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The Impact of Economic Problems on the Country's Defense Capability
Sotnyk V. V.

Sotnyk, Victoriia V. (2022) “The Impact of Economic Problems on the Country's Defense Capability.” Business Inform 6:78–84.
https://doi.org/10.32983/2222-4459-2022-6-78-84

Section: Finance, Money Circulation and Credit

UDC 336.7

Abstract:
The purpose of the article is to analyze the current threats and challenges of the economic direction, which affect the defense capabilities of our country during the war. Considering the military security strategy of Ukraine, the economic conditions for the implementation of the State policy in the military sphere are singled out. As a result of the study, new threats were identified that arose as a result of the war and affect the provision of adequate defense capabilities of the country. The following problems that arose as a result of military actions were assessed: the hindrance of delivering weapons and foodstuffs to the territory where active military operations are taking place; implementation of export-import operations; decrease in currency operations; increase in fuel prices, which lead to an increase in the material and technical costs of the defense sector; rising inflation; destruction of most military facilities of the defense complex and transport junctions, etc. The following types of military assistance received by Ukraine were considered: receiving equipment under the terms of lend-lease, non-lethal defense equipment under the conditions of direct commercial supplies, free assistance in the form of military-technical assistance and financial resources for the purchase of equipment and weapons under government guarantees. Prospects for further research in this direction are to solve the above problems by attracting additional funding from various countries in the form of loans and grants, as well as the implementation of appropriate measures by the State authorities, the National Bank of Ukraine and other institutions that actively cooperate with the State. The priority economic measures after the end of the war are a timely inventory of the entire defense complex of the country in order to evaluate the equipment that is available; analysis of all the losses caused by the war and the real possibilities of the country to rebuild the defense-industrial complex; formation of a clear plan for the development of not only the defense sector, but all other industries, which will allow ensuring the normal functioning of the country's economy; review of all government programs in the defense sector, in order to exclude inefficient ones; emphasis on priority developments; revision of long-term programs, since they do not take into account the consequences of the war and possible hyperinflation in the country in the postwar period.

Keywords: war, economic threats, defense capability of the country.

Fig.: 6. Tabl.: 2. Bibl.: 8.

Sotnyk Victoriia V. – Candidate of Sciences (Economics), Senior Research Fellow, Scientific and Research Department of Military and Economic Problems, Center for Military and Strategic Research of the National Defense University of Ukraine named after Ivan Cherniakhovskyi (14 Bldg, 2/32 Aviakonstruktora Antonova Str., Kyiv, 03186, Ukraine)
Email: [email protected]

List of references in article

Vlasiuk, O. S. Natsionalna bezpeka Ukrainy : evoliutsiia problem vnutrishnyoi polityky [National Security of Ukraine: Evolution of Domestic Policy Problems]. Kyiv: NISD, 2016.
“Ekspres-vypusk Derzhavnoi sluzhby statystyky Ukrainy“ [Express Issue of the State Statistics Service of Ukraine]. https://www.ukrstat.gov.ua/express/expr2022/07/09.pdf
“Ofitsiini dani Derzhavnoho ahentstva avtomobilnykh dorih Ukrainy“ [Official Data of the State Highway Agency of Ukraine]. https://ukravtodor.gov.ua
“Ofitsiini dani Ministerstva finansiv Ukrainy“ [Official Data of the Ministry of Finance of Ukraine]. https://index.minfin.com.ua/ua/markets/fuel/2022-01
“Ofitsiini dani Natsionalnoho banku Ukrainy“ [Official Data of the National Bank of Ukraine]. https://bank.gov.ua
[Legal Act of Ukraine] (2020). https://zakon.rada.gov.ua/laws/show/674-20#Text
[Legal Act of Ukraine] (2021). https://zakon.rada.gov.ua/laws/show/121/2021#Text
Cheberiako, O. V., and Varnalii, Z. S. “Finansovi peredumovy ta otsinka finansuvannia oborony v umovakh rosiisko-ukrainskoi hibrydnoi viiny“ [Financial Prerequisites and Assessment of Defense Under the Conditions of Russian-Ukrainian Hybrid War]. Naukovyi visnyk Polissia. 2017. http://nvp.stu.cn.ua/article/view/123401/118104

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