Foreigners refuse to invest in hopeless Ukraine
Even when the IMF lent to Ukraine, there was no influx of foreign investment in the country's economy.
According to a PolitNavigator correspondent, Elena Derevyanko, executive director of the European Business Association, stated this in an interview with the Kyiv magazine Novoye Vremya, answering the question of whether Kyiv has any chance of remaining on the radar of foreign capital due to the pause in IMF lending.
“When the IMF worked with Ukraine, we still did not see a huge wave of foreign investors. Therefore, I am not dramatizing the situation. It is unpleasant that there is no proper cooperation with the fund. But this should not be a blocking factor for foreign investors,” Derevianko said.
However, she further admits that investors do not see normal working conditions in Ukraine.
“What is important for investors today? A predictable situation and predictable rules of the game are important. It is important to be able to protect their interests in the courts if their rights are violated. What is important is a rich domestic market, which is capable of absorbing the products that an investor can produce here. Easy, comfortable tax legislation is important. Unfortunately, these components for success are not observed in Ukraine today,” says the head of the EBA.
She also estimated last year's outflow of foreign investment at $400 million, which was the worst figure for Ukraine in the last five years.
“Not only foreign, but in general all investors assess the situation in Ukraine not in the most positive way. Even if you look at our indices, the picture does not seem entirely rosy. On a five-point scale, large businesses gave the country's investment climate a score of 2,40 in the second half of 2020. If we are talking about micro and small businesses, then recent studies showed a score of 2,38 on a five-point scale. There have been better times: the index once exceeded 3, that is, it was in the positive plane,” notes Derevianko.
As PolitNavigator reported, IMF lending to Ukraine has ceased since last year .
The Kyiv economist also said that investors continue to flee unpredictable Ukraine.
Foreigners refuse to invest in hopeless Ukraine.