09/05/08
Ukraine Investments
British Companies Increase Direct Investment into Ukraine
By Irina Timchenko, Nova Mova co-owner, from information released by the Renaissance Capital Bank Bulletin (Russia).
Great Britain is considered to be the fifth-largest source of foreign direct investing into Ukraine, and the largest part of the funds is coming from London.
"When we're discussing British investment into Ukraine we should remember the role London plays in channeling global investment into the country," reports Renaissance Capital's Geoffrey Smith. "London proposes the largest pool of financial capital."
In their turn, Ukrainian companies have accelerated their efforts to raise money and list stock on international markets. It is anticipated that Ukrainian firms will raise record amounts of capital in 2008, so Kyiv is expecting to sense London's flavor spreading around in the nearest future.
According to Kyiv-based investment bank Dragon Capital, more than $1.8 billion was raised by Ukrainian firms on the London exchange through IPOs since the beginning of 2007.
For comparison, a sum close to $2 billion was invested by the UK into Ukraine during all the prior years of independence.
The increasing investing from London has also brought precious experience to Ukrainian business people. The more Ukrainians partner with London companies, or borrow from top banks there, the better they learn to adjust to the highest global financial standards, regulations and rules of business.
Direct foreign investment by British companies into Ukraine is gradually growing. There is no single leading British investor in Ukraine; however, the London-based European Bank for Reconstruction and Development (LbEBRD) seems to be the top investor. The bank, founded to support countries with transition economies, claims to be the hugest investor in Ukraine with almost $5 billion invested through loans and acquisitions.
According to the British Embassy in Kyiv, there are more than 80 companies with UK connections operating in all sectors of Ukraine's market. The most attractive for investors are financial services, wholesale trade, Ukrainian real estate for sale, leasing, construction and metals.
The positive statistics do not provide enough proof for optimism to the experienced market players, though. One of the British veterans in Ukraine's real estate market, Terry Pickard, chairman of NAI Pickard, is cautious about doing business in Ukraine. Referring to the notorious Ukrainian bureaucracy, Pickard said, "The bureaucracy in general is very old fashioned and everything is very slow and difficult."
Being a foreigner, does not help any longer, says Pickard. All foreign firms carrying out business in Ukraine complain that the justice system is very poor, he added.
"When we're discussing British investment into Ukraine we should remember the role London plays in channeling global investment into the country," reports Renaissance Capital's Geoffrey Smith. "London proposes the largest pool of financial capital."
In their turn, Ukrainian companies have accelerated their efforts to raise money and list stock on international markets. It is anticipated that Ukrainian firms will raise record amounts of capital in 2008, so Kyiv is expecting to sense London's flavor spreading around in the nearest future.
According to Kyiv-based investment bank Dragon Capital, more than $1.8 billion was raised by Ukrainian firms on the London exchange through IPOs since the beginning of 2007.
For comparison, a sum close to $2 billion was invested by the UK into Ukraine during all the prior years of independence.
The increasing investing from London has also brought precious experience to Ukrainian business people. The more Ukrainians partner with London companies, or borrow from top banks there, the better they learn to adjust to the highest global financial standards, regulations and rules of business.
Direct foreign investment by British companies into Ukraine is gradually growing. There is no single leading British investor in Ukraine; however, the London-based European Bank for Reconstruction and Development (LbEBRD) seems to be the top investor. The bank, founded to support countries with transition economies, claims to be the hugest investor in Ukraine with almost $5 billion invested through loans and acquisitions.
According to the British Embassy in Kyiv, there are more than 80 companies with UK connections operating in all sectors of Ukraine's market. The most attractive for investors are financial services, wholesale trade, Ukrainian real estate for sale, leasing, construction and metals.
The positive statistics do not provide enough proof for optimism to the experienced market players, though. One of the British veterans in Ukraine's real estate market, Terry Pickard, chairman of NAI Pickard, is cautious about doing business in Ukraine. Referring to the notorious Ukrainian bureaucracy, Pickard said, "The bureaucracy in general is very old fashioned and everything is very slow and difficult."
Being a foreigner, does not help any longer, says Pickard. All foreign firms carrying out business in Ukraine complain that the justice system is very poor, he added.
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