FINANCIAL AND INVESTMENT MECHANISMS FOR ENSURING SUSTAINABLE ECONOMIC GROWTH OF UKRAINE

Abstract

Financing of ecological and economic growth involves the implementation of specialized mechanisms and approaches that take into account the special requirements of sustainable development and effective use of natural resources. At the same time, in the conditions of global challenges and significant internal disparities, the field of so-called environmental finance is characterized by a number of problems. The analysis revealed that the beginning of Russia`s war in Ukraine led to additional challenges and changes in the field of environmental financing, since the crisis situation and the determination of budget priorities significantly affect the distribution of financial resources and planned activities in this field. State budget expenditures on defense as of June 2023 amounted to 52.75%, and they will increase as soon as the possibility of additional financing of its needs appears. At the same time, the funds of macro-financial international aid are directed to the general fund of the budget, from where all costs are financed, and there is also an agreement with the EU that their funds go to humanitarian needs and are not spent on financing the spheres of security and defense. The analysis of the current situation, as well as full-scale military actions in Ukraine, leads to the conclusion about the need to intensify the financing of green initiatives and projects, as well as the development of appropriate mechanisms for tools. According to the formalization, the relevant financial mechanisms should be implemented at several levels, in particular, similarly, through the prism of two models: sectoral and territorial models. Ensuring the financing of ecological and economic growth is an important task for any state, as it contributes to the balanced development of the economy, the preservation of natural resources, and the improvement of the quality of life of citizens. A number of measures aimed at expanding investment support are proposed, namely, the development of a comprehensive strategy for ecological and economic development, the creation of an attractive and stable investment climate, the development of innovative, digital technologies and the implementation of green solutions should be priorities, the state can attract funds through the issue of "green bonds", development of partnerships between the public sector, private companies and international organizations.