Decline in Foreign Direct Investment in Ukraine for 2024

In 2024, the influx of foreign direct investment in Ukraine decreased by $1.16 billion, totaling $3.33 billion.

This information was provided by the chairman of the tax committee of the Verkhovna Rada, Danilo Hetmantsev, citing data from the National Bank.

Specifically, 71.6% of the FDI consists of reinvested earnings from foreign investors in Ukraine ($2.38 billion). Compared to the previous year, the amount of reinvested earnings dropped by 30%.

"The decline is likely related to the easing of currency restrictions on cross-border transfers by the NBU, including dividend payouts that came into effect in the second half of last year," explained Hetmantsev.

At the same time, the volume of debt instruments has also significantly decreased due to reduced liabilities towards foreign investors, particularly affiliated enterprises (mainly regarding trade credits).

As a result, Hetmantsev noted that the accumulated FDI (stock) decreased by 0.7% ($0.38 billion) to $54.57 billion last year. This is 17% lower than in the last year before the full-scale war (2021 – $65.75 billion).

"Accumulated FDI, when compared per capita with Central and Eastern European countries, has been and remains at a very low level. For instance, in Poland, which before the war could be considered comparable to us in terms of population, the accumulated FDI amounts to $335.5 billion (for 2023), which is six times greater," emphasized the deputy.

Reminder:

The inflow of foreign direct investment (FDI) into Ukraine was $3.98 billion for the first 11 months of 2024, which is 14% less than the same period in 2023.