Ukraine remains one of the world’s riskiest investment destinations, with an equity risk premium approaching 20%, reflecting the elevated uncertainty facing investors amid war and economic strain, reported Ukraine Business News.

According to analysis compiled by Visual Capitalist and based on estimates from a professor at New York University, Ukraine’s equity risk premium stands at around 19.8%. The metric represents the additional return investors demand to compensate for the risks of investing in a particular market, including political instability, currency volatility and weak institutional frameworks.

In mature and stable economies, equity risk premiums typically range between 4% and 5%. Countries such as Canada, Germany, Switzerland, Singapore, Sweden and Netherlands are among the safest markets, each with premiums of roughly 4.2%.

By contrast, countries facing severe political or economic crises tend to exhibit much higher premiums. Belarus, Lebanon, Sudan and Venezuela top the rankings, each with premiums of about 30.9%, underscoring the high level of perceived risk.

Ukraine’s position places it firmly in the high-risk category, though below the most extreme cases. Analysts note that such elevated premiums can attract investors seeking higher potential returns, but also signal significant exposure to downside risks.

The United States, by comparison, has a relatively modest premium of around 4.5%, remaining one of fewer than 20 countries globally with risk levels below 5%, despite concerns over political polarisation and market volatility.

Within Europe, risk levels vary. Southern economies still carry higher premiums following the 2009 debt crisis, with Spain and Portugal at around 5.8%, Italy at 6.7%, and at 7.1%.