CURRENT STATE AND PROSPECTS OF INVESTMENT ATTRACTION INTO THE AQUACULTURE SECTOR IN UKRAINE
Authors: IERMAKOVA O.A. , BJØRNDAL T. 
Published: April 2024

Topicality. Preliminary calculations confirm the significant potential for the development of aquaculture both in the Ukrainian Black Sea region and in Ukraine as a whole. The increase of aquaculture share in the total fish consumption in Ukraine in the conditions of the war, which caused a significant reduction in commercial fishing due to the physical loss of the water areas of the Azov and Black Seas, the consequences of technogenic pollution of water bodies due to the explosion of the Kakhovskaya Hydroelectric Power Station, is also a confirmation of the importance of aquaculture for the food security of the country and the region.

Aim and tasks. The presented study aims to analyze the current state of investment attraction in the aquaculture sector in Ukraine and the world, to identify obstacles and prospects for it increasing.

Materials and Methods. In the research the methods of analysis and synthesis, theoretical generalization, statistical analysis, retrospective analysis, system analysis have been used, on the basis of which the cause-and-effect relationships of low investment activity in the aquaculture sector in Ukraine are determined, proposals are systematized regarding the organizational and economic mechanisms of attracting investments to the aquaculture sector according to the resource-process approach - stages of value creation (preparation, production, processing, realiztion) and input components (factors of production) necessary for the functioning of the sector.

Research results. The analysis of investments in the aquaculture sector in Ukraine and the Ukrainian Black Sea region revealed its extremely unsatisfactory state, which does not correspond to the interests of the sector's development: a small volume of capital investments in the aquaculture sector - 0.038% of the total volume of capital investments of enterprises in Ukraine; unsatisfactory investment support for innovative activities of aquaculture enterprises - only 0.5% of the total volume of capital investments is directed to intangible assets; the sources of capital investments are mainly own funds of enterprises, funds from local budgets, investment companies and funds, funds from non-resident investors and other sources are not involved at all; a small amount of foreign direct investment - 0.04% of the total amount of direct investment in Ukraine, there is an outflow of investments, FDI in the aquaculture sector in the regions of the Ukrainian Black Sea region has not been carried out in recent years; non-profitability of invested capital.

Conclusion. In order to form a long-term vision of the development of the sector and determine the prospects for potential investors, it is necessary to develop an industry strategy and programs, in particular, regarding the attraction of investments in the aquaculture sector and the development of innovations. Targeted actions require the formation of an ecosystem of accompanying services for investors, in particular, centers for attracting investors, investment consulting agencies specializing in aquaculture, which is especially relevant for seaside regions. It is proposed to apply a comprehensive approach to the development of the aquaculture sector according to the value creation chain "preparation-production-processing-realization", that means the formation of a regional innovation-oriented complex of aquaculture production. The use of network tools for creating added value in the sector, such as clusters, water technology parks, eco-industrial parks, will create attractive objects for investment, in particular from abroad, taking into account their orientation to the principles of innovation, zero waste, environmental safety, resource conservation.