Sources of investment support for the oil and gas industry of Ukraine

Abstract

Investment stability of the oil and gas industry plays a key role in ensuring Ukraine's energy security in the face of economic turbulence. The purpose of the article is to define the structure, dynamics and efficiency of sources of investment support for the oil and gas industry of Ukraine in the context of a war economy and the transformation of energy markets. The focus is on financial instruments, institutional barriers and potential ways to modernize the investment mechanism in the context of the strategic goal of energy security. The research methods include a systematic approach, a structural-analytical method, methods of comparative and economic-statistical analysis, which allowed us to characterize current trends and challenges in investing in the oil and gas industry. The results of the study show that the structure of investment sources has undergone a significant transformation under the influence of military operations. State capital, in particular investments of the Naftogaz Group, plays a dominant role in financing the industry, while the share of private and international sources has sharply decreased due to risks and environmental instability. The main investment instruments were identified: profit reinvestment, state capital programs, bank loans, production sharing agreements and tax incentives, and their effectiveness was analyzed. A significant drop in capital investment volumes was recorded in 2022, with further growth in 2023, which indicates the industry's adaptability to wartime conditions and state support. Special attention was paid to investment barriers, including high war risks, infrastructure destruction, depreciation of funds, regulatory instability and unavailability of external financing. Based on the identified problems, practical recommendations were proposed: stabilization of the regulatory environment, expansion of cooperation with international institutions, activation of public-private partnerships, stimulation of private investment and modernization of industry infrastructure. The conclusions substantiate that stable development of the oil and gas industry is possible only under conditions of comprehensive renewal of the investment model with the involvement of new support mechanisms, fiscal predictability and strategic planning. The proposed recommendations can become the basis for the development of a national investment policy in the energy sector and ensuring long-term energy security of Ukraine.