Business news from Ukraine

Foreign investment in construction industry of Ukraine: what interests and concerns foreign investors

Foreign investors are looking for transparency, openness and willingness to cooperate in companies. This helps build trust and break down myths about corruption and instability.

This was stated by Marina Cheban, Head of the Legal Department of DIM Group, in an article for thepage.ua.

“While diplomats and politicians are discussing government investments, businesses should actively explore opportunities for existence and development in the new environment. An important aspect of successfully attracting investment from foreign companies is establishing partnerships with foreign investors. Foreign investors are looking for transparency, openness and willingness to cooperate in companies. This helps to build trust and break myths about corruption and instability,” she emphasizes.

Maryna Cheban shared an example of a successful partnership with a foreign investor company and attracting investment in the LUCKY LAND residential complex, which is notable for its scale and comprehensive social facilities. Foreign investors are interested not only in profit, but also in social issues and meeting the needs of the population. In particular, this applies to residents who migrated due to the war. The social aspect, along with well-thought-out planning and various services, creates a comfortable living environment, which makes the complex liquid and extends the product’s life cycle.

“At the moment, we cannot disclose the name of our partner and the size of the investment, but we can say with certainty that foreign investors are looking for long-term investments that bring passive income in the future, which means millions of dollars for construction and an example for other investors that the Ukrainian real estate market is potentially interesting to invest in. For the Ukrainian market, the cases of cross-border partnerships are an opportunity to share experiences, bring best practices, as well as a strategic opportunity to develop and create a positive image for the cumulative effect of building the Ukrainian real estate and development market,” Cheban said.

However, according to Cheban, attracting foreign investors to Ukrainian residential projects is not an easy task, and risk management plays an important role. An important step is project due diligence, which allows investors to understand all aspects of Ukrainian legislation, urban planning regulations, and other norms. Risk management includes a detailed analysis of risks that may arise, including military, political, tax, and economic factors. It is important for Ukrainian companies to demonstrate openness, trust and a deep understanding of the risks involved in attracting foreign investment. This is an important step for Ukraine’s development and building a safe investment environment.

DIM Group was founded in 2014 and consists of six companies covering all stages of construction. To date, it has commissioned 12 buildings in six residential complexes with a total residential area of over 218 thousand square meters. Six residential complexes of “comfort+” and “business class” categories are under construction: “New Autograph, Metropolis, Park Lake City, Lucky Land, etc.

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Ukraine initiates a military risk insurance mechanism for foreign investment

The Government of Ukraine is initiating a mechanism for insuring war risks for foreign investment, Prime Minister Denys Shmygal said.
“We see the interest of potential investors and understand their warnings. One of them is security. Therefore, the government of Ukraine is initiating a mechanism for insuring war risks for foreign investment. In particular, through the Multilateral Investment Guarantee Agency (MIGA) and the World Bank,” he said at the cabinet meeting on Friday.
The prime minister recalled that MIGA had already allocated $30 million for the pilot project.
According to him, the German Ministry of Economy and other partners promise to join the insurance procedure.

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FOREIGN DIRECT INVESTMENTS IN THE ECONOMY OF UKRAINE IN 2020 (OPERATIONS, $ MILLION)

FOREIGN DIRECT INVESTMENTS IN THE ECONOMY OF UKRAINE IN 2020 (OPERATIONS, $ MILLION)

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FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF UKRAINE AS OF 09/30/2020 (BALANCE, $ MILLION)

FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF UKRAINE AS OF 09/30/2020 (BALANCE, $ MILLION)

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FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF UKRAINE AS OF 09/30/2020 (BALANCE, $ MILLION)

FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF UKRAINE AS OF 09/30/2020 (BALANCE, $ MILLION)

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FOREIGN DIRECT INVESTMENTS IN THE ECONOMY OF UKRAINE IN 2020 (OPERATIONS, $ MILLION)

FOREIGN DIRECT INVESTMENTS IN THE ECONOMY OF UKRAINE IN 2020 (OPERATIONS, $ MILLION)

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