The American International Development Finance Corporation (DFC) has estimated that Ukraine needs to attract approximately $250 billion in investments to fully develop its subsoil exploitation industry. This substantial investment is considered crucial for Ukraine to reach its maximum potential in the field of subsoil use, which encompasses mining and extraction of critical natural resources.
Tony Pollack, an investment advisor at the DFC, conveyed this information, emphasizing that attracting significant investments is essential for diversifying profits and reducing risks within the industry. Pollack noted that the DFC is actively working to identify and engage investors interested in the Ukrainian market, aiming to facilitate their entry and participation.
Geographical Advantages
Pollack highlighted Ukraine's advantageous geographical location as a key factor in the development of its subsoil exploitation industry. He explained that out of 30 types of critical natural resources, Ukraine has the capacity to mine 20 to 22 within its own territory. This abundance presents a substantial opportunity for growth and investment in the sector.
Diversification and Risk Mitigation
The infusion of $250 billion in investments is expected to:
- Diversify Economic Profits: Broadening the revenue streams from various natural resources.
- Reduce Risks: Minimizing dependency on a limited range of commodities and enhancing economic stability.
- Boost Industry Development: Facilitating technological advancements and increasing production capacities.
DFC's Role in Facilitating Investments
The DFC is committed to supporting Ukraine by:
- Finding Investors: Actively seeking and encouraging international investors to consider opportunities in Ukraine.
- Easing Market Entry: Assisting investors in navigating the Ukrainian market and regulatory environment.
- Promoting Sustainable Development: Ensuring that investments contribute to long-term economic growth and adhere to environmental and social standards.
