UKRAINE’S ECONOMY DURING MARTIAL LAW

Abstract

The purpose of the study is to define the essence of martial law, social and economic development of the country in the period of martial law, and the directions of economic policy reformation aimed at enhancing the efficiency of the national defense capability. In 2022, following Russia's large-scale invasion of Ukraine, martial law was instituted. This legal regime limited civil and political rights for a time and enabled the government to introduce command control in the economic area. The military aggression of the Russian Federation has led to complex social and economic consequences: significant destruction of productive capital, infrastructure, human and social losses, a decrease in the number of vacancies, corporate incomes, and purchasing power and savings. Ukraine gets financial and military assistance from international partners and organizations to stabilize and restore its economy. Unfortunately, its volume remains insufficient. There is a need to find sources of funding. Among the impediments to foreign investment in Ukraine are the level of property rights protection, budgetary and tax policies, low level of flexibility of financial resources flow, corruption, etc. The European Union has defined the implementation of large-scale changes as a condition for Ukraine to maintain its candidate status. Upcoming reforms cover the following: reform of the Constitutional Court; continuation of judicial reform; anti-corruption management; anti-money laundering; implementation of the anti-oligarchic law, etc. The industrial policy should be a system of measures that will allow Ukraine to achieve comparative advantages on the military and economic fronts. The military industrial complex is an important component of the said policy. There is a need to reorganize the economy to meet the needs of the national defense capability. The development of critical infrastructure, metallurgical, manufacturing, chemical industries, agriculture, and the food sector is of strategic importance. Military priorities focus on the production of weapons and ammunition, drones; military engineering; software, etc. Macroeconomic policy, labor market regulation, and humanitarian issues are the basis for stabilizing Ukraine's economy during martial law. These require further research and substantiation.