State regulation of critical infrastructure in Ukraine during martial law

Abstract

Introduction. The conceptual foundations of state regulation of critical infrastructure of Ukraine are laid down in the Concept of creating a state system of critical infrastructure protection (2017). The legal basis for regulating this area is established by the Law of Ukraine “On Critical Infrastructure” (2021). Problem Statement. Russia's armed aggression has led to a major destruction of Ukraine's national infrastructure. Approaches to state regulation of its facilities have changed, the real possibilities of their financing at the expense of the state budget have narrowed, and the structure of state borrowings has been transformed. Purpose. To determine the features of state regulation of critical infrastructure of Ukraine in martial law, the main areas of financial support for its postwar recovery, taking into account the experience of member states of the European Union. Methods. Modern approaches to the analysis of critical infrastructure issues of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, specialized agencies of the European Commission are used. Methods of theoretical generalization, retrospective analysis, synthesis, grouping, description, comparison are used. Results. Approaches to state regulation of critical infrastructure facilities in wartime, real possibilities of their financing at the expense of the state budget are revealed. The improvement of the legislation applied in the EU aimed at increasing the sustainability of critical enterprises is analyzed. The main directions of financial support for the restoration and development of critical infrastructure of Ukraine in the postwar period are identified, taking into account the economic and fiscal policy of the EU. Conclusions. Increasing the role of external official creditors in the structure of government borrowing provides the dynamics of financing the urgent needs of the functioning of national infrastructure and addressing issues of social protection. At the same time grants of direct budget support alone cannot cover the state budget deficit in the medium and long term. Solving the problems of financing the restoration of critical infrastructure is possible by providing partner countries with guarantees to their companies to invest in Ukraine under the conditions of effective anti-crisis management.