Investing in Ukraine during the war and prospects for investment processes in the postwar period

Abstract

This article analyzes the current state of the investment market in Ukraine. The impact of Russian military aggression on the investment attractiveness of our country is studied. During this study, all investment opportunities for existing and potentially new Ukrainian investors were analyzed. This study was based on the results of a survey of active Ukrainian investors. The study identified negative factors that affected the investment project market in Ukraine during the war and in the postwar period. Among them were the following: the unstable economic situation in the country, an imperfect legal framework for investor protection, military aggression by Russia and the lack of war risk insurance during the war, and the general economic crisis. The study also identified positive factors influencing investment processes in Ukraine. Among them were the following: the introduction of a visa-free regime, Ukraine’s active foreign economic policy, its association with the European Union, Ukraine's integration course into NATO, and the abolition of export duties and quotas. Possible areas for investment in Ukraine during martial law and in the postwar period were identified. In addition, the problem of attracting foreign investment during the military aggression against Ukraine was analyzed. The possibilities of attracting domestic and foreign investment in the Ukrainian investment project market were considered. The main areas for investment in the country were identified as the defense industry, energy, agriculture, metallurgy, logistics, infrastructure, innovative technologies, and others. For a more detailed analysis, the investment potential of each sector was determined. The largest investment potential was noted in the energy sector (UAH 177 billion), logistics and infrastructure (UAH 123 billion). Woodworking (UAH 5 billion) and investments in natural resources (UAH 5.6 billion) were the least attractive for investors. This article analyzes in detail the investment opportunities in each sector. The article also considers the possibility of shifting international relations from the anti-Putin coalition to closer economic relations, in particular by attracting foreign investors to the Ukrainian investment project market.