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Risks of the Development of the Economy of Ukraine in the Wartime Conditions: The Impact on the Agricultural Sector
Patytska K. O.

Patytska, Khrystyna O. (2023) “Risks of the Development of the Economy of Ukraine in the Wartime Conditions: The Impact on the Agricultural Sector.” Business Inform 4:98–104.
https://doi.org/10.32983/2222-4459-2023-4-98-104

Section: Agricultural Economics and Agribusiness

UDC 355/359-63:338.054.23

Abstract:
The purpose of the article is to identify the risks of agricultural development in Ukraine in the context of wartime, to substantiate the economic consequences of the impact of the Russian invasion and the introduction of martial law on the logistics system in the agrarian sector. In the context of the carried out study, the problems faced by agricultural producers in the context of the wartime situation in Ukraine (problems caused by the occupation and hostilities in a large part of the country; disruption of food supply chains and resources necessary for agricultural work; problems for the development of agricultural production as a result of the financial crisis; problems caused by the development of the energy crisis) are identified and systematized. Risks to the agricultural producers’ activities are identified (reduced supply and demand for food products; reduced liquidity of agricultural producers, difficulty in accessing financing; undermining of agricultural land and damage to crops as a result of hostilities; difficulty in purchasing seeds, breeding livestock and poultry, fertilizers, machinery, fuel and lubricants; disruption of value chains and logistics chains; shortage of labor in the agrarian sector). The article emphasizes the ways to mitigate the risks in the context of implementing mechanisms for preventing and/or overcoming such problems by establishing cooperation between Ukraine, the EU and international organizations. The author substantiates the need to change approaches to the further development of the agricultural sector in the areas of development of «short» value chains and logistics, to focus on the decentralized local food production systems, adaptation of conditions and traditions of agriculture to new conditions. Prospects for further research lie in a detailed analysis of the advantages and disadvantages of agricultural development in Ukraine, taking into account the elaborated guidelines.

Keywords: agriculture, war, logistics, value added, small farms, Ukraine, the EU.

Fig.: 1. Tabl.: 1. Bibl.: 18.

Patytska Khrystyna O. – Candidate of Sciences (Economics), Senior Research Fellow, Department of Regional Financial Policy, Institute of Regional Research named after M. I. Dolishniy of the NAS of Ukraine (4 Kozelnytska Str., Lvіv, 79026, Ukraine)
Email: [email protected]

List of references in article

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“Mali fermery - opora prodovolchoi bezpeky pid chas viiny, i yikh neobkhidno pidtrymuvaty i pislia peremohy“ [Small Farmers are the Backbone of Food Security during War and Must Be Supported after Victory]. Ekodiia. https://ecoaction.org.ua/mali-fermery-opora.html
“Minahropolityky pratsiuie nad zapuskom Fondu chastkovoho harantuvannia kredytiv u silskomu hospodarstvi“ [The Ministry of Agrarian Policy Is Working on the Launch of the Fund for the Partial Guarantee of Loans in Agriculture]. Ministerstvo ahrarnoi polityky ta prodovolstva Ukrainy. May 26, 2022. https://minagro.gov.ua/news/minagropolitiki-pracyuye-nad-zapuskom-fondu-chastkovogo-garantuvannya-kreditiv-u-silskomu-gospodarstvi
“Natsionalna platforma prodovolchoi bezpeky dopomahaie zakryvaty potreby mistsevykh hromad u produktakh kharchuvannia“ [The National Food Security Platform Helps Meet the Food Needs of Local Communities]. Ministerstvo ahrarnoi polityky ta prodovolstva Ukrainy. May 25, 2022. https://minagro.gov.ua/news/nacionalna-platforma-prodovolchoyi-bezpeki-dopomagaye-zakrivati-potrebi-miscevih-gromad-u-produktah-harchuvannya
Nehrei, M. V., Taranenko, A. A., and Kostenko, I. S. “Ahrarnyi sektor Ukrainy v umovakh viiny: problemy ta perspektyvy“ [Ukrainian Agricultural Sector in War Time: Problems and Prospects]. Ekonomika ta suspilstvo, no. 40 (2022). DOI: https://doi.org/10.32782/2524-0072/2022-40-38
“Ohliad zbytkiv vid viiny v silskomu hospodarstvi Ukrainy. Nepriama otsinka poshkodzhen“ [ENGLISH_UA Review of War Damage in the Agriculture of Ukraine. Indirect Damage Assessment]. Ministerstvo ahrarnoi polityky ta prodovolstva Ukrainy ; Kyivska shkola ekonomiky. June 08, 2022. https://kse.ua/wp-content/uploads/2022/06/Damages_report_issue1_ua-1.pdf
“Poperednia otsinka FAO povoiennykh investytsiinykh potreb dlia vidnovlennia silskoho hospodarstva Ukrainy“ [FAO Preliminary Assessment of Post-war Investment Needs for the Recovery of Agriculture in Ukraine]. Ukraine Invest. May 30, 2022. https://ukraineinvest.gov.ua/uk/news/30-05-22-2/
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“Taras Vysotskyi: pryzupynennia myt na ukrainskyi eksport - nadzvychaino potuzhnyi poshtovkh dlia silskoho hospodarstva“ [Taras Vysotskyi: The Suspension of Customs Duties on Ukrainian Exports is an Extremely Powerful Impetus for Agriculture]. Ministerstvo ahrarnoi polityky ta prodovolstva Ukrainy. May 19, 2022. https://minagro.gov.ua/news/taras-visockij-prizupinennya-mit-na-ukrayinskij-eksport-nadzvichajno-potuzhnij-poshtovh-dlya-silskogo-gospodarstva
“Uriady YeS rozhlianut mozhlyvist nadannia Ukraini tymchasovykh skhovyshch dlia zernovykh“ [EU Governments Will Consider the Possibility of Providing Ukraine with Temporary Grain Storage Facilities]. Ministerstvo ahrarnoi polityky ta prodovolstva Ukrainy. June 14, 2022. https://minagro.gov.ua/news/uryadi-yes-rozglyanut-mozhlivist-nadannya-ukrayini-timchasovih-shovishch-dlya-zernovih
“38,5 mlrd hrn otrymaly ahrarii v ramkakh prohramy «Dostupni kredyty 5-7-9%». Pryiom zaiavok na uchast zaversheno“ [38.5 Billion UAH Were Received by Farmers as Part of the Program "Affordable Loans 5-7-9%". Applications for Participation Have Been Accepted]. Ministerstvo ahrarnoi polityky ta prodovolstva Ukrainy. June 03, 2022. https://minagro.gov.ua/news/385-mlrd-grn-otrimali-agrariyi-v-ramkah-programi-dostupni-krediti-5-7-9-prijom-zayavok-na-uchast-zaversheno
Matuszak, S. “Production and export of food from Ukraine during the war with Russia“. OSW. May 06, 2022. https://www.osw.waw.pl/en/publikacje/osw-commentary/2022-05-06/production-and-export-food-ukraine-during-war-russia
Reed, J. et al. “How Russia's war in Ukraine upended the breadbasket of Europe“. Financial Times. April 27, 2022. https://ig.ft.com/ukraine-war-food-insecurity/
“Ukraine. Rapid Response Plan. March-December 2022. Supporting agricultural production to bolster food availability and access“. FAO. https://www.fao.org/3/cb9457en/cb9457en.pdf

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