Money in the house. Who and why invests in Ukraine after the Maidan

Деньги в дом. Кто и зачем инвестирует в Украину после Майдана

Who continues to invest in Ukraine, despite the crisis.

Ukraine’s economy and its financial system is in great need of foreign capital inflows.

However, since 2013 the volume of foreign investment in our country is steadily declining.

Foreign capital is able to stabilise the national currency, reducing the Bank rate, to fill foreign exchange reserves and to equalize the balance of payments of Ukraine.

Experts note that the main criteria for investors remain reform and the political situation, which is not conducive to their implementation.

Nevertheless, a number of foreign investors continues to invest in Ukraine and is planning several large-scale projects.

Correspondent.netunderstood, as is the situation with foreign investments at the moment.

What do the numbers say

The global private equity market is very monopolized in just 20 countries receive about 80% of all investments.

So, in 2013 from $ 1.4 trillion to 1.1 trillion investment received just 20 countries, and the rest of the 183 got only $ 300 billion.

The volume of direct foreign investments into the economy of December 31, 2015 $ 43,371 billion $ 2,373 billion, or 5.19%, lower than at the beginning of the year, when he was on the level 45,745 billion dollars.

Деньги в дом. Кто и зачем инвестирует в Украину после Майдана


The state statistics service of Ukraine informs that investments for 2015 were received from 134 countries. The main investors of Ukraine, which account for 83% of the total investment, remained Cyprus, the Netherlands, Germany, Russian Federation, Austria, United Kingdom, British virgin Islands, France, Switzerland and Italy.

Деньги в дом. Кто и зачем инвестирует в Украину после Майдана


Most of the investments in the amount of $ 13,280 billion, or 30.6% of the total, accounted for Ukrainian industry.

EBRD invests and waits for reforms

The European Bank for reconstruction and development – one of the largest investors of Ukraine.

Over the past two years, Ukraine was the second largest market for EBRD.

The Bank invested 1.2 billion euros in 2014 and € 1.1 billion in 2015. More over the years from EBRD was received only by Turkey.

“So this is a huge investment in Ukraine in anticipation of the big reforms to invest more and ensure the continuation of the reform of Ukraine”, – said the President of the Bank Suma Chakrabarti.

According to him, the EBRD takes into account the risks and benefits for each country, but at the moment the investment will be continued, “while Ukraine continues to reform”.

The total investment of the European Bank for reconstruction and development in Ukraine in January 2016 amounted to 11.8 billion euros.

In 2016, the Bank expects to invest in Ukraine for about 1 billion euros.

The most promising in Ukraine, the Bank sees the agricultural sector, which attract the interest of projects in logistics and it sector.

The EBRD will also continue working on various energy saving programs.

In the public sector the Bank’s priorities are the roads, energy sector, gas sector. Funding in these areas due to the support of reforms.

What interests the Americans?

U.S. Ambassador to Ukraine Geoffrey Pyatt claims that many American companies are willing to enter the Ukrainian market.

The largest American players in Ukraine remain Cargill, a large agricultural company, which, says Pyatt, “we would like to do more in Ukraine” and the company Westinghouse, which is already working with Ukraine on the issue of nuclear fuel supply.

The American company Jabil Circuit plans to increase Ukraine’s own production.

Jabil manufactures consumer electronics for well-known brands such as Cisco and Philips. The company has 90 plants in 23 countries and one of them in Transcarpathia.

12 years ago, the Americans founded the Ukrainian subsidiary and since that time has invested over $ 80 million. Electronics from the Ukrainian plant is exported to more than 10 countries.

According to the ex-Minister of economy Aivaras Abromavicius, “business in the US carefully believe that the worst for Ukraine behind.”

Soros Money

Last year, American billionaire George Soros has declared, that considers an opportunity to invest in the economy of Ukraine one billion dollars.

In the end, the Ukrainian investment company Dragon Capital and the Ukrainian investment Fund Redevelopment Fund LP, managed by Soros Fund Management on behalf of the family of George Soros, has created a new Fund of direct investments to Ukraine ” New Ukraine Dragon Capital Fund.

The new Fund will focus on providing financing to Ukrainian companies in the growth stage.

Simultaneously it became known that George Soros (via Ukrainian LР Redevelopment Fund) buys a large share of one of the largest software developers in Ukraine – the company Сіklum.

Investment group alpha

Total assets of Alfa-group amount to 47.2 billion dollars.

Shareholders of the group invest in businesses that are independent from each other – sector financial services: banking services, investment management, insurance and retail, water supply and sanitation.

The company operates in 7 countries – Russia, Ukraine, Belarus, Kazakhstan, UK, Netherlands, Cyprus.

The principles of investing alpha the most attractive projects focused on the emerging markets of the world, bet on the long term to realize the potential of investment cooperation with foreign investors and attract foreign capital.

One of the most famous of the group’s assets in Ukraine is Alfa-Bank Ukraine. While shareholders of many Ukrainian banks are unable or unwilling to support their enterprises anti-crisis capital injections, the shareholders of Alfa-Bank Ukraine only in the last 2 years invested in the Bank of over $ 180 million.

In particular, in 2014 – at the expense of subordinated debt in the amount of $ 50 million, in 2015 – by increasing the Bank’s share capital by 131,5 million dollars due to the conversion of part of subordinated debt.

For 2015, the Bank issued $ 217 million of loans to legal entities

For today the volume of credit portfolio of Alfa – Bank – 6 place among banks in Ukraine. The Bank’s clients – the leading enterprises of the energy and transport sectors, metals and engineering, agriculture, telecommunications, trade and services.

Not one dollar of dividends for all the work of Alfa-Bank in Ukraine has not been displayed outside the country, but, on the contrary, all profits are invested into the development of the Bank and the Ukrainian economy.

For 2015, the Bank has paid 655 million in taxes to the state.

In the structures of the financial institution employs nearly 4,500 employees.

In Ukraine, Alfa group and participates in the support of cultural and charitable projects, provides assistance to seriously ill children, involved in the restoration of the environment.

In 2015, the Bank has sponsored the modernization of the rehabilitation Department of Lviv emergency care hospital.

The Bank is partnering with iconic events in the business life of Ukraine. In 2015 – special partner of the 12th annual meeting of the Yalta European Strategy (YES) international economic forum of the Black Sea Economic Forum 2015 in Odessa.

The Bank supports national cultural projects: in 2015 became the General sponsor of the concert “Music for peace” on the occasion of the 70th anniversary of the United Nations, which was attended by talented children from different regions of the country.

The company also organizes a music festival Alfa Jazz Fest in Lviv. The festival takes place for five consecutive years. Every year to listen to modern jazz comes more than 40,000 visitors. In all the years of existence of festival on its stages were made by 42 of the best European performers.

Promising projects

In the future, the aliens are planning to launch a number of projects on the territory of Ukraine.

Dutch company CTP, one of the largest industrial developers in Central Europe, intends to invest between 75 and 80 million euros in the project of construction of industrial Park in Lviv.

The area of the planned construction of an industrial Park in Lviv will be 94 thousand square meters, and for the implementation of the CTP project plans to involve local companies.

The industrial Park will be located on a land area of 29 hectares, which the company had leased to the local authorities. The facility will include a complex of production, warehouse and office space that will be leased.

German company Leoni AG will be built in 2017, the plant in Coloma Ivano-Frankivsk region. It is planned that by building 8150 will open new jobs.

At Leoni AG already has a plant in the Lviv region, which produces electric cable network for cars.

Construction of the plant will be the largest investment in the history of Ivano-Frankivsk region.

The Japanese company Fujikura announced its intention to open in Yavoriv district in Lviv region a factory for the production of components for cars.

The first stage of investment involves investment in the amount of 6 million euros and create 300 jobs. And after three years the company will employ more than 3,000 Ukrainians.

Fujikura is the world famous manufacturer of electrical equipment, telecommunication systems and automotive components.