FDI in the Ukrainian economy increases by $ 2.7 billion in the first half of 2021 – Danylyshyn

Foreign direct investment (FDI) in the Ukrainian economy due to the participation of a direct investor in the capital increased over six months by $ 2.7 billion, of which $ 2.3 billion was reinvested in profits.

According to Ukrinform, the Chairman of the Board of the National Bank of Ukraine, Bohdan Danylyshyn, wrote this on his Facebook page.

“The inflow of foreign direct investment is mainly determined by the reinvested profits of foreign investors. Thus, the foreign direct investment in the Ukrainian economy due to the participation of a direct investor in the capital increased over six months by 2, 7 billion USD, of which 2.3 billion USD were reinvested profits of the direct investor, ”the report states.

At the same time, excluding reinvested profits, the direct investor’s investment in the capital of a direct investment enterprise (USD 430 million) was insufficient even to compensate for the outflow of funds from direct investors from investment firms. direct through debt instruments (-460 USD million).

Reinvested profits are the direct investors’ share of the profits from direct investments that are not distributed to owners. These gains (or losses as the case may be) are recorded in the current account of the balance of payments as income from international investments.

As Ukrinform reported, the Economy Ministry expects Ukraine to attract $ 5 billion in investment in 2021.

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Christi C. Elwood