The full-scale Russian invasion of Ukraine on February 24, 2022 resulted in significant loss of life, massive population displacement and significant damage to infrastructure, especially in the energy sector, business relocation, etc. The war also had a significant negative impact on the development of the economy of our country, as the real gross domestic product fell sharply, inflation increased, trade faced unprecedented obstacles, and most of the logistics chains were destroyed. Under the given conditions of the functioning of the economy of Ukraine, it must be recognized that the influence of the state on its viability is a matter of particular urgency and increased importance. It needs both deep and comprehensive economic and legal research, as well as adequate, effective and modern legal support.

The purpose of the article is to determine the conceptual and legal foundations of the state’s influence on the economy of Ukraine in the conditions of war (in particular, in such areas as public and defence procurement, trade).

The article formulates the concept of “the economy of war (military economy, wartime economy)”, highlights the mechanisms for the implementation of the wartime economy. The article presents a list of means that should be used for the effective implementation of the goals of wartime economy. It explores the legal framework for the development of the economy of war in Ukraine (wartime economy). It substantiates the concept of “economic war” and highlights the methods of waging economic war. It proves that in conditions of war both the influence of the state on the economy (by all means and mechanisms available to it, the range of which should be expanded at the legislative level) and the share of the state in the economy should increase.

It highlights the influence of the state on the economy during the war in certain areas, in particular, in the field of public and defense procurement, trade. It analyzes changes in the legal regulation of the procedure for conducting public and defense procurement under martial law. It proves that the Prozorro electronic public procurement system is, without a doubt, the cornerstone of the transformation of the entire public procurement system in Ukraine and should remain an effective tool for preventing and combating corruption in this area during the legal martial law regime in Ukraine. The article deals with the prohibitions/restrictions on the sale of certain types of goods under martial law, pricing under martial law, the features of state supervision (control) over the implementation of trading activities by business entities under martial law. It highlights the prospects for the legal regulation of public and defense procurement in the post-war period (under predictable conditions), which should return to the mainstream of the Law of Ukraine “On Public Procurement” and the Law of Ukraine “On Defense Procurement”.

Bibliography

Journal articles

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2. Malolitneva V, ‘Osoblyvosti pravovoho rehuliuvannia publichnykh zakupivel v umovakh voiennoho stanu ta pisliavoiennoho periodu. Visnyk Natsionalnoi akademii nauk Ukrainy’ (2022) 8 Visnyk Natsionalnoi akademii nauk Ukrainy 65 (in Ukrainian).

Encyclopedia

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Newspaper articles

4. ‘Skorochennia VVP ta bezpretsedentnyi defitsyt biudzhetu: u MVF otsinyly naslidky viiny dlia ekonomiky Ukrainy’ (Slovo i Dilo, 20.10.2022) <https://www.slovoidilo. ua/2022/10/20/novyna/ekonomika/skorochennya-vvp-ta-bezprecedentnyj-deficytbyudzhetumvf-oczinyly-naslidky-vijny-ekonomiky-ukrayiny#:~:text> (accessed: 22.03.2023) (in Ukrainian).

5. ‘V Ukraini pryskorylasia infliatsiia: na shcho naibilshe zrostaiut tsiny’ (Slovo i Dilo, 12.10.zhovtnia 2022) <https://www.slovoidilo.ua/2022/10/12/novyna/ekonomika/ ukrayini-pryskorylasya-inflyacziya-najbilshe-zrostayut-cziny> (accessed: 22.03.2023) (in Ukrainian).

6. ‘VVP Ukrainy skorotyvsia bilsh nizh na 37 % – Derzhstat’ (Slovo i Dilo, 09.09.2022) <https://www.slovoidilo.ua/2022/09/09/novyna/ekonomika/vvp-ukrayinyskorotyvsyabilsh-nizh-37-derzhstat> (accessed: 22.03.2023) (in Ukrainian).

Websites

7. ‘Ukraine: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Ukraine’ (International Monetary Fund, 19.10.2022) <https://www.imf.org/en/Publications/CR/Issues/2022/10/19/UkraineRequest-for-Purchase-Under-the-Rapid-Financing-Instrument-Press-Release-Staff524913?cid=em-COM-123-45549> (accessed: 22.03.2023) (in English).

8. ‘Stan ta potreby biznesu v umovakh viiny: veresen, 2022’ (Tsentr rozvytku innovatsii, 12.10.2022) <https://cid.center/state-and-needs-of-business-in-war-september-2022> (accessed: 22.03.2023) (in Ukrainian).