Editorial. Economic and Social Impacts of the Russian Invasion on Ukraine

Svitlana IVASHYNA,

Guest Editor
Department of Finance, Banking and Insurance
University of Customs and Finance, Ukraine
ORCID: 0000-0001-7302-1775

As all of us know, on February 24th, 2022, Russia launched an unprovoked full-scale military invasion of Ukraine. The human toll has been staggering, with thousands of civilians killed, cities reduced to rubble, and over 8 million Ukrainians fleeing the country as refugees. Beyond the immense human suffering, Ukraine's economy has been decimated by the destruction of infrastructure, disruptions to agriculture and manufacturing, and the reorientation of resources towards the war effort (Vereshchahina 2023).
Needs to say that since its independence in 1991, Ukraine has undergone a hard transformation, shifting from a centrally planned economy to a market-oriented system and facing various challenges, such as the aftermath of the Chornobyl disaster and the 2008 global financial crisis. Despite the challenges, Ukraine has established itself as an emerging economy with significant potential, due to the abundant natural resources, its strategic location between Europe and Asia, and the quality of its well-educated workforce. The nation had established itself as a major global exporter of grains, sunflower oil, and other agricultural products, leveraging its fertile soils. Its industrial production focused on steel, machinery, chemicals, and equipment manufacturing, while the services sector accounted for over 60% of GDP, encompassing IT, finance, and tourism (Gavrysh et al. 2024).
However, the massive infrastructure damage, disruptions to agriculture and manufacturing, population displacement, and the need to divert resources towards defense and humanitarian relief have led to a contraction in economic output estimated between 30-50% in 2022-2023 (Kucherenko et al. 2023).
In these harsh times, it is imperative for the academic community to contribute to a deeper understanding of the challenges Ukraine are facing now and its path to recovery. In these pages you will find a wide range of academic work that explores the multiple impacts of the ongoing conflict. From historical perspectives on tackling unemployment and social exclusion in times of crisis to innovative methods for managing non-financial assets in times of war, these articles offer invaluable insights and practical recommendations.
In addition, this issue focuses on the central role of innovation and investment, recognising their importance in driving economic modernisation, digital transformation and global competitiveness – all of which are crucial for Ukraine's post-conflict reconstruction and growth. By drawing insights from different countries that have faced and overcome similar challenges through different approaches, this issue aims to provide a comprehensive understanding of best practices that Ukraine could adapt to its unique circumstances.
The articles collected here are not mere academic exercises, but rather a call for collective action and support. They represent the voices of Ukrainian scholars who have witnessed first-hand the devastation wrought by this unjust invasion, and who seek to contribute to the nation's rebuilding efforts through rigorous research and analysis.
We hope that this special issue will serve as a catalyst for further discourse, collaboration and policy-making aimed at mitigating the economic and social impact of the conflict. The road to recovery is arduous, but with the collective efforts of academics, policymakers and the international community, Ukraine can emerge stronger and more resilient.
We extend our deepest gratitude to the authors, reviewers and editorial team who have made this special issue a reality. Their dedication and commitment to advancing knowledge in the face of adversity is truly inspiring.
[1] Gavrysh, O., Gavrysh, Y., Matiukhina, A., and Vasylets, I. 2024. The first year's impact of the full-scale war on Ukrainian business. Economics of Development 23(1): 18-29. DOI:https://doi.org/10.57111/econ/1.2024.18
[2] Kucherenko, S., Levaieva, L. and Krasnozhon, A. 2023. Financial and security factors of competitiveness of agricultural enterprises under martial law. University Economic Bulletin 18(3): 68-73. DOI:https://doi.org/10.31470/2306-546X-2023-58-68-73
[3] Vereshchahina, K. 2023. Problems of Legal Regulation of Bankruptcy during Armed Conflict. Social and Legal Studios 6(3): 201-8. DOI: https://doi.org/10.32518/sals3.2023.201

Published: 2024-06-28

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