How do foreign investors assess the investment climate in Ukraine?

Foreign investors have a restrained and negative assessment of the investment climate in Ukraine. Russia’s full-scale military aggression in Ukraine continues to lead the list of negative factors affecting the investment climate, followed by corruption and a weak judicial system. Therefore, to stimulate the economy, developing equitable and fair rules is essential.

The European Business Association (EBA) points out that foreign investors are coming to Ukraine and studying various opportunities but are not investing massively in Ukrainian businesses, instead taking more of an observational position.

“At the end of 2023, the integral indicator of the Investment Attractiveness Index of Ukraine decreased slightly – to 2.44 points out of 5 possible (2.48 points in the second half of 2022). Currently, 84% of the interviewed directors of the association’s member companies consider the investment climate unfavorable”, noted the EBA.

According to their data, about half of the respondents (48%) point to the deterioration of the investment climate, 39% believe there have been no significant changes, and 13% believe that the investment climate has improved.