Resilience and Investment: Foreign Support Bolsters Ukraine Amidst Conflict
Since February 24, 2022, the Russian army has either completely or partially destroyed over 400 production facilities among nearly 17,000 large and medium-sized businesses in Ukraine.
The most severely affected sector has been the metallurgy industry, with nearly half of the enterprises suffering damage during the first year of the full-scale war.
Foreign investment also saw a significant decline, with a drop of $7.6 billion in the initial months of the conflict with the Russian aggressor. Despite these formidable challenges, constant air attacks, and territorial occupation, some foreign companies remained undeterred.
Serhil Tsyvkach, the Executive Director of the Government Office for Investment Promotion and Support ‘UkraineInvest,’ stated, ‘In 2022, we were able to attract investment projects worth more than $500 million.
It’s worth noting that these projects are industrial and high-tech, where private investors take on significant risks, showing their belief in Ukraine.
For example, a Polish manufacturer of building materials has already invested €20 million out of a planned €70 million.
An Irish global leader in high-tech building materials has committed over $300 million, with construction set to commence in 2024.’
These companies demonstrated remarkable courage by investing in Ukraine during a full-scale war, thanks in part to government support.
Such corporations can receive up to 30% compensation from the state for their investments in the form of ready-made infrastructure for their production.
Some foreign businesses are exempt from income tax, and investments are insured for up to 10 years.
Mike Stenson, the Executive Director of the Irish company projects department, remarked, ‘Despite the immense challenges faced by the Ukrainian government at the moment, they have shown remarkable support for our initiatives.
We have engaged in discussions with them regarding our substantial investment plans. Clearly, they are keenly interested in our commitment to investing in the future, particularly during a time of war.
This not only strengthens our direction but also provides the Ukrainian economy with the chance to manufacture higher-value products for both domestic and international markets.’
The international partners continue to support and stimulate Ukraine’s growth in the midst of adversity, developing reliable insurance mechanisms. For instance, Poland is considering relevant legislation.
Serhil Tsyvkach added, ‘After we received the status of a candidate member of the European Union, we immediately received dozens of investment requests. Investors are preparing themselves, and any investment typically involves 12 to 18 months of preparation.
There are great chances that we will be able to progress toward EU membership rapidly. As soon as the war started, we reached out to all investors to find ways to encourage them to stay and attract new investments.’
Ukraine’s Invest Nanny project, initiated by the President of Ukraine in 2021, continues to yield results.
It has attracted $1.7 billion in investments from both domestic and foreign businesses, creating more than 40,000 jobs.
Despite the ongoing war, the Ukrainian government remains committed to fostering business development and attracting investments. International partners believe in Ukraine’s potential for victory and are ready to invest.”