PROBLEMS OF ATTRACTING FOREIGN INVESTMENTS IN THE WAR PERIOD AND WAYS OF THEIR ACTIVATION

Abstract

The purpose of this article is to investigate the challenges of attracting foreign investments into the Ukrainian economy in the contemporary era and to develop scientifically grounded recommendations for creating and enhancing mechanisms to activate this process in the conditions of war and the postwar period. Identified problems that hinder the attraction of foreign investments in Ukraine during times of war. The most significant of these are political instability, risks associated with the inability to ensure the safety of foreign investors, significant damage to infrastructure across most of Ukraine, financial constraints, legal risks, and the substantial loss of human resources, both due to the loss of a significant part of the working-age population and the mass forced migration caused by the war. The war in Ukraine has led to a decrease in overall economic activity, and a significant reduction in production and consumer demand, which has had a negative impact on business profitability. All of these factors have led to a loss of investor trust and their reluctance to invest in the Ukrainian economy in the near future. It is noted that attracting foreign investments during times of war requires a thorough risk analysis, the development of risk management strategies, and the implementation of measures to create a favorable investment climate. The article outlines measures that will reduce risks for investors and make Ukraine more attractive for foreign investments during wartime and post-war recovery. These measures include ensuring the security of businesses, investors, their assets, and employees; seeking international guarantees and support from international organizations or other states; developing and implementing clear, stable, and transparent investment rules; ensuring the protection of the property rights of foreign investors; strengthening the fight against corruption and increasing transparency in business operations; providing financial support for investment projects, including tax incentives, loans, and other incentives; conducting informational campaigns and advertising to promote Ukraine's investment potential and advantages among foreign investors; and developing international partnerships and cooperation with other countries, among other things.