Page 53 - UKRRptFeb24

5.3 FDI
Foreign investors are primarily interested in investing in the Ukrainian energy and agricultural industries. However, no investors are willing to allocate money to new projects now. According to analysts from the Bureau of Investment Programs, everyone is waiting for a reduction in risk and the end of the war. "It is the end of the war, not the cessation of hostilities. After all, the largest investment funds, such as JP Morgan Chase, BlackRock, and The Carlyle Group, are not able to invest in countries where hostilities are occurring.
Foreigners are interested in investing in the Ukrainian mining industry.
2023 saw increased interest in subsoil use and extraction on the part of companies and business people who had not previously engaged in such activities or considered this type of activity to diversify their business. In this context, the Turkish Onur Group announced plans to invest $50M to develop a graphite deposit north of Khmelnytskyi. In addition, the company acquired the Rokytniv Special Quarry, a granite mine in the Rivne region. At the same time, BGV Group Management has invested more than $100M in mining projects since 2015. Moreover, in 2023, the company intensified its activities in this direction. It intends to start sand mining in the Zhytomyr region and develop uranium deposits in the Mykolaiv Region. Dragon Capital also increased its influence on the mineral water market in 2023. After purchasing the assets of the T.S.B. Firm, Dragon Capital already owns nine permits for extracting mineral water in the Lviv Region.
The government allocates ₴3B to support large investors and improves conditions for importing the necessary equipment. The Cabinet of Ministers has improved the procedure for importing new equipment and components into the territory of Ukraine, which are imported for the implementation of a project with significant investment (from €12M). "One of
53 UKRAINE Country Report February 2024 www.intellinews.com