INVESTMENT ENVIRONMENT IN THE AGRICULTURAL SECTOR OF UKRAINE’S ECONOMY: ISSUES AND PROSPECTS

Abstract

The current research comprehensively analyzes the investment environment of the agricultural sector within the national economy, accurately defining its critical importance and outlining strategic directions for its reinforcement and stabilization amidst the protracted conditions of martial law and the crucial phase of subsequent post–war economic recovery. The article fundamentally stresses the vital necessity of attracting strategic capital investments into the agricultural complex, which is recognized as an indispensable foundation for meeting the life–sustaining needs of the civilian population and maintaining social stability. It is empirically proven that a key, distinguishing structural feature of capital investments in modern agrarian production is the direct correlation between the composition and direction of capital investment allocations and the specific production specialization of the enterprise (e.g., distinguishing between investments in crop production and livestock farming). This comparative dynamic analysis unequivocally confirms the imperative for immediate policy intervention and robust stimulation of investment activity across the entire sector. The authors ultimately conclude that the sustained importance of attracting strategic investments into the agricultural sector is ascending to become a crucial, systemic component within the national financial relations framework, dedicated to securing the vital interests of the population. Specifically, this systemic investment reinforcement aims to achieve three primary objectives: preserving and creating stable employment opportunities in often vulnerable rural regions, thereby mitigating social risks; significantly reducing the country’s reliance on food imports, which inherently strengthens the nation’s food sovereignty and security; and actively promoting the infrastructural development of rural territories, enhancing living standards and economic viability. In this multifaceted context, the effective securing of investment for the robust development of agricultural production in Ukraine is established as a top–tier priority task for governmental and legislative bodies. This mandate must be integrated into the development of all strategic decisions and economic policies that are explicitly aimed at maximizing the competitiveness of the domestic agricultural producer on the rigorous global market. Furthermore, the research findings hold substantial practical significance directly applicable to state and local governance structures when formulating and implementing specialized support programs for the agrarian sector. It is definitively demonstrated that without the vigorous attraction of capital investments, the successful implementation of essential measures in the social sphere (such as community development) and the effective execution of crucial programs focused on environmental protection (including sustainable farming practices and green technologies) become unattainable. It has been determined that currently the country is experiencing insufficient effectiveness of the state mechanism for regulating investment support for agricultural enterprises. The article successfully identifies the core prospective strategies aimed at substantially boosting the investment potential of enterprises within the agricultural sphere. These critical strategies notably include the implementation of specialized governmental mechanisms for subsidizing and effectively reducing the cost of lending and providing governmental or private financial guarantees against investment risks inherent to the sector during periods of heightened instability.