Mark Mobius: Ukraine has a Number of Viable Industries with Growth Potential

KYIV, Ukraine, November 23, 2011 /PRNewswire/ --

Ukraine is one of the more interesting markets due to the variety of its viable industries, according to Mark Mobius, Ph.D., executive chairman of Templeton Emerging Markets Group. The expert also underlined that Ukrainian industries yet have a promising potential of growth.

Investment management professionals at Franklin Templeton Investments referred to Ukraine as a bread basket "given its rich agricultural industry," highlighted Mark Mobius on November 22, answering a question on Ukraine in his corporate blog Investment Adventures in Emerging Markets.  

"Many Eastern European countries have been suffering from the broader global market sell-off due to their proximity to debt-ridden Western Europe, which sees investors generally reducing their holdings and repatriating capital," commented the emerging markets expert. He also added that despite the current volatility Ukraine, rich in both hard and soft commodities, had the potential for growth resulting from what has been the global long-term rising demand for natural resources.

Earlier, German Erste Bank reported that Ukraine has become the number one sunflower oil producer and exporter in the world. In 2010 Ukraine produced 3.3 million tons of sunflower oil, having exported over 90 percent of this amount (Ed.).

In his earlier post of April 2010 Dr. Mobius stated that Ukrainian market had offered "exciting investment opportunities", when talking about financial situation in the Eastern Europe. The expert, however, reminded that such Eastern European frontier markets as Ukraine and Romania had been often overlooked by investors.

Experts believe Ukraine's annual grain production to be at least 33-35 million tons per year, which leaves a substantial amount of grain for export considering the fact that the domestic consumption is set at the mark of 25-26 million tons. Ukraine estimates its 2011 grain harvest at over 40 million tons.

Mark Mobius, Ph.D., executive chairman of Templeton Emerging Marketing Group, joined Templeton in 1987. Currently, he directs the Templeton research team based in 17 global emerging markets offices and manages emerging markets portfolios, according to the Franklin Templeton Investments' official Web site. Franklin Templeton Investments is a global investment management organization with offices in over 30 countries and clients in more than 150. As of September 2011, the company managed over USD 659 billion in investment.