Page 31 - UKRRptOct18

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 investment (FDI) in Ukraine as equity capital as of July 1, 2018, was $32.63bn, which was 3.3%, or $1.04bn, up on the beginning of the year, the State Statistics Service of Ukraine said on August 30.
In the first six months of 2018, nonresidents increased investment in Ukraine by $1.26bn, while disinvesting $0.28bn, it said.
This is better than in H1 2017 when residents increased investment in Ukraine by $0.71bn and disinvested $0.21bn. However, thanks to the large exchange rate difference FDI growth was $1.66bn.
Russia was the leader in FDI in the first half of 2018 - $436mn or more than one third of all investment, followed by Cyprus and the Netherlands used by Ukrainian businessmen to structure businesses - $219mn and $207.7mn respectively.
FDI from Austria, Poland, France and the U.K. were within $43-59mn.
As earlier, main FDI, especially from Russia, were lined to the additional capitalization of banks: $750.5mn or almost 60% of total investment were sent to the financial and insurance spheres.
Wholesale and retail, vehicle repair received $120.5mn, industry - $102.7mn and IT and telecom - $100.1mn.
Due to changes in exchange rates and a number of other factors (losses, reclassification of investments), the picture of the increase in FDI from different countries looks different than FDI receipt: the accumulated volume of investments from Russia for the first half of the year increased by only $26.7mn. The Netherlands was the leader with $452mn and Cyprus had $257.8mn, followed by Germany with a large gap - $48.9mn, Italy - $41.6mn, Poland - $39.9mn, Hungary - $37.6mn, the United States - $37.1mn.
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.
31 UKRAINE Country Report October 2018 www.intellinews.com