Financial Instruments for Supporting Investment Activity as a Factor in Reducing Risks in a Wartime Economy

Abstract

The article examines the theoretical foundations and practical models of applying financial instruments to support investment activity in a wartime economy. The essence of a wartime economy as an extreme case of resource mobilization is revealed, and its impact on the transformation of the investment environment is determined: the formation of a complex of physical, legal, financial, operational, and sovereign risks that significantly restrain capital inflows. The main types of financial instruments – war risk insurance, state guarantees and compensations, concessional lending, tax incentives, blended finance mechanisms, and public-private partnerships – are systematized in terms of their capacity to mitigate specific investment risks during armed conflict. International experience of financial support for investments in countries that have been or are currently in a state of armed conflict (Israel, Croatia, Colombia, Rwanda) is analyzed, and key success factors of investment policy are identified, including the role of institutional reforms, European integration strategies, and defense-technology clusters. A critical assessment of the effectiveness of investment stimulation instruments operating in Ukraine during 2022–2025 is carried out, including the "Affordable Loans 5-7-9 %" program, the "eRobota" grant program, the Export Credit Agency, and the Partial Credit Guarantee Fund. It is established that no single instrument can overcome the complex investment barriers of wartime, and that effectiveness depends on a package combination of risk reduction measures, capital cost reduction, and strengthening of institutional guarantees. A prospective model of financial support for investment is substantiated, including the creation of a national war risk insurance pool, development of blended finance, activation of public-private partnerships, development of the domestic capital market, and ensuring institutional prerequisites for the protection of investor rights. The necessity of synthesizing international practices with national initiatives to form a comprehensive strategy for attracting capital is emphasized.