War, corruption and weak judicial system. EBA tells what scares foreign investors away from Ukraine

Foreign investors are cautiously negative about the investment climate in Ukraine. Among the main factors affecting it - war, corruption and weak judicial system. This is stated in the response of the European Business Association to an inquiry by UNN.

"It should be said that foreign investors are quite reserved in their assessment of Ukraine's investment climate, one could say even reserved-negative, and take more of an observation position," the EBA said.

The Association added that foreign investors come to Ukraine, study different opportunities, but they do not invest in Ukrainian business en masse.

We in the Association annually conduct the Investment Index to understand the investment situation. So, at the end of 2023, the integral index of the Investment Attractiveness Index of Ukraine has slightly decreased - to 2.44 points out of 5 possible (2.48 points in the second half of 2022). Now the majority, namely 84% of the surveyed directors of the Association's member companies, consider the investment climate unfavorable

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

Russia's full-scale military aggression against Ukraine continues to top the list of factors negatively affecting the investment climate, with corruption and a weak judicial system coming in second and third.

As you can see from the figures, the situation cannot be called positive. So every investor willing to invest in Ukraine is worth its weight in gold. And every honest investor should be protected and supported. After all, it is first of all about the country's reputation and trust. If we as a country prioritize and support some investors and prevent others from working, then, in the end, only we, as a country, will be negatively affected. After all, others will not be ready to enter the country, realizing that the rules of the game may not be fair

The Association believes that especially now Ukraine should be very, very attentive to fairness, equal and honest rules of the game, because the economy needs not just to be supported, but also to be stimulated and developed. And for this, in particular, new capital is needed.

Supplement

TheVerkhovna Rada Committee for Economic Development believes that any cases of problematic cooperation between Ukrainian businesses and foreign investors have a negative impact on Ukraine's image and investment climate. In particular, according to a member of the parliamentary committee, Bohdan Kitsak, the conflict around the Olympex grain terminal in Odessa may have a negative impact on Ukraine's investment attractiveness. Therefore, MPs plan to study the situation with it at the next meetings of the committee.

More details about the conflict around the grain terminal "Olympex" can be read in the material: "Groza and Naumenko's company GNT Group blocked the work of the grain terminal in Odessa. Detailed chronology of the conflict."