Ukraine FDI grows USD 3.2 bln in 9M17

Foreign direct investment (FDI) in Ukraine rose 7.1%,
or USD 3.2 bln, to USD 48.3 bln in 9M17, implying USD 41.7 bln of net FDI, the
State Statistics Service reported on Nov. 28. It was driven by capital inflow
(USD 1.2 bln in 9M17), the exchange rate difference driven by hryvnia
appreciation (USD 1.2 bln) and loans of direct investors (USD 1.0 bln). Capital
outflow shaved off USD 0.3 bln for 9M17. FDI increased USD 2.5 bln, or 4.9%,
during the same year-ago period.

The Netherlands (USD 0.7 bln), Cyprus (USD 0.5 bln),
Germany (USD 0.2 bln) and Great Britain (USD 0.2 bln) remain the key sources of
investment to Ukraine in 9M17. The most attractive sectors were financial (USD
0.35 bln in 9M17), food processing (USD 0.31 bln), mining (USD 0.29 bln), trade
(USD 0.17 bln), metals (USD 0.17 bln) and utilities (USD 0.15 bln).

Alexander Paraschiy: Investment
inflow is somewhat stronger than we expected, but still it remains shallow. And
a large part of that increase is purely statistical at the expense of hryvnia
appreciation in the middle of the year, which has since
been wearing off. At the same time, capital inflow is unlikely to strengthen in
the nearest future. The tendency promises net FDI better than the USD 1.0 bln
that we initially projected for 2017. Now we expect USD 2.4 bln net FDI by the
year end.