FINANCIAL MECHANISMS TO STIMULATE INVESTMENT IN THE RECOVERY OF THE UKRAINIAN ECONOMY AFTER THE WAR

Abstract

The article analyzes the key financial mechanisms for stimulating investment in Ukraine's economy in the context of post-war recovery. The main focus is on creating conditions for attracting domestic and foreign investment, which will help rebuild infrastructure, modernize industrial facilities and increase Ukraine's economic sustainability. The authors examine a wide range of financial instruments, including government guarantees, preferential taxation, investment insurance against war risks, and partnership projects with international financial institutions, which are critical to attracting capital in a high-risk environment. In the context of the ongoing economic instability caused by the hostilities, the study emphasizes the adaptation of the economy to new challenges, in particular through the development of innovative financial mechanisms that help protect investors and reduce their risks. In addition, the impact of international financial support, in particular Ukraine's cooperation with the World Bank, the International Monetary Fund (hereinafter – the IMF) and other organizations that provide significant resources for recovery programs, is considered. The article also examines the legal framework for stimulating investment, in particular the Law of Ukraine “On State Support of Investment Projects with Significant Investments”, which provides investors with tax benefits, customs preferences and reimbursement of infrastructure costs, provided that a certain number of jobs and capital investments are created. The author also emphasizes the importance of developing industrial parks and special economic zones as centers of economic growth, where investments are concentrated to support key industries and stimulate exports. The article also analyzes barriers to investors, such as security instability, high levels of corruption, insufficient insurance instruments to cover military risks, and underdeveloped financial instruments. The article suggests options for overcoming these obstacles by creating state insurance programs, strengthening anti-corruption policies, and expanding partnerships with international financial organizations. In general, the article provides a thorough overview of financial mechanisms for stimulating investment that can be used to restore Ukraine's economy and provides recommendations for further actions by the government to create an attractive investment climate. It also addresses environmental challenges, improving resource efficiency, the role of the agricultural sector as an attractive and stable element of the Ukrainian economy, and plans for economic recovery in the post-war period. The Stabilization Strategy provides for structural reforms, significant investments, improvement of the investment climate and infrastructure projects. Ukraine has significant investment needs to rebuild after the war, and plans to implement new financial mechanisms to attract capital, such as government guarantees, support and infrastructure, special economic zones and international assistance programs, including EU and World Bank initiatives.