INVESTMENT ACTIVITY

According to the State Committee of Statistics of Ukraine, foreign direct investment in 1997 totaled $759.2 mln USD, which is up 42.9% compared to 1996. Out of this amount, the investment coming from the CIS member states and the Baltics amounted to $67.7 million USD (down 40%), and that coming from the other countries of the world amounted to $691.5 million USD (up 65.3%).

The State Committee of Statistics informed that the major forms of investment were contributions in the forms of movable and immovable property that amounted to $378 million USD (49.8% of the overall amount of investments) and pecuniary contributions -- $298.8 million USD (39.4%). At the same time, non-residents withdrew capitals amounting to $124.9 million USD in 1997, which represents 16.5% of the overall amount of investment made in 1997.

The sectors that were the most attractive for investors in the last year included the food industry ($422.1 million USD or 20.6%), internal trade ($337.6 million USD or 16.4%), finances, credit, insurance, pension provision ($174.1 mln USD or 8.5%), machine building and metal works ($168.7 million USD or 8.2%), chemical industry ($141.2 million USD or 6.9%), and construction ($90.6 million USD or 4.4%).

During the same period, Ukraine invested $49.8 million USD in foreign economies, which is 2.1 times more than in 1996. In particular, $3.8 million USD was invested in the CIS member states and the Baltics (a 70% decrease compared to the previous year) and $46 million USD (a 4.3 times increase) in the other countries throughout the world. Ukrainian residents withdrew capital worth $7.6 million USD from foreign economies in 1997.

According to the State Committee on Statistics, the largest recipients of Ukrainian investment included the Russian Federation ($44.8 million USD or 35.5%), Panama ($43.0 million USD or 32.1%), Vietnam ($22.8 million USD or 17%), and Switzerland ($7.4 million USD or 5.5%). The largest Ukrainian investors are transportation facilities (they invested $67 million USD or 50% of the overall amount of investment), health care, physical culture and social security facilities ($26.4 million USD and 19.7%, respectively), construction facilities ($11.8 million USD and 8.8%), machine building and metal works ($7.1 million USD and 5.3%).

It is worth noting that the overall volume of foreign direct investment in Ukraine as of 1.01.98 was $2,053.8 million USD. The largest volumes of investment came from the USA ($381.2 million USD or 18.6%), the Netherlands ($214 million USD or 10.4%), Germany ($184.7 million USD or 9%), the Russian Federation ($150.4 million USD or 7.3%), Great Britain ($149.9 million USD or 7.3%), Cyprus ($125.6 million USD or 6.1%), and Liechtenstein ($123.4 million USD or 6%).

The overall volume of investment made by Ukraine as of 1 January 1998 was $133.8 million USD, including $50.6 million USD (37.8%) invested in the CIS member states and the Baltics, and $83.2 million USD (62,2%) invested in the other countries of the world.

Foreign investors invested in the economy of Kyiv an amount of 216.9 million USD in 1997 . The volume of investments outreached the respective index of 1996 by 7.2%. Out of the overall volume of investment, 11.5 mln USD (5.3%) came from the CIS member states and the Baltics, other countries world accounting for 205.4 mln USD (94.7%).

The principal form of investment is monetary contributions - 113.7 mln USD (52.4%) and contributions in the form of immovable and moveable property - 63.7 mln USD (29.3%).

Foreign investments were made in 2,681 enterprises of the city, whose outputs (both goods and services) totaled 2.82 billion UAH.

As of 1.01. 98, the overall volume of foreign direct investment in the development of the city's economy was 614.3 mln USD. The most sizable were the investments coming from the following countries:

The following sectors of Kyiv's economy attract most investments:

The investments made by Kyiv in the economies of other countries of the world were 31.2 mln USD, as of 01.01.98, including 29.7 mln USD invested in the CIS member states and Baltics; 1.5 million USD invested in other countries of the world.

The greatest volumes of investment were made in the following economies:

Investments in the economies of other countries of the world came to such branches of economy as health care - 26.4 mln USD, finance and credit, insurance, pension provision - 3.5 mln USD.

Table 4.1. Country-by-country distribution of the registered with the state register objects with foreign investments made by non-residents
State
Number
State
Number
State
Number
Former USSR
Other countries of the world
Azerbaijan
81
Ethiopia
5
Seychelles
4
Byelorus
196
Zimbabwe
1
St.Kitts and Nevis
1
Armenia
131
Jordan
161
Slovakia
96
Georgia
107
Canada
129
Slovenia
13
Estonia
72
Qatar
1
Somalia
2
Kazakhstan
23
Kenya
1
Great Britain
265
Kirgizstan
6
China
387
USA
887
Latvia
186
Colombia
4
Sudan
4
Lithuanian
179
Congo
4
Siera Leone
3
Moldova
77
KPDR
9
Singapore
18
Russia
1935
Korea
9
Syria
198
Tadjikistan
11
 Cuba
8
Togo
5
Turkmenistan
30
 Kuwait
7
Tunisia
15
Uzbekistan
46
Cyprus
165
Turkey
212
Luxembourg
13
Hungary
111
Total :
3080
Liberia
6
Uganda
1
State
Number
Lebanon
284
Folkland Islands
1
Other countries of the world
Libya
7
France
125
Australian
27
Liechtenstein
35
Finland
28
Austria
126
Maurytania
3
Croatia
14
Albania
2
Madagascar
2
Chad
2
Algeria
16
Macedonia
2
Czech Republic
140
Andorra
8
Mali
9
Switzerland
131
Antigua & Barbuda
2
Morokko
29
Sweden
33
Angola
1
Monaco
3
Sri-Lanka
25
Angilia
17
Mongolia
1
Yugoslavia
49
Argentina
1
Nauru
1
Jamaica
1
áfghanistan
63
 Nepal
1
Japan
12
Bahamas
26
New Zealand
3
Ghana
2
Bangladesh
46
Norway
8
Guinea
8
Barbados
2
Netherlands
93
Guinea-Bissau
1
Bahrain
5
Nicaragua
4
Greenland
1
Belgium
37
Germany
585
Gibraltar
6
Belize
7
Nigeria
64
Yemen
5
Benin
3
Tanzania
4
Egypt
40
Bermuda
2
UAE
9
Israel
160
Bulgaria
251
Pakistan
35
Indonesia
1
Brazil
1
Panama
22
India
128
British Territiries in Indian Ocean
24
Paraguay
1
Iraq
167
Burkina Faso
3
 Peru
9
Iran
245
Vietnam
179
Poland
347
Ireland
110
Venezuela
4
Portugal
3
Iceland
1
Virgin Island
24
 South Africa
1
Spain
51
Gong-Kong
4
Northern Marianas
1
Italy
195
Greese
56
Rwanda
2
Denmark
20
Romania
15
Dominican Republic
4
Samoa
1
Ecuador
1
Saudi Arabia
5
Total enterprises from other coutnries of the world
6975
TOTAL
10055

Table 4.2. Foreign Direct Investment in Kyiv in 1997(thousand USD)
Investment
Total
Including
   
From the former USSR
From other countries of the world
Aggregate capital of non-residents in Ukraine as of the beginning of the accounting period 436925.20 15134.73 421790.47
Increment of non-residents' capital, total: 216849.10 11465.87 205383.23
Including for account of:
Pecuniary contributions 113691.52 9336.67 104354.85
Including: purchase of shares 16014.12 34.69 15979.43
Contributions in the form of securities 31551.59 31551.59
Including interchange of shares
Contributions for account of cancellation of debt 678.14 678.14
Including transferring loans, credits into shares 0.32 0.32
Reinvestment of incomes 4752.80 4752.80
Including transferring incomes from investments into shares 4520.50 4520.50
Contributions in the form of movable and immovable property 63679.61 661.26 63018.35
Including transferring equipment into shares 903.01 903.01
Contributions in the form of intangible assets (procurement of legal rights, know-how, etc.) 739.75 739.75
Including transferring intangible assets into shares 5.20 5.20
Reevaluations of capital 1588.83 1459.27 129.56
Other forms of fulfillment of investments on the basis of agreements with the residents of Ukraine, not banned by effective legislation of Ukraine 166.86 8.67 158.19
Decrease in non-resident's capital, total: 33833.90 2937.07 30896.83
Including for account of withdrawal of monetary, property and other contributions 24756.60 2933.40 21823.20
Including buy-out of shares 12847.00 12847.00
Losses of capital 20.61 0.17 20.44
Other forms of withdrawal of capital on the basis of cancellation of agreements with residents of Ukraine 9056.69 3.50 9053.19
Difference in exchange rates 5645.78 618.85 5026.93
Aggregate capital of non-residents in the economy of another state as of the end of accounting period 614294.62 23044.68 591249.94
Calculated dividends on investments 11694.85 209.23 11485.62
Including to investor 10304.02 8.54 10295.48
Overall amount of credits and loans got from non-residents 69268.12 69268.12
Including long-term 61721.48 61721.48
Short-term 7530.67 7530.67

Table 4.3. Foreign Direct Investment of Kyiv in the Economies of Other Countries of the World in 1997(thousand USD)
Investment
Total
Including
   
to the former USSR
to other countries of the world
Aggregate capital of residents of Ukraine in the economies of foreign countries as of the beginning of the accounting period 34386.18 32502.79 1883.39
Increment of Ukrainian residents' capital, total: 1990.30 1954.40 35.90
Including for account of:
Pecuniary contributions 25.02 6.50 18.52
Including: purchase of shares
Contributions in the form of securities
Including interchange of shares
Contributions for account of cancellation of debt
Including transferring loans, credits into shares
Reinvestment of incomes 1288.24 1284.84 3.40
Including transferring incomes from investments into shares 3.40 3.40
Contributions in the form of movable and immovable property 13.98 13.98
Including transferring equipment into shares
Contributions in the form of intangible assets (procurement of legal rights, know-how, etc.)
Including transferring intangible assets into shares
Reevaluations of capital 663.06 663.06
Other forms of fulfillment of investments on the basis of agreements with non-residents of Ukraine, not banned by effective legislation of Ukraine
Decrease in Ukrainian residents' capital, total: 986.49 552.89 433.60
Including for account of withdrawal of monetary, property and other contributions 952.02 518.42 433.60
Including buy-out of shares 383.60 383.60
Losses of capital
Other forms of withdrawal of capital on the basis of cancellation of agreements with non-residents of Ukraine 34.47 34.47
Difference in exchange rates 4213.47 4198.90 14.57
Aggregate capital of residents in the economy of another state as of the end of accounting period 31176.52 29705.40 1471.12
Calculated dividends on investments 1327.64 1284.84 42.80
Including to investor
Overall amount of credits and loans granted by residents
Including long-term
Short-term

Table 4.4. Foreign Direct Investment in Kyiv in 1997 by Donor Country (thousand USD)
Country
Total
Country
Total
Country
Total
Total 614294.62
Austria 21533.63 Afghanistan 0.35 Sierra-Leone 0.09
Andorra 150.66 Bangladesh 92.80 Tunis
Belgium 2740.72 Vietnam 288.68 Argentina 7.00
Bulgaria 3903.09 Israel 3253.97 Bahaman Islands 6044.14
Great Britain 52749.98 India 122.96 Barbados 1479.00
Greece 2366.27 Indonesia 59.10 Belize 1408.18
Gibraltar 284.69 Iraq 10.54 Venezuela 501.59
Denmark 3259.91 Iran 459.37 Virgin Islands (Brit.) 3676.23
Ireland 18099.24 Jordan 1229.99 Virgin Islands (USA) 1645.00
Island 1385.32 China 1067.59 Honduras 173.70
Spain 1912.34 Cyprus 48605.58 Caiman Islands 52.00
Italy 13836.43 North Korea 100.00 Canada 7901.30
Liechtenstein 32538.95 Lebanon 1677.79 Columbia 55.00
Luxembourg 2433.63 Pakistan 0.41 Cuba 251.80
Macedonia

1047.54 Korea (republic) 12328.54 Panama 2560.08
Netherlands 19777.20 Saudi Arabia 110.00 USA 157583.04
Germany 66931.15 Singapore 786.45 Turk Islands 12.00
Norway 797.86 Syria 1199.08 Australia 271.90
Man Isle 50.00 Hong-Kong 976.18 New Zealand 50.53
Poland 10187.44 Taiwan 10.00 Azerbaijan 54.03
Portugal 50.00 Turkey 2104.01 Byelorussia 349.31
Slovakia 4255.16 Sri-Lanka 0.05 Armenia 13.19
Slovenia 138.90 Japan 501.12 Georgia 224.40
Hungary 7277.43 Algeria 24.17 Kazakhstan 21.85
Finland 917.76 Benin 5.46 Moldova 43.35
France 13280.42 Egypt 8.71 Russia 19891.87
Croatia 180.88 Liberia 165.90 Turkmenistan 50.26
Czech Republic 4486.04 Libya 16.45 Uzbekistan 214.86
Switzerland 30841.16 Mauritius Estonia 704.70
Sweden 14304.02 Nigeria 27.46 Latvia 600.28
Yugoslavia 625.33 Seychelles 1.50 Lithuania 876.58

Table 4.5. Direct Investment from Kyiv in 1997 by Recipient Country(thousand USD)
Country
Investments
Total: 31176.52
Great Britain 1.66
Poland 11.80
Switzerland 192.56
China 437.39
Turkey 100.00
Morocco 92.79
Canada 18.52
USA 616.40
Georgia 4148.45
Russia 24456.94
Tajikistan 0.01
Estonia 1100.00

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