Survey: 70% of polled businesses intend to invest in Ukraine despite ongoing war

That’s according to the EBA press service, Ukrinform reports.

The integral score of the Index slightly improved in 2024, reaching 2.49 out of 5 (compared to 2.44 in 2023). The overall rating is similar to the investment climate assessment during the COVID year of 2020.

The percentage of business leaders considering Ukraine’s investment climate as unfavorable has decreased from 84% last year to the current 79%, with 20% describing it as extremely unfavorable. Notably, this share has been consistently decreasing from 53% in 2022 to the current 20%. A neutral stance on the current investment climate was expressed by 12% of top executives (up from 7% last year), while 9% view it favourably.

Perceptions of the investment climate dynamics remain unchanged against last year. Almost half of the respondents (49%) believe the investment climate has worsened, 39% see no significant changes, and 12% think it has improved.

The share of companies already operating in the market and planning to continue investing, despite the war, increased from 57% last year to 70% currently. Meanwhile, only 17% believe it would be beneficial for new investors to enter Ukraine (down from 32% in 2023 and 17% in the second half of 2022).

Looking ahead to the next six months, 49% of CEOs expect further deterioration in Ukraine’s investment climate, 33% expect no changes, and 18% hope for improvement. The outlook within their own sectors is similar: 44% expect a decline, 43% anticipate stability, and 13% foresee improvements.

Russian military aggression remains the top negative factor affecting the investment climate, followed by corruption, a weak judicial system, shadow economy, and attacks on Ukraine’s energy system. Additionally, 81% of companies surveyed view currency restrictions as a negative factor impacting Ukraine’s investment appeal.

This year, business leaders cite Ukraine’s EU candidate status, tariff and quota elimination for Ukrainian exports, the “transport visa-free regime” with the EU, digitalization of public services, and integration into the unified European power grid as positive factors.

Slightly more than half, or 54%, of companies reported losses due to hostilities. Among these, 25% have already approached law enforcement agencies, while another 11% plan to do so. Additionally, 3% have sought recourse through national and international courts.

The European Business Association has been conducting the “Ukraine’s Investment Attractiveness Index” survey since 2008. Over its history, the Index has never reached the positive zone (above 4 points). In the current survey wave, 80 CEOs of the largest international and Ukrainian companies participated. Of these, 39% represent medium-sized businesses, 38% large businesses, and 23% small businesses. The main partner of the survey in 2024 is NEQSOL Holding.