KIEV, July 25 – Germany's Knauf has decided to suspend its investment activities in Ukraine due to rising inflation and speculation on the real estate market, which have led to the stagnation of the construction sector and a slump of construction materials sales.

"Knauf is to suspend its investment activities in Ukraine until better times, that is, for at least two or three years. No one could foresee that the result of inflation processes in Ukraine and speculation on the real estate market would be the stagnation of the construction sector and a slump in construction materials sales. We made a mistake in investing large funds into the upgrade of production facilities, as sales remain at last year's level," reads a Knauf report, referring to the co-owner of the company, Nikolaus Knauf.