Investment activities in crisis: challenges, threats, and how to overcome them

Abstract

The consequences of the unprovoked armed aggression of the Russian Federation against Ukraine are the destruction of various industrial and social infrastructure facilities across the territory of our country, which leads to a temporary halt and/or closure (bankruptcy) of such enterprises in the temporarily occupied territories and in the combat zone in the South and East of Ukraine. The obvious consequences of this are unemployment, the loss of housing for millions of our citizens, their death and a crisis in the economy. The new realities of economy’s functioning require a combination of investment in the defense industry of our country with significant investments in the reconstruction of the destroyed faciliries, as well as an increase in the regulatory role of the state. Strengthening the business motivation to invest and rebuild the domestic economy is combined with the development of investment passports by territorial communities, which will contribute to the formation of a favorable investment climate in specific territorial entities. It was found that the movement of a significant number of economically active workers across borders has reached its critical level and poses a threat of disrupting the systemic nature of the investment process.