TRADING IN DERIVATIVE FINANCIAL INSTRUMENTS IN AGRIBUSINESS: A RISK MANAGEMENT MECHANISM AND EUROPEAN INTEGRATION INTO INTERNATIONAL MARKETS
Abstract
The article investigates the development of derivative financial instru-ment trading in agribusiness under conditions of military instability and the in-tegration of the national market into the European economic space. It has been established that russia’s full-scale military aggression against Ukraine has in-tensified the use of futures contracts, forwards, options, currency and interest rate swaps as instruments for hedging price, currency, credit, and operational risks. The current state of derivative financial instrument utilization in agri-business is analyzed, and the areas of their application in grain, oilseed, sugar beet production, and export activities are identified. It is substantiated that, under current conditions, derivatives are no longer merely instruments of ex-change speculation but are being transformed into a strategic mechanism for managing financial risks of agricultural enterprises, ensuring income stabiliza-tion, and enhancing the investment attractiveness of agribusiness.
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