THE IMPACT OF WAR ON ATTRACTING FOREIGN DIRECT INVESTMENT IN UKRAINE: THE PUBLIC ADMINISTRATION ASPECT

Abstract

Introduction. The study examines the features of attracting foreign direct investment (FDI) into the economy of Ukraine under conditions of a full-scale war and identifies directions for improving state investment policy. The relevance of the topic is determined by a significant deterioration of the investment climate due to military actions, manifested in declining domestic demand, labor shortages, destruction of infrastructure, disruptions in energy supply, and increased security risks.
Purpose. The purpose of the article is to provide a comprehensive analysis of the dynamics of foreign direct investment during the war and to substantiate proposals for enhancing the effectiveness of state policy in this area. Materials and Methods. The methodological basis of the study includes the analysis of statistical data, a comparative approach, and the generalization of international experience. Data from national and international institutions on assessing the investment climate and investment activity were used. Results. It has been established that in the first months of the full-scale invasion, there was a sharp decline in FDI inflows, driven by high risks and political uncertainty. However, since 2023, a gradual recovery of investor interest has been observed, associated with the introduction of war risk insurance mechanisms and the implementation of programs for the restoration of destroyed infrastructure. It is substantiated that an effective state investment policy under wartime conditions should be based on a combination of instruments for stimulating investment activity, deregulation, provision of state support, conclusion of investment agreements, and active investment promotion. At the same time, the key factor in intensifying foreign investment should be to enhance investor security. Discussion. Prospects for further research include analysing post-war recovery strategies and adapting international experience from countries that have experienced wars to Ukrainian conditions.