Page 36 - UKRRptAug18

5.3 FDI
FDI
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FFF
Net FDI (US$bn) 9.2 9.9 4.7 5.8 7 7.2 4.1 0.3 2.9 3.4 4.3 4.3 4.3
Net FDI (% of 6.4 5.4 4.1 4.2 4.3 4.1 2.3 0.2 3.3 3.7 4.3 3.9 3.5 GDP)
C/A bal. + net FDI 2.8 -1.6 2.6 2 -2 -4.1 -6.9 -3.3 3.1 0.3 1.6 -0.3 -0.1 (% of GDP)
Source: ICU
Foreign direct investments (FDI) amounted to $719mn in January-May.
FDI remained at the level of previous months ($150mn) in May alone, but over half of their total volume was channelled to the banking sector via debt-to-equity transactions.
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.
National Bank of Ukraine (NBU) estimated the round tripping foreign direct investment (FDI) for 2010-2017, t he central bank reported in a press release on July 18. “Round tripping” is a term to identify the flow, which is reported as FDI, but in fact involves just the return of domestic capital previously withdrawn from the country. To make this estimation, the regulator distinguished the flows where the ultimate controlling investor was the resident of Ukraine.
In 2010-2017, round tripping FDI amounted to $7.9bn, or 22% of the total FDI inflow to the country. In 2010-2013, the volumes of round tripping were the highest, reaching around one-third of net FDI.
In 2016-2017, the share of round tripping investment was just 6.9% of net FDI , while a net outflow under such operations was observed in 2014-2015.
In 2017, round tripping FDI amounted to $270mn, or 10.4% of FDI to Ukraine. Around half of such investments came from Cyprus, while the Netherlands, Switzerland and Austria were other top players. The NBU will do this estimate on the annual basis.
36 UKRAINE Country Report August 2018 www.intellinews.com