In 2024, Ukraine experienced a decline in direct foreign investment inflow of $1.16 billion, totaling $3.33 billion.

This was reported by Danilo Hetmantsev, head of the Tax Committee of the Verkhovna Rada, citing data from the National Bank.

Specifically, 71.6% of FDI consists of reinvested earnings obtained by foreign investors in Ukraine ($2.38 billion). Compared to the previous year, the amount of reinvested earnings decreased by 30%.

Hetmantsev explains that the reduction is likely related to the easing of currency restrictions on cross-border transfers imposed by the NBU, including dividend payouts, which have been in effect since the second half of last year.

He also noted a significant decrease in the volume of debt instruments due to the reduction of obligations to foreign investors – affiliated enterprises, primarily concerning trade credits.

As Hetmantsev pointed out, the accumulated FDI stock decreased by 0.7% ($0.38 billion) last year, now amounting to $54.57 billion. This is 17% less than the last year before the full-scale war (2021 – $65.75 billion).

“Accumulated FDI, when compared per capita with Central and Eastern European countries, have remained at a very low level. For instance, in Poland, which was comparable to us in population size before the war, the accumulated FDI amounts to $335.5 billion (for 2023), which is six times higher,” emphasized the deputy.

Reminder:

The inflow of direct foreign investments (FDI) into Ukraine amounted to $3.98 billion for the 11 months of 2024, which is 14% less than the figures for the same period in 2023.