Problems and prospects for attracting foreign investment into the economy of Ukraine

Abstract

Abstract. The purpose of the article is to comprehensively examine the current state, dynamics, structure, and trends of foreign direct investment inflows into the economy of Ukraine under conditions of war and post-war recovery, as well as to substantiate the priority directions and mechanisms for intensifying foreign investment with due regard to macrofinancial, institutional, sectoral, and security factors. The research methods include a quantitative analysis of foreign direct investment inflows to and outflows from Ukraine, correlation and regression analysis to identify the key factors affecting investment dynamics, as well as forecasting and other analytical methods. Based on the analysis of foreign direct investment trends in Ukraine under geopolitical challenges and economic instability, a deeper understanding of the specific barriers and opportunities faced by Ukraine in the process of attracting foreign direct investment has been developed. The results of the study The article examines the role of foreign direct investment in the recovery of Ukraine’s economy and infrastructure and offers a comprehensive analysis of the factors shaping such investment, its development trends, and future potential. The study identifies foreign direct investment as a critically important factor in restoring economic stability and ensuring the sustainable development of Ukraine, especially in view of the large-scale destruction caused by the ongoing war. The findings show that foreign direct investment in Ukraine has been significantly affected by political instability and the ongoing war, resulting in considerable volatility of investment inflows. Despite these challenges, the economy has demonstrated resilience due to international financial support and domestic recovery efforts. The conclusions The study confirms that attracting foreign direct investment to Ukraine under wartime conditions is characterized by contradictory trends: military risks and macroeconomic instability constrain investment activity, while reconstruction needs, international support, and European integration create preconditions for its recovery. The priority areas for investment are identified as energy, transport, infrastructure, digitalization, and high-tech production. It is substantiated that the intensification of foreign investment requires a comprehensive state policy aimed at risk reduction, institutional strengthening, and structural modernization of the economy