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What industries in Ukraine do investors consider promising during the war?

In seven months, Ukraine received $2.2B in direct foreign investment and seeks to develop its processing industry.

Workers of the processing factory sort out raw fresh corn on the production line conveyor in Cherkasy region, Ukraine.

In the conditions of Russian aggression, Ukraine is attractive for investors who work with so-called distressed assets. These investors are willing to buy risky assets very cheaply, expecting potential income from some assets to compensate for possible losses in other assets.

Experts also point out that some investors are preparing a long-term bridgehead for themselves, understanding that, for example, the military-industrial complex and the agricultural sector in Ukraine will be more competitive than elsewhere in the EU. However, experts add that there will be no mass investment in Ukraine with active hostilities or inadequate rule of law.

Analysts name agricultural production, processing, and the military-industrial complex among the potentially interesting sectors of the economy for investors. However, it is noted that even the IT sector is experiencing problems attracting investment. Customers are hesitant to do business with Ukraine because of the potential risks posed by infrastructure destruction and the mobilization of industry personnel.

 

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