Ukraine is far behind the majority of European countries in terms of investment appeal, a recent Ernst&Young report showed, according to KyivWeekly.

The study was based the data about the projects implemented in 2006-2010 and also surveys about the intentions of several hundreds of leading European investors to invest money into the country.

In 2010, foreigners invested only in 31 real projects in Ukraine and created only 1,150 new jobs. Overall, over the past five years only 7,487 jobs were created at 178 real projects. For comparison, over the same period, investors in Serbia created 25,600 jobs at 200 projects and in Slovakia – 37,100 jobs at 231 projects.

Ernst&Young experts explain the low effectiveness of domestic investments by absence of the required infrastructure (transport, logistics, telecommunications) in the country and also instability and the non-transparency of legal and regulatory framework and social climate.

The data of domestic official statistics also indicate absence of real direct foreign investments by registering an increase only from Cyprus, Germany and the Netherlands, which are considered traditional offshore zones for Ukrainian capital.

I.e. of the total amount of nearly US $1bn FDI increase over the Q1 2011, US $669 mn came from Cyprus.