A solution to the problem of sustainable functioning and development of the region in the context of a special military operation

Subject. The article considers a solution to the problem of sustainable functioning and development of the region in the context of a special military operation (SMO). Objectives. The study aims at identification of factors inherent in a market economy that lead to degradation of production, ensuring access of other countries to Russia's resources; characteristics of the economy during the special military operation period; justification of an alternative financial system involving non-market pricing, a reasoned rational model of the national economy; analysis of possibilities of the Tula region for the proposed financial system implementation. Methods. The study employs methods and principles of scientific research, complex logical analysis, and modeling of product and financial flows. Results. We unveiled factors acting destructively on the economy in market conditions and providing unhindered access to the country's resources; formulated tasks facing the economy in the context of the special military operation and related to extensive transformations in conditions of temporary shortage. The paper offers a model of financial system enabling to reliably solve the financing issue for economy reorganization during the SMO. Conclusions. The findings can be used at the federal level for a detailed study of the proposed financial and economic model on the basis of the Ministry of Finance, Ministry of Economic Development or other relevant structures. Regional governments have the opportunity to implement projects of any complexity by organizing a closed cycle of cash flow within the framework of the proposed financial and economic model.