Danylyshyn Mykhailo, graduate student of the third level of higher education of the Department of Financial and Credit and Tax Policy,National Scientific Center “Institute of Agrarian Economics”, Kyiv, Ukraine

ORCID: 0009-0007-4738-1217
e-mail: mdanylyshyn2017@gmail.com

Status and Trends in Ensuring the Balance of Financial Development of the Beet Sugar Industry in the Face of Challenges and Constraints

Abstract. Introduction. The article examines the state and trends of ensuring the balance of financial development of the beet sugar industry of Ukraine in the context of modern challenges and restrictions that have formed under the influence of martial law, macroeconomic instability, logistical difficulties, a shortage of investment resources and changes in the domestic and foreign market conditions. It is established that the model of the balance of financial development of the beet sugar industry has undergone a significant transformation due to the growth of international financial assistance, state programs of interest rate compensation, portfolio guarantees and alternative financing instruments.

Purpose. The purpose of the study is to assess the state and trends of ensuring the balance of financial development of the beet sugar industry in the face of challenges and restrictions that have formed under the influence of martial law, macroeconomic instability, investment deficit and logistical complications, as well as to develop and implement effective financial mechanisms to support the development of the industry in order to increase their capacity, form stable production of sugar raw materials and strengthen the financial security of the state’s agro-industrial complex.

Results. A trend towards an increase in the level of self-financing of enterprises has been identified, which indicates an increase in financial autonomy, but at the same time indicates the insufficient ability of the market to provide for the long-term investment needs of the industry. The effectiveness of the state program “Affordable Loans 5-7-9%”, which has become one of the key anti-crisis instruments for supporting enterprises in the industry, has been analyzed. It has been established that the volume of preferential lending has shown steady growth, and the attracted resources have been used to finance the sowing campaign, replenish working capital, purchase equipment, modernize production facilities and implement energy-efficient projects, which contributes to maintaining the liquidity of enterprises and maintaining the stability of production processes during a period of high risks.

Conclusions. It has been determined that forward contracts, financial leasing, attracting funds from international financial organizations and investments in bioenergy projects are promising instruments for balancing the financial development of the industry. Further financial development of the beet sugar industry requires the formation of a comprehensive support model that should combine state incentives, market financing mechanisms, innovative production renewal, digitalization of business processes and export diversification. The results obtained will allow business entities to develop a strategy to increase the financial stability of the industry and ensure stable functioning in the conditions of post-war economic recovery in Ukraine.

Keywords: beet sugar industry, financial development, state support, preferential lending, investment support, financial stability, agro-industrial sector

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