The purpose of the research is to study the general and specific aspects of foreign investment in a transition economy, on this basis, to deepen the theory of foreign investment.

The methodology of the research comprises the theory and methodology of socio-economic analysis of foreign investment. The situation with attracting investments to our country is analyzed by statistical indicators, the achievements obtained as a result of investment policy are expressed in concrete figures.

The practical importance of the research - the research allows government agencies, as well as economic entities to assess the real situation in the field of investment, to analyze the internationalization of production, to identify ways to intensify foreign investment.

The results of the research - as a result of the research, the impact of investments on economic development is investigated, the factors influencing its implementation are identified, investment policy in our country is analyzed and the role of investments in the country's economy is investigated.

The originality and scientific novelty of the research - the study examines the place and importance of the impact of foreign investment formation sources on economic growth. Theoretical and methodological principles of the essence, forms and directions of foreign investment, its role in the development of the economy are substantiated.

Keywords: investment, capital flow, oil and gas sector, economy, foreign investment, economic development.