The global financial crisis will not hinder international investment in Ukraine, but the opposite – it will attract investors with “serious intentions”

29 September, Kyiv – as a result of the global financial crisis, investors are looking for new ways of employing capital, and Ukraine, as a developing market, is a prospect for long-term investments. This was stated by organizers of the Annual International Investment Summit of the Donetsk Region at the “Interfax-Ukraine” press conference.
The impact that the global financial crisis will have upon Ukraine is the resonance of successful integration into the global economic community. Financial market experts expect that the consequences for Ukraine will not be as dramatic as they will be for the “older” American or Western European markets. “Putting the financial crisis aside, there isn’t less money in the world. It is necessary for investors to now invest funds into growing markets, and there aren’t that many of those – and this is where Ukraine’s prospects lie, - affirmed M. Zhernov, Head of the Board of Directors for “Altera Finance”. - The current situation is not simple, but it isn’t critical either, as for example, in the U.S. Due to communication with our foreign partners we can confirm that Ukraine is currently in a more comfortable position than many other post-Soviet states. There is money for Ukraine.”
This has created an air of confidence for organizers in regard to the success and timeliness of carrying out such a large scale international investment event, at which the Donetsk Region’s potential will be demonstrated, with projects amounting to 44 billion UAH being presented to national and international investors. According to “Deloitte” – an organizer of one of the Summit’s sessions – as a result of the global stock market crisis a change is taking place from speculative investments toward long-term investment projects, which provides Ukraine, and the Donetsk region in particular, with great opportunities. “The Investment Summit – this is our recipe against the financial crisis. Right now, we – business and government – are introducing projects that are interesting from the point of view of being of long-term, operational potential and focused on the region’s strategic development. In particular, 32.59 billion UAH worth of real estate and infrastructure projects have already been proposed,” stated A. Stepanov, partner at “Deloitte”.
According to investment-banking analysts, a crisis only structures the investment community, separating the speculative investments from the long-term ones. “Investors, who came here to make a quick profit, will leave or have left already. And those who are serious and have come for a while, aren’t going anywhere, - said M. Zhernov. - During a crisis, an investor is afraid of investing in risky projects, and that is why the Donetsk region, where one can acquire profit from long-term work with large projects, is very attractive for business. One cannot only come here, make a profit and leave. One can stay and work for a long time.”
According to the Head of the Donetsk Regional Council Anatoly Blyznyuk, the financial crisis has caused a serious fall on the metallurgical market, which points all the more to the necessity of diversifying the region’s economy, introducing energy-saving technology and innovations. In Blyznyuk’s opinion, the temporary crisis should not influence the long-term plans for international cooperation within the economic sphere. “While working as the deputy chief of a plant, I knew that enterprises develop in a sinusoid. It’s the same for the economy, - stated A.M. Blyznyuk, Head of the Donetsk Regional Council. - The dynamics behind realizing investment projects doesn’t take 5 minutes, but a year, two or longer to carry out. The crisis will finish, but those who see perspective in the fall, will win even more. This provides an argument for the benefit of holding the Summit right now.” According to data from the Donetsk Regional Council, since 2000 the Region has acquired over 4 billion USD in foreign investments. A.M. Blyznyuk expects that as a minimum one tenth of the proposed investment projects totalling 44 billion hryvnia will be realised, owing to the International Investment Summit of Donetsk Region.