Capital Investments to Ukraine Increase 29%

Aug 31, 2012 (02:08 PM EDT)

KYIV, Ukraine, August 31, 2012 /PRNewswire/ --

Capital investment to Ukraine grew by 29.1 percent over January - June 2012, compared to the same period of 2011, reports the State Statistics Service of Ukraine. Total amount of investment reached EUR 11.2 billion. Given the available data on the volume of foreign investment into neighboring countries, Ukraine may become the largest foreign investment recipient in the region over the listed time period.

Foreign direct investment to Ukraine came mostly from Western Europe - Germany, the Netherlands, Austria, France, and the UK. Cyprus and Russia also made notable contribution into Ukrainian economy. Most investment assets went into machines and equipment, as well as into infrastructure development and real estate. As to Ukraine's IT sector - investments into intangible assets prevailed.

Comparably, foreign investment to neighboring Bulgaria in the first six months of 2012 amounted to EUR 221 million, informs Compared to 2011, the increase neared 13 percent. Over half of the investment flow went into real estate, production and distribution of energy and water. The Netherlands, Switzerland, and Russia were the largest investors to Bulgaria.

Another country in the region with reported foreign investment growth during the period was Turkey. Its investment inflow during the first six months of 2012 was 21 percent. The actual volume of investment into Turkey equaled USD 8.2 billion. Most of it came from the EU.

Poland's FDI flow in the first six months of 2012 was negative, with divestment reaching EUR 699 million. Notably, in January - June 2011 FDI inflow to Ukraine's neighbor exceeded EUR 5 billion.

Despite Ukraine's capital getting over a quarter of all foreign investment in the first six months of 2012, Kyiv was not the most successful Ukrainian city on the lists of the most cost effective investment destinations in Europe, released by Financial Times' fDi Intelligence Unit in February 2012. The western Ukrainian city of Ternopil ranked as the best European city for cost effectiveness.

While data analysis for the first half of 2012 is still pending, last year Ukraine became the leader among the CIS countries in the foreign direct investment growth, according to the July 2011 United Nations trade and development body annual report on global foreign direct investment. The growth reached 35 percent.

SOURCE Worldwide News Ukraine