The inflow of foreign investment into Ukraine is slowing down.

The investment climate in Ukraine has never been easy for investors but ongoing war has only worsened the situation. In 2024, the inflow of foreign direct investment (FDI) into Ukraine decreased by $1.2B compared to 2023, totaling $3.3B.

However, 72% of FDI comprises reinvested income from pre-existing foreign investors. Consequently, the volume of accumulated FDI over the past year fell by 0.7% ($0.38B) to $54.6B, which is 17% lower than in pre-war 2021. For comparison, in Poland the accumulated FDI volume is $335B. In the first two months of 2025, FDI inflow into Ukraine was only $351M, a decline of 69.7% compared to the same period in 2024.

It is noted that until the end of full-scale hostilities and the signing of some form of peace agreement, the investment climate in Ukraine will remain negative. The IMF’s baseline scenario suggests that the war will conclude in the last months of 2025. Therefore, significant improvements in the Ukrainian investment climate are unlikely this year. Moreover, the country’s post-war reconstruction cannot occur without active FDI attraction, and this investment will require robust security guarantees.