You're reading: Foreign direct investment to Ukraine fall by $2.37 bln in 2015 due to hryvnia devaluation, largest growth seen from Russia

Foreign direct investment (FDI) in Ukraine in the form of share capital as of Jan.1, 2016 reached $43.37 billion, which is $2.37 billion, or 5.2 percent less than a quarter ago, and the decrease is linked to devaluation of the national currency, the State Statistics Service has said.

The authority said that in 2015 the largest growth of investment was seen from Russia – its share grew from 5.9 percent to 7.8 percent or around $700,000 (in connection with the additional capitalization of banks with Russian capital).

The State Statistics Service reported that nonresidents invested $3.76 billion in 2015, which is $1.3 billion or 34.8 percent up year-over-year, and at the same time they withdrew $890 million, which was $280 million or 23.8 percent down year-over-year.

The negative exchange rate in 2015 was $5.02 billion, while a year ago it was $12.25 billion.

The State Statistics Service said that due to resumed hryvnia devaluation, growth recorded in the two previous quarters was replaced by a decline by $580 million in Q4 2015.

Taking into account earlier published data, nonresidents in October-December 2015 invested $1.2 billion compared to $1.51 billion in Q3 2015, $700 million in Q2 2015 and $350 million in Q1 2015.

Nonresidents withdrew $370 million in Q4 2015, $170 million in Q3 2015, $130 million in Q2 2015 and $220 million in Q1 2015.

The negative exchange rate in Q4 2015 grew to $1.37 billion from $0.12 billion in Q3 2015.

Along with Russia, the share of investment from the Netherlands grew from 11.4 percent to 12.4 percent. The share of investment from Cyprus fell from 30 percent to 27.1 percent, Britain – from 4.7 percent to 4.3 percent, British Virgin Islands – from 4.3 percent to 4.1 percent, and Germany and Austria’s FDI share did not change, being 12.5 percent and 5.5 percent respectively.