The "lack of trust in judiciary" was named the main obstacle to foreign investment for the first time in five years.
Some 48% of foreign investors think that Ukraine became less attractive for investment, 42% consider the investment climate largely unchanged, and only 9% see improvements.
These are some of the findings of the fifth annual survey of strategic and portfolio investors jointly conducted by the European Business Association (EBA), Dragon Capital, and Center for Economic Strategy (CES) at the end of October 2020.
"The 'lack of trust in judiciary' was named the main obstacle to foreign investment for the first time in five years, while 'widespread corruption,' the previous leader, moved to second place. Both portfolio and direct investors have named the same obstacles as most important ones," Dragon Capital reported.
Market monopolization and power seizure by oligarchs was the third impediment, though strategic investors were also concerned about cumbersome and frequently amended legislation.
In the meantime, debt default is considered a top threat to the investment climate, followed by a shift away from democratic values and change in geopolitical direction from west to east.
Strategic investors also view loose economic policies as an important negative factor, while portfolio investors would negatively react to failure to reach an agreement with the IMF on the next loan tranche.
Dragon Capital
Dragon Capital is a leading Ukrainian group of companies in the field of investment and financial services, offering a comprehensive range of products in equities and fixed income sales, trading and research, investment banking, private equity and asset management to corporate and private clients.
EBA
The European Business Association (EBA) is one of the largest business communities in Ukraine, founded with the support of the European Commission in 1999. The EBA gives domestic companies the opportunity to contribute to improving the investment climate in Ukraine in favor of business industries, society, and the country as a whole.
CES
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Ukraine and foreign investment