Ukraine's Investment Outlook

I am very pleased to be here today to open this event, next in the "Made in Ukraine" series, and welcome investors who are considering the promising opportunities available in Ukraine.   Trade and investment are crucial for the successful development of Ukraine's economy.  USAID is a partner with Ukraine's government and the private sector to promote Ukraine's construction materials sector.   While heavy industry has traditionally accounted for the bulk of Ukraine's GDP, the economy must diversity if economic growth and job creation are to continue.   The booming domestic construction market - with an annual growth exceeding 20% in the three past years - has been a driving force of the rapidly developing construction materials sector.   Ukraine's abundance of raw materials further solidifies the sector's potential; there are about 1,000 registered fields of natural deposits, including clay, limestone, granite, and gypsum. Meanwhile, underutilized capacity remains in other segments of the construction industry.  Imports still account for up to 90% of ceramic tiles, sanitary equipment and flooring markets.  It needn't be this high.  With investment, there is much potential for continued growth in these sectors. The U.S.Agency for International Development has been working with industry leaders like Ukrainian Building Materials Corporation and LIKON, the government, and the private sector, including the Association of Ceramic Tiles producers and the Association of Glass producers to attract investors and showcase the potential of the Ukrainian market. A number of well-known international producers have already invested $590 millions of dollars in Ukraine, including Knauf, Henkel Bautechnic, and CRH to satisfy the large domestic demand for building materials.   This is just the beginning in terms of the amount of investment needed to help this industry to continue to flourish.  We expect this event to give a strong push for attracting more investors to Ukraine's construction material's industry.  And we are pleased to be a part of this effort. Thank you.