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RESEARCH CENTER FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Public Investing in Conditions of Martial Law: Transformation of Budget Spending and Synergy of Funding Sources
Vatamaniuk-Zelinska U. Z., Semianyk V. O., Kozachok S. O.

Vatamaniuk-Zelinska, Uliana Z., Semianyk, Viktoriia O., and Kozachok, Sofiia O. (2026) “Public Investing in Conditions of Martial Law: Transformation of Budget Spending and Synergy of Funding Sources.” Business Inform 6:182–190.
https://doi.org/10.32983/2222-4459-2026-6-182-190

Section: Investment Processes

Article is written in Ukrainian
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UDC 336.5:330.322

Abstract:
The relevance of this study stems from the need to ensure efficient public investment amid the Russian Federation’s full-scale armed aggression against Ukraine, which has resulted in significant losses of economic potential, the destruction of critical infrastructure, and a growing need for funding to support reconstruction. Under these circumstances, public investment has become one of the key tools for supporting the country’s economic resilience, rebuilding damaged facilities, and ensuring long-term socioeconomic development. The aim of this article is to identify areas for improving the management and use of investment resources in the context of Ukraine’s postwar recovery and European integration into the international community, based on an assessment of the impact of international financial support on investment processes in the country. The article examines the current state, trends, and characteristics of public investment development in Ukraine under martial law. The methodological framework of the study consists of methods of economic analysis, statistical generalization, comparison, systemic and structural analysis, as well as an approach to evaluating the efficiency of public investment management in the context of postwar reconstruction. The study’s information and statistical basis consists of data from the State Statistics Service of Ukraine, the Ministry of Finance of Ukraine, the Ministry of Economy of Ukraine, international financial organizations, the World Bank, the International Monetary Fund, the European Commission, and materials from the joint assessments of Ukraine’s damage and reconstruction needs (RDNA). The analysis examines the trends in capital investments, the structure of budgetary development expenditures, the volume of international financial support, and the reform processes in the public investment management system. It was found that direct losses from infrastructure destruction as of the end of 2024 were estimated at $176 billion, while the total need for restoration and reconstruction reached $524 billion. Priority areas for public investment have been identified, including the restoration of energy and transportation infrastructure, the housing stock, and the health care and education systems. The report describes institutional mechanisms to support public investment, including the EU Framework for Investment in Ukraine, the Ukraine Facility program, and instruments for cooperation with the International Monetary Fund and the World Bank. The need to further improve the public investment management (PIM) system is substantiated in order to enhance the efficiency of budget and donor resources, ensure transparency in investment decisions, and align investment policy with the goals of Ukraine’s postwar recovery and European integration.

Keywords: public investment; capital investments; recovery of Ukraine; budget expenditures; public investment management; Facility Ukraine; international financial support.

Fig.: 1. Tabl.: 1. Bibl.: 21.

Vatamaniuk-Zelinska Uliana Z. – Doctor of Sciences (Economics), Professor, Professor, Department of Financial Management, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]
Semianyk Viktoriia O. – Student, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]
Kozachok Sofiia O. – Student, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]

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