Problems of the national economy from the consequences of russia's aggression against Ukraine and ways to solve them in the interests of military and economic security of the state

Abstract

The Russian-Ukrainian conflict has profoundly impacted Ukraine's military and economic stability. Since 2014, challenges stemming from territorial losses, infrastructural damage, and shifts in the defense landscape have shaped national policy responses. Addressing these crises requires a robust understanding of military-economic interdependencies and external aid's role in stabilizing critical sectors. This study integrates historical data, international experiences, and sectoral analyses to offer actionable insights for enhancing Ukraine's resilience.

The primary objective of this research is to analyze the effects of the Russian-Ukrainian conflict on Ukraine's military-economic security, identify key challenges, and propose evidence-based measures to bolster economic stability and national resilience against external threats.

The results of the study demonstrated that the increase in defense spending to over 30% of GDP in 2022 was a key factor in strengthening Ukraine's defense capability but imposed significant pressure on the state budget. International financial assistance totaling $90 billion became an essential tool for maintaining macroeconomic stability and financing critical sectors, although its effective utilization requires improvement. Measures for energy security, including supply diversification and enhanced energy efficiency, significantly reduced dependence on Russian resources; however, attacks on energy infrastructure remain a serious challenge. The integration of internally displaced persons into the labor market boosted economic activity, despite increasing the burden on social expenditures. The experience of Poland, Croatia, and Germany confirmed that structural reforms, modernization of the defense-industrial complex, and international integration are vital factors for ensuring state resilience. These findings highlight the necessity of a comprehensive approach to enhancing Ukraine's military-economic security in the face of external threats.

Ukraine's experience demonstrates the critical interplay between military readiness and economic stability. The unprecedented allocation of resources to defense strengthened national security but strained other vital sectors. Future strategies must balance defense needs with broader economic priorities, leveraging international aid, modernizing infrastructure, and fostering innovation. Drawing from global examples, Ukraine can build a resilient, sustainable framework to address ongoing and future conflicts.