The major obstacle to foreign investment in Ukraine

Lack of trust in the judiciary is the major obstacle to foreign investment in Ukraine

09/ 11/ 2020

48% of foreign investors think that Ukraine became less attractive for investment, 42% consider the investment climate largely unchanged, and only 9% see improvements.

These are some of the findings of the fifth annual survey of strategic and portfolio investors jointly conducted by the European Business Association (EBA), Dragon Capital, and Center for Economic Strategy (CES) at the end of October 2020.

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The “lack of trust in judiciary” was named the main obstacle to foreign investment for the first time in five years, while “widespread corruption”, the previous leader, moved to second place. The same obstacles were named by both portfolio and direct investors. Market monopolization and state capture by oligarchs was the #3 impediment, though strategic investors were also concerned about cumbersome and frequently changing legislation.

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EBA FI survey