Despite the war, investors are ready to invest in Ukraine – research
12 November 16:28
70% of CEOs of the largest international and Ukrainian companies that took part in the EBA survey intend to invest in Ukraine despite the war. This is confirmed by the results of a new wave of the “Investment Attractiveness Index of Ukraine” survey, Komersant ukrainskyi reports citing Diia.Business.
The European Business Association conducted the survey in partnership with NEQSOL Holding with the participation of 80 directors of the largest international and Ukrainian companies.
According to the results of the survey, the integral indicator of the Index in 2024 increased slightly to 2.49 points out of 5 possible. In 2023, it was 2.44 points. The overall score of this indicator in 2023-2024 is comparable to the investment climate in the “covid” year of 2020.
Investment climate
The number of business leaders who consider the investment climate in Ukraine unfavorable has decreased from 84% in 2023 to the current 79%. Among them, 20% consider it extremely unfavorable. It is worth noting that the share of such respondents has been consistently decreasing since 2022 – from 53% to the current 20%. The current investment climate is neutral for 12% of top managers, compared to 7% last year. Instead, 9% consider it favorable.
The assessment of the investment climate dynamics remains unchanged compared to last year. Almost half of the respondents, namely 49%, believe that the investment climate has deteriorated, 39% see no significant changes, and 12% believe that the investment climate has improved.
From last year’s 57% to the current 70%, the number of companies already present in the market and planning to continue investing despite the war has increased.
In the next six months, 49% of CEOs expect further deterioration of the investment climate in Ukraine, 33% do not expect changes, and 18% hope for improvement. The assessment of the dynamics of the situation in the next six months in their own industry is similar: 44% expect deterioration, 43% believe that the situation will not change, and 13% expect improvement.
Factors of negative influence
Russian military aggression continues to top the list of factors that negatively affect the investment climate, followed by corruption and a weak judicial system, the shadow economy, and attacks on the Ukrainian energy system. In addition, according to 81% of the surveyed CEOs, Ukraine’s investment attractiveness is negatively affected by restrictions on foreign exchange transactions.
Factors of positive influence
Among the factors of positive influence, business leaders note the granting of Ukraine’s candidate status for EU membership, the abolition of duties and quotas on Ukrainian exports, a “transport visa-free regime” with the EU, the digitalization of public services, and accession to the EU’s unified energy system.
Losses from the war
Slightly more than half, namely 54% of companies, have suffered losses as a result of the hostilities. Among them, 25% have already appealed to law enforcement agencies, and another 11% have plans to do so. Also, 3% each have applied to national and international courts.
In total, 80 directors of the largest international and Ukrainian companies took part in the survey. Of these, 39% are representatives of medium-sized businesses, 38% are large businesses, and 23% are small businesses.
For more details of the “Investment Attractiveness Index of Ukraine” survey, please follow the link.
The European Business Association has been conducting the Investment Attractiveness Index of Ukraine research since 2008. The main partner in 2024 was NEQSOL Holding, an international group of companies with more than 12 thousand employees in 11 countries.
