Financial support for the recovery of Ukraine’s economy
Authors: Kudrjashov Vasyl ,   SESE “The Academy of Financial Management”
Published: July 2024

Introduction. The Recovery Plan of Ukraine (hereinafter referred to as the Plan) requires the use of appropriate financial support. The implementation of the Plan should provide not only the restoration of lost potential, but also progressive development, as well as compliance with the conditions of budget balance and debt sustainability. Issues regarding the definition of conceptual approaches to the development and implementation of the Plan are of particular importance. The purpose, goals and tasks of its financial support, the conditions for attracting resources and the direction of their spending need to be clarified. Problem Statement. During the war, quite significant changes were made to the management model of budget operations. Overcoming the consequences of the war and ensuring the progressive development of our country require a review of this model and the implementation of a detailed plan for the financial support of recovery. The development of the Plan involves the attraction of resources from various sources, the participation in its implementation of many business entities, the establishment of directions for spending the mobilized resources and the implementation of an appropriate system of financial flow management. Formation of the Plan requires determination of its content, components, development and implementation of financial support for the recovery of Ukraine. The purpose is to determine the conceptual basis for the development of financial support for the recovery of Ukraine. Methods. The following research methods were used: historical, logical, abstraction, description, generalization, comparison, grouping, analysis, synthesis. Results. Financial support for recovery involves a return to the model used in peacetime, taking into account the infrastructure modernization, the acceleration of economic growth, deepening of structural reforms, maintenance of a stable macroeconomic situation, debt sustainability, as well as the fulfillment of the tasks of accession to the EU. Conceptual approaches to the formation of a plan for the financial support of the recovery and development of Ukraine as a component of the general Recovery Plan of Ukraine have been defined. The sources of funding, the mechanisms of their provision, the task of state administration bodies to create an institutional structure for the implementation of the Plan, guaranteeing the conditions for attracting private capital and the use of external sources, as well as the application of mechanisms of financial stability and debt sustainability in the implementation of the Plan are disclosed. Conclusions. Financial support for the recovery of Ukraine involves attracting resources from various sources, introducing new financing mechanisms, coordinating the interests of many entities, coordinating the management of financial operations, and monitoring the use of the resources involved. Important tasks include combining state resources, private capital, funds of institutional investors, international organizations, and foreign companies. Tools for attracting resources include the mobilization of assets based on the formation of the company's own capital, the use of debt mechanisms, budget funds, the use of mezzanine (joint) capital, guarantees, insurance, hedging, grants, technical assistance. The main point of the implementation of the Plan is the attraction of private capital. The functions of the state are the implementation of mechanisms for limiting the risks of capital investments, the use of guarantees for securing debt obligations, their insurance, support for servicing loans, the provision of financial assistance (in the form of grants, subsidies, subventions, budget loans), acceleration of the privatization of state property, allocation of land plots, participation of the state in co-financing strategic projects with private capital, compliance with financial stability and debt sustainability.