Lviv oblast: offshore investments giving way to DFI

Although Cyprus is still among the top ten investors, major investors are from the USA, Poland, Denmark, Germany and other EU countries. In 2009, the Lviv oblast attracted $226 million in officially registered DFI. The amount of the grey DFI, the official says, can be twice as big. Compared with 2008, the size of the DFI has dropped due to the recession from $360 million. In all the years of Ukraine’s independence, the Lviv oblast attracted $1.4 billion in foreign investments.

The official predicts a growth in DFI next year. “However, investors are wary of political and economic risks existing in Ukraine, such as the presidential election, procrastination with approving the 2010 budget, and timely payments on Ukraine’s commitments,” Shmyhal adds.

In his opinion, Ukraine has a high investment potential and attractive market. “As soon as the risks get minimized, Ukraine will be in for an investment boom,” Shmyhal says.