FINANCING THE ARMED FORCES OF UKRAINE UNDER MARTIAL LAW: PROBLEMATIC ISSUES AND THE SEARCH FOR AN OPTIMAL MODEL

DOI: 10.31673/2786-7412.2025.022349

Abstract

In the context of the large-scale invasion of the Russian Federation into
Ukraine and counteraction to its armed aggression, the issue of the need to maintain an
adequate level of Ukraineʼs defense capability is becoming more urgent, which requires a
significant increase in state spending on the security and defense sector of the state and the
improvement of relevant financial mechanisms in this direction.
The purpose of the article is to study the trends in state financing of the Armed Forces
of Ukraine under martial law, to identify problematic issues in this area, and to develop
proposals for the rational distribution of budget funds allocated to financing the armed forces.
The analysis of state expenditures of the Ministry of Defense of Ukraine in 2021–2024
by the main areas of financing the armed forces shows that in recent years, approaches to
forming the state defense budget and bringing them into line with NATO standards have been
gradually changing in Ukraine.
The stateʼs regulatory and legal framework defines priority and strategic goals for the
development of the Armed Forces of Ukraine, namely: unified leadership of the defense forces
in accordance with NATO principles; an effective system of planning and resource management; the formation of operational defense capabilities; ensuring social protection of
military personnel and the creation of the necessary military reserve.
The implementation of the above priorities and strategic goals can be ensured through
optimization and rational use of budget funds allocated to the financing and development of the
Armed Forces of Ukraine.

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