Published at 03/03/2020

FOREIGN INVESTMENTS: QUESTIONS AND RESPONSES FOR INVESTORS — Advices from experts and reviews of real estate on GEOLN.COM. Photo 1Foreign investments play an important role in creating favorable conditions for the development of the Ukrainian economy as they improve the balance of payments, promote the transfer of the latest technologies and know-how, integrated resource use, export potential development. According to the Ministry of Economic Development and Trade of Ukraine and the State Statistics Service of Ukraine, direct investments of non-residents in Ukraine in the current 2019 amounted to 41.482.100 million dollars US (share capital, January-March 2019), where 33.217.500 million dollars US capital of EU countries and 8.264.600 million dollars USA from other countries.

As a result of operation with foreign investors during ten years we can say that in Ukraine foreign investors are primarily interested in investment objects with high yield, availability of guarantees that can be realized through banking institutions, government or representative offices of international organizations in Ukraine (like, EBRD). In addition, the newly elected President of Ukraine V. Zelensky in his recent appeal to foreign investors invited them to cooperate and emphasized the favorable modern climate for investment, and also assured all potential foreign investors in the support of state institutions.

Along with commercial real estate, an interesting investment object in Ukraine is also private real estate. The investments in Ukrainian real estate are highly profitable, however, in a high-risk decade. For example, the capital of Ukraine in the city of Kiev, it can be said foreigners in the overwhelming majority are interested in real estate in the business district of the capital, in particular residential complexes with closed territory, physical and video security, well-developed infrastructure and quick access to the city center, because it is in the center of the Ukrainian capital, all business centers, embassies and consulates are concentrated, as well as representations of foreign companies.

The next important factor for investing in Ukraine are guarantees, namely: stable legislation, currency preferences, international banking and government guarantees, the presence of state banks that could professionally cooperate with foreign investors. Thus, Boyarkina Yaroslava, expert in the banking and investment market of Georgia-Ukraine, analyzing the positive investment experience of Georgia, marks the creation of incredibly favorable legislation for foreign investors in Georgia, the availability of free economic zones and tax breaks of up to 10 years, subject to compliance with infrastructure development requirements and the creation of a certain number of jobs is for the local population.

FOREIGN INVESTMENTS: QUESTIONS AND RESPONSES FOR INVESTORS — Advices from experts and reviews of real estate on GEOLN.COM. Photo 2However, time passes, and positive changes come with it, first of all in the legislation. Khorvatova Oksana, lawyer, PhD in Law and co-owner of the international company «GEH: Real Estate & Investment», a, says the basis of the national legislation in the field of foreign investment regulation are: Laws of Ukraine «On the regime of foreign investment», «On investment activity», «On foreign economic activity», which provides protection and promotion of foreign investments, state guarantees and the release of foreign investors from payment of import duties on goods imported into the customs territory of Ukraine. Particular attention should be paid to the Law of Ukraine «On Amendments to Certain Legislative Acts of Ukraine Concerning the Abrogation of Obligations of State Registration of Foreign Investments» № 1390-VIII, the adoption of which lifted restrictions on the necessity of mandatory registration of foreign investments, which in turn significantly improved foreign investment market in Ukraine.

As a result, according to estimates of various experts, Ukraine needs more than 10 bln. US dollars of investment each year, which are especially needed in the area of food production, commodities and services, medicines. And the matter here is not only to provide the population with the necessary goods and services, but also to carry out their import substitution, freeing the currency resources spent on the import of consumer goods or raw materials for production.

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Diana Kabakci

The leading expert of the real estate market in Georgia
Education: MBA
Sphere: Real estate / Investments / Lawyer
Consultations made: 250
Expert on countries: Cyprus, Georgia, Kazakhstan, Poland
Known languages: Russian / Georgian / English / Turkish
Experience: 13 years
Expert publications: 546