful levels. This time, the Virgin Islands contributed the most (USD 266 mln) to FDI growth.