In 2024, Ukraine experienced a reduction in foreign direct investment, which fell by $1.16 billion, totaling $3.33 billion.

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

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

"The decline is likely related to the easing of currency restrictions on cross-border transfers imposed by the NBU, including dividend withdrawals, which started in the second half of last year," explained Hetmantsev.

At the same time, he noted a significant reduction in the volume of debt instruments due to a decrease in liabilities to foreign investors, particularly regarding trade credits.

As Hetmantsev pointed out, the total volume of accumulated FDI (stock) decreased by 0.7% ($0.38 billion) last year to $54.57 billion. This is 17% lower than the last year before the full-scale war (2021 – $65.75 billion).

"Accumulated FDI, when compared per capita with countries in Central and Eastern Europe, remain at a very low level. For example, in Poland, which before the war could be considered comparable to us in population, the accumulated FDI amounts to $335.5 billion (as of 2023), which is 6 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% lower than the corresponding period of 2023.