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RESEARCH CENTER FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS of Ukraine (KHARKIV, UKRAINE)

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Liburkina L. M.

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Formation of an Economic Mechanism for Attracting and Utilizing Foreign Direct Investment under Martial Law and during Ukraine’s Postwar Recovery
Sotnyk V. V.

Sotnyk, Viktoriia V. (2026) “Formation of an Economic Mechanism for Attracting and Utilizing Foreign Direct Investment under Martial Law and during Ukraine’s Postwar Recovery.” Business Inform 9:188–197.
https://doi.org/10.32983/2222-4459-2026-9-188-197

Section: Investment Processes

Article is written in Ukrainian
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UDC 339.727.22:338.246.2(477)

Abstract:
The article examines the theoretical, methodological, and applied foundations for developing an economic mechanism for attracting and utilizing foreign direct investment under martial law and during Ukraine’s postwar recovery. It is found that existing scholarly approaches primarily focus on the prerequisites for attracting foreign capital, investment attractiveness, government incentives, and risk mitigation, while insufficient attention has been paid to the subsequent effective utilization of foreign capital in accordance with the strategic priorities of recovery. The aim of the study is to advance the theoretical and methodological foundations for developing an economic mechanism for attracting and utilizing foreign direct investment and to clarify its content, components, and instruments of functioning. The study employs a system approach, methods of analysis and synthesis, comparison, systematization and generalization, as well as statistical analysis of investment processes in Ukraine during 2022–2025. The interrelationship between the attraction and subsequent utilization of foreign capital within a unified investment cycle is substantiated. A structural and logical model has been developed that integrates the enhancement of investment attractiveness, risk mitigation, economic incentives, strategic allocation of capital, implementation of investment projects, post-investment support, and performance monitoring. The necessity of combining private capital with international guarantees, insurance against wartime and political risks, and blended finance is established. The scientific novelty of the study lies in advancing a systems approach in which the attraction of foreign capital is considered an integral component of the complete investment cycle aimed at generating economic, technological, social, and structural outcomes. The practical value of the study lies in the potential application of the proposed model to determine investment policy priorities, improve investor support instruments, and assess the contribution of foreign direct investment to Ukraine’s economic recovery.

Keywords: foreign direct investment; economic mechanism; investment policy; wartime risks; blended finance; postwar recovery; structural modernization.

Fig.: 1. Tabl.: 1. Bibl.: 15.

Sotnyk Viktoriia V. – Candidate of Sciences (Economics), Senior Research Stuff Member, Associate Professor, Department of Management named after Professor I. S. Zavadsky, National University of Life and Environmental Sciences of Ukraine (15 Heroiv Oborony Str., Kyiv, 03041, Ukraine)
Email: [email protected]

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