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FT: Ukraine's Agriculture, Retail and Energy - Investment Hot Spots

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FT: Ukraine's Agriculture, Retail and Energy - Investment Hot Spots PR Newswire KYIV, Ukraine, September 20, 2012 KYIV, Ukraine, September 20, 2012 /PRNewswire/ -- Financial Times (FT) issued a special report on Ukraine, identifying investment hot spots

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FT: Ukraine's Agriculture, Retail and Energy -
Investment Hot Spots
PR Newswire
KYIV, Ukraine, September 20, 2012
KYIV, Ukraine
,
September 20, 2012
/PRNewswire/ --
Financial Times (FT)
issued a special report on
Ukraine
, identifying
investment hot spots - agriculture and retail, as well as energy
sector.
Ukraine's
predisposition to further development is attributed
to vast arable lands, underutilized capacity and promising but
underinvested energy potential.
"
Ukraine's black earth
- the chernozem - is an amazingly deep, fertile soil
whose prodigiously productive capacity led the country to be christened the
bread basket of
Europe
", begins the article on agriculture in
Ukraine
. The
author starts analyzing the perks of investment into Ukrainian agricultural
sector with the statement that "the country has close to a third of the arable
land area of the whole EU, …70 percent of which is black earth up to six metres
deep".
Evidently, the climate, geographical location, rail network, and labor cost create
favorable conditions for agriculture in
Ukraine
. "It's [agriculture] the only
economic sector that showed positive gains during and after the global financial
crisis that hit in late 2008," the British paper quotes Ukrainian expert Bohdan
Chomiak. He also noted that at present the sector had been working on 40
percent capacity.
In its article "Foreign direct investment: 'Risky' state also has its attractions" the
paper highlights the positive business experiences such global leaders as fast-
food chain
McDonald's
, supermarket chain
Metro Cash & Carry
, and food
producer
Kraft Foods
had in
Ukraine
.
McDonald's
invested more than
USD 200
million
, and now one of its restaurants in
Ukraine
ranks second most visited in
the world - out of its 33,500 joints. Since 1995
Kraft Foods
invested
USD 200
million
into
Ukraine
, making it one of the top ten priority markets for the
company, according to the local
Kraft
representative.
The special report article focusing on Ukrainian energy highlighted opening up
of the "underinvested but promising" energy sector to the international
companies. Author Roman Olearchyk noted the irony of the effect that high
Russian gas prices caused - they "helped to change
Ukraine's
investment policy
for the better".
ExxonMobil, Royal Dutch Shell, Chevron - world's top energy companies -
recently entered Ukrainian market. Shell executive Graham Tiley expressed
belief that
Ukraine
could provide more energy resources from its domestic
production. He appreciated open and transparent tenders held to choose
investors.