STATE FINANCIAL SUPPORT IN SHAPING THE INVESTMENT ATTRACTIVENESS OF AGRO-INDUSTRIAL ENTERPRISES OF UKRAINE UNDER MARTIAL LAW

Abstract

Introduction. Under martial law, the issue of shaping the investment attractiveness of agro-industrial enterprises of Ukraine has gained particular relevance. This is driven by rising production and financial risks, logistics disruptions, infrastructure destruction, and limited access to investment resources. The investment attractiveness of enterprises is determined not only by their internal economic potential and financial sustainability, but also by the quality of the external institutional environment, in which state financial support plays a key role. In the current security context, it serves as a tool for stabilising business operations, preserving production capacity, activating investment processes, and ensuring food security. Effective forms of such support include preferential lending, compensatory and grant programmes targeting priority sectors – horticulture, berry growing, and greenhouse farming – as well as instruments for stimulating agricultural production in regions with varying levels of security and infrastructure capacity. This makes it pertinent to assess their effectiveness and impact on the economic performance of agro-industrial enterprises of Ukraine.

Purpose. The purpose of the article is the theoretical and applied substantiation of the role of state financial support in shaping the investment attractiveness of agro-industrial enterprises of Ukraine and the assessment of the effectiveness of selected support instruments under martial law, taking into account regional differentiation.

Materials and methods. The methodological basis of the study comprised a theoretical generalisation of approaches to understanding the investment attractiveness of agro-industrial enterprises and an analysis of the mechanisms of state financial support for the agricultural sector. The following methods were applied: structural-logical analysis – to substantiate the relationship between state support and investment attractiveness; comparative analysis – to assess the dynamics of preferential lending in 2021–2023; grouping – to determine the impact of credit support on indicators of economic efficiency; graphical – to visualise regional differences; and generalisation – to formulate the conclusions.

The empirical base was formed on the results of a survey of entrepreneurs regarding the priority of state support measures for investment activity, as well as analytical data on preferential lending to agro-industrial enterprises of Ukraine in 2021–2023 and grant support for horticulture and greenhouse farming. Particular attention was paid to the regional differentiation of enterprises’ access to financial resources, which made it possible to identify spatial disparities and substantiate the need for adaptive mechanisms of state support distribution.

Results. It has been proven that state financial support is an important factor in shaping the investment attractiveness of agro-industrial enterprises of Ukraine under martial law. It has been established that entrepreneurs consider financial and regulatory instruments to be the priorities for activating investment activity – namely, the availability of financing, simplification of tax legislation, state subsidies, and infrastructure development. Analysis of preferential lending in 2021–2023 revealed an increase in the volume of state support in 2022 as a response to wartime challenges, and a reduction in the number of recipient enterprises in 2023. Significant regional differentiation in access to preferential loans and grants was identified, including the reorientation of financial resources toward relatively safer regions. It has been substantiated that the "Affordable Loans 5-7-9%" programme and grant support for horticulture and greenhouse farming are effective instruments for stabilising agricultural production, although they require adaptation to regional differences, security risks, and the actual needs of enterprises.

Prospects. Further enhancement of the investment attractiveness of agro-industrial enterprises of Ukraine requires the improvement of state financial support on the principles of targeting, regional differentiation, and adaptability to the conditions of wartime and post-war recovery. Promising areas of research include assessing the effectiveness of preferential lending and grant programmes, determining their impact on the economic performance of enterprises, as well as developing resource distribution models aimed at reducing regional disparities and stimulating long-term investment in the agricultural sector.