Financial Provision for the Development of Critical Infrastructure in the Context of Post-War Reconstruction of Ukraine’s Economy

Abstract

The article examines successful practices and cases of financial provision for the reconstruction of critical infrastructure in countries of the world that once suffered from armed conflicts and active hostilities. The study of foreign experience shows the need to attract international funding mainly in the form of grants, focusing on the tasks of effective development of critical infrastructure using the mechanism of public-private partnership. At the same time, each country has its own specific features. It is determined that the main financial instruments used in the countries of the world for the restoration and modernization of critical infrastructure included the following: non-refundable financial assistance from the United States, loans, foreign direct investment, the State budget funds, funds of individuals and legal entities, grant funds, donor assistance from international financial organizations, financial assistance from non-governmental organizations, soft loans, reparations. Based on the generalization of international best practices, the prospects for the introduction of public-private partnership as a priority model and key principle of post-war reconstruction of critical infrastructure in Ukraine are determined. It is found that at present proper attention is not paid to the creation of institutional conditions for the development of critical infrastructure on the basis of public-private partnership in the context of the post-war reconstruction of the national economy. It is proposed to make amendments and additions to legislative and regulatory documents, as well as to develop a National Strategy for the Post-War Reconstruction of Critical Infrastructure in Ukraine and a Plan for its implementation, which will identify the relevant financial instruments and institutions. A structural diagram of the mechanism of financial provision for the post-war reconstruction of critical infrastructure in Ukraine is built, taking into account international practice.