INVESTMENT CLIMATE IN UKRAINE IN CASES OF FORCE MAJEURE

Abstract

The article deals with the problem of deteriorating investment climate inUkrainein force - conditions or in conditions of instability. The dynamics of foreign direct investment inUkraineandUkraine. It is concluded that there is a significant outflow of capital fromUkraine. Direct foreign investment inUkrainedecreased significantly. The reason for this condition is unstable political and economic situation in the country. The structure of FDI inUkraine.

The main suppliers of FDI on the domestic market ofUkraineareCyprus,Germany, andNetherlands. Such state is explained by the tax niches, which exist in their territory (offshore harbor). Embedding FDI fromRussiadue to the desire to acquire Russian structures of the enterprise or shares in the capital of Ukrainian enterprises. The share of other countries in the volume of FDI inUkraineis less than 10%.

The technological renovation and modernization of production depends on the availability of FDI and its real growth. Thus, the innovative activity of the enterprises of the industrial sector influences mostly on the environmental security of the country.

In general, the current situation is pushing to very unpleasant conclusions. A huge number of local industries, which are already not suitable to operate under any circumstances and should be closed or upgraded due to physical deterioration, as they are already real sources of operational and environmental accidents and disasters are concentrated inUkraine. Their impact can surpass the results ofChernobyl in the 21st century for a European country with a population of 46 million people. It can be argued that the "critical point" for them has already been passed. The current situation with the technological upgrading industrial enterprises, infrastructure, social services, etc., is in a condition when business owners and government agencies  buy ready-made technology easier than invest into the scientific sphere. This conclusion at the right approach is to make the government to change the attitude to the formation of the national budget, and to the investment-innovative policy of the state as a whole.