In 2019 and 2020, GlobalData’s FDI Projects Database has identified 22 cross-border greenfield projects declared or underway in Ukraine.
There is one expansion among them, and the others are new initiatives. In order to expand exports, Slovenian poultry manufacturer Perutnina Ptuj, a subsidiary of Ukraine-based agricultural products firm Mironivsky Hliboproduct, announced that it would invest $2.3 million in new production capacity in Bosnia-Herzegovina in 2020.
Which countries are the most popular destinations for Ukrainian FDI?
With three projects, the UK is the leading country for attracting greenfield foreign direct investment (FDI) from Ukraine in 2019 and 2020. Germany and Bosnia and Herzegovina each got two projects. Projects in Azerbaijan, Belarus, Bulgaria, Canada, France, India, Lithuania, Moldova, the Netherlands, Norway, Poland, Serbia, Singapore, Russia, and the United States made up the rest.
E.Connect Group, a Ukrainian energy firm, opened a representative office in Moscow in 2019 as part of an FDI project in Russia to improve the efficiency of monitoring and administration at the Rostovskaya and Zamchalovskaya mines.
Which industries are involved in Ukrainian FDI outbound?
Legal services and computer programming activities attracted the most foreign FDI projects in Ukraine in 2019 and 2020, followed by advertising, marketing, public relations, and communications.
Ukraine was the source country for four computer programming initiatives, with Bulgaria, Canada, the Netherlands, and Poland serving as the destination countries.
From Ukrainian investors, the UK received two legal services FDI projects, while France and Singapore each received one.
The United States and the United Kingdom were the destination countries for advertising, marketing, public relations, and communications.
Ukraine was also a source of FDI for projects in Lithuania involving animal feeds, Serbia involving animal production, Azerbaijan involving application services, and Belarus involving software as a service, operating systems, and apps.
Ukrainian investors have also financed initiatives in Moldova including multimodal transportation, India’s oils and fats, and Norway’s architectural and technological activities.
Two FDI projects were launched in Germany, in the commercial construction sector and in heating, ventilation, air conditioning, and cooling equipment, while two more were launched in Bosnia and Herzegovina, in meat products and water collection, treatment, and supply.
The chances for any Ukrainian FDI appear bleak in the aftermath of Russia’s invasion of Ukraine. Inward FDI has also been affected, with a number of corporations ceasing operations in the country. All eyes are on Ukraine right now, but a quick resolution to the war appears improbable, implying that FDI into and out of the nation will be minimal – if not non-existent – for the foreseeable future.