The growth of capital investment in Ukraine in October-December 2021 accelerated to 19.3% compared to the same period in 2020, as a result of which it reached 13% for the year as a whole, the State Statistics Service has reported. According to its data, a total of UAH 528.8 billion of capital investment was disbursed, including UAH 197.1 billion in the fourth quarter compared to UAH 140.5 billion a quarter earlier.
In the sectoral context, the largest growth in capital investments in 2021 was recorded in aviation transport – 3.6 times, logging – 2.5 times, postal and courier activities – more than 2 times, healthcare – by 79.1%, retail trade – by 49.5 times %, fisheries – by 47.4%, land and pipeline transport – by 44.9%, water transport – by 35.6%.
In agriculture, investments increased by 24.9%, construction – by 24.7%, industry – by 10.8%, temporary accommodation and catering – by 10.9%, real estate transactions – by 9.2%.
At the same time, in financial and insurance activities last year there was a decline in capital investment by 28.3%, telecommunications – by 24.3%, education – by 18.7%, public administration and defense – by 4.7%.
The main source of financing for capital investment remained own funds of enterprises and organizations, through which 68.6% of the total volume of all investments was disbursed compared to 66.5% a year earlier.
The share of state budget funds was at the level of 9.2% (in 2020 was 8.7%), local budgets – 8.4% (10.4%), bank loans and other loans – 5% (6.7%), population for housing construction – 5.4% (4.9%), nonresident investors – 0.1% (0.4%).
A significant share of capital investments was invested in machinery, equipment and inventory – 30%, in engineering structures – 28%, in nonresidential and residential buildings – 13.5% and 9.1%, respectively, vehicles – 10.3%.
The growth of capital investments in Ukraine in April-June 2021 compared to the same period in 2020 amounted to 17.1%, while in January-March there was a decline in capital investments at the level of 9.5%, the State Statistics Service said.
According to the service, in the second quarter of this year, UAH 191.133 billion of capital investments were spent (excluding the temporarily occupied territory of Crimea, Sevastopol and the territories of Luhansk and Donetsk regions).
The growth of capital investments in the first half of the year compared to the same period in 2020 amounted to 4.2%, the State Statistics Service said.
In the regional context, a significant decrease in capital investments in the second quarter of 2021 compared to the same period in 2020 was recorded in Volyn (by 64.1%), Kirovohrad (by 17.1%), Mykolaiv (by 13.3%) regions.
Capital investments in April-June 2021 compared to April-June 2020 increased in Luhansk (by 9.08%), Zhytomyr (by 85.3%), Zaporizhia (by 66.7%), Ivano-Frankivsk (by 60.4%), Kherson (56.4%), Chernivtsi (57.1%), Lviv (47.9%), Sumy (41.7%), Vinnytsia (36.1%), Rivne (by 37.5%), Donetsk (by 34.3%), Kyiv (by 27.1%), Dnipropetrovsk (by 26.2%), Chernihiv (by 22.3%), Cherkasy and Ternopil (by 22.2%), Khmelnytsky (by 15.7%), Zakarpattia (by 13.3%), Odesa (by 13%), Kharkiv (by 12.7%), Poltava (by 10.8%) regions and in Kyiv city (by 10.2%).
Among industries, the growth of capital investments in the second quarter of this year was recorded in the field of forestry – 4.4 times, the provision of other types of services – 3.9 times, in postal and courier activities – 3.6 times, healthcare and social assistance – 2.5 times, at transport enterprises, in warehouses, postal and courier activities – by 60.8%, in temporary accommodation and catering – by 27.7%, in real estate transactions – by 25.9%, in wholesale and retail trade – by 25.3%, in activities in the field of administrative and support services – by 16.3%, computer programming and the provision of other information services – by 14.8%, in industry – by 14.1%, agriculture – by 13.1%, construction – by 7.6%, scientific achievements and developments – by 5%, public administration and defense – by 3.8%, advertising – by 1.2%.
In the field of fish farming, the decline in capital investments was 43.3%, in financial and insurance activities – by 37.7%, in education – by 29%, in professional, scientific and technical activities – by 5.5%, in the field of information and telecommunications – by 4.3%.
Own funds of enterprises and organizations remained the main source of financing for capital investments, at the expense of which 75.2% of the total volume of all investments has been used.
A significant share of capital investments was invested in buildings and structures – 45.5%, and in machinery, equipment and vehicles – 44.9% of all investments.
As reported, capital investment in Ukraine in 2020 fell by 38.2%, while in 2018-2019 they grew by 16.4% and 15.5%, respectively.
Recent changes in the financial market of Ukraine are favorable for the emergence of investor interest in new instruments, and the investment company Concorde Capital plans to bring about a dozen companies to an initial public offering (IPO) in two years, the founder and CEO of Concorde Capital, Ihor Mazepa, has said.
“I perceive this as a personal challenge and my personal ambition and ambition of my colleagues at Concorde: … I give myself, roughly speaking, two years to bring a good ten companies to an IPO,” Mazepa said at the presentation of the UAH 50-100 million IPO of the Veres Rivne People’s Club in Kyiv.
The CEO of the investment company believes that in recent years there has been a good trend in the market, which was previously observed in the neighboring markets of Eastern Europe and Russia. “When deposit rates fall, the investor has a feeling of discomfort. What I have seen for the last six or nine months: there has been such a huge trend that a class, a huge group of investors has begun to form in the country. Our fellow citizens really brought money to the stock market,” Mazepa said.
According to him, now this money goes to American and European exchanges.
“I want to walk this path, create or return this culture of investment to our country,” the CEO of Concorde Capital said.
He also said the company is developing a phone application for investors that will allow them to buy/sell securities online. According to him, the development cost is up to $1 million, and it can be launched before the end of this year or early next year.
Interpipe international vertically integrated pipe and wheel company increased capital investments by 14.3% in January-June 2019 compared to the same period last year, to $24 million from $21 million.
According to Interpipe’s presentation for its first conference call with investors, in the reporting period $17 million of investments were used for the company’s pipe sector and about $4 million to the steelmaking complex (Interpipe Steel), as well as up to $4 million for the sector for production of railway wheels.
At the same time, the presentation notes that in January-June 2018 some $12 million were invested in the pipe sector of the company, $5 million in the steel sector and $3 million in the sector for production of railway wheels.
In January-June 2019 Interpipe increased EBITDA by 37% compared to the same period in 2018, to $125 million, revenue by 3%, to $557 million. At the same time, the company’s sales in the first half of the year decreased by 6.2%, to 423,000 tonnes, in particular sales of railway wheels increased by 1.1%, to 96,000 tonnes, while pipes decreased by 8.1%, to 317,000 tonnes.
It is also reported that in January-June the company increased production of welded pipes by 5.7%, to 56,000 tonnes, but reduced production of seamless pipes by 10.6%, to 261,000 tonnes. In monetary terms, production of welded pipes increased by 27.5%, to $51 million, but output of seamless pipes was down by 10.6%, to $311 million.
Capital investment in Ukraine in January-June 2019 grew by 12.3%, while in the first quarter of 2019 – by 17.8%, the State Statistics Service reported on Tuesday. According to the State Statistics Service, after an increase in investments in agriculture, forestry and fisheries in the first quarter by 2.1%, a decrease of 8.6% was recorded in the first half of the year.
In wholesale and retail trade, growth slowed down from 18.9% to 6.3%, in transport, storage, postal and courier activities – from 20.8% to 4.7%, while in industry – from 32% to 30.8%, and in construction, an increase from 3.4% to 5% was recorded.
According to the State Statistics Service, in the first half of 2019, UAH 234 billion of capital investment was disbursed (excluding the temporarily occupied Crimea, Sevastopol and the JFO area).
In the regional context, the largest increase in capital investment in the first half of 2019 compared to the same period in 2018 was recorded in Volyn (by 76%), Kherson (by 68.5%), Mykolaiv (by 39.5%), Kyiv (by 25, 85), Chernivtsi (by 25.7%), Dnipropetrovsk (by 23.6%), Ternopil (by 21.4%), Luhansk (by 16.2%), Vinnytsia (by 12.3%), and Donetsk ( in 12.6%) regions.
According to statistics, capital investments for the reporting period decreased in Chernihiv (by 17%), Zakarpattia (by 15.8%), Zhytomyr (by 15.2%), Ivano-Frankivsk (by 9%), Odesa (by 7.2%), Rivne (5.1%) and Zaporizhia (4.4%) regions.
The main source of financing capital investment remains the own funds of enterprises and organizations, due to which 73.3% of the total volume of all investments has been used.
A significant share of capital investments was made in machinery, equipment and vehicles – 47.7%, buildings and structures – 43.6% of all investments.
Capital investment in agriculture in 2018 totaled UAH 90 billion, including UAH 25 billion invested in processing, Ukrainian Prime Minister Volodymyr Groysman has said.
“Last year, UAH 90 billion were invested in the agricultural and industrial complex, almost UAH 25 billion were funds invested in processing… We have not yet used even a third of our potential [in the agricultural and industrial complex],” he said at the tenth Agroport West Lviv International agricultural exhibition and forum on supporting farming held in Lviv on Thursday.
According to him, the share of agriculture of Ukraine’s GDP is 17%, but only 4% of it are processed products, the rest is raw materials.
“Our task is to change this structure. At least a quarter of the gross product should be for the agricultural and industrial complex. We must increase the in-depth processing of Ukrainian products,” Groysman said.
The prime minister said that products grown in Ukraine are represented in 190 countries.
