STRATEGIES OF VERTICAL INTEGRATION IN THE ENERGY SECTOR OF UKRAINE’S ECONOMY: LEADERS’ EXPERIENCE IN THE CONTEXT OF CONTEMPORARY CHALLENGES

The study provides an insightful analysis of the role of vertical integration in the Ukrainian energy sector, emphasizing its strategic importance for the national economy and energy security. The research highlights several critical challenges facing the industry, including over-dependence on fossil fuels, declining domestic energy resource extraction, underdeveloped technologies, and limited renewable energy use. The ongoing war, infrastructure damage, decreasing investments, and increasing dependency on energy imports exacerbate these issues, further complicating efforts to stabilize the sector. The study supports the hypothesis that vertical integration is an effective strategy for ensuring long-term competitiveness and resilience in Ukraine’s energy companies. It argues that vertical integration, through efficient use of strategic resources, helps companies better withstand external challenges and adapt to fluctuations in the energy market. Including case studies on significant energy players like DTEK and Naftogaz is a practical illustration, demonstrating how vertical integration can provide a competitive edge and enhance adaptability. The methodological approach, combining structural analysis, VRIO analysis, case studies, and systemic analysis, effectively evaluates the strategic potential of vertical integration in the Ukrainian context. This multi-faceted approach offers a comprehensive understanding of how vertical integration can contribute to the stability and adaptability of the energy sector. However, while the study confirms the relevance of vertical integration, it also acknowledges the need for further development to exploit the sector’s innovative potential fully. As Ukraine moves toward Industry 4.0 and 5.0, which promote reduced reliance on hydrocarbons, vertical integration models must be refined to facilitate innovation and adaptability. In conclusion, the study underlines that enhancing vertical integration models could be essential for overcoming the sector’s contemporary challenges. It also suggests that future research should continue exploring strategies that prioritize innovation, renewable energy adoption, and reducing import dependence, ultimately contributing to the long-term stability of Ukraine’s fuel and energy sector (FES).