Mechanisms for promoting foreign investment in Ukraine within the framework of european integration

Abstract

Abstract. The article examines the mechanisms for stimulating foreign investment in Ukraine under the state’s European integration course. It is established that the attraction of foreign direct investment (FDI) constitutes a key prerequisite for the recovery and modernization of the Ukrainian economy and for enhancing its competitiveness in international markets. The study analyzes the existing instruments of state support for foreign investment, including special economic zones, industrial parks, MIGA and DFC guarantee mechanisms, the investment nanny service, and investment risk insurance programs. The findings indicate that, despite notable progress in reforming the legal environment, Ukraine continues to face systemic barriers for investors, such as corruption, legislative instability, an underdeveloped judicial system, and war-related risks. The role of the EU–Ukraine Association Agreement as a catalyst for institutional transformations of the investment climate is substantiated. It is demonstrated that the harmonization of Ukrainian legislation with EU standards—particularly in the areas of property rights protection, competition policy, financial regulation, and corporate governance—significantly increases the attractiveness of the domestic market for foreign investors. A comprehensive set of measures to improve FDI promotion mechanisms is proposed, including the introduction of regional investment ombudsmen, expansion of sectors covered by investment protection guarantees, alignment of investment dispute resolution procedures with EU norms, and intensified promotion of Ukraine at international investment forums. The study argues that the successful implementation of these measures requires systemic coordination among central executive authorities, local self-government bodies, and business associations. It is concluded that institutionally driven reforms aligned with European integration represent the most effective long-term mechanism for enhancing Ukraine’s investment attractiveness and provide a foundation for sustainable economic recovery in the context of post-war reconstruction.