Polish FDI in Ukraine to grow significantly in coming years

2023-01-27 13:15 update: 2023-01-30, 12:20
Photo PAP/Darek Delmanowicz
Photo PAP/Darek Delmanowicz
Poland's foreign direct investments (FDI) in Ukraine are expected to increase to USD 30 billion in the coming five years, a Polish government think-tank has indicated, adding that this will be a nearly thirtyfold rise.

In 2021, Poland's FDI totalled USD 1.2 billion, according to data from the National Bank of Poland (NBP).

The Polish Economic Institute (PIE) wrote that investments by Polish companies in Ukraine will be mostly directed to the energy, construction and financial sectors. 

Last September, Poland's exports to Ukraine went up by 46 percent year on year while imports grew by 23 percent, PIE experts said, quoting International Monetary Fund (IMF) data. 

They added that the growth had resulted from Poland's arms exports to that country and humanitarian aid offered after Russia invaded Ukraine. 

According to the NBP, Poland's profit on direct investments in Ukraine went up from minus EUR 34 million in 2014 to a record of EUR 130 million in 2021.

Having pointed to the huge potential of future cooperation with Ukraine, PIE experts said that "it had been agreed at the Ukraine Recovery Conference (URC) in Lugano, Switzerland, that Poland and Italy would be responsible for the reconstruction of the Donbas, one of the highly-destroyed regions of Ukraine."

"Taking into account the size of this region, one could assume that development projects will account for 15-20 percent of the entire Recovery Programme, or USD 150-200 billion," PIE experts wrote in the PIE Economic Weekly. (PAP)