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DOI: https://doi.org/10.34069/AI/2022.54.06.22
How to Cite:
Shaleny, V., Shtefan, N., Krylova, O., Myronchuk, V., & Tsurkan, I. (2022). On the question of financial support for business
during the war (Ukrainian case). Amazonia Investiga, 11(54), 232-242. https://doi.org/10.34069/AI/2022.54.06.22
On the question of financial support for business during the war
(Ukrainian case)
Sobre la cuestión del apoyo financiero a las empresas en tiempos de guerra (Estudio de caso ucraniano)
Received: May 9, 2022 Accepted: June 30, 2022
Written by:
Shaleny Volodymyr87
https://orcid.org/0000-0003-2671-4776
Shtefan Nataliia88
https://orcid.org/0000-0003-4779-2618
Krylova Olena89
https://orcid.org/0000-0002-4210-5068
Myronchuk Viktoriia90
https://orcid.org/0000-0002-1720-4558
Tsurkan Iryna91
https://orcid.org/0000-0003-1149-0431
Abstract
The military invasion of Ukraine is accompanied
by the infrastructure destruction, territories
occupation, forced migration, a catastrophic drop
in GDP, high inflation rates etc. Domestic
business is one of the most important sources of
tax revenues for the state budget, and therefore
the question of its support during martial law is
relevant and timely. The purpose of the article is
to study the impact of the Russian invasion of
Ukraine on the domestic economy, in particular,
to determine the consequences for business
entities and to assess the measures and volumes
of financial support for businesses during the
war, as well as to determine the priority
directions for further financing of businesses.
The scientific methods used: analysis, synthesis,
graphic and statistical methods, the method of
establishing cause-and-effect relationships. As a
result of the research, the current state of the
Ukrainian economy was determined and areas of
support for businesses were considered. The
novelty of the research is the proposal of priority
directions for financing of businesses in wartime
conditions, in particular financing of innovative
87
Candidate of economic sciences, associate professor department of business management, Odesa national university of technology,
city of Odessa, Ukraine.
88
PhD in Economics, Associate Professor Department of Economic Analysis and Finance Faculty of Finance and Economics National
Technical University “Dnipro Polytechnic”, Ukraine.
89
PhD in Economics Associate Professor Department of Economic Analysis and Finance Faculty of Finance and Economics National
Technical University “Dnipro Polytechnic”, Dnipro, Ukraine.
90
Candidate of Economic Sciences (Ph. D.), Associate Professor at the Department of Banking Finance and Insurance West Ukrainian
National University, Vinnytsia Educational and Research Institute of Economics, Ukraine.
91
PhD in Economics, Associate Professor of the Department of Economic Analysis and Finance, Faculty of Finance and Economics
National Technical University “Dnipro Polytechnic”, Dnipro, Ukraine.
Shaleny, V., Shtefan, N., Krylova, O., Myronchuk, V., Tsurkan, I. / Volume 11 - Issue 54: 232-242 / June, 2022
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and sustainable development. The practical
results of the study can be used by businesses and
the government to determine the main directions
of adaptation to military conditions.
Keywords: Ukraine, financial support, business,
military invasion, innovative and sustainable
development.
Introduction
The Russian invasion of Ukraine on February 24,
2022, accompanied by irreparable losses of
population, occupation of territories, destruction
of infrastructure, including educational and
medical institutions, cultural heritage, houses,
roads, as well as mass migration of the
population, in particular outside the borders of
Ukraine, provoked a number of negative
consequences for the Ukrainian economy. The
main ones include: an increase in the consumer
price index, a drop in exports and imports, a
disruption in supply chains, a drop in the
country’s GDP, etc. In addition, the mentioned
factors are related to significant expenditures of
the country’s budget on social assistance,
restoration of destroyed infrastructure facilities,
and military expenditures. The support of EU
countries and the world cannot fully compensate
for such significant costs, and therefore Ukraine
needs ways to supplement the budget from
internal sources.
One of these sources is tax revenue from
domestic businesses, however, in wartime,
business cannot function normally. Many
enterprises are located in territories that are
temporarily occupied or in which active
hostilities are taking place, some firms were
destroyed by bombing, others had to move their
facilities to neighboring regions. Also, not the
last place is occupied by problems with logistics,
disruption of supply chains, blocking of Black
Sea ports, decrease in the purchasing power of
the population, etc. Some researchers identify the
rise in oil and natural gas prices as one of the
main sources of business problems at the current
stage of operation - Russia is one of the largest
exporters of these resources, and the world’s
rejection of Russian energy will lead to their
shortage and significant increase in prices. Thus,
Ozili (2022) notes that the rise in fuel prices will
lead to the fact that businesses will have to spend
more on importing raw materials, as well as on
the production of goods and services.
Taking into account the above, it can be
concluded that to a large extent the solution to the
problems of businesses and the state in modern
economic conditions lies in a mutually beneficial
partnership. The state should introduce special
programs and grants that will support business
during the war, and businesses, in addition to the
production of socially significant goods and
services, will replenish the state budget through
tax deductions.
The problem of determining, forecasting and
minimizing the negative consequences of the
military invasion for the Ukrainian economy, in
particular domestic businesses, as well as the
study of state measures to support businesses, has
been in the focus of attention of scientists since
the beginning of the war. Individual researchers
made attempts to predict such consequences even
before the invasion, assuming in advance the
most unfavorable development of events.
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Ciuriak (2022) notes in his research that the
economic consequences of the current war are
catastrophic for Ukraine. Ukraine is facing a
massive economic downturn due to the
destruction of Ukrainian economic
infrastructure, a trade blockade, a reduced
workforce due to conscription, war casualties
(tens of thousands) and mass displacement of
households (an estimated 10 million, or one in
four Ukrainians, are now refugees, including
about 3.5 million who fled abroad). In the first
month of the war, half of Ukrainian businesses
stopped working completely, and the other half
are operating well below their capabilities; about
90% of the country’s population may be below
the poverty line.
Astrov et al. (2022) provide statistical data on the
fact that by mid-March 2022, the Russian
invasion forced 30% of the economy to stop
working. According to a survey conducted by the
European Business Association in Ukraine on
March 14, 2022, 42% of small and medium-sized
enterprises have completely ceased operations,
and 31% have suspended their activities, but
intend to resume them as soon as possible.
According to the Ministry of Economy, losses
from the war can currently amount from one-
third to one-half of the country’s GDP. These
estimates are similar to the decline in economic
activity recorded in Donbas, Iraq, and Syria after
the start of the war.
Melnyk (2022) examines the impact of the
military invasion on the country’s economy and
business and emphasizes the importance of state
support for the functioning of businesses in
wartime conditions. The researcher notes that
state support must be understood as state
regulation of entrepreneurial activity, which
involves, first of all, the conscious formation by
state structures of appropriate direct and indirect
business support tools, in particular, the creation
of incentives, the use of material, financial and
other resources that are involved for it subjects.
The priority of state regulation and support of
entrepreneurship in war conditions necessitates a
transition from direct administrative assistance to
the formation of a favorable economic and social
environment for the improvement of mechanisms
and tools for stimulating the development of
business entities.
Sakun et al. (2022) determine the priority areas
of financial support for domestic businesses. The
authors note that with the support of international
partners and on the basis of reforming tax
legislation in Ukraine, significant steps have
already been taken to provide financial support to
domestic enterprises and entrepreneurs, but these
initiatives need to be deepened and expanded in
order to further restore the national economy,
which should be achieved through the
reconstruction and development of such areas as
agrarian business, food industry,
pharmaceuticals, light industry, trade and
resource provision. The development and
strengthening of own economic capabilities, the
complete elimination of any economic ties with
the aggressor countries, the development of
European cooperation due to the rise of domestic
manufacturers to a new level will help not only
to accelerate victories and end the war, but also
lay the foundation for economic growth and rapid
recovery of our country.
Summarizing the above, it is possible to
formulate the purpose of the article, which is to
study the impact of the Russian invasion of
Ukraine on the domestic economy, in particular,
to determine the consequences for business
entities and to assess the measures and volumes
of financial support for businesses during the
war, as well as to determine the priority
directions for further financing of businesses.
The specified goal can be achieved by solving the
following tasks: determining the current state of
Ukraine’s economy and trends in its key
indicators; research of government programs for
business support, in particular business
financing, as well as international measures to
support Ukrainian business; determination of
priority directions for further financing of
businesses in Ukraine.
Literature Review
The chosen topic of the article correlates with
research directions of scientists from different
countries. Aspects of financial support of
domestic businesses during the war are revealed
by Sakun et al. (2022), Ihnatenko (2022) who
study the legislative framework regarding the
specific conditions that affect business during
martial law, and also reveal the changes made by
the government in the legislation regarding
optimization business taxation conditions.
Among other things, the authors examine
changes in credit policy aimed at supporting
Ukrainian businesses, and other government
programs and initiatives on this topic.
Researchers do not ignore the issue of
international support for Ukraine in terms of the
provision of funds, which should be directed,
among other things, to the financial support of
Ukrainian businesses.
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Melnyk (2022) revealed the general principles of
state support for businesses under martial law,
which defines the following key areas of state
support: changes in the payment of a single tax,
a single social contribution, cancellation of
inspections, programs for the temporary
relocation of enterprises from affected areas
during the war of regions, changes to the State
program “Affordable loans 5-9%”.
Foreign authors mostly focus on the
consequences of the war for Ukrainian and other
businesses in the world, as well as providing
certain recommendations. For example,
Prohorovs (2022) deeply explores the problems
and consequences of the military invasion for
European and Ukrainian businesses. The author
emphasizes the limited resources and
opportunities for the state to support businesses
in martial law conditions due to a decrease in
budget revenues, but notes that in order to
strengthen the competitiveness of businesses,
entrepreneurs, companies and countries need to
adjust their strategies, business models and
management models in such a way as to be ready
to an effective response to crises, including those
due to non-economic causes.
The severity of the negative impact of war on
businesses is highlighted in the work of Bobasu
and De Santis (2022), who found that increased
uncertainty will have a significant impact on
business investment – greater than on GDP,
consumption and household savings. Ozili
(2022) highlights the significant losses for
businesses due to rising energy prices.
The authors’ research proves the need for
financial support for businesses under martial
law from both the Ukrainian government and
international organizations and other countries.
The international support of Ukraine during the
war is considered in detail in the work of Antezza
et al. (2022) in terms of humanitarian, military
and financial directions.
The proven relevance of the researched topic
necessitates a deep study of government
programs and legislation regarding financial
support of Ukrainian businesses, international
support measures, as well as determination of
priority directions for further funding.
Methodology
During the research, the following general
scientific methods were used: analysis, synthesis,
graphic and statistical methods – to determine the
general economic consequences for Ukraine;
analysis of the legislative framework – to
consider programs for financing businesses
during the war; the method of establishing cause-
and-effect relationships – for determining the
priority areas of business financing in wartime
conditions.
The complex nature of the research determines
its division into stages. At the first stage, the key
economic indicators of Ukraine in the conditions
of the war were studied. An analysis of the
dynamics of the consumer price index, GDP,
exports and imports was carried out. It has been
established that consumer prices have been
characterized by significant growth since the
beginning of the war, in particular due to
increased risks and reduced opportunities in the
activities of producers of goods and services. A
drop in exports and imports was recorded due to
the occupation of territories, active hostilities in
certain regions, blockade of Black Sea ports,
disruption of supply chains, etc. A significant
decline in GDP has also been noted, which
entails the destruction of infrastructure and costs
associated with its restoration, military costs,
social support costs, reduced tax revenues from
businesses, etc.
At the second stage, an analysis of measures for
financial support of businesses by the state was
carried out. First of all, the tax changes are
analyzed, which are mostly aimed at simplifying
the activities of SSC payers. In the future,
government programs for business support in
general, as well as programs for business
financing by the state, are considered. Attention
is also paid to international programs within
which financing of Ukrainian businesses takes
place.
As a result of the research, the priority areas of
business financing are proposed in separate
areas, such as financing of innovative
development, as well as financing of measures
related to sustainable development.
Results
Study of key economic indicators of Ukraine
in the conditions of war
The problems of doing business in the conditions
of war are largely correlated with the economic
problems of Ukraine as a whole, therefore, at the
first stage of the research, it is advisable to
identify the key problems of the domestic
economy related to the Russian invasion. Figures
1-4 show the dynamics of the main economic
indicators over the last period.
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Figure 1. Change in the consumer price index (CPI) in percentage compared to the previous period
(compiled according to the data of the (State Statistics Service of Ukraine, n.d.).
Figure 1 shows the change in the consumer price
index. It is this indicator that shows a significant
increase in prices for goods and services for non-
production consumption by the population. Its
growth is caused by increased risks for
businesses, costs associated with martial law,
problems with logistics, disruption of supply
chains, rising prices for raw materials and
components (which, as defined above, in
addition to other provoked increases in oil and
natural gas prices).
Figure 2. Change in real GDP in percentage compared to the corresponding quarter of the previous year
(compiled according to the data of the (State Statistics Service of Ukraine, n.d.).
Figure 2 shows a catastrophic drop in Ukraine’s
GDP already in the first quarter of 2022, and it amounts to -15%. Moreover, the IMF predicts a
decline in Ukraine’s GDP to 35% in 2022.
Figure 3. The rate of growth (decrease) in the export of goods as a percentage compared to the
corresponding period of the previous year, cumulative total (compiled according to the data of the (State
Statistics Service of Ukraine, n.d.).
Figure 3 shows a significant drop in Ukrainian
exports in 2022. Since the Black Sea ports in the
south of the country practically stopped due to
the Russian attack, Ukraine lost the opportunity
to sell more than half of its exports, primarily
agricultural products and metals (Astrov et al.,
2022). Ukraine is a major exporter of such goods
as wheat, corn, sunflower seeds and oil, rapeseed
(van Meijl et al., 2022), as well as some metals,
in particular nickel, copper, iron (Ciuriak, 2022).
The decrease in Ukrainian exports of wheat and
oil is of particular concern to economists and
scientists, as it threatens the entire global
community with a food crisis.
1,3 1,6
4,5 3,1 2,7 3,1
January February March April May June
CPI
3,1 4,8 3,8 1,3 -0,9
-11
-3,3 -0,1 -2,2
62,8
6,1
-15,1
2019_I II II IV 2020_I II II IV 2021_I II II IV 2022_I
94,5 104,2 112,0 118,6 126,1 130,6 133,4 135,6 137,7 137,5 138,2 138,4
153,0 134,6 102,3 87,4 79,6
2021 2022
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Figure 4. The rate of growth (decrease) in the import of goods as a percentage compared to the
corresponding period of the previous year, cumulative total (compiled according to the data of the (State
Statistics Service of Ukraine, n.d.).
Figure 4 shows a decline in imports, which is
characterized by a similar trend as in the case of
exports. Many Ukrainian enterprises have
suspended or reduced the scale of their activities,
and therefore stopped purchasing foreign
materials. In addition, a significant part of the
enterprises are located in the occupied territories
and cannot maintain their normal activities.
Summing up the above regarding the
deterioration of the economic situation in
Ukraine as a whole, it is obvious that such
significant fluctuations in key indicators must
affect the activities of businesses, even those
operating outside the regions that are temporarily
occupied or on the territory of which active
hostilities are taking place. Thus, it becomes
necessary to investigate the programs adopted by
the state regarding the financial support of
Ukrainian businesses during the war and to
evaluate their effectiveness.
Financial support of businesses from the state
On March 15, 2022, the state took one of the first
and most significant steps regarding the financial
support of businesses under martial law – the
adoption of the draft law “On amendments to the
Tax Code of Ukraine and other legislative acts of
Ukraine regarding the validity of norms during
the period of martial law” (Law of Ukraine
№ 2120-IX (2022). The key provisions
regarding the expansion of opportunities for
business representatives during the war
include:
for individual entrepreneurs, as well as legal
entities whose turnover is less than UAH 10
billion, the single turnover tax will be 2 percent
in accordance with the rules of the third group
of taxpayers;
the possibility of voluntary payment of a single
tax for individual entrepreneurs of the first and
second groups;
changes in the calculation of individual taxes
and fees operating under martial law;
VAT reduced to 7 percent, exemption from
excise duty on fuel;
release from liability for late fulfillment of
obligations to the creditor under the consumer
credit agreement;
exemption from personal income tax taxation
of assistance to persons affected by the
military aggression of the Russian Federation;
termination of the provisions that granted
rights to the mortgage holder regarding the
eviction of residents, acquisition of ownership
of the subject of the mortgage or its sale (Law
of Ukraine № 2120-IX (2022). Evaluating the
key provisions of the adopted law, it can be
said that a number of its provisions relate to the
simplification of the taxation system and the
creation of favorable business conditions, in
particular for representatives of small and
medium-sized businesses, because a number of
provisions are aimed at supporting SSP payers.
This can be explained by the fact that small
businesses have more chances to survive in
crisis conditions due to their high ability to
adapt to the surrounding conditions.
In addition to tax changes, the government
introduced a number of programs and
initiatives to support business in general, as
well as programs to provide financial support
to entrepreneurs from the state. The list of
these programs is presented in the online
service of public services – Diya. Key
programs are presented in Figure 5.
100,7 102,9 110,6 119,7 125,5 127,5 129,1 130,7 132,2 132,4 133,8 134,1
147,5 137,7
94,4 82,5 80,1
2021 2022
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Figure 5. Government business support programs and financial support programs for entrepreneurs
(compiled based on data from the (Diia (n.d.)).
The content of the programs indicated in Figure
5 is given below.
Compensation for the employment of IDPs: in
the case of employment from among internally
displaced persons (IDPs), the employer has the
right to reimbursement of their labor costs;
Temporary relocation of enterprises from war-
affected regions: the state provides assistance to
enterprises located in the zone of active
hostilities in relation to their relocation to the
western territories of the country;
A single digital interaction platform for business
relocation assistance: the platform is designed to
receive business relocation assistance;
A complete overview of initiatives regarding the
relocation of enterprises: provides an opportunity
to get acquainted with all initiatives regarding the
evacuation of businesses from regions affected
by military operations;
The government has launched the eRobota
project: the possibility of applying for a grant on
the Diya portal for business development (new or
already existing);
Lending to enterprises under the "5-7-9%"
program: the possibility of obtaining a loan for
domestic enterprises at 0 percent in the amount
of up to UAH 60 million;
Microfinancing of veteran businesses: veterans,
as well as their family members belonging to
IDPs, have the opportunity to receive
reimbursement for the purchase of goods that are
necessary for starting a business.
Particular attention is paid to optimizing the
conditions of exporters’ activities, in connection
with which the Office for the Development of
Entrepreneurship and Exports has launched an
operational platform with up-to-date information
for Ukrainian exporters who are ready to supply
their products abroad in war conditions and give
a worthy response to all Russian and Belarusians
in the world. A credit program is also provided
for companies that, due to the aggression of the
Russian Federation, need additional financing for
the implementation of export contracts (Diia
(n.d.)).
Domestic businesses receive support not only
from Ukraine, but also from other countries and
international organizations. The main measures
of such support are presented in Table 1.
Government programs and initiatives to
support business
Compensation for employment of
IDPs
A single digital interaction platform
to assist in business relocation
Temporary relocation of enterprises
from war-affected regions
A complete overview of enterprise
relocation initiatives
Financial support of entrepreneurs from
the state
The project eRobota
Lending to enterprises under the "5-
7-9%" program
Microfinancing of veteran business
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Table 1.
International support programs containing measures to support Ukrainian business.
Organization
Document
Type of financing
and terms
Amount of
financing
Direction
Representatives of
the government of
the Federal
Republic of
Germany and the
director of KfW in
the region of
Eastern Europe,
the Caucasus and
Central Asia
Loan agreement
Loan with a
validity period of
15 years (the grace
period for
deferring
repayment of the
principal amount is
5 years) at a
floating interest
rate with the
possibility of
conversion to a
fixed one after the
loan is fully paid
off
150 million
euros
Reimbursement of
expenses of the
Government of
Ukraine for the
financing of small and
medium-sized
businesses
The European
Commission
Agreement on
the financing of
the “Contract
for the
development of
the state and
strengthening of
stability”
A grant, the
amount of which is
provided on a free
and non-refundable
basis
120 million
euros
Financing of expenses,
in particular, related to
the provision of
guaranteed social
protection of citizens,
the functioning of
critical infrastructure
and the security sector
The World Bank
An additional
package of
budget support
for Ukraine,
called
“Financing of
Recovery from
Economic
Emergency in
Ukraine” or
“FREE
Ukraine”
Contains an
additional loan in
the amount of USD
350 million and
guarantees in the
amount of USD
139 million, as
well as the
mobilization of
free financing in
the amount of USD
134 million and
parallel financing
in the amount of
USD 100 million
The total
amount of
financing is
723 million
dollars
The government's
provision of critical
services to Ukrainian
ing citizens, includ
wages for hospital
workers, pensions for
the elderly, and social
programs for
vulnerable populations
Source: (Sakun et al., 2022)
Summarizing the above, it can be stated that the
activity of Ukrainian businesses in war
conditions is significantly complicated due to
negative factors of direct and indirect action.
However, through mutually beneficial
cooperation between businesses and the
government, a certain improvement of the
situation in the existing conditions is possible.
From the side of the state and international
organizations, it means creating favorable
conditions for the functioning and development
of businesses, from the side of businesses, it
means filling the state budget.
Discussion
The study focused on simplifying the tax policy
for entrepreneurs and developing government
programs for financing domestic businesses. The
obtained results of the study indicate that even in
the conditions of war, the state tries to create
favorable conditions for the functioning of
businesses. The focus is mostly on small and
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medium-sized enterprises, which are more
mobile and adaptable. However, in addition to
considering programs of direct financial support
for businesses, it is also important to consider
regulatory acts related to the financing of certain
aspects of business activities, for example,
digitalization of activities (Spence, 2021), as well
as sustainable development (Al-Qudah et al.,
2022). These areas of financing can be
considered as a priority in the state’s
development of further business financing
programs, because innovation and sustainable
development are one of the key trends for
businesses in developed countries, as well as the
key to their success.
One of the positive aspects of doing business
during the war is the trend of moving some
businesses into the Internet sphere, which has
developed over the past few years. The modern
pace of life, as well as conducting business, have
created optimal conditions for such a transition to
online: most consumers, in particular young
people who are active Internet users, prefer to
conduct business, as well as shopping, through a
smartphone, which significantly saves time and
money. Full online functioning is far from
possible for all businesses, however, most
modern enterprises in one way or another use the
so-called “digitalization” in their activities. This
is facilitated by a number of legislative acts
regarding the support of information
development in the country, in particular the
Concept for the Development of the Digital
Economy and Society of Ukraine for 2018-2020
and the approval of the plan of measures for its
implementation (Order of the Cabinet of
Ministers of Ukraine № 67, January 17, 2018).
Thus, for many businesses operating on the
Internet, the continuation of their business even
in the case of the need to move to another region
is possible without significant losses. However,
it cannot completely solve such problems as a
decrease in the purchasing power of consumers,
the risk of damage to goods due to hostilities,
difficulties with logistics, etc. In addition, the
high innovation potential of Ukraine is
accompanied by a small share of total costs for
innovation in GDP, low costs for new
developments in the presence of a large number
of scientific personnel in the regions of Ukraine
(Zolkover et al., 2020) - and these problems
appear even more acutely in the conditions of
war. In addition, some researchers identify such
risks as the threat of cyber attacks and the threat
to information and sustainable growth. Davies
(2022) reports that modern war is fought not only
with bombs (armed conflict), but also with bytes
(cyber attacks). Russia is a world-class cyber
operator that exposes key businesses (e.g.,
communications services, power grids, media
agencies) in Ukraine to cyberattacks from the
occupying country. V. Lim et al. (2022),
concludes that the impact of technology-related
sanctions on Russia and economic instability in
Ukraine could lead to a huge risk to cyber
security (e.g. digital payments), lack of access to
cheaper highly qualified technical personnel and
a slowdown in the economies of countries, in
particular digital economy. When developing
funding programs for information development,
it is also necessary to take into account the risks
discussed in the works (Bahn et al., 2021; Lioutas
et al., 2021; Zscheischler, 2022), in particular
cultural, ecological, socio-ethical and political.
In addition to financing innovative development,
the state provides a number of measures to
support the sustainable development of
businesses, which is stated in the Law of Ukraine
“On the Strategy for the Sustainable
Development of Ukraine until 2030” (hereinafter
– the Strategy). Among the main tasks of the
Strategy is the formation of an organizational
infrastructure to support entrepreneurship in the
form of technology parks, business incubators,
networks providing services to enterprises, in
particular on the basis of public-private
partnership; promote the development of cluster
networks (Law of Ukraine (project) № 9015
2018). In addition, the Strategy defines that for
the development of business and competition it is
necessary to:
facilitating the procedures for opening and
running a business, in particular through e-
government, by 2020;
adaptation of the national system of technical
regulation to the standards of the European
Union, simplification of certification procedures
in the countries of the European Union;
creation of a network of mobile laboratories that
will check the quality and labeling of goods;
ensuring appropriate regulation of monopolies,
in particular in matters of pricing;
fight against anti-competitive actions;
protection of the market from counterfeit and
contraband products (Law of Ukraine (project)
№ 9015, 2018).
In general, from the point of view of sustainable
development, the military invasion of the
Russian Federation into Ukraine by some
researchers (Patt & Steffen, 2022; Chepeliev et
al., 2022) is considered as an impetus to
accelerate the pace of environmental
improvement, which is one of the pillars of
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sustainable development, in particular through
the use of more ecological energy resources.
Thus, the financial support of businesses by the
state should not only be of a temporary nature
during the period of hostilities, but should
contain such aspects, the positive consequences
of which are prolonged in time and benefit not
only Ukraine, but also the future of the world as
a whole (support for sustainable development).
Summarizing the above, it can be stated that the
conclusions obtained as a result of the research
can be applied by domestic businesses and
government representatives as the main
directions of adaptation to military conditions
and optimization of activities.
Conclusions
As a result of the conducted research, an analysis
of the current economic state of Ukraine was
carried out, in particular, the trends of such
indicators as the consumer price index, GDP,
export and import were outlined. A significant
increase in the consumer price index was
established, associated with the difficulties of
producers of goods and services in war
conditions, in particular, the complication of
logistics, the location in temporarily occupied
territories or territories where active hostilities
are taking place, the general economic downturn,
etc. The decrease occurred according to the
indicators of import and export. The decrease in
imports is caused, first of all, by the refusal of
manufacturers (especially in regions where
active hostilities are taking place) to make
purchases in war conditions. The drop in exports
is associated with the disruption of supply chains,
logistics, blocking of Black Sea ports, etc. The
catastrophic decline in GDP is attributed to
significant losses in infrastructure, military
spending, social support spending, and other
factors.
Areas of state support for businesses operating in
wartime conditions were also determined. In
particular, financial support programs for
businesses, as well as tax measures, have been
determined. The latter are primarily related to
simplifying the activities of SSP payers, and
therefore optimize the work of small and
medium-sized businesses, which are the most
adaptable, flexible and mobile. International
support programs that provide for the financing
of Ukrainian businesses were considered.
The priority areas of state financing of businesses
in the future have been established, primarily
related to the financing of innovative
development and support for the sustainable
development of businesses. The main direction
of further research should be the development of
an approximate layout of the program for
financing innovations and sustainable
development in wartime conditions, in particular,
the key directions and measures of such a
program, taking into account the specifics of
functioning in wartime conditions.
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