Instruments and Resources for Sustainable Development Acceleration of Agribusiness in Ukraine

Abstract

Agribusiness in Ukraine takes one of the most important places in the national economy, but not all subjects conduct it sustainably, because of the lack of resources to finance such transformations. Therefore, it is necessary to investigate the instruments of resource attracting for Sustainable Development Acceleration of Agribusiness in Ukraine. The aim of the article is to determine the current state of basic tools which are used to obtain resources for accelerating the sustainable development of agribusiness in Ukraine, namely agriculture insurance, green bonds and impact investment. The article uses a situational analysis, a monographic method, tabular and graphical methods, scientific generalization to analyze the experience of the use of agriculture insurance, green bonds and impact investment as tools to accelerate the sustainable development of agribusiness. The information sources for this research were the reports of the International Finance Corporation, the sustainability reports of the European Bank for Reconstruction and Development and the reports of the United Nations Development Program in Ukraine. The study of the practice of using agriculture insurance, green bonds and impact investment as tools to accelerate the sustainable development of agribusiness in Ukraine made it possible to determine the embryonic level of their use. This is indicated by the modeling of the development of the agriculture insurance in Ukraine, which showed that this type of insurance is formal and does not perform a real protective function. As for projects, the resources of which are attracted through green bonds and impact investment programs, they are fragmentary and need to be more systemic. This work is one of the first which looks into the practice of applying tools to accelerate the sustainable development of agribusiness in Ukraine, in the context of three dimensions and achieving sustainable development goals. For the further development of both agriculture insurance and green bonds, it is necessary to stimulate the emission of such debt securities by insurance companies and to develop not only insurance of primary agricultural products, but also processed ones, exporting of which brings more foreign exchange earnings to Ukraine. This study aims to highlight current practices in the application of tools to accelerate the sustainable development of agribusiness in Ukraine, including agriculture insurance, green bonds and impact investment, which represent the basis for their promotion and prevalence in the scientific community and among agribusiness professionals.