Following on from the results of I quarter of 2017 level of investment in the agricultural sector reached USD 403 million and exceeded pre-crisis period. Pace of investment growth is recovered evidencing positive expectations of agricultural companies.

In the first quarter of 2017 there was a recovery of investment growth in the industry sector of Ukraine. During this period, the total level of investments in Ukraine increased by more than 22% in dollar terms and 25.5% in hryvnia terms comparing to the first quarter of 2016. Increase of investments is observed second consecutive quarter. Thus, in I quarter of 2017 the total level of investments increased by 24% comparing to the same quarter of 2015 from USD 1.9 to USD 2.3 billion.

Investments in agricultural sector in the I quarter of 2017 showed an increase of 52.8% amounting to USD 403 million compared to the same period of 2016 and 28.4% increase compared to the I quarter of 2013.

Structure of investments shows a continued trend when enterprises are upgrading technology and equipment as well as implement pent-up demand. Thus, 97% of investments of the first quarter 2017 accounted for tangible assets. Most investments (23% of the total capital investment) were financed in the support of machinery and equipment, vehicles - 15%, engineering structures - 14%, non-residential buildings - 11%. In comparison with I quarter of 2016, investments in vehicles in hryvnia terms increased by 96.1%, in machinery and equipment - by 35.9%, in engineering structures - by 8.9%.

In addition to real investments in physical assets, the stance of institutional investors at financial markets confirms the improvement of investment climate as well. In particular, as of 6 June 2017 for the first time since October 2014 the total market value of the Ukrainian public agricultural companies exceeded USD 3.5 billion. 94% of the selected companies accounts for KERNEL - 43,5%, MHP - 31,3%, ASTARTA - 12,4%, OVOSTAR - 4,5% and IMC - 2,5%.

The positive trend of investment recovery indicates an improvement of expectations of the companies that are operating. Subject to continuation of positive trend an increase of the share of foreign investments in Ukraine can be expected.