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$508mn in 25 transactions. “The Ukrainian economy is recovering” says the report. Noting the two elections this year, KPMG predicts that foreign investment growth in 2019 will be “modest.” “Ukraine is now on the verge of change,” the report says. “And if reforms continue, the number of mergers and acquisitions will only increase with the growing number of foreign investors considering access to the local market.”
New foreign direct investment in Ukraine was $1.9bn in 2017 , the State Statistics Service said. About one quarter, or $506mn, was from Cyprus, presumably offshore Ukrainian or Russian money. The next four sources were: Russia -- $396mn; the Netherlands -- $262mn; Britain -- $212mn; and Germany -- $119mn.
Despite the lack of a farm land market, agriculture attracted the highest portion of foreign investment . Saudi Agriculture and Livestock Investment Company, or SALIC, bought Mriya Agro Holding for a reported $242mn. Switzerland’s Julius Baer paid $73mn for a stake in Kernel Holdings. Japan’s Sumitomo paid $45mn for a controlling 51% stake in Spectrum-Agro and Spectrum Agro-Engineering. Noting last year’s record 70mn ton grain harvest, KPMG says: “International investors are even more closely looking at the Ukrainian agricultural sector.”
39 UKRAINE Country Report March 2019 www.intellinews.com