Bukovyna attracted billions in investments: how a modest region became a leader.

However, the modest size does not prevent Bukovyna from actively attracting foreign investment. In 2018, the increase in direct foreign investments was 3.4%. There are over 180 companies with foreign capital operating in the region. These are industrial enterprises, businesses in trade, construction, agriculture, forestry, and fishing, as well as food production and companies manufacturing automotive components.

In the south, Chernivtsi region borders Romania. The region has road connections with border crossing points to Hungary and Slovakia. Chernivtsi has its own international airport, but its passenger flow in 2018 reached only 73.1 thousand people. Among the largest companies in the region with foreign investments is 'Döler Bukovyna', which belongs to Döhler Group, a producer of natural ingredients for the food industry headquartered in Germany.

New enterprises and development

Among the enterprises that have appeared in the region in recent years are the factory producing cable and wiring products for cars 'Automotive Electric Ukraine', the factory manufacturing interior elements for cars 'Vest Bukovyna', and the factory producing fuel pallets 'Nova Enerhiya'. The construction of the second stage of the Dniester HPP, costing 4.5 billion UAH, has begun.

The export volume per capita in the region is almost 80% lower than the average in Ukraine. The gross regional product per capita is 55% lower than the national average, and the salary level in the region is 31% lower than the Ukrainian average. The regional authorities weakly use the development budget to stimulate investment in the region - it was 1.1 UAH per capita in 2019.

Despite its small size and modest economic development indicators, Chernivtsi region actively attracts foreign investment. In 2018, the increase in direct foreign investments was 3.4%, indicating foreign companies' interest in the region. The region's infrastructure and the new enterprises that have appeared in recent years promote business and economic development. However, the authorities of Chernivtsi region have significant reserves to increase investment volumes and support local entrepreneurship.