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uk
01.11.2016

Transparent Work of Extractive Companies – Prerequisite of Direct Foreign Investments

 

One of the specialized companies recently declared that the tax burden and absence of deregulation measures reduce investment attractiveness of oil and gas extractive industries. Under these conditions, in business opinion, the need for foreign capital is vitally necessary for the Cabinet of Ministers program on increase of gas extraction and provision of domestic demand at the expense of domestic extraction. According to the estimates, capital costs per annum have to be doubled – at least to 1.37 bln $ per annum.

 

In Ukraine, efforts aimed at involving investments are concentrated in the Ministry of Economic Development and Trade of Ukraine. Besides, the National Investment Council has been created, and this entity has recently received specific objectives and tasks. According to the President, the National Investment Council has to become a powerful tool for the state investment policy development. Thus, one of its key activities will be attraction of foreign direct investments (FDI).

 According to the methodology of the IMF, FDI is a category of trans-border investments under which a resident of a country executes control or significantly influences management of an enterprise that is a resident of another country.

 It is necessary to note that in 2015, the FDI amount decreased almost threefold compared to the same indicator in 2012. And in 2014, the amount of investments fell to a critical level of $410 million, which is the lowest figure during the years of observation.

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Taras Tkachuk
Management and Promotion Specialist

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform