FDI to Ukraine grow in Q2 2015 first since early 2014 – statistics

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Foreign direct investment (FDI) in Ukraine in the form of share capital as of July 1, 2015 amounted to $42.85 billion, which is $1.78 billion, or 4.3% more than at the beginning of the year, the State Statistics Service has said.

Growth has been registered first since early 2014, which is mainly linked to the stabilization of the hryvnia.

The State Statistics Service reported that non-residents invested $690 million in Q2 2015 and at the same time withdrew $130 million, however the positive exchange rate difference was around $1.2 billion.

In H1 2015, FDI to Ukraine fell by 6.4% or $2.91 billion, and the negatibve exchange rate difference was $3.54 billion.

The service also said that the share of investment from Russia in Q2 2015 increased from 5.4% to 6.3%, from Cyprus – from 28.5% to 28.6%, while the share of investment from Germany decreased from 13.2% to 12.8%, the Netherlands – from 12.1% to 11.9%.

The agency said that the volume of FDI in Ukraine as of July 1, 2015 amounted to $1,000 per capita compared to $960 in Q1 2015, $1,070 at the beginning of this year and $1,280 – at the beginning of last year.

According to the service, investment came from 133 countries.

The ten major investing countries accounting for 83% of total direct investment are Cyprus – $12.274 billion, Germany – $5.489 billion, the Netherlands – $5.108 billion, the Russian Federation – $2.686 billion, Austria – $2.354 billion, Britain – $1.954 billion, the British Virgin Islands – $1.873 billion, France – $1.539 billion, Switzerland – $1.371 billion, and Italy – $966 million.

Industrial enterprises received $13.499 billion (31.5%) in direct investment, in particular the processing industry – $11.532 billion, mining and quarrying sectors – $1.287 billion, companies supplying electricity, gas and conditioned air – $602 million.

Metallurgical production received $5.371 billion of direct investment, the production of food, beverages and tobacco goods received $2.497 billion, the production of rubber and plastic goods, other non-metallic mineral items – $1.095 billion, engineering, except for repairs and installation of machines and equipment – $826 million, chemical production – $792 million.

Institutions of financial and insurance activities accumulated $11.078 billion, or 25.9% of total direct investment, wholesale and retail trade enterprises, those for repair of motor vehicles and motorcycles – $5.687 billion (13.3%), organizations engaged in real estate transactions – $3.583 billion (8.4%), professional, scientific and technical activities – $2.398 billion (5.6%).

The debt of Ukrainian enterprises on loans, trade credits and other liabilities (debt instruments) to direct investors on July 1, 2015 was $8.85 billion.

Total foreign direct investment (equity and debt) as of July 1, 2015 amounted to $51.702 billion.

Ukraine’s direct investment in the economies of other countries on July 1, 2015 totaled $6.254 billion, in particular EU countries – $6.015 billion (96.2% of the total volume), other countries – $239 million (3.8%).

Direct Ukrainian investments were seen in 46 countries, the largest share of which was Cyprus (93%).

The requirements of Ukrainian direct investors on debt instruments to direct investment enterprises abroad on July 1, 2015 amounted to $218 million.

Total direct investment in other countries amounted to $6.472 billion.