14:24 21.10.2022

Ukraine needs to raise $70-80 bln in private investment annually after war – First Dpty PM

2 min read
Ukraine needs to raise $70-80 bln in private investment annually after war – First Dpty PM

After the end of the war, Ukraine's goal is to make a leap, "which can be described as an economic miracle," for which it is necessary to raise $70-80 billion in private investment annually, First Deputy Prime Minister, Economy Minister Yulia Svyrydenko has said.

"For the development of Ukrainian industry, it is necessary to attract investments, according to our calculations, $70-80 billion annually for at least five years. This is a big challenge," she said at the business forum "Dialogue between civil society, business and government: wartime challenges" in Kyiv on Friday.

Among the priority sectors, she named military tech, agriculture, metallurgy and IT, and also noted the emphasis on deep processing and the development of small and medium-sized businesses.

Svyrydenko said the interest of investors in Ukraine remains even during the war, including even from China. According to her, insurance of 90% of military risks, on which an agreement was reached with the Multilateral Investment Guarantee Agency (MIGA) from the World Bank Group, should contribute to its practical implementation.

"Everyone understands that after the war, Ukraine will be an attractive place for investment," the First Deputy Prime Minister said.

She also said negotiations are underway with BlackRock to structure a fund that will attract private investment and promote public-private partnerships. "We are also interested in Goldman Sachs, we had a conversation with him yesterday," Svyrydenko said.

According to the NBU, at the end of 2021, foreign direct investment (FDI) in Ukraine in its entire history amounted to $64.16 billion, of which through equity instruments, $46.21 billion, but this is less than at the end of 2013, when they reached $67.03 billion and $56.02 billion, respectively.

Since 2000, the record volumes of FDI for the year were 2014, 2007 and 2021 - $17.20 billion, $14.93 billion and $12.07 billion, respectively.

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