Wednesday22 January 2025
lifeukr.net

Foreign direct investment in Ukraine decreased in 2024.

The Ministry of Economy anticipated a 20% increase in investment volume compared to 2023.
Прямые иностранные инвестиции в Украину в 2024 году снизились.

In the first 11 months of 2024, the inflow of foreign direct investment (FDI) in Ukraine amounted to $3.98 billion. This represents a 14% decrease compared to the same period last year.

This information was reported by Danilo Hetmantsev, a member of parliament and chairman of the tax committee of the Verkhovna Rada of Ukraine.

The net inflow of foreign direct investment, excluding investments made outside Ukraine, stands at $3.64 billion, which is 19% less than in 2023.

The majority of FDI, at 64%, consists of reinvested profits. “The decline is partially attributed to the restrictions on the repatriation of ‘new’ dividends (accrued from January 1, 2024), implemented by the National Bank of Ukraine in May of this year,” noted Hetmantsev. In 2023, reinvested profits accounted for 75%.

In 2023, the country received $4.2 billion in foreign direct investment. The Ministry of Economy had anticipated a 20% increase in FDI inflows for 2024, as stated by Minister Svyrydenko in December. According to her, the largest investor in Ukraine remains the domestic business, “which reinvests funds into its operations.” The minister emphasized that to improve the investment climate, Ukraine needs to demonstrate progress in reforms.

“Investors are interested in the improvement of the regulatory environment in Ukraine. On our path to the EU and in order to secure funding through cooperation with the World Bank, IMF, European Commission, and under the Ukraine Facility, we need to meet 325 indicators, 200 of which are due this year. Therefore, we must show and are showing progress in implementing reforms,” she added.