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Ukraine’s investments specially for Georgia

2010-08-25 15:45

6741.jpegThe volume of Ukraine's investments into Georgia's economy is only USD 30 mln in total. A particularly joyless thing is that Kiev is Georgia's third important trade partner. However, as the experts believe, the low volume of financial investments from Ukraine is in sync with general economic tendencies and accounts for a bad investment climate in Georgia.

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Though Ukraine's new administration promised to put economy as priority in relations with Tbilisi, one of the main problems - low activity of Ukrainian businesses in Georgia - remains unresolved. It is seen with unaided eye that official figure of USD 30 mln is basically a drop in the sea taken Georgia's Napoleon plans. The amount offers a vivid contrast to the billion infusions from international credit institutions. 

Another sad thing is that the rate is almost equal to last year's figure - USD 27 mln. The choice of investment sectors is not cheerful either. According to the experts, Ukrainian dollars melt somewhere in financial and banking depths, while there is no major trade partner willing to invest in real economy.

In the meantime, there are lots of facilities that might be interesting to Ukrainians: ports, airports, Georgian Railway System, Inguri hydro-electric plant.

However, the sector where the financing goes to explicitly shows that a typical investor seeks quick profit - nothing more.

It seems that the words of Ukrainian vice PM Sergey Tigipko on necessity to follow the example of Georgia's liberal reforms were pronounced out of politeness. In reality today's economy of Georgia looks more scary than attractive.

Georgy Khukhashvili, a Georgian expert for economic issues, shares this point of view:

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