INFLUENCE OF RUSSIAN FEDERATION’S ARMED AGGRESSION ON THE ENDOGENOUS POTENTIAL OF THE REGIONS OF UKRAINE

Abstract

Endogenous potential is the foundation of socio-economic development of regions and the state as a whole, the source of their socio-economic progress. The Russian Federation's war against Ukraine caused an unprecedented humanitarian crisis, a decline in economic dynamics and loss of the endogenous potential of country's regions. The scope of the endogenous potential loss of the regions of Ukraine during the war is analyzed. The loss of human and labor capital of the country's regions due to the migration of citizens abroad, as well as internal displacement from regions where active hostilities are ongoing to safer regions, is shown. The approximate amount of consumer demand loss by the regions of Ukraine as a result of the internal displacement of the population is calculated; an increase in interregional consumer demand disparities, caused by the movement of the population from regions where hostilities are ongoing to more peaceful regions, was revealed. It is estimated that as of the beginning of June, approximately 1.9 billion dollars of consumer demand "moved" from Ukrainian economy abroad. A decrease in the quality of life and living standards of the current population of Ukraine, as well as its socio-psychological maladaptation in the conditions of war, was revealed. The behavior of the business is analyzed and the scale of its losses that occurred in the first months of the war is determined, the main directions of adaptation to the new conditions of activity are shown - relocation of production facilities and employees, sectoral transformation of business. The effect of the endogenous potential loss of the regions of Ukraine during the war on the decline in local budgets revenues is considered. The rising role of the local small business in filling regional budgets in terms of local taxes and fees accumulation is indicated.