MECHANISMS OF EXTERNAL FINANCING OF THE UKRAINIAN ECONOMY DURING WAR AND APPROACHES TO THEIR OPTIMIZATION

Abstract

The article examines the approaches and mechanisms of financing the Ukrainian economy from EU countries during the full-scale aggression of the Russian Federation, which showed a significant limitation of allocated resources for a systemic confrontation with the Russian Federation and full European integration. It has been revealed that the financial resources allocated by Ukraine’s international partners (mainly the USA and the EU) are limited, which are only sufficient for exchange rate, financial and price stabilization, but not enough for economic recovery and development. The author of the article proposed to revise and increase the parameters of the existing largest financial assistance program «Ukraine Facility» for more tangible socio-economic support for Ukraine. The investment component of this program is also a very small amount for large-scale, strategic attraction of Western companies to cooperation and insurance of business risks. Only fundamentally, grant, technical and gratuitous financing with appropriate control mechanisms can change the trajectory of economic recovery of the Ukrainian economy. A number of measures (7 instruments of financial assistance) are proposed to improve the domestic socio-economic sphere and convincing arguments are provided for revising the political dialogue at the international level by the Ukrainian authorities. Active in transforming and improving the program «Ukraine Facility» The Government of Ukraine must show its commitment to European partners in accordance with strategic plans for the development of the domestic socio-economic environment.