UKRAINE’S ECONOMIC RECOVERY: CHALLENGES AND PROSPECTS

Abstract

The article examines the consequences of Russia's full-scale invasion of Ukraine and establishes that the war caused large-scale destruction of Ukraine's transport, energy and social infrastructure, creating a need for reconstruction worth more than $411 billion. The Plan identifies the reconstruction of ports, railroads and energy facilities that have suffered the greatest losses due to targeted attacks as one of the main priorities for recovery. The blockade of seaports has severely restricted exports, resulting in a $37 billion foreign trade deficit, increasing the risk of hryvnia devaluation. Alternative routes, such as rail and road, partially offset these losses. Ukraine has presented a $27 billion investment project, but its implementation requires improving the business climate, reducing corruption risks, and attracting private capital. It was emphasized that one of the main problems is the shortage of labor due to population displacement. Retraining and employment programs are being developed to help internally displaced persons, veterans, and women adapt. At the same time, the government plans to implement significant reforms, in particular under the "Recovery Plan for Ukraine", which envisages investments of more than $750 billion by 2032 to modernize housing, energy infrastructure, and environmental initiatives. The integration of enterprises and the digitalization of the economy remain important aspects of the vThe integration of enterprises and the digitalization of the economy remain important aspects of the recovery. The development of small and medium-sized businesses, the attraction of foreign investment, and the introduction of green technologies create the basis for long-term economic growth. Infrastructural integration with the EU through the expansion of transport corridors and modernization of border crossings also contributes to strengthening economic ties. International support, in particular from the EU, the EBRD, and the World Bank, is key to stabilizing Ukraine's economy. Investment and efficient use of resources can create favorable conditions for the country's sustainable development.