Page 70 - UKRRptJul24

5.3 FDI
According to the Minister of Economy of Ukraine, Yulia Svyridenko, during the 2.5 years of the war, Ukraine attracted $4.25B in direct foreign investment. She clarified that most of this money was reinvested, and new investments were $1B.
European companies are interested in Ukraine and are not planning to leave the market. Many German companies operating in Ukraine are planning new investments despite the war, and only 8% of companies will curtail investment, according to the German-Ukrainian Chamber of Foreign Trade. About 42% of the surveyed 142 enterprises expect an improvement in Ukraine’s economic situation during the year. Meanwhile, 48% believe that the situation in Ukraine will not change, and the remaining 10% fear that it will worsen. In assessing the Ukrainian business climate, companies' opinions were divided: 24% called it good, the same number called it bad, and 52% called it "neither good nor bad." At the same time, 50% consider access to the Ukrainian market as a chance to do business. From the point of view of long-term investment, 53% think the war to be the most serious challenge, 38% - the safety of workers, and 31% - corruption. At the same time, Switzerland’s State Secretariat for Economic Affairs reported that most Swiss companies who operated in Ukraine before the Russian invasion continue to work, although they are forced to reduce the scope of their activities due to the challenges of doing business in wartime. However, there is interest in continuing to work in Ukraine.
Last year, foreign investment in Ukraine increased by 40%: Which international companies are investing? Foreign investment in Ukraine in 2023 increased by 40%, up to $1.2B. Among the large investors are giants in metallurgy, energy, and building materials.
● The metallurgical giant ArcelorMittal continues to develop production in Kryvyi Rih. In 2024, it is planned to increase investment by almost 20% to $155M.
● Australian European Lithium has 100% ownership of the European Lithium Ukraine company and plans to mine what is potentially the largest lithium deposit in the Kirovohrad region.
● Canadian company Black Iron Inc. wants to invest $1.1B in a mining and beneficiation plant in Ukraine.
● Dutch Madoqua Renewables Holding Limited will build a waste processing plant in Ternopil Oblast for €900M.
● By 2030, the Turkish Onur Group plans to invest about $260M in Ukrainian green energy, particularly wind power plants, with a total capacity of 200 MW. As of September 2023, the group has already invested about $290M.
● In 2023-2024, the Danish brewing group Carlsberg plans to invest ₴2B ($50M) in its Ukrainian business.
Four companies plan to invest at least $2.5B in Ukraine by 2026. Metinvest, OKKO, Terwin, and Vodafone plan to invest $300-600M each to develop their businesses in Ukraine during 2024-2025. OKKO says that they have been working on developments in the biofuel sector for the past two years. The company plans to produce biodiesel and bioethanol at its factories. The company’s battery storage project, a 150 MW wind energy facility, is being launched this year. In total, $500M in investment is planned for 2024-2025.
70 UKRAINE Country Report July 2024 www.intellinews.com