Ukraine

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Investing in Ukraine

FDI in figures | Why you should choose to invest in Ukraine | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	7,808	5,604	9,891
FDI stock (millions USD)	17,209	23,125	38,059
Performance Index*, ranking on 141 economies	35	37	35
Potential Index**, ranking on 141 economies	48	44	-
Number of Greenfield investments***	125	124	104
FDI inwards (in % of GFCF****)	41.2	21.1	25.6
FDI stock (in % of GDP)	20.0	21.5	27.0

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Ukraine

Strong points: Ukraine is one of the biggest markets in Europe with 47 million consumers. The most dynamic GDP growth in Europe. Ukraine has a very good education system. It is in fourth place in the world in terms of specialists with diplomas in the high-tech sector. Ukraine is a strategic crossroads between Europe, Russia and Asia. The structure of transports is very well developed: railways, 18 sea ports (Black Sea, Sea of Azov). It has an emerging middle class estimated at 20% of the population. Investors in the country are Kraft Foods, Coca-Cola, Hewlett Packard, Cargill, Knauf, Raiffeisen Bank, Credit Agricole and many others.
Weak points: The legislation provides for little support for foreign investors.
Government measures to motivate or restrict FDI: Arguments for investing in Ukraine

Procedures relative to foreign investment

Freedom of establishment: The administrative formalities depend on the form of company to be created. The Ukrainian agency for the promotion of foreign investment allows you to get information about the authorizations necessary for setting up business.
Acquisition of holdings: The legislation provides for the possibility of creating a Ukrainian company with foreign investment in a Private Limited Company, in a joint-stock company, or in a 100% subsidiary form, and regulates their constitution and running. Acquisition of holdings in an existing company, especially within the ongoing privatization programme, is subject to the same legal procedures but requires approval from the State Assets Funds.
Obligation to declare: The agency for the promotion of foreign investment in the country allows you to get information about the authorizations necessary for setting up business.
Competent organization for the declaration: Ukrainian Ministry of Finance
Requests for specific authorizations: All companies active in the sectors of banking, insurance, security, pharmacy, and the production of alcohol must obtain a State license.

Finding assistance for further information

Investment aid agency: Ukraine Gateway
Ukrainian investment promotion agency
The State Agency of Ukraine for Investments and Innovations

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