Impact of Martial Law on Development Financial Mechanism of the Agricultural Sector of Ukraine

Abstract

Martial law and hostilities on the territory of Ukraine have an unprecedented devastating impact on the national economy. There is a restructuring of management and financial regulation to preserve statehood and security. The purpose of the article is to summarize the state of the financial mechanism in the agrarian sector of Ukraine, primarily on the example of its budgetary instruments, in a war economy. A monographic method was used to review scientific publications and the regulatory framework, system analysis and synthesis to display the dynamics of indicators for the object of study. The methodological foundations of the functioning of the financial mechanism of the agricultural sector are summarized through its structural levels, strategy and tactics, methods, levers and tools. The definition of the categories of the financial mechanism, financial instruments of the financial and agricultural markets has been clarified, their connection with agricultural policy has been highlighted. The structure of the regulatory field, according to which the financial mechanism of agrarian policy is regulated under martial law, is determined. The state of the financial market of Ukraine, the structure and volume of its resources for the period of conducting the hybrid military aggression of the Russian Federation are analyzed. The state of the financial mechanism of the agricultural sector in 2013-2022 is highlighted. for financial instruments and components of budget support, lending, fiscal and price regulation, capital consumption, capital investment; connection of the volumes of financial resources of industry corporations with the results of activities in terms of profitability. The financial instruments of international assistance for the economy and the agricultural sector of Ukraine are summarized. The novelty of the study is the systematization of the features of the financial mechanism and its constituent instruments for the agricultural sector of Ukraine under martial law and the forecast of the volume of financial potential for 2022 by individual components. The directions of transformation of the financial mechanism for post-war reconstruction are outlined. It is shown that a significant criterion for the impact of agricultural policy on financial processes is the growth of qualitative characteristics of the mechanism for their implementation, primarily the expansion of the regulatory field for the formation of financial resources and attraction of investments, the simplification of agricultural business, the expansion of logistics and ways of marketing products, the formation of food balances, export-import operations. Separate results of the study in terms of determining the structure and volume of the financial potential of the directions for further transformation of the financial mechanism can be used in the formation of the financial component of the Strategy for the post-war recovery of the economy of Ukraine.