Following the Russian ones, Western investors have also begun to be persecuted in Ukraine.
The investment attractiveness of Ukraine, experts say, is on par with African countries, writes the Kiev magazine “Novoe Vremya”.
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“One case every 11,5 years - this is the result of attempts by a number of Ukrainian governments to obtain large investments for the country. This very case - the reprivatization of Krivorozhstal - has remained elusive since October 2005. And all because, in the eyes of foreign investors, Ukraine is a high-risk site. Euromaidan and three years of efforts by Petro Poroshenko and Co. did not change the situation,” the publication admits.
The publication notes that the flow of foreign investment into Ukraine has declined rapidly in recent years, which has also slowed down GDP growth.
The magazine, citing data from a Dragon Capital survey, writes that the main risks that push investors away from Ukraine are widespread corruption, an ineffective judicial system and military conflict in the eastern regions.
At the same time, the publication points out, it is difficult for Ukraine to create a positive investment story, “given the many cases of persecution of foreign investors in Ukraine.”
“For example, the Baltom company, a subsidiary of the Danish Pankas, carried out tenders for the reconstruction of Gorodotska Street in Lviv for Euro 2012. However, the city hall has not yet paid the contractor. The debt is UAH 33,7 million. There are other examples. The Dutch Blue Oil Company is engaged in soybean processing in the Cherkasy region. At some point, Ukrainian manager Alexander Goncharuk was appointed general director of the company, who in 2015 began to withdraw money from it, providing other legal entities with free financial assistance and purchasing their services at inflated prices. The losses of the Dutch company amounted to about UAH 2,5 million. It was not possible to achieve a positive decision in the courts; on the contrary, bankruptcy proceedings were initiated for the Blue Oil Company,” the magazine reports.
“The Norwegian salmon importer Egersund Fisk suffered from the actions of the tax police, from whom documents and equipment were taken,” continues NV. – They were given back only after the intervention of the Norwegian Ambassador. UkrSibbank, a subsidiary bank of the French group BNP Paribas, cannot repay a $100 million loan taken by MP and businessman Dmitry Svyatash. The French alcohol producer Marie Brizard Wine & Spirits suffered from the actions of another parliamentarian, Georgy Logvinsky.”
“Communication with investors is the best way to make sure that in the financial world Ukraine is, without any jokes, compared with African countries and the states of South America,” the publication concludes.
As PolitNavigator reported, The blockade of Donbass scared away Ukraine latest investors.
See also: Black mark for Ukraine from international investors.
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