Oleksiy Honcharenko: inflow of foreign direct investment dropped 20 times during Zelensky presidency

During Petro Poroshenko’s presidency, Ukraine managed to restore investor confidence as investment inflows hiked 15 times in 2018-2019. Meanwhile Zelensky and his government have reduced direct investment by 20 times, MP Oleksiy Honcharenko (European Solidarity) says.

“Q1, 2020 saw a net outflow of FDI worth $ 1.5 billion, mainly due to the withdrawal of reinvested income on the real sector,” said the politician.

“According to the NBU report On the state of the balance of payments in the third quarter of 2020, the net outflow of foreign direct investment made up 95 million US dollars (including negative reinvested earnings estimated at 117 million US dollars). In the corresponding period of 2019, the net inflow amounted to 2.0 billion USD (of which 1.4 billion id reinvestment of income).

“The volume of investments in share capital (except for reinvestment of income) dived to 4 mn dollars over 122 mn in the third quarter of 2019, net borrowings from direct investors decreased to 193 million US dollars compared to 449 million over the corresponding period of 2019. Falls, losses and negative indicators Everywhere,” Honcharenko noted.

The MP also stressed that according to a CEO expert survey by the European Business Association, the index of investment attractiveness of Ukraine dwindled unprecedentedly in the second half of 2020.

“78% of respondents considered the investment climate in Ukraine unfavorable. According to entrepreneurs, this decline was due to the crisis of the judiciary and the lack of the rule of law, the failed fight against corruption, and the influence of the shadow economy, due to the introduction of restrictive measures, instability of tax legislation, the situation around the Constitutional Court, etc.” the lawmaker said.

Honcharenko stressed that the inflow of foreign direct investment primarily depends on the level of investor confidence in the economic policy pursued by the government.

“While the Poroshenko government succeeded in restoring investor confidence and investment inflows soared 15 times in 2018-2019, Zelensky and his amateur team failed this exam with the 20-fold decline,” said the deputy.

He noted that the Servants of the People always justify their mistakes with the coronavirus crisis, but the pandemic is irrelevant.

“According to UNCTAD, the decline in foreign direct investment in the world was 49% in the first half of 2020. That is a twofold drop. In Ukraine, this figure is ten times higher. It is obvious that this is a matter of unprofessionalism and neglect of the trust of international partners. And it’s not funny anymore,” Honcharenko warned.