FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock %...

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FDI in Ukraine in 2015-2020 Success Stories

Transcript of FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock %...

Page 1: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

FDI in Ukrainein 2015-2020

Success Stories

Page 2: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

2Foreign Companies

14 K

FDI companies

from more than 35 countries

4.6of all 301,000

companies in Ukraine

%

create 20of total jobs

%

24of private capital stock

%own

34.9of all value-added production

%produce

of FDI companies arefrom European countries

in Ukraine

90 %

TOP 10:Netherlands UK

AustriaSwedenPolandDenmark

FinlandIreland France Germany

Page 3: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

3Top-10 FDI Countries in Ukraine 2015-2020

970 m

405 m

940m

1640 m

14.1 $

billion

TOTALinvestments

7.2 $

Declared

6.9 $

Unlocked

290 m

610 m

330 m

275 m

150 m

225 m

650 m

1,100 m

350 m

440 m

910 m

435 m

1,000 m

Page 4: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

TOP globalcompanies

are investingin Ukraine

4Unlocked FDI in Ukraine

6.9 $

billion

100 +new

production facilities

37 Kjobs created

since 2015

2015 - 2020

Re

al

ec

on

om

y

$ 1.9

Agribusiness

billion

$ 2.5

Energy

billion

$ 1.9

Manufacturing

billion

$ 0.6

Infrastructure

billion

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Unlocked FDI by Regions in Ukraine 2015-2020 5

04

Poltava$ 465 m

05

Zhytomyr$ 355 m

07

Ternopil$ 290 m

08

Rivne$ 225 m

09 Zaporizhia

$ 150 m

10Vinnytsia

$ 160 m

11

Kharkiv$ 95 m

06

Khmelnytskyi$ 110 m

12

Cherkasy

$ 160 m

13

Lviv

$ 100 m

14

Zakarpattia

$ 95 m

17

Sumy$ 40 m

15

Ivano-Frankivsk$ 20 m

18

Volyn$ 150 m

16

Chernihiv$ 40 m

20

Donetsk$ 10 m

21

Kirovohrad

Kyiv

23

Luhansk24

Crimea25

Chernivtsi$ 5 m

19

22

Odesa$ 920 m

01Dnipropetrovsk

$ 1,540 m

02

Mykolaiv$ 690 m

03

Kherson$ 670 m

04

$ 365 m

05

06

07

15

20

0814

10

11

0918

19

17

12

24

0203

04

01

16

22 2321

13

25

Page 6: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Declared FDI by Regions in Ukraine 2019-2020 6

Dnipropetrovsk$ 1,940 m

01

Zaporizhia$ 1,665 m

02

Odesa$ 915 m

04

Chernivtsi

Poltava

Volyn

Rivne20

21

22

23

24

Crimea25

Ternopil19

Sumy

Kyiv$ 190 m

06Kherson

$ 1,215 m

05

Khmelnytskyi$ 180 m

03

Kharkiv

$ 335 m

07

08

10

Donetsk$ 150 m

11

Zhytomyr

$ 150 m

09

Zakarpattia

Luhansk

$ 155 m

$ 120 m

Ivano-Frankivsk$ 90 m

Chernihiv$ 35 m

12

Mykolaiv$ 75 m

13

14

15Lviv

$ 20 m

Kirovograd$ 15 m

16

17

Vinnytsia18

Cherkasy$ 5 m

01

22

06

10

15

0812

21

19 07

18

17

16

2014

23

05

09

24

11

0413

03

02

25

Page 7: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Global Brands Investing in Ukraine 2015-2020

“I am happy to open this plantin Kolomyia, which is a positive sign

for both the expansion of our companyand the development of the Ukrainian economy.”

Martin StüttemLeoni board member with responsibility for

the Wiring Systems Division

“Last year, together with Petro Poroshenko,the President of Ukraine, we attended the solemnopening ceremony of our transshipment complexin Nikolaev. We are very proud of this production

facility. By signing this memorandum, our companyUndertakes the obligation to provide over 400 thousand tons

of additional cargo traffic via the terminal by the end of 2018.”

Tommy JensenCEO of Bunge Europe, Middle East and Africa

7

Page 8: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Unlocked FDI in Ukraine

2.5 $

billion

50 +new

production facilities

20 Kjobs created

since 2015

2015 - 2020

Ma

nu

fac

turi

ng

$ 1,500

Metallurgy

million$ 150

Automotive

million

$ 400

Wood processing

million$ 180

Pharma

million

$ 305

Other

million

8

TOP globalcompanies

are investingin Ukraine

Page 9: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Unlocked FDI from Brands in Ukraine 2015-2020 9

2.1 $

billion

Declared FDI

+

Page 10: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

“Ukraine has a huge potential and I hopethe government will continue with the reforms

needed to unleash this potential and improve the lifeof Ukrainian people and the business environment

in order to be able to attract more investments.”

Michael AleksandrakisManaging Director PM Ukraine, Caucasus and Moldova

“Of the problems we had when we firstCame here in 2003, 90% have gone. The DBA

and European Business Association are constantlyworking through the administration to make life easier

for investors. Ukraine is good investment country; it’s alsoa good country to live in. Ukrainians are highly educated, and

here they are more Western-minded in business and politics.”

Lars Vestbjerg CEO of SIKA Footwear, a Danish footwear manufacturer,

and President of the Danish Business Association

10Manufacturing Brands Investing in Ukraine 2015-2020

Page 11: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Unlocked FDI in Ukraine

1.9$

billion

30new

production facilities

500jobs created

since 2015

2015 - 2020

En

erg

y11

$ 900

Solar energy

million

$ 960

Wind energy

million

TOP globalcompanies

are investingin Ukraine

Page 12: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Unlocked FDI from Brands in Ukraine 2015-2020 12

4.9 $

billion

Declared FDI

+

Page 13: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

"The Nikopol solar power plant will become the largestsolar power generator in Ukraine and Europe. The joint work

of DTEK and CMEC will be an example of cooperationfor other Ukrainian and Chinese companies.”

Mr. Zhang ChunChairman of China Machinery Engineering Corporation

“TIU Canada was set up specifically to capitalizeon the Ukrainian renewables market, the country’s energy

reforms, and the Canada-Ukraine free trade agreement.Under the government of (Canadian Prime Minister) Justin

Trudeau, we saw increased efforts to try to improve Ukrainianmarket access for Canadian companies. At the same time,

Ukraine is among the top six countries in the world in terms ofsolar radiation. All this made it a very interesting market to be part of.”

“When the IMF prioritized renewable energy in Ukraine, we recognized thatthe core competencies of Canada created considerable investment opportunities

for us in Ukraine. We see strong parallels between Ukraine’s current energy independence efforts and the 1980s-2010s hydrocarbons boom in Canada.”

Michael YurkovichTIU Canada CEO

13Energy Brands Investing in Ukraine 2015-2020

Page 14: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

14Unlocked FDI in Ukraine

1.8 $

billion

40 +new

production facilities

2.5 Kjobs created

since 2015

2015 - 2020

Ag

rib

us

ine

ss

$ 670

Agri-logistics

million

$ 325

Farming

million

$ 350

Seed oil production

million

$ 280

Seeds production

million

$ 260million

Other

TOP globalcompanies

are investingin Ukraine

Page 15: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Unlocked FDI from Brands in Ukraine 2015-2020 15

160 $

million

Declared FDI

+

Page 16: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Agri-Brands Investing in Ukraine 2015-2020

“We in Cargill believe that Ukrainian agriculture hastremendous growth potential. We want our company to be partof this growth. Cargill has been active in Ukraine for more than

20 years and we remain dedicated to this market. We have a long-term view and are continuously looking into new investment opportunities.”

Martin SchuldtCEO of Cargill Ukraine

“This investment demonstrates Bayer’s strong commitmentto Ukraine. With more than 25 years of successful history

in Ukraine, we have always been a key player in developingthe country’s agricultural sector. Bayer will continue working with

farmers in Ukraine and is also planning to export its high-qualitycorn seed to EU states.”

Dr. Dirk Backhaus Member of the Executive Leadership Team and Head of Product Supply

for the Crop Science division of Bayer

16

“Bunge trusts and believes in Ukraine,in the agriculture of Ukraine, but first of all in Ukrainian people.”

Tommy Jensen CEO of Bunge Europe, Middle East and Africa

Page 17: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

1$ billion deal

Unlocked FDI in Ukraine

540$

million

2015 - 2020

Infr

as

tru

ctu

re17

up to 40% production localization in Ukraine

production of 225 new and modernization of 75 old diesel locomotives170.000 km

of roadways

20passenger

airports

13sea ports

19.790 km

of railways TOP globalcompanies

are enteringUkraine

Page 18: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Unlocked FDI from Brands in Ukraine 2015-2020 18

110 $

million

Declared FDI

+

Page 19: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Infrastructure Investment Opportunities in Ukraine

“GE is proud to be a trusted partner as Ukraine moves forward on modernizing infrastructure to accelerate growth and improve the lives

of its people. We are happy to see the continued progress being achievedby the Government of Ukraine in improving the investment climate and the

ease of doing business in the country.”

Alex DimitriefSenior Vice President, GE

19

Passenger transportation by international airlines

due to visa-free regime with EU

Passenger trafficby rail to EU countries500 %

Go Highway

(Gdansk – Odesa)

Reginal airports development

Railway system upgrade

(Lviv – Kyiv – Odesa)

Sea ports concessions(Olvia, Kherson)

Public-Private Partnership and Concession Projects

6.7 million

4.9million

4million

2016 2017 2018

Page 20: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

70 % provide IT services to a wide range of clients

15 % work as an in-house center for the parent company

IT Industry in Ukraine 2015 - 2020

IT i

nd

us

try

20

25 +annual growth

for over 10 years

%

2largest export

service industry

ndthe

100Fortune 500

companies have chosen Ukrainian

IT services

+

> 4,000tech companies

15 % create their own product

Page 21: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

From more concentrated to less

Top-15 IT companies in Ukraine 2015-2020 21

IT clusters

Page 22: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

22

“In Ukraine, unfortunately, there are not many jobswith a high salary level, and the revenues growth of IT

industry contributes to the emergence of such places."

Yuriy AntonyukHead of EPAM Ukraine

“Global Logic Ukraine showed remarkableresults - we increased by almost 24%. From yearto year, we rebuild key business goals and grow

significantly faster than the market. This is importantfor the development of the entire company, as Ukraine

is one of the key locations of GlobalLogic by the numberof engineers and the size of the business."

Igor BedaCEO Globallogic Ukraine

IT Industry in Ukraine 2015 - 2020

Page 23: FDI in Ukraine · companies in Ukraine % create 20 of total jobs % 24 of private capital stock % own 34.9 of all value-added production % produce of FDI companies are from European

Your investment

Cabinet of Ministers of Ukraine12/2 Hrushevskoho St., Office 148

Kyiv-01008, Ukraine

www.ukraineinvest.gov.ua

+38 044 256 7832

matters

[email protected]

Information provided in this presentation is collected from public sources and shall not be considered as the official statistics.