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Tuesday, January 9, 2007

Kiev expects total growth in direct foreign investments on 38.6% as 2006 result

From Interfax-Ukraine

Kyiv, Interfax-Ukraine - Direct foreign investment in Kiev in 2006 is expected to be $1.497 billion, a 38.6% rise year-on-year, the deputy Kyiv City mayor and the head of the chief department for economy and investment in Kyiv City state administration, Denis Bass, said in an interview with the Khreschatyk newspaper. According to the department, enterprises with quick returns on investment - financial (27.6% of the total investment), wholesale and retail trade and intermediary trade (23%), real estate, leasing and services to legal entities (14.1%) - remain most attractive for investors in the capital. Moreover, 12.1% of the investments were attracted to the industrial sector in Kyiv, along with 8.9% in the construction sector and 6.8% in transport and communications. Among the innovation projects to be realized in Kyiv in the near future are a polymers processing and production facility at OJSC Ukrplastik, human genetically engineered insulin production, and a number of projects regarding aircraft building and telecommunications. Bass said that the program on the social and economic development in Kyiv for 2007 foresees that Kyiv specialists, jointly with the representatives of the State Committee for Land Resources and Kyiv Regional state administration, should hold talks and distribute land plots to which large enterprises should be transferred. As reported, in 2005, foreign investments registered at the chief department for economy and investment in Kyiv City state administration grew to $540 million. In the first half of 2005, a total of $215.5 million direct foreign investment were register by the department, a 35.1% rise year-on-year, and 51.6% of the annual plan.