INSTITUTIONAL FOUNDATIONS FOR THE FORMATION OF AN INVESTMENT SUPPORT MECHANISM FOR THE UKRAINIAN AGRICULTURAL SECTOR

Sergiy Saakyan

Abstract


Introduction. Effective functioning of agricultural production in modern conditions requires large-scale modernization of the material and technical base, development of innovative infrastructure, implementation of digital technologies, and adaptation to European management standards. Implementation of these areas is impossible without the formation of an effective investment support mechanism for the agricultural sector. This study aimed to substantiate the institutional foundations for the formation of an investment support mechanism for the Ukrainian agricultural sector and areas for improvement in the context of European integration.

Methods. The study utilized a combination of general and specialized scientific methods, including theoretical generalization, systems analysis, comparison, and a logical approach, to examine the institutional foundations of the development of an investment support mechanism for Ukraine's agricultural sector. Statistical and economic analysis methods were used to assess investment trends, the development of the financial and credit system, the digitalization of the agricultural sector, and the impact of military risks on the investment environment. A systems-structural approach was used to substantiate areas for improving the institutional mechanism for investment support in the context of European integration and the digital transformation of agricultural production.

Results. The study identified key institutional factors in the development of an investment support mechanism for Ukraine's agricultural sector, including regulatory stability, development of the financial and credit system, digitalization of management processes, and harmonization of the regulatory framework with EU requirements. The study substantiates the need to improve the institutional mechanism through a combination of state support, market-based financial instruments, digital platforms, ESG-oriented financing, and public-private partnership mechanisms. It has been determined that the implementation of a comprehensive institutional mechanism will facilitate increased investment activity, modernize agricultural production, enhance the competitiveness of the agricultural sector, and facilitate Ukraine's integration into the European economic space.

Discussion. Prospects for further research include developing methodological approaches to assessing the effectiveness of the institutional mechanism for investment support in the agricultural sector and determining the impact of digitalization on the investment attractiveness of agricultural enterprises. Research into ESG-focused financing mechanisms, war risk insurance, the development of green investments, and digital investment management platforms is particularly relevant. Instruments for activating public-private partnerships, international investment cooperation, and support for innovative modernization of Ukraine's agricultural sector in the context of European integration also require further substantiation.


Keywords


agricultural sector; investment support; institutional environment; institutional mechanism; European integration; digitalization; ESG financing; public-private partnerships; financial and credit system; innovative development; competitiveness; agricultur

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DOI: https://doi.org/10.35774/ibo2026.01.159

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"Scientific Club "SOPHUS"
West Ukrainian National University
Higher Education Institution "Podillia State University"