DEVELOPMENT OF FINANCIAL LEASING IN UKRAINE ON THE BASIS OF ESG PRINCIPLES

Abstract

The purpose of this article is to examine the development of financial leasing in Ukraine under conditions of economic instability and wartime. The relevance of the research is determined by the growing importance of alternative financing mechanisms for enterprises facing restricted access to traditional credit sources due to wartime conditions. Financial leasing emerges as a viable instrument enabling companies to acquire necessary assets without substantial initial capital investments during periods of economic uncertainty. The research methods include analysis of scientific articles, monographs and educational literature to examine the essence and economic role of financial leasing; analysis of legal documents to generalize institutional and legal framework of financial leasing in Ukraine; comparative method to determine current trends in financial leasing, particularly comparing demand levels for different assets provided through leasing; analytical method, standardized logical analysis and expert evaluation methods to draw conclusions about development prospects and provide recommendations. The study reveals a significant transformation of the institutional and legal framework governing financial leasing operations, characterized by evolution from fragmented regulation to centralized oversight. The research demonstrates substantial market consolidation among leasing companies alongside notable shifts in contract structure toward short-term arrangements reflecting heightened uncertainty. The analysis identifies primary development barriers including insufficient entrepreneur awareness, complex administrative procedures, limited digitalization, and weak state support. International experience provides valuable insights for enhancing domestic market effectiveness. The practical value of the study lies in providing recommendations to strengthen the leasing sector through targeted interventions. The research demonstrates potential for financial leasing to serve as an effective instrument for business modernization and economic recovery in post-war conditions. Findings suggest that enhanced information campaigns, digitalization initiatives, ESG-principles implementation, positive European experience adaptation, specialized support programs and improved institutional framework can significantly improve market development prospects.