Interfax-Ukraine, Kyiv, Ukraine, March 1, 2004

"There are strategic investors that invest their funds in hotels, offices, shopping malls, exactly as there are investors willing to invest in the construction of highways and bridges," he said.

Partskhaladze said that very often investment tenders in Ukraine are won by go-between companies or portfolio investors, rather than by direct strategic investors, which increases the cost of projects, prolongs the term of their implementation, as and reduces the quality and level of the projects.

Partskhaladze noted that 70% of Ukrainian investment projects do not fully meet European urban levels in the aspect of architecture and social orientation.

The yield from investment in real estate in Ukraine is considerably higher than that in many other countries, "that is why in the next five - seven years Ukrainian investors will not look for markets outside Ukraine, unless something extraordinary happens," he said.

Among the factors that have a positive impact on Kyiv's investment attractiveness is the stability of the city's authorities, "which, in fact, have not been changed since 1996."

"Investors go where they are offered not only high profits, but also stability and protection of their investment," he stressed.

According to Partskhaladze, Ukrainian investment companies are today conductors of financial flows and other kinds of business as well.

In his words, Kyiv's participation in the international real estate and investment exhibition MIPIM-2004 in Cannes will ensure transparency in searching for investors and provide the possibility for direct communication with large international investment companies, as the exhibition will present investment projects worth at least $20 million.