Page 37 - UKRRptSept23

5.3 FDI
Germany has extended guarantees for its companies investing in Ukraine.The German government announced a new package of guarantees for German companies investing in Ukraine during the war, said the Minister of Economy of Germany, Robert Habeck. In particular, the government will cover the so-called conversion and transfer risks of interest payments on equity-like loans. German companies often use these long-term loans to finance their subsidiaries in Ukraine, in addition to the usual equity participation. According to Habek, the closer the economic ties are with Ukraine, the faster the country can recover. Since April, Germany has already provided investment guarantees in the event of production facility destruction of German companies in Ukraine, for example, after the Russian missile attacks.
An investment platform for foreign investors has over 130 projects worth $67B. According to Oleksandr Hryban, head of the Advantage Ukraine investment team, these are current strategic investment projects and opportunities for attracting debt and equity capital in six key sectors: construction and engineering, energy, logistics, and transportation infrastructure modernization, agricultural industry, mining, as well as health care and the pharmaceutical sector. "Currently, 85 projects worth $10B are being considered by investors. Among them are agriculture, woodworking, building materials, and wind energy," Gryban added. He notes that Advantage Ukraine was created on the president's initiative to collect quality projects in Ukraine and, to tell the world about Ukraine's capabilities. The primary goal is to select projects that meet the requirements of international partners. Since the platform's launch, almost 1,500 companies have made applications.
Ukraine can become a European investment hub by relying on Poland's experience. "For an effective result, it is essential to create attractive conditions for foreign investors, as Poland does," said Michal Merzejewski,
37 UKRAINE Country Report September 2023 www.intellinews.com