Newsweek calls Ukraine "choice investment destination"
The well-known political and business publication, Newsweek, devoted multi-page material to Ukrainian business, Zelenskyy's policy of reforming the economy, and Ukraine's investment attractiveness. Newsweek highlighted Ukraine's success in creating a favorable investment climate and named attractive areas of the economy for foreign direct investment. Among them are the fields of mining and energy. Newsweek noted one of the innovators in this field, Hennadii Butkevych's BGV Group.
Newsweek notes that the world sees Ukraine as a new "star" for international investment, given Ukraine's large domestic market, agricultural, energy, and mineral resources, and its strategic geographical location between Europe and Asia. The magazine also emphasizes that in comparison with neighboring countries, Ukraine hasn't suffered so much from the coronavirus crisis and the economy in our country is rapidly returning to previous levels, leaving many opportunities to invest in it.
Volodymyr Zelenskyy's ambitions to increase the country's investment attractiveness were not overlooked either. In 2019, attracting foreign direct investment to Ukraine was his priority №1. The publication calls Zelenskyy's promise to provide potential investors with an "investment nanny," a manager who will speak five languages and be available 24/7 for any questions, "not empty words" and notes the "big steps" that Ukraine is taking in reforming the economy. Among them, Newsweek notes "significant fiscal consolidation, the adoption of a flexible exchange rate, reform of electricity tariffs and social assistance, changes to increase the transparency of public procurement and simplify business rules to better attract foreign direct investment." Together with efforts to stabilize and restructure the banking sector and create new anti-corruption bodies, this contributes to improving the investment climate in Ukraine.
The publication also noted that according to the ranking of business conducted by the World Bank, Ukraine rose by 5 points in 2020 and ranked 64th out of 190, and became the second country in the world in terms of business climate improvement. The publication notes that Ukraine has been steadily moving to expand its investment potential since 2015 when companies such as Ryanair, H&M, IKEA, General Electric, and others entered our market. "Investors, too, have flocked to the country as the government moved to simplify business regulations and open up public procurement, and the National Bank of Ukraine reports that total foreign direct investment (FDI) stock in the country rose by 5% in 2019 alone to hit $51.4 billion," Newsweek writes.
Among the advantages is that Ukraine has one of the highest rates of public investment in education in the world, 6% of GDP. It also attracts foreign investors because it means that here they find highly qualified workers with lower wages than in Ukraine's western neighbors. Yes, Microsoft already plans to invest $500 million in cloud services here in Ukraine.
In addition to IT and technology development, among the promising areas of economic development that may be attractive for foreign investment, the publication mentions, in particular, the metallurgical industry, pharmaceuticals, real estate, energy, and mining.
"The mining sector has been especially attractive for investors because of the enormous potential it offers. Ukraine is home to some of the world's largest deposits of iron and manganese ore and holds significant reserves of rare, critical, and strategic minerals, including Europe's largest titanium and beryllium reserves, and significant quantities of nickel, uranium, and graphite, among many others," the publication said. Rare earth metals, the demand for which in the world is growing day by day, can become uniquely attractive for foreign investors.
In addition, foreign investors find it attractive that mining can be combined with the energy sector when it comes to, for example, uranium mining in Ukraine. Among other things, uranium is mined by the Ukrainian company of well-known entrepreneur, Hennadii Butkevych, BGV Group Management. BGV Group was named by the publication as the company that "will play a crucial role in developing the industries of tomorrow, including electric vehicle batteries, solar wind farms, and advanced technology."
"We want to do the full cycle of manufacturing," Hennadii Butkevych commented. "We know how to create the right big businesses in our country (Hennadii Butkevych is a co-founder of ATB Corporation, one of the largest retail companies in the country, – ed.). We're concentrated on products with a high value-added proposition. And Ukraine itself is a value-added proposition – it has taken time, but with the President's support and vision for the future, we are improving the country's brand. The business community I think we are improving the brand of Ukraine. Brand is trust and trust is reputation."
Newsweek pointed out that BGV now has seven subsidiaries with business areas dedicated to graphite, beryllium, uranium, oil and gas, titanium, zirconium, and rare earth elements, as well as granite. A strong focus on partnership, innovation, and zero-harm sustainability has supported the development of a robust international portfolio, and the group works with partners around the globe, from Canada and the US to Turkey, Egypt, and the UAE, and all the way to the Indo Pacific.
Newsweek is an American weekly news magazine founded in 1933. The publication focuses on news coverage, analysis of international issues, technology, business, culture, and politics. Newsweek is the weekly publication that has received the most prestigious awards in the publishing industry, including the National Magazine Awards (highest publishing award), the Overseas Press Club Ed Cunningham Awards (for the best reports), and the Gerald Loeb Awards (the highest award in business journalism). And in 2003 and 2004, Newsweek received the Excellence in Magazines award from the Society of Publishers in Asia.