Resilience of the EU and Ukraine economies in the conditions of russian aggression
DOI:
https://doi.org/10.31617/3.2023(130)05Keywords:
resilience of the economy, development, European Union, shock effects, war.Abstract
The brutal and inexplicable military aggression of Russia against Ukraine has caused the disruption of macroeconomic stability in our country. The war has led to immense human casualties and the loss of means of livelihood, placing a heavy burden on the economy and forcing millions of people to leave their homes. The longer the armed conflict is persisting, the more severe the consequences are becoming, not only for Ukraine but also for its partners, with the European Union being a key one. The functioning of the economy during wartime exacerbates the question of ensuring its resilience. The aim of this article is to identify macroeconomic shocks in the context of war, analyse the level of economic resilience in the EU and Ukraine, and justify directions for supporting the Ukrainian economy. General scientific methods were used, including theoretical generalization, comparative systemic analysis, systematization, statistical analysis, grouping, and scientific abstraction. In this research, the properties of economic resilience are described, specifically its capacity to avoid, withstand, and recover from the impact of shocks. Existing macroeconomic shocks of the war are identified, which have determined the trajectory of economic development for both Ukraine and the EU and influenced the level of resilience in their economies. Using approaches from the European Commission and the international company FM Global, the current level of economic resilience in the EU and Ukraine was determined. The war exhausts the resources of the national economy, making Ukraine incapable of independently and sufficiently mobilizing financial resources to counteract shock impacts. Conversely, the EU possesses significant resources, allowing it not only to maintain a sufficient level of economic resilience but also to assist Ukraine. Financial assistance from the EU remains a key source of ensuring the resilience of Ukraineʼs economy, enabling the implementation of measures to counter the current crisis and the shock impacts associated with it.
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