Key projects of foreign investors in 2021
The Ukrainian economy last year received $2.5 billion in foreign investment – the projects of foreign investors were very extensive. Earlier, in 2016-2017, most of the invested funds were used to recapitalize banks. At that time, this was due to the need to reduce the possible risks for the Deposit Guarantee Fund if the banking institutions declared insolvency. Subsidiary banks transferred credit funds into equity – this is a formal transaction, but it is registered as direct investment. Since the beginning of 2021 the flow of foreign investment funds to recapitalize the banking system has decreased, and 58% of FDI is reallocated to the economy sector. KPMG reports that the number of deals concluded with foreign investors increased by 47%. The total value of M&A agreements was $1.8 bn. It is worth mentioning that 11 out of 25 representatives for the first time invested into development of Ukrainian production, agricultural sector, retail, energy sector, infrastructure etc.
The main projects of foreign investors in Ukraine
- Opening of H&M, Ryanair and IKEA in Ukraine
World famous brands H&M and Ryanair opened in Ukraine in 2021, and the first IKEA store will be opened in Kiev this year already.
Famous brands H&M, Ryanair started their activities in Ukraine in 2021, and IKEA will open its first shop in Kiev this year. French sporting goods chain Decathlon announced the opening of a sports hypermarket in the capital in the near future.
- Agreement between Ukrzaliznytsia and General Electric
Ukraine has signed a contract with General Electric for the supply of locomotives, according to the first part of the contract 30 new trains have already been delivered and are operating on all railway line
- Investment from ArcelorMittal
ArcelorMittal – the largest steel company has invested $400 million in its own production in Ukraine, one-third more than the 2017 investment.
- Transaction between SALIC and Mriya Agro Holding
SALIC bought Mriya Agro Holding and invested more than $200 million in the development of agribusiness. At the moment the modernization and expansion of capacities is in progress.
- Bayer plant opening
Bayer, which specializes in chemical-pharmaceutical production, opened the largest seed plant in Europe in the Zhytomyr region in late fall. The investment amounted to more than $200 million.
- Involvement of Sarantis investors
In 2021, the Ukrainian manufacturer of household goods Ergopark and the Greek company Sarantis merged.
- P&O Maritime
P&O Maritime, a UAE magnate, has invested in the towing company LB Shipping and provides services in all Ukrainian ports.
- Brookfield Asset and Lviv IT Park
The company from Canada, Brookfield Asset Management has invested in the design and development of Lviv IT Park – the largest prospective center of IT-industry in eastern Europe.
- Investment in environmental power sources NBT
A company from Norway, NBT in 2019 launched near Kherson solar-powered power plant “Sivash” and is negotiating the construction of a second SPS.
- Horizon Capital
Horizon Capital plans to provide financial support to businesses and invest in light industry, agriculture and IT.