"For the first time since the country gained independence [from the Soviet Union], foreign investment in the economy shrank by 14%," said economist Alexei Plotnikov of Ukraine's Institute of World Economics and International Relations.
Plotnikov said the negative trend could be reversed by putting an end to re-privatization and economic persecution for political reasons.
"There must be confidence that no economic tensions can be expected in the run-up to parliamentary elections in 2006 and that [economic] development will not depend on politics," the expert said.
Plotnikov also said investment would rise if there were no confrontation with Russia.
"It is important that the government of Yuriy Yekhanurov does not stick to the principle of 'better no investment than investment from Russia' - as was the case in the former cabinet," Plotnikov said.
