You're reading: Growth of foreign direct investment into Ukraine slows

The growth of foreign direct investment into Ukraine in 2011 was estimated $4.56 billion, or 2.3% down on 2010.

As the State Statistics Service said on Friday, foreign investors injected $6.47 billion into the Ukrainian economy last year, while investments in 2010 totaled $5.68 billion.

In contrast to previously announced statistics, the recent report does not include information about the reduction in non-residents’ capital in 2011. In 2010 this indicator was $809.7 million.

In general, according to the source, the amount of foreign direct investment made in Ukraine by the beginning of this year stood at $49.36 billion, or $1,084.3 per capita.

The state statistics committee says that Ukraine’s largest investor is Cyprus, the share of which in total investment rose from 22.4% to 25.6% in 2011. Moreover, the share of investment from Austria increased from 6.1% to 6.9%.

At the same time, last year the share of investors from Germany shrank from 15.8% to 15%, those from the Netherlands from 10.5% to 9.8%, from Russia from 7.6% to 7.3%, and from France from 5.3% to 4.5%. The share of investors from the United Kingdom remained at 5.1%.

The amount of arrears on debt instruments owed to direct investors increased by $990 million to $7.96 billion last year.

Financial institutions accumulated $16.32 billion (33.1% of total direct investment in Ukraine), industrial enterprises built up $15.24 billion (30.9%), including $13.06 billion in the processing industry and $1.49 billion in the extractive industry.

In particular, the manufacture of basic metals and fabricated metal products obtained $6.08 billion in direct investment, the production of foods, beverages and tobacco $2.07 billion, while the chemical and petrochemical industry got $1.38 billion, engineering $1.23 million, and the manufacture of other non-metallic mineral products $0.89 billion.

Direct investment in real estate, leasing and engineering stood at $5.75 million (11.6%), in trade, repair of motor vehicles, household appliances and personal items at $ 5.19 billion (10.5%).

As the state statistics service reported, Ukrainian companies’ debts on loans and borrowings as of December 31, 2011, amounted to $7.96 million.

Overall foreign direct investment (equity and debt instruments) as of December 31, 2011 was estimated at $57.32 billion.

The volume of local direct investments (equity) in world economics as of December 31, 2011, totaled $6.9 billion, including $6.52 billion in the EU (94.5% of the total sum), $282 million in the CIS (4.1%), and $98.5 million in the rest of the world (1.4%).

Direct investments from Ukraine were injected in 47 countries. Cyprus was the major recipient of Ukrainian investments (91.9%).

The total volume of direct investments from Ukraine in other economies, including borrowings, amounted to $7.065 billion.

The amount of loans granted by Ukrainian residents to direct investment agencies was $167.1 million as of December 31, 2011.

As was reported, a net increase in foreign direct investment in Ukraine in 2010 was estimated at $4.655 billion, a 4.9% up on 2009.