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

In the context of the large-scale invasion of the Russian Federation intoUkraine and counteraction to its armed aggression, the issue of the need to maintain anadequate level of Ukraineʼs defense capability is becoming more urgent, which requires asignificant increase in state spending on the security and defense sector of the state and theimprovement of relevant financial mechanisms in this direction.The purpose of the article is to study the trends in state financing of the Armed Forcesof Ukraine under martial law, to identify problematic issues in this area, and to developproposals 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 2021–2024by the main areas of financing the armed forces shows that in recent years, approaches toforming the state defense budget and bringing them into line with NATO standards have beengradually changing in Ukraine.The stateʼs regulatory and legal framework defines priority and strategic goals for thedevelopment of the Armed Forces of Ukraine, namely: unified leadership of the defense forcesin accordance with NATO principles; an effective system of planning and resource management; the formation of operational defense capabilities; ensuring social protection ofmilitary personnel and the creation of the necessary military reserve.The implementation of the above priorities and strategic goals can be ensured throughoptimization and rational use of budget funds allocated to the financing and development of theArmed Forces of Ukraine. REFERENCES1. Verkhovna Rada of Ukraine. (2018). Zakon Ukrainy «Pro natsionalnu bezpekuUkrainy» No. 2469-VIII vid 21.06.2018 [Law of Ukraine «On National Securityof Ukraine» No. 2469-VIII of June 21, 2018]. Retrieved fromhttps://zakon.rada.gov.ua/laws/show/2469-19#Text [in Ukrainian].2. President of Ukraine. (2020, September 14). Strategiia natsionalnoi bezpekyUkrainy: Ukaz Prezydenta Ukrainy No. 392/2020 [National Security Strategy ofUkraine: Presidential Decree No. 392/2020]. Retrieved fromhttps://www.president.gov.ua/documents/3922020-35037 [in Ukrainian].3. President of Ukraine. (2021, August 20). Ukaz No. 473/2021 «Pro rishennia Radynatsionalnoi bezpeky i oborony Ukrainy vid 20 serpnia 2021 roku 'ProStratehichnyi oboronnyi biuleten Ukrainy'« [Presidential Decree No. 473/2021 on the Decision of the National Security and Defense Council of Ukraine of August20, 2021, «On the Strategic Defense Bulletin of Ukraine»]. Retrieved fromhttps://zakon.rada.gov.ua/laws/show/473/2021#Text [in Ukrainian].4. Vashchenko, I., & Marko, Ye. (2013). Problemy planuvannia ta formuvanniaoboronnoho biudzhetu v suchasnykh umovakh [Problems of defense budgetplanning and formation under current conditions]. Nauka i oborona, (4), 29–32[in Ukrainian].5. Ministry of Reintegration of Temporarily Occupied Territories of Ukraine. (2023,June 29). Mizhnarodna dopomoha dlia Ukrainy siahnula 170 mlrd yevro[International assistance to Ukraine has reached 170 billion euros]. Retrievedfrom https://minre.gov.ua/2023/06/29/mizhnarodna-dopomoga-dlya-ukrayinysyagnula-170-mlrd-yevro [in Ukrainian].6. Ministry of Finance of Ukraine. (n.d.). Finansuvannia derzhavnoho biudzhetuUkrainy z pochatku povnomasshtabnoi viiny [Ukraine's state budget financingsince the beginning of the full-scale war]. Retrieved fromhttps://mof.gov.ua/uk/news/ukraines_state_budget_financing_since_the_beginning_of_the_full-scale_war-3435 [in Ukrainian].7. Soldatenko, O. V. (2023). Finansuvannia zbroinykh syl Ukrainy v umovakhvoiennoho stanu: yevrointehratsiinyi vektor [Financing of the Armed Forces ofUkraine under martial law: European integration vector]. Naukovyi visnykUzhhorodskoho natsionalnoho universytetu. Seriia: Pravo, (80, Part 1), 576–581[in Ukrainian].8. Verkhovna Rada of Ukraine. (2021–2024). Zakony Ukrainy «Pro Derzhavnyibiudzhet Ukrainy» na 2021–2024 rr. [Laws of Ukraine «On the State Budget ofUkraine» for 2021–2024]. Retrieved from https://zakon.rada.gov.ua [inUkrainian].9. Seliuchenko, N. Ye., & Panchenko, A. V. (2023). Viiskovi vydatky vplyvovykhkrain svitu v period voiennykh dii v Ukraini [Military expenditures of influentialcountries during the war in Ukraine]. Menedzhment ta pidpryiemnytstvo vUkraini: etapy stanovlennia i problemy rozvytku, 2(9), 343–350 [in Ukrainian].