FINANCIAL ASPECTS OF ATTRACTING FOREIGN INVESTMENT IN THE CONDITIONS OF MARTIAL LAW

Abstract

Relevance of the article: investment activity pays a key role in the development of any country and during martial law, it requires even more attention and becomes a priority strategic task for the normal functioning of the state economy. Unfavorable investment climate in Ukraine requires the creation of favorable conditions for investors, which allowed to increase the inflow of foreign investment immediately after the end of the war. The purpose of the article: to analyze the current state of attracting foreign investment in the conditions of martial law, to investigate their dynamics and structure. Research methods: when writing a scientific work, general scientific methods of research were performed, namely the method of scientific knowledge, the method of horizontal and vertical analysis. Obtained results: the article analyzes the current state of foreign investment attraction and also their dynamics over the past 20 years. According to the results of the analysis. it was established that over the 5 years only in 2021 the most positive dynamics of accumulated foreign instruments in the national economy can be observed. However, Ukraine still has not reached the volume of foreign investments that were before the start of military aggression. Reasons that had a negative impact on the volume of involved capital investments are substantiated. Among the key factors that negatively affect the process of foreign investment, military actions on the territory of Ukraine, high inflation, instability of the financial system and the tax system are singled out. The distribution of direct foreign investment in Ukraine by types of economic activity, as well as regionally, was studied. It has been established that industry, agriculture and forestry, as well as wholesale and retail trade, are currently the priority areas for investment in terms of industry attractiveness. Practical integrity: considerable attention is focused on changes in the structure and volume of direct foreign investment caused by the introduction of martial law in Ukraine.