ANALYSIS OF FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF KYIV

Abstract

The dynamics and trends of foreign direct investment (FDI) in the economy of Ukraine, in particular the economy of Kyiv, over the past five years are analyzed. The structure of FDI balances by types of economic activity and investor countries is determined. It is found that most of the FDI in the economy of Kyiv came from the EU countries. It is established that the most significant volumes of foreign investment were directed to institutions and organizations engaged in wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, information and telecommunications, and industry. The author notes that the full-scale invasion of Ukraine by Russian troops and the COVID-19 pandemic have become significant factors that have affected business activity and the investment climate in the country. Under martial law, investors are more cautious and often refrain from investing due to high risks. It is noted that war risk insurance plays an important role in attracting foreign investment, as it provides additional financial guarantees and promotes the development of infrastructure and export-oriented production. The author outlines the necessary conditions for creating a favorable investment climate, including ensuring transparency, legal stability, fighting corruption, government support, and insurance of military and political risks. Special attention is paid to the dynamics of the Investment Attractiveness Index of Ukraine, which reflects the state of the business climate according to expert assessments of EBA members. Thanks to carefully planned public policy measures, improved financial protection mechanisms and active international cooperation, it is possible to create conditions for attracting investments even in times of economic challenges, which will contribute to economic recovery and infrastructure modernization.