What prevents foreign companies from investing in Ukrainian industrial parks?

Tuesday, August 6, 2024
What prevents foreign companies from investing in Ukrainian industrial parks?

Almost all investors interested in locating production facilities in industrial parks are Ukrainian companies. The share of Ukrainian investors in the total industrial park investment structure is almost 90%.

For reasons including high military risks and a lack of effective insurance mechanisms, foreign companies are still hesitant to enter the Ukrainian market. There is some interest (10 requests per year) from companies from Turkey, South Korea, Germany, and Poland.

The largest number of requests comes from the agricultural sector and the food industry – from the construction of grain elevators and processing, developers of warehouses and logistics facilities, and manufacturers of building materials, where 50% of investors are foreign companies who anticipate that demand for building materials will rise during the post-war recovery.

Important prerequisites for improving foreign investment effectiveness are the reduction of military risks, the launch of investment insurance mechanisms, an increase in the number of foreign investors, and the predictability of tariff and tax policies.

 

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