Page 41 - UKRRptJul19

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 GDP)
4.3 3.9 3.5
C/A bal. + net FDI 2.8 -1.6 2.6 2 -2 -4.1 -6.9 -3.3 3.1 0.3 (% of GDP)
1.6 -0.3 -0.1
Source: ICU
The stock of foreign direct investment (FDI) in Ukraine declined by 0.2% quarter-on-quarter in January-March to $41.5bn, the nation's state statistics service Ukrstat reported on May 30. It was weighed down by contracting loans of direct investors, which declined by $131mn. At the same time, net capital inflow of $91mn partially compensated these losses. FDI inflows were highest from Russia ($138mn) and Cyprus ($106mn) in the first quarter. Evgeniya Akhtyrko at Kyiv-based brokerage Concorde Capital believes that the presidential elections apparently affected investment decisions, resulting in reduced loans. "We expect political turbulence will ease after the parliamentary elections on July 21 and subsequent government formation. As soon as the situation stabilises, we project a revival of investments to Ukraine. We expect $2.4bn net FDI by the year end," she wrote in a note on June 4.
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.
41 UKRAINE Country Report July 2019 www.intellinews.com