Foreign investments in Ukraine reach $1.2 bln in 2023

Foreign investments in Ukraine reach $1.2 bln in 2023

Foreign investments in Ukraine increased to $1.2 billion in 2023 from $500 million in 2022, KSE Institute head Natalya Shapoval said at the first Ukraine Business Compact (UBC) Workshop.

"Forty-three global companies, among them Bayer ($65 million), Carlsberg ($40 million) and CEMARK ($30 million), part of CRH Group, have invested in Ukraine since the start of the crisis. Another 12 companies have announced their investments in Ukraine," Ukrainian media quoted Shapoval as saying.

As reported, Baykar, the producer of Bayraktar TB2 drones, said in September 2023 it was ready to invest $100 million in its plant, service center and headquarters in Kiev. The construction of the plant, which began in February 2024, is expected to take 12 months.

CRH Group, one of the world's leading producers of construction materials, signed a mandate letter with the European Bank for Reconstruction and Development in 2023 to jointly acquire the Ukraine-based assets of Italian company Buzzi.

According to Shapoval, foreign investors are showing a keen interest in projects in the IT sector, defense and agriculture.

Ukrainian Deputy Economy Minister Vladimir Kuzyo, in turn, said that Ukraine is currently developing mechanisms to support investors and to mitigate investment risks. The government is cooperating with international organizations and export credit agencies. The focus of the Economy Ministry's efforts is an agency to facilitate the inflow of investments to Ukraine.

"We are working to expand the military risks insurance infrastructure launched last year. This year, we have reserved funds to support major investment projects and develop industrial parks. The second area of our work is to attract investments through international financial institutions and financing development institutions. We also expect to deepen cooperation with the international business community through integrating Ukrainian businesses into global production and supply chains," Kuzyo said.

The Economy Ministry has pinpointed five key sectors for investment, with potential opportunities totaling $292 billion, he said. They include energy, transport and logistics, agriculture, green metallurgy, and critical materials. Each of these sectors is crucial to Ukraine's economy, offer global growth potential, but also require the replacement of damaged capacities.

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