This policy paper by the German Advisory Group and the Institute for Economic Research and Policy Consulting shows that Foreign Direct Investment (FDI) strongly benefits Ukraine. Although only relatively few companies in Ukraine are fully or partly owned by foreign investors, these companies are on average much larger and productive than purely domestic companies and pay higher wages. Raising the limited FDI stock of Ukraine by attracting more FDI would lead to faster growth of the Ukrainian economy and better living standards with higher wages of Ukrainian workers.