How much and where foreign business is ready to invest in Ukraine – research
9 April 11:49
The sectors of greatest interest to foreign businesses in Ukraine are construction and energy. This is stated in the study “Ukraine at War: Transformation of the Business Environment and Investment Prospects” presented by the Business Ombudsman Council, Komersant ukrainskyi reports.
The survey participants were residents of Poland, Germany, Canada, the UK, Sweden, France, Bulgaria and Ukraine.
How much money is business ready to invest
The vast majority of respondents consider the projected amount of investment in Ukraine to be up to USD 5 million – 61.5%.
Almost a third of respondents estimate the possible amount of investment at USD 5-10 million (30.8%).
At the same time, there are investors who are ready to invest in the amount of USD 10-100 million – 7.7%.
Where investors are willing to invest
The following industries are of the greatest interest to foreign business in Ukraine:
– construction – 23.1%;
– energy – 23.1%;
– industrial production – 15.4%.
On average, just under 8% of investors are ready to invest in industrial water treatment, chemical production, education, certification services, and mining.
What are the challenges that hinder investment?
The biggest legal and regulatory obstacles that, according to foreign business representatives, hinder their willingness to invest in Ukraine after the end of hostilities are
– licensing procedures – 15.4%;
– limited access to justice – 15.4%;
– lack of effective political risk insurance – 15.4%;
– corruption – 7.7%;
– military risks – 7.7%.
In addition, such factors as ineffective regulation of foreign investment, problems in the activities of state executive bodies, complexity of customs and border procedures, tax policy, and insufficient protection of intellectual property rights were also noted.
What prevents investors from making investment decisions
The most significant factors holding back those who would like to start a business in Ukraine are
– war-related risks – 69.2%;
– economic uncertainty – 38.5%;
– inability to ensure safe working conditions for employees due to martial law – 30.8%;
Business representatives who took part in the survey also mentioned frequent changes in the tax system and tax legislation; unpredictability of economic policy; possible unfair actions by state or local authorities and other government agencies; regulatory and legal barriers, lack of qualified employees and insufficient protection of property rights.
The survey also asked for suggestions on priority changes that investors believe should be implemented to improve Ukraine’s investment attractiveness.
