Although a certain reluctance of foreign investors regarding
Ukraine persists, this disinclination is far from being
justifiable. Through recent legal and regulative reforms,
government incentives, monetary stabilization and the first
genuine steps towards financial and economic good governance,
Ukraine is increasingly marketing itself as a keen investment
destination whose increasing attractiveness is not hampered by
turmoil in the political arena.
The banking and financial regulations in Ukraine remain
stringent and have long been viewed as a limiting factor in the
development of the banking sector, but recent reforms are
breathing new life into the Ukrainian banking and financial
markets, attracting growing numbers of foreign investors.
Meanwhile, the legislative and regulative environment for
capital markets and private equity operations is developing,
and Ukraine is steadfastly growing into an attractive option
for private equity investments by foreign investors. And
although mergers and acquisitions are new in Ukraine, market
needs and developments in this field have led to growth in the
quantity of these deals and more acquisitions of majority
stakes in Ukrainian companies by foreign investors.
Despite its risky character, real estate remains a strong
foreign investment object, capitalizing on an extremely high
return due to high real estate prices and market factors
limiting the availabilty of real estate objects on the local
market. The real estate market in Ukraine is indeed booming at
a greater rate than ever.