Rebuilding the Economic Potential of Ukraine under Wartime Conditions

Abstract

The article examines the complex mechanisms for strengthening and transforming Ukraine's economic potential under conditions of full-scale armed aggression. The authors substantiate the necessity of transitioning from a passive survival strategy to an adaptive growth model based on accelerated neo-industrialization and digitalization of the economic complex. The central focus of the study is the concept of structural transformation of the industrial sector through the Military-to-Civil (M2C) model. Based on the analysis of international experience, particularly successful cases from China and Israel, it is demonstrated that the defense-industrial complex should become a key driver of technological renewal in civilian sectors. The potential of dual-use technologies in sectors such as aviation and UAVs, space systems, cybersecurity, and energy is examined, where military developments create the foundation for high-value civilian products. Particular attention is paid to the formation of a "resilience economy" based on the principles of internal capital circulation and deep production localization. The authors propose a structural-logical scheme of value-added formation using the agro-industrial complex as an example, demonstrating a direct correlation between the degree of raw material processing and business resilience to logistical shocks and military risks. The study details financial instruments supporting localization, including state preferential lending programs, grant support for processing enterprises, and military risk insurance mechanisms, which are critically important for attracting investments to depressed and frontline regions. The scientific novelty of the study lies in integrating human and managerial capital into the overall system of economic resilience. The role of emotional intelligence (EI) as a strategic management resource under conditions of extreme uncertainty is substantiated. It is proven that leaders' capacity for self-regulation, empathy, and cognitive flexibility directly influences decision-making effectiveness, retention of qualified personnel, and organizational adaptability to persistent security threats. It is generalized that the synergy of military technologies, localized production, and adaptive management with a high level of emotional intelligence creates the necessary prerequisites for forming a competitive model of Ukraine's post-war recovery.