Legal problems of functioning of the financial system of Ukraine during martial law

Abstract

The article is devoted to the study of changes and legal problems in the functioning of the financial system of Ukraine, which arose as a result of the full-scale war of the Russian Federation against Ukraine and the imposition of martial law on February 24, 2022. As of today, the imposition of martial law in Ukraine has caused significant changes in all spheres of life without exception, including changes in the financial system of Ukraine. A perfect and developed financial system is an example of the unity of financial resources and, accordingly, a guarantee of full implementation of the state, defined by current legislation, tasks and functions.
 The financial system is inextricably linked with the functioning of the state, as it is an instrument for the accumulation and rational use of financial resources. Analysis of the peculiarities of the financial system of Ukraine during martial law allows us to assess the scale of changes that have occurred, to determine their impact on socio-economic processes in the country, the possible consequences of such changes and ways to resolve them.
 The article identifies the main changes and examines the problematic aspects of the functioning of the financial system at present. Obviously, changes are not always positive and there may be difficulties in their implementation. The biggest changes were made to the State Budget of Ukraine and local budgets, which suffered the greatest burden in all possible aspects. Due to the fact that the main part of financial resources is aimed at meeting the defense and social needs of the state, the problems of imbalance of expenditures and revenues of the budget, significant public debt and irrational distribution of expenditures have become acute.
 The foreign exchange market, which is a component of the financial market, has also undergone significant changes. Nevertheless, the foreign exchange market of Ukraine continues to operate subject to restrictions imposed during the martial law by the relevant public authorities and relating to currency regulation in order to preserve financial resources in the country.
 The issue of analysis of already known ways to solve the problems of the financial system and search for new ones that ensure the adaptation of the financial system to modern needs, including ensuring the defense needs of Ukraine and the smooth functioning of public finance.