German investment is sought after in Ukraine, but will it listen?

Ukrainian President Viktor Yanukovych said during an official visit to Germany on Monday that he hoped to see an increase in German investment in his country.

The Ukrainian president told journalists in Berlin that Germany had invested some $6 billion in Ukraine's economy since the collapse of the Soviet Union in 1991, while investment in Russia was "ten times higher."
"It is very little for Ukraine, especially since Ukraine is closer to Germany geographically [than Russia]," he said.

New regional investment and trade facilitaition project is open for Ukraine

EAST-INVEST is a new regional investment and trade facilitation project covering the period from 2010 to 2013, and the countries of Ukraine, Belarus, Moldova, Armenia, Azerbaijan, and Georgia. EAST-INVEST will contribute to the economic development of the Eastern Neighbourhood region and to the improvement of its business environment within the context of developing networking between EU and Eastern Neighbourhood Region public and private organisations.

Reference: EuropeAid/129289/C/ACT/ESU

Call for Proposals has been launched. Deadline for submission of applications: March 4, 2010

For full details about this call for proposals please consult the website of EuropeAid: https://webgate.ec.europa.eu/europeaid/online-services/index.cfm?do=publi.welcome&nbPubliList=15&orderby=upd&orderbyad=Desc&searchtype=RS&aofr=129289

FDI into Ukraine drops almost trifold in 2009

Ukraine has been hard hit by the credit crunch and the crisis. As a result of that FDI into Ukraine drops almost trifold in first 9 months of 2009. From $8 bn in the first 9 months of 2008 to $2.97 bn in the same period of 2009. It is the city of Kyiv that got most of the FDI flow, receiving $1.2 bn. Other top performers include Kharkiv, Lugansk, Lviv and Kyiv oblast. Disinvestment was occured in Chernigiv and Poltave oblasts.

During the times of independence Ukraine got $837.5 of FDI per capita, provided the population shrinks that number has a built-in improvement trend... Source.

OPIC reopens programs in Ukraine

Paving the way for millions of dollars in potential U.S. private sector investment in the country, the Overseas Private Investment Corporation (OPIC) has restored its programs in Ukraine, following the signing on December 16 of an agreement resolving a dispute over an insurance claim paid by OPIC.

By virtue of the agreement, OPIC is now able to provide financing and political risk insurance to American companies investing in Ukraine.  Previously, OPIC had provided more than $254 million in financing and insurance to 21 projects in Ukraine, in sectors ranging from manufacturing and construction to energy and financial services.

“OPIC is pleased to once again make available its support for U.S. investment in Ukraine, a development which we anticipate will send a highly positive signal to prospective investors in the country,” said OPIC Acting President Dr. Lawrence Spinelli.

Russia and EBRD - biggest investors in Ukraine in 2009?

According to Delo Vneshekonombank whose board is chaired by Mr. Vladimir Putin, made the largest investment into financial sector of Ukraine buying Prominvestbank for about $200 mln and augmenting its capital by UAH 4 bn. EBRD in 2009 made a record in financing investment project portfolio worth EUR 1,1 bn, including investments into financial sector. Source.