Financial instruments for the sustainable recovery and development of Ukraine's economy in a context of macroeconomic instability

Abstract

The relevance of this study stems from the need to identify new, innovative financial instruments to ensure the sustainable recovery and development of the national economy in the context of war and post-war transformation, which would encompass the economic, infrastructural, social and environmental aspects of these global processes. The aim of this article is to examine innovative approaches and opportunities for utilising diversified financial and digital tools to ensure the sustainable recovery and development of Ukraine's economy and to accelerate its integration into the single economic area of the EU countries. Methods. To achieve the aim, the following methods were used in the study: analysis, synthesis and generalisation – to examine the scientific views of domestic and foreign scholars, analyse the main provisions of regulatory and legislative acts, and generalise existing theoretical provisions on the specific subject matter; deduction and induction – to substantiate innovative approaches, financial and digital tools for ensuring the sustainable recovery and development of Ukraine's economy; an interdisciplinary method – to study the problems and prospects of sustainable recovery and development based on the symbiosis of disciplinary approaches from economics, sociology, ecology and management. Results. This study examines the financial instruments for ensuring the sustainable recovery and development of Ukraine's economy from the perspectives of its economic, social and environmental dimensions. It is noted that sustainable recovery is a prerequisite and the foundation for ensuring the sustainable development of Ukraine's economy in the post-war period. The use of innovative approaches and financial instruments to ensure the sustainable recovery of the national economy is proposed. The necessity of using digital tools alongside financial ones is substantiated. Emphasis is placed on the need to develop networked interaction between the state, local authorities, business representatives, educational and scientific institutions, and society, utilising the tools of public-private partnership, participatory budgeting, and the development of the domestic government borrowing market. Conclusions. Traditional financial instruments designed to ensure the sustainable recovery and development of the economy are insufficient to meet the needs of stabilising the situation in the context of war and post-war economic transformation. At the same time, Ukraine's growing dependence on international financial assistance, given the changing macroeconomic and geopolitical situation, may lead to a failure to meet creditors' conditions, an inability to repay debts on time, and the emergence of risks of funding shortfalls and the suspension of reconstruction and recovery processes. In light of the above, the paper concludes that there is a need to diversify existing financial instruments and to adopt European requirements regarding the harmonisation of uniform standards for assessing the economic, social and environmental components of ESG strategies.