Direct foreign investments
Creating of favourable investment climate in Ukraine is aimed at increasing the trust of investors in state bodies, promoting stability and predictability of economic and political situation, realising transparent market reforms, development of the up-to-date infrastructure, acceleration of the economic growth.
By the moment a single legislative field for investments has been already created. In particular, Laws of Ukraine “On investment activities” and “On regime of foreign investments” provide equal rights and stable conditions as well as reliable guarantees of investments protection for subjects of investment activities regardless of their ownership forms etc.
In order to improve protection of foreign investments Washington convention on the settlement of investment disputes between states and nationals of other states of 1965 was ratified by the Law of Ukraine No.1547-ІІІ of March, 16, 2000.
Intergovernmental agreements “On promotion and mutual protection of investments” have been signed between Ukraine and approximately 70 states in order to enhance investment cooperation, increase the inflow of private capital to national economy, establish stable investment rules, efficient use of the economic resources. Draft agreements with a number of countries are now under consideration.
To form and conduct state policy of attracting and efficient use of foreign investment in Ukraine’s economy, as well as speeding up its integration into the world economy the Advisory Board of Foreign Investments in Ukraine has been established under the President of Ukraine.
Ukrainian Government’s Board of Investors is set up to draw up proposals concerning state investment policy, realization of investment projects aimed at developing of the priority spheres of the economy, participation in the elaboration and examination of the drafts laws and regulations in the field of investment activity etc.
The State Agency of Ukraine for Investments and Innovations is a specially authorised body of the executive power. Its activity is focused on the participation in the forming and realisation of state policy in the sphere of investments and innovations, creation of national innovation system to insure effective innovation policy, coordination of work of central bodies of the executive power in the sphere of innovation activity.
Taking into account the experience of the leading countries of the world, the Ukrainian Centre for Foreign Investments Promotion was established in 2005 to provide informational and organisational support of investment projects, pre-trial settlement of investment disputes between investors and state authorities etc.
Above mentioned measures have facilitated the inflow of foreign investments. Total growth of foreign capital in the economy of Ukraine amounted to USD 6 918,1 mln over the first half of 2008, almost 2,7 times higher then in the respective period of the last year.
The volume of foreign direct investments (FDI) into Ukraine as of July 1, 2008 reached USD 36,5 billions (tables 1, 2), making 23,4% growth from the beginning of this year. Thus, FDI per capita increased to USD 786,8 (table 3).
Table 1
Dynamics of foreign investments in the Ukrainian economy, USD, 1
(as of the beginning of the year, USD mln)
1 data by progressive total since the beginning of investments.
Foreign investments are monitored since 1994.
2 Volumes of direct investments to Ukraine starting from 2005 are given in accordance with information of the National Bank of Ukraine and State Property Fund of Ukraine (difference between market and nominal shares value, property, and other assets not counted in statistical reporting of certain companies).
Table 2
Foreign direct investments in Ukraine by countries 1
1 Data by progressive total since the beginning of investments.
The list of countries is defined on the basis of the largest investments made into the Ukraine’s economy.
2 Direct investments to and from Ukraine by selected countries include data from National Bank of Ukraine and State Property Fund of Ukraine (concerning difference between market and nominal value of shares, property, etc., not counted in statistical reports of some enterprises).
Table 3
Dynamics of foreign investment inflow into Ukraine per capita, USD
Sources: Official website of the Cabinet of Ministers of Ukraine, Official website of the Ministry of Economy of Ukraine, Official website of the State Statistics Committee of Ukraine